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Insights

Insights

Enhanced AML supervisory powers given to CIMA under money laundering legislation
Fund Services

Enhanced AML supervisory powers given to CIMA under money laundering legislation

Under recent changes to the Cayman Islands Anti-Money Laundering Regulations, the powers of the Cayman Islands Monetary Authority (CIMA), as the supervisory authority for anti-money laundering in the Cayman Islands, have been enhanced to allow CIMA to obtain information in relation to any relevant financial business from a broader category of persons than was previously the case.

Economic substance in the Cayman Islands
Fund Services

Economic substance in the Cayman Islands

The International Tax Co-operation (Economic Substance) Law (the ES Law) was introduced in the Cayman Islands on 1 January 2019 in response to OECD’s Base Erosion and Profit Shifting framework and related EU initiatives in relation to what are known as ‘Geographically Mobile Activities’. Under the ES Law any relevant entity which carries on a relevant activity and receives relevant income in a financial period must satisfy the economic substance test in relation to that activity (ES Test) and make an annual filing with the TIA. Aside from the basic filing requirements, a relevant entity which does not carry on any relevant activity is not required to satisfy the ES Test. Harneys has issued a guide to assist directors and operators of Cayman Islands companies and limited liability partnerships.

The Cyprus Bar Association issues guidance on terrorist financing risk assessment
Compliance Solutions

The Cyprus Bar Association issues guidance on terrorist financing risk assessment

The Cyprus Bar Association has issued guidance on identifying, assessing and understanding the risk of terrorist financing in financial centres, the contents of which have been reviewed and endorsed by MONEYVAL.

CySEC’s circular – Guidelines on complex debt instruments and structured deposits
Compliance Solutions

CySEC’s circular – Guidelines on complex debt instruments and structured deposits

The Cyprus Securities and Exchange Commission issued a circular on 19 December 2018 reminding Cyprus investment firms and alternative investment fund managers of the European Securities and Markets Authority Guidelines on complex debt instruments and structured deposits.

Publication of the Sixth Anti-Money Laundering Directive
Compliance Solutions

Publication of the Sixth Anti-Money Laundering Directive

The EU published the Sixth Anti Money Laundering Directive on 12 November 2018 in its Official Journal, adding to the criminal law-related provisions of the Fifth Anti Money Laundering Directive as adopted by EU member states in May 2018. Amongst other provisions, a maximum term of imprisonment of four years for individuals has been introduced, in addition to further financial-oriented measures that could be imposed, such as fines and exclusion from access to public funding for legal persons.

Cypriot authorities issue advisory on Iran
Compliance Solutions

Cypriot authorities issue advisory on Iran

Various key Cypriot competent authorities issued, in November 2018, advisories relating to the reimposition of certain US sanctions on Iran and pronouncements by FinCEN as well as a recap on the current state-of-play in the EU on doing business in Iran, including reminders on the so-called EU-Blocking Regulation.