Regulatory Blog

On 17 November 2023, the Cayman Islands Monetary Authority published a general industry notice, informing all registered virtual assets service providers that their annual renewal fees for the year 2024 (as specified in Schedule 2 of the Virtual Asset (Service Providers) Regulations, 2020) will be the same as the fees paid during the initial registration.

On 17 November 2023, the UK Office of Financial Sanctions Implementation (OFSI) and the Foreign, Commonwealth, and Development Office (FCDO) released joint guidance, addressing the implementation of the UK's ownership and control by public officials, within financial sanctions legislation. The guidance was issued following statements of the English Court of Appeal in the case Mints v PJSC National Bank Trust [2023] EWCA Civ 1132.

On 9 November 2023, the Cayman Islands Monetary Authority published a supervisory information circular, advising that it recently updated its guidance notes on the prevention and detection of money laundering and terrorist financing to incorporate e-KYC and remote CCD/ongoing monitoring provisions. The amendments, effective from August 2023, address queries from financial service providers seeking clarification on the compatibility of CIMA's anti-money laundering/counter financing of terrorism/counter proliferation financing supervisory framework with technological solutions for remote, virtual, or non-face-to-face onboarding and ongoing customer due diligence.

On 18 October 2023, the European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) jointly released an opinion regarding the proposed regulation on the digital euro, a central bank digital currency aimed at enabling electronic payments both online and offline.

On 8 November 2023, the Cayman Islands Monetary Authority published a general industry notice to advise that effective 15 November 2023, it will implement changes to enhance monitoring and reporting accuracy for Mutual Funds and Private Funds. These changes will impact the information required when registering funds.

Following the invasion of Ukraine by Russia, the UK Government, alongside the member states of the European Union, the United States of America and other global stakeholders issued significant new sanctions. View a table of all the sanctions here

On 6 October 2023, the E&W Court of Appeal issued a significant judgment in the case of Mints v PJSC National Bank Trust & Anor [2023] EWCA Civ 1132. As most relevant to sanctions practitioners, the case revolves around the "ownership and control" test under The Russia (Sanctions) (EU Exit) Regulations 2019.

The EU’s Digital Operational Resilience Act, known as “DORA,” was implemented through Regulation (EU) 2022/2554 and is set to become applicable on 17 January 2025. It aims to enhance the security of network and information systems in supporting the business processes of financial institutions across the European Union, in particular against cyber-attacks and similar threats.

On 27 October 2023, the Cayman Islands successfully achieved its goal of being removed from the Financial Action Task Force's "grey list" after two years of dedicated efforts. This achievement is the result of collaborative work by both public and private sectors, which worked to meet the global anti-money laundering standards set by the FATF. The Minister of Financial Services and Commerce, André Ebanks, expressed his delight at this accomplishment, highlighting the shared determination to shed the "grey list" status.