FSI Hosts Seminar on DAML Regime, Guiding Industry through Compliance Changes

The Cayman Islands Financial Services Institute (FSI) successfully hosted a seminar on the newly implemented Defence Against Money Laundering (DAML) regime at Hotel Indigo. With over 75 industry professionals in attendance, the event featured expert insights from regulatory and legal leaders, including Robert J. Berry, Róisín Liddy-Murphy, and Sandra Edun-Watler and Paul Byles.

This seminar follows key amendments to the Proceeds of Crime Act, which took effect on January 2, 2025. The updates introduce a “deemed consent” regime in line with changes to the Financial Action Task Force’s (FATF) Recommendation 4. These legislative developments aim to enhance Cayman’s anti-money laundering (AML) framework ahead of the 5th round of FATF assessment later this year and the 2026 evaluation, supporting the jurisdiction’s efforts to exit the FATF grey list.

Regulatory and Legal Perspectives on the DAML Framework

The seminar provided an in-depth look at the legislative changes, the process of obtaining consent, and the practical implications for financial institutions.

Keynote speaker and Director of the Financial Reporting Authority (FRA), Robert J. Berry, contextualised the amendments by discussing updates to FATF Recommendation 4, which requires jurisdictions to establish a mechanism for withholding consent or suspending transactions suspected of money laundering.

Berry outlined key differences between DAML and non-DAML SAR filings and provided guidance on the consent request process.

Róisín Liddy-Murphy, Partner and Head of Regulatory & Risk Advisory, Cayman Islands at Conyers, offered practical insights into the legal implications for regulated entities.

Industry Collaboration and Continuous Education

Speaking on the importance of ongoing education, Paul Byles, Director of FSI, emphasised the need for professionals to stay informed in a rapidly evolving regulatory landscape.

“Cayman’s regulatory framework continues to evolve as we prepare for the 5th round of FATF assessment. In this dynamic environment, it’s easy for financial entities to overlook critical updates that could lead to costly compliance missteps. That’s why continuous training is essential, even for seasoned professionals,” Byles noted. “The FSI is grateful to FRA Director Robert Berry and all our speakers and attendees for their valuable insights and engagement on this timely and important topic. Conversations like these are crucial in ensuring our industry remains well-informed and prepared for regulatory changes.”

Panel Discussion and Industry Engagement

The seminar concluded with a lively panel discussion, where industry experts explored the practical challenges of implementing the DAML regime and shared best practices for compliance. Attendees participated in a dynamic Q&A session, raising key questions on regulatory expectations, operational adjustments, and the broader implications of the new framework.