Cayman Islands Requirement
Investment Management companies in the Cayman Islands normally require licensing under the Securities Investment Business Law (“SIBL”), however, management companies for funds are typically exempt due to the “sophisticated” and/or “high net worth” exclusions under SIBL.
Such companies must still comply with the AML/CFT requirements under the Proceeds of Crime Law, the Money Laundering Regulations and the Guidance Notes on the Prevention and Detection of Money Laundering and Terrorist Financing in the Cayman Islands. They must also file an annual registration form with the Cayman Islands Monetary Authority which discloses the name of an individual who serves as the MLRO.
DMS have a team of experienced AML/CFT experts who provide MLRO services. The MLRO will receive any internal Suspicious Activity Report (“SAR”), file a SAR with the Financial Reporting Authority when appropriate & keep relevant records. The MLRO will also deal with any queries related to the SAR from the Financial Reporting Authority.
Bespoke Compliance services are available on request.
Investment entities which are regulated by the Central Bank of Ireland are required to apply Irish Anti-Money Laundering (AML) and Countering of Financing of Terrorism (CFT) Legislation, and are considered Designated Persons thereunder.
The principal legislation is the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (the “Act”), as amended by the Criminal Justice Act 2013 (“CJA13”), which implements the Third Anti-Money Laundering Directive, (2005/60/EC), (the “Directive”). Designated persons are also expected to comply with the Department of Finance Guidance notes issued in February 2012 (“Core Guidance”) and the industry specific guidance notes, which, in the case of Investment entities/funds, the guidance is issued by the IFIA in December 2013 (“Sectoral Guidance”).
The Central Bank have made it very clear that the Board and Senior Management have responsibility to ensure full compliance with the Act and need to be satisfied on an ongoing basis that all policies and procedures are appropriate, relevant to the current business model and are fully applied. The Board is required to appoint a duly qualified and experienced MLRO.
DMS have a team of experienced AML/CFT experts who provide MLRO services. Working with the Fund Administrator who typically collects AML/CFT documentation from prospective investors as part of the subscription process, the MLRO ensures the appropriate procedures are in place and that internal escalation processes and processes for reporting to the Fund’s Board of Directors and governmental authorities are clearly documented and performed on a timely basis.