CIMA Cayman Supervisory Circulars

Crisis Management Framework Circular Issued

The Cayman Islands Monetary Authority (CIMA) has issued a Supervisory Circular outlining its commitment to implementing a comprehensive Crisis Management Framework across the financial services industry. The circular emphasizes the importance of such frameworks for stability and resilience, with detailed rules and guidance expected in Q1 2025.

Virtual Asset Act Amendments Effective April 1, 2025

The Cayman Islands Monetary Authority (CIMA) is implementing Phase Two of the Virtual Asset Service Providers (VASPs) framework effective April 1, 2025. This brings new licensing obligations for entities providing virtual asset custody and trading platform services, along with amendments to the VASP Act including updated definitions and enhanced prudential requirements.

AML/CFT Weaknesses Found in 81% of Registered Persons

The Cayman Islands Monetary Authority (CIMA) reported that 81% of Registered Persons inspected between January 2022 and March 2024 showed weaknesses in their Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) controls. While improvements were noted in employee training and oversight, significant deficiencies persist, requiring RPs to strengthen their policies and procedures.

CIMA Circular: AML/CFT Supervision of Virtual Asset Service Providers

The Cayman Islands Monetary Authority (CIMA) issued a circular detailing its approach to Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) supervision for Virtual Asset Service Providers (VASPs). The circular outlines the risk-based approach, including on-site inspections and desk-based reviews, and the use of technology like the Strix SupTech software.

Crisis Management Framework and Recovery Planning Guidance Update

The Cayman Islands Monetary Authority (CIMA) has updated its guidance on crisis management and recovery planning. This circular reaffirms CIMA's commitment to implementation, building on previous consultations and technical assistance, and aims to embed a structured crisis management framework within the Cayman Islands.