The OECD has released the latest ratings against compliance with
FATF recommendations rating the Cayman Islands "Largely
Compliant". The rating places the Cayman Islands only
one level below the maximum rankings and places the jurisdiction in
the same category as countries such as the US, UK, and Germany.
In this latest ranking by the OECD, jurisdictions are evaluated
based on if they have been subject to Phase 2 reviews — a
more rigorous peer inspection on the effective compliance with the
recommendations. For a country to be subject to Phase 2
review it first has to achieve a certain level of compliance with
the Phase 1 review, which is focused on the laws and regulations
and their alignment with the recommendations.
The fact that a country has been subject to Phase 2 review is an
indication of its compliance with global standards, and only 50
jurisdictions have undergone Phase 2 reviews at this stage —
Cayman being one of them. We should be especially proud of
Of those 50 countries that have undergone Phase 2 reviews, four
are rated Non-Compliant, two Partially Compliant, 26 Largely
Compliant, and 18 Compliant.
The Cayman Islands Government should be commended, and Cayman
should continue to strive towards compliance with standards
providing that such standards are globally accepted and
While as a jurisdiction we want to ensure we attract the right
business to our shores, we also need to ensure there is a level
playing field with our competitors. Sometimes it may not be
in our best interest to lead certain initiatives unless we can be
assured these standards will be implemented across all
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about your specific circumstances.
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