CRS And Economic Substance Developments In The New Compliance Culture

A current trend in global regulation is to ensure not only implementation of rules created by supranational bodies, but also of their application. By way of example, the Financial Action Task Force (FATF) or the relevant FATF-style regional bodies assess countries AML regimes globally on an ongoing basis, examining such regimes for both 'technical compliance' (i.e. whether the FATF recommendations have been implemented in local law) and 'effectiveness' (i.e. whether such local laws are being applied and enforced).

The Cayman Islands is recognised by the FATF as compliant or largely compliant with all 40 FATF technical compliance recommendations. Efforts to demonstrate effectiveness of the anti-money laundering regime in enforcing anti-money laundering, counter terrorist and proliferation financing requirements have been positively noted by the FATF. In the context of the FATF review of the Cayman Islands, the jurisdiction has recently seen increased enforcement