CAYMAN ISLANDS: Govt Warns for Crypto-Compliance with AML Standards.

As published on caymancompass.com, Friday November 22, 2019.


The Ministry of Financial Services has issued a statement saying the Cayman Islands is committed to implementing global anti-money laundering standards for crypto assets set out by the Financial Action Task Force. This includes recent FATF recommendations about to the regulation and supervision of virtual assets and the provision of virtual asset services.

The ministry said government is currently preparing a legislative framework to enable compliance of virtual asset service providers with these international measures.

Services in connection with virtual assets, such as cryptocurrencies like bitcoin, already have to conduct customer due diligence under Cayman law.

The ministry reminded the public that under the Proceeds of Crime Law providing virtual asset service is already considered to be “relevant financial business” that requires compliance with the Anti-Money Laundering Regulations. “Virtual asset service providers are therefore obligated to take preventative measures under the Anti-Money Laundering Regulations, including customer due diligence.”

Under the Proceeds of Crime Law, “virtual asset” means a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes.

Anyone engaged in virtual asset services in or from within the Islands is therefore to the provisions of the anti-money laundering regulations and all other applicable laws, the ministry said.

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