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ARTICLE · 22 OCTOBER 2026

Cayman Islands New AML Rule And New Sanctions Rule — Practical Guide For The Insurance Sector

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The Cayman Islands Monetary Authority has introduced new binding AML and Sanctions Rules for insurance sector licensees, elevating previously non-binding guidance to enforceable regulatory requirements. These Rules impose specific obligations around customer due diligence, risk assessments, independent audits, and sanctions screening, with varying applicability depending on whether insurers conduct 'relevant financial business' under the Proceeds of Crime Act.

Cayman IslandsInsurance
Lucy Frew
Lucy Frew
Gary Harris
Gary Harris
Erin Diachkoff
Erin Diachkoff
Juliana Tang
Juliana Tang
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KEY TAKEAWAYS

  • CIMA’s new AML Rule applies to CIMA licensees under the Insurance Act that are conducting 'relevant financial business' under the POCA. The Sanctions Rule applies regardless of whether or not such licensees are conducting relevant financial business.
  • The AML Rule imposes binding obligations on CDD, risk assessments, record-keeping and independent audits. The Sanctions Rule consolidates screening, reporting and asset-freezing requirements.
  • In scope CIMA licensees under the Insurance Act should assess their compliance frameworks against the new Rules ahead of any potential CIMA onsite inspection, desk-based review, thematic review and other supervisory engagement.

On 20 July 2026, Cayman Islands Monetary Authority's (CIMA) new Rule on Effective Compliance Programme for the Prevention and Detection of Money Laundering, Terrorist Financing and Proliferation Financing for Financial Services Providers (AML Rule) and a new Rule on Compliance with Financial

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