EU AML Update: Solutions For Affected Cayman Securitisation Entities

The European Union (EU) is likely to place the Cayman Islands on its AML 'blacklist', which will have consequences for EU CLO managers that utilise Cayman securitisation vehicles, explains Kareem Robinson as he outlines practical solutions for affected entities.

The EU has proposed adding the Cayman Islands to its list of jurisdictions which have strategic deficiencies in their Anti-Money-Laundering / Counter Terrorist Financing (AML/CFT) regimes (the "EU AML blacklist").

The addition of the Cayman Islands to the EU AML blacklist is probable as it is not expected that there will be any objections from the European Parliament or the European Council. The Cayman Islands is therefore likely to be added to the EU AML blacklist in late February or early March 2022, 20 days after its addition to the list is published in the EU's Official Journal.