Annual AML Return 2024

Please complete and submit this Anti-Money Laundering (“AML”), Counter Terrorism Financing (“CTF”), Counter Proliferation Financing (“CPF”) and Targeted Financial Sanctions (“TFS”) Return (collectively referred to as “AML Return”) in accordance with the requirement under the Anti-Money Laundering Regulations (2020 Revision) (“AMLRs”) of the Cayman Islands to produce information to the Supervisory Authority, Cayman Attorneys Regulation Authority (“CARA”), specific to AMLR 55E (2) (h).

All attorney-at-law firms (including sole practitioners) conducting ‘relevant financial business’ (“RFB”), as defined in Schedule 6 of the Proceeds of Crime Law (2020 Revision) (“POCL”) of the Cayman Islands, must complete an AML Return on an annual basis and submit it to CARA by the deadline stated.

Who is not required to complete an AML Return?

If any of the following apply to you or your firm, you will not need to submit an AML Return:

• You have sold or closed your practice and have notified CARA
• Your practice merged with or was acquired by another practice, and you have notified CARA.
• You did not provide any ‘relevant financial business’ during the Relevant Period and are registered with CARA as a Non-RFB firm.
• You are registered with CARA as in-house counsel.
• You are registered with CARA as an RFB firm, and your practice commenced trading after 31 December 2023. (Please note you will need to complete an AML Return next year).

Important Information (please read before completing the Return)

• The information in the AML Return, enables CARA to:

i. assess inherent money laundering (“ML”), terrorism finance (“TF”), proliferation finance (“PF”) and sanctions risks both within individual supervised firms/sole practitioners and across the supervised legal sector. The results of any analysis inform our risk-based approach to supervision and monitoring, and ensure we apply our resources commensurate with risks posed;

ii. obtain data for both regulatory reporting and for national and sectoral risk assessment purposes;

iii. determine if firms and sole practitioners need any extra assistance in meeting their AML compliance obligations; and

iv. improve and direct our guidance and outreach to firms and sole practitioners.

• While we understand that exact numbers may be difficult, you or your firm must provide absolute figures where possible and to the best of your capability. You or your firm should be able to provide reasonable justification for any estimates to CARA, if requested.
• Responses to the questions in the AML Return should only refer to your RFB clients and their associated matters. Please do not include any legal services in your answers that fall outside the scope of RFB.
• The Relevant Period covered by the questions in this Return is 01 January 2023 to 31 December 2023.
• If your Firm is part of a multi-domiciliary/multinational with a separate legal entity outside of the Cayman Islands, you should answer the questions to the extent they pertain to the Cayman Islands legal entity. However, where your Firm is a parent to any subsidiary (which is a law firm) conducting RFB, you must capture that subsidiary’s business in this AML Return if the fees go through the parent entity. This covers overseas subsidiaries providing legal services, not Cayman-based Trust and Company Service Providers that are regulated by CIMA.
• Further help and information can be found in our FAQ sheet available on our website.

Deadline for submission

Please complete and submit this AML Return on or before TBD.

Please do not return paper copies as submissions. All submissions must be made electronically via our website.

Penalties for not submitting an AML Return

Should you fail to submit an AML Return by the deadline stated and we give you formal written notice such that you are required to submit a Return (under Regulation 53(A)), you may be fined.

It is also an offence to give false or misleading information in your AML Return (or to contravene the AMLRs, see Regulation 56).