Terrorism Law (2018 Revision)

Summary

This document is the Terrorism Law (2018 Revision), the Cayman Islands' consolidated statute criminalising terrorism, terrorist financing and related conduct, and establishing law-enforcement and regulatory powers to prevent and investigate terrorism. It is a consolidation of the original 2003 Law as amended through 2017, revised as at 28 February 2018 (not itself new legislation). It applies generally to any person in or connected with the Islands, but has particular significance for the 'regulated sector' because it imposes AML/CFT-related disclosure and cooperation duties on those sectors.

• Regulated sector: Businesses regulated under laws such as the Banks and Trust Companies Law, Insurance Law, Money Services Law, Mutual Funds Law, Securities Investment Business Law, Companies Management Law, Building Societies Law and Cooperative Societies Law.
• Terrorism offences: Terrorism itself, weapons training, biological/nuclear/chemical weapons offences, directing a terrorist organisation, possession for terrorist purposes, inciting/organising/travelling for terrorism.
• Terrorist property offences: Soliciting, using, possessing, arranging for use of, or laundering terrorist property.
• Mechanisms and powers: Freezing terrorist funds, account monitoring orders, forfeiture of terrorist cash, terrorist investigations (including cordoned areas), and counter-terrorist police powers (arrest without warrant, search, stop-and-search authorisations, interception of communications, detention).
• Disclosure obligations: A general duty to disclose information about terrorism offences and acts, and specific duties applicable to the regulated and public sectors, together with a requirement to cooperate with the Reporting Authority and police.

Because this is a foundational criminal/regulatory statute rather than a notice or policy circular, it does not itself set periodic filing deadlines; instead it creates standing, ongoing duties (e.g., to disclose suspicious information, to comply with freezing/monitoring orders, to cooperate with investigations) that apply whenever the relevant circumstances arise. Compliance officers should treat it as background law underpinning CIMA's AML/CFT regime rather than as a document requiring routine periodic filings.

Key obligations

• Any person must disclose information relating to offences under Part II (terrorism, weapons training, WMD offences, directing/organising terrorism) and terrorist acts as soon as reasonably practicable once they know or suspect such information (duty to disclose under section 17).
• Persons must not solicit, use, possess, or arrange for terrorist property to be used for terrorist purposes, and must not engage in money laundering of terrorist property (sections 19-22).
• Persons in the regulated and public sectors have specific duties to disclose information about suspected terrorist property or terrorist financing under section 25 and Schedule 1.
• Persons must cooperate with the Reporting Authority and the police once a disclosure has been made (section 26).
• Persons and entities are subject to freezing of terrorist funds and must comply with any designation or freezing measures made by the Governor under Part IIIA/Schedule 4A.
• Persons and institutions must comply with account monitoring orders issued under Part IV where applicable (section 30, Schedule 4).
• Persons must comply with terrorist investigation powers, including production/disclosure of information requested under Part VII and Schedule 5.
• Persons must not obstruct or fail to comply with police powers of entry, search, stop-and-search, or arrest exercised under Parts VII-VIII.

Applies to

banks and trust companies, building societies, companies management providers, cooperative societies, insurance companies, money services businesses, mutual funds, securities investment business, general public/any person