Rules for Registered Funds amended by CIMA
Law firm Conyers Dill and Pearman was recently responding to recent changes to the Cayman Islands Monetary Authority (CIMA) Guidance Notes with regard to Prevention and Detection of Money Laundering and Terrorist Financing.
The law firm has suggested that the amendment requires each registered fund to appoint a Compliance Officer by resolution as well as to ensure that the officer’s role is precisely defined.
According to Conyers Dill and Pearman, funds must appoint a Compliance Officer and a Money Laundering Reporting Officer who:
has sufficient skills and experience;
reports directly to the fund’s governing body;
has sufficient seniority and authority;
has regular contact with the governing body;
has sufficient resources;
has unfettered access to all business lines, support departments and information necessary to perform the function.
According to the Guidance Notes, the role of the Compliance Officer is to:
develop and maintain systems and controls (including documented policies and procedures) in line with evolving requirements;
ensure regular audits of the fund’s anti-money laundering and countering the financing of terrorism program;
advise the Operator of the fund of anti-money laundering/ countering the financing of terrorism compliance issues that need to be brought to its attention;
report periodically, as appropriate, on the fund’s systems and controls; and
respond promptly to requests for information by the relevant authorities.