International Cooperation
Sound, Secure and Competitive
The Cayman Islands’ approach to the development of the financial services sector recognises that an appropriate regulatory and legal environment is not an impediment to but rather a key driver of, commercial success. The Cayman Islands has progressively reinforced its regulatory and international cooperation regime to do its share with international partners in the global fight against financial crime.
As such, there are significant resources devoted to international cooperation within the industry regulator, the Cayman Islands Monetary Authority (CIMA) and law enforcement entities such as the Royal Cayman Islands Police Financial Crime Unit, the Financial Reporting Authority, the judiciary and the Attorney General’s chambers. In the area of cooperation in tax matters, The Tax Information Authority Law, 2005 provides the statutory framework for dealing with requests made under any international agreements entered into by the Cayman Islands for sharing information on tax matters.
The Cayman Islands has also been diligent in ensuring an appropriate regulatory framework. This includes adherence to international anti-money laundering standards and the relevant global regulatory standards set out by the Basel Committee on Banking Supervision, the International Organisation of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS).
A 2005 report released by the International Monetary Fund (IMF) assessing supervision and regulation in the Cayman Islands’ banking, insurance and securities industries, as well as its anti-money laundering regime, recognised the jurisdiction’s comprehensive regulatory and compliance frameworks.
“An extensive program of legislative, rule and guideline development has introduced an increasingly effective system of regulation, both formalising earlier practices and introducing enhanced procedures,” noted IMF assessors. The report further stated that “the supervisory system benefits from a well-developed banking infrastructure with an internationally experienced and qualified workforce as well as experienced lawyers, accountants and auditors,” adding that, “the overall compliance culture within Cayman is very strong, including the compliance culture related to AML [anti money-laundering] obligations…”IMF, Assessment of the Supervision and Regulation of the Financial Sector in the Cayman Islands (March 2005)
More information on anti-terrorist financing initiatives in the Cayman Islands.