Archive for August, 2019

Law company register established in Cayman

Thursday, August 8th, 2019

All law firms and sole practitioners operating in the Cayman Islands must register with a new legal regulator before the end of this month, as government presses on with the job of meeting the latest international rules for the financial sector. The newly-registered Cayman Attorneys Regulatory Authority (CARA) has begun to build its regulatory oversight framework that includes the register aimed at helping fight money laundering.

In accordance with the Legal Associations Law, which came into effect in February, the Cayman Islands Legal Practitioners Association (CILPA) had formed CARA to supervise the functions and build the regulatory oversight framework. The framework includes law firms registration. CILPA has 546 members, which is approximately 80% of the lawyers working in Cayman.

Registering all lawyers is just one of many developments in the offshore sector because the Cayman Islands has to address the concerns raised by the most recent Caribbean Financial Action Task Force (CFATF) review until February 2020. The CFATF review identified risks and threats to numerous areas of the financial sector and related business such as real estate and precious metal brokers.

A newly-appointed national coordinator for the Anti-Money Laundering Steering Group (AMLSG), Elisabeth Lees, has spent the last few months working, along with the Anti-Money Laundering Unit, to coordinate action in the public sector in order to implement the recommendations in the CFATF report.

If Cayman fails to address problems defined in the review, the FATF could impose a remediation plan to its detriment.

As a result, a new working group has been created in order to fight proliferation financing, an area of focus in the CFATF report.