The Cayman Islands Monetary Authority updated its anti-money laundering and sanctions rules FAQs to clarify how regulated entities should apply the new requirements, which took effect on Sept. 18, 2026. The guidance focuses on the authority’s risk based supervisory approach and independent AML audit requirements, confirming that firms do not need to conduct a new audit solely because the rules have taken effect. Audit timing and frequency should reflect each entity’s risk profile and established audit program, while audit scope, independence and reporting may vary according to the nature and risk of the business. Regulated entities remain accountable for compliance when AML functions are outsourced or performed by service providers. Deficiencies identified during an audit do not automatically invalidate it, as findings and remediation form part of the compliance process.
2026-09-24Cayman Islands Monetary Authority
Cayman Islands Monetary Authority updates AML and sanctions FAQs on risk based audit requirements
The Cayman Islands Monetary Authority updated its AML and sanctions FAQs to clarify risk based independent audit requirements under rules effective Sept. 18, 2026. Firms are not required to conduct a new audit solely because the rules took effect, and they retain responsibility for compliance when AML functions are outsourced.