The Financial Action Task Force of Latin America, in coordination with the Cayman Islands Office of Strategic Action against Illicit Finance, conducted an unannounced simulation on Sept. 3-4 to assess the jurisdiction’s implementation of targeted financial sanctions under Financial Action Task Force Recommendation 6. The exercise identified good practices and areas for improvement in the Cayman Islands’ counterterrorist financing framework, although the specific findings were not disclosed. Using a potential match under the United Nations Security Council Resolution 1267 sanctions regime, the exercise tested the ability to impose sanctions without delay. It assessed coordination among authorities, dissemination of sanctions list updates, communication with reporting entities and asset freezing procedures. Financial institutions, nonfinancial entities and virtual asset service providers participated, allowing GAFILAT to evaluate response times, procedural consistency and operational readiness ahead of the Cayman Islands’ mutual evaluation in 2027.
Financial Action Task Force of Latin America assesses Cayman Islands targeted financial sanctions framework in unannounced simulation
The Financial Action Task Force of Latin America conducted an unannounced simulation of the Cayman Islands’ implementation of targeted financial sanctions under FATF Recommendation 6. The exercise identified good practices and areas for improvement in coordination, response times, procedural consistency and asset freezing ahead of the jurisdiction’s 2027 mutual evaluation.