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ARTICLE · 14 SEPTEMBER 2023

CIMA Amends Guidance To Accommodate E-KYC And Digital ID Systems

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At the end of August 2023, the Cayman Islands Monetary Authority updated its guidance on the use of e-KYC by Financial Service Providers.

Cayman IslandsFinance and Banking
Georgia Scott
Georgia Scott
Lisa Bowyer
Lisa Bowyer
Gavin Baxendale
Gavin Baxendale
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At the end of August 2023, the Cayman Islands Monetary Authority updated its guidance on the use of e-KYC by Financial Service Providers.

While the Cayman Islands Monetary Authority (CIMA) does not specially endorse the use of a particular system or provider, it has opened the door for financial service providers (FSPs) to apply their own risk-based approach to the selection and use of a system that best suits their own requirements.

The growth of e-KYC

The application of e-KYC (electronic-Know Your Client) has gathered pace around the world over the last few years as a method of either replacing or enhancing traditional KYC processes, accelerated by both the drive for efficiency in compliance processes and by events such as the COVID-19 pandemic. Whilst Cayman based FSPs are already able to use electronic identification documents per a risk-based approach to identification and verification, CIMA's most recent update is aimed at providing guidance on how a

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