FinCEN Advisory for US Financial Institutions (2017-11-03)

Summary

This is a short notice published by the Cayman Islands Monetary Authority (CIMA) on 3 November 2017 that flags a U.S. advisory to the local banking industry. Specifically, CIMA is drawing attention to FinCEN Advisory FIN-2017-A006, issued by the U.S. Financial Crimes Enforcement Network on 20 September 2017, and provides a link to the original advisory on FinCEN's website.

• Relevance: CIMA notes that because many Cayman Islands bank licensees rely on U.S. financial institutions for correspondent banking services, they may be affected by or interested in the content of the FinCEN advisory, and should review it and act accordingly.
• Scope of notice: The notice itself does not summarize or reproduce the substance of the FinCEN advisory -- readers must follow the link to see what conduct or risks it addresses.
• Regulatory effect: This is purely an informational pass-through notice from CIMA; it does not itself create new regulatory requirements, but it signals that CIMA expects licensees to be aware of and consider the guidance in the referenced FinCEN advisory, particularly in relation to their U.S. correspondent banking relationships.

Key obligations

• Bank licensees using U.S. correspondent banking services should review FinCEN Advisory FIN-2017-A006 and be guided accordingly in their dealings with U.S. financial institutions.

Applies to

bank licensees