The Appointment, Duties and Responsibilities of Anti-Money Laundering Officers (2021-06-07)

Summary

This is a General Industry Notice issued by the Cayman Islands Monetary Authority (CIMA) reminding all Licensees and Registrants carrying out relevant financial business of their existing obligations regarding the appointment and functioning of Anti-Money Laundering Officers (AML Officers) — namely Anti-Money Laundering Compliance Officers (AMLCOs), Money Laundering Reporting Officers (MLROs), and their Deputies. It does not create new rules but restates and emphasizes requirements already found in the Anti-Money Laundering Regulations (2020 Revision, as amended) and the accompanying Guidance Notes.

Fit and Proper Criteria for AML Officers

• Being suitably qualified and experienced
• Holding a management-level position reporting directly to the Board (or equivalent)
• Being natural persons
• Being autonomous decision-makers on suspicious activity reporting
• Having access to all relevant material needed to assess suspicious activity

The notice also stresses that AML Officers must have sufficient time to perform their duties, that other professional roles must not compromise their independence, and that they must understand the firm's transaction types and associated money laundering, terrorist financing, proliferation financing, and sanctions risks.

Finally, the notice clarifies that where the AML Officer function is outsourced, the Licensee or Registrant retains ultimate responsibility for AML/CFT compliance and must maintain adequate policies and procedures. No new deadlines or transition periods are introduced; this is a compliance reminder rather than a new rule-making instrument.

Key obligations

• Ensure AMLCOs, MLROs and their Deputies are aware of and act in accordance with their duties and responsibilities under the Anti-Money Laundering Regulations (AMLRs)
• Ensure appointment and day-to-day discharge of AML Officer functions comply with Regulations 3, 4, 33 and 34 of the AMLRs
• Ensure appointed AML Officers are fit and proper: suitably qualified and experienced, at management level reporting directly to the Board or equivalent, natural persons, autonomous in deciding whether to file suspicious activity reports, and able to access all relevant material for assessing suspicious activity
• Ensure AML Officers can dedicate sufficient time to their AML functions and that any other professional roles do not compromise their independence or ability to perform AML duties
• Ensure AML Officers are versed in the business's transaction types and related money laundering, terrorist financing, proliferation financing and sanctions risks
• Where the AML Officer function is outsourced, retain ultimate responsibility for compliance with the AMLRs and maintain adequate policies and procedures

Applies to

Licensees and Registrants carrying out relevant financial business