Cayman Islands Building Regulatory Framework For VASPs.

An autonomous British Overseas Territory within the Caribbean, The Cayman Islands, is now building a regulatory framework for VASPs [Virtual Asset Service Providers].

Within a recent official announcement, the Caymans’ Ministry of Monetary Services has already published an initial set of rules that came into effect on 28th Oct.

These begin what the ministry calls “Phase One” of the framework, which can determine how the Caymans will regulate and enforce AML and countering the financing of terrorism [CFT] measures.

VASPs already working within the Caymans, or getting to, will require to notify and register with the CIMA [Cayman Islands Monetary Authority] and comply with the AML/CFT rule sets.

“Phase Two,” slated to return into force next June, will check out licensing requirements as well as “prudential supervision” for VASPs.

A new virtual assets bill to get in provisions to facilitate the phased rollout of the new rules was published last Thursday and can be presented at the subsequent sitting of the Cayman Islands legislature.

The Ministry added that the new framework will “strengthen” the government’s ability to draw new entities or individuals to line up base within the Caymans.

Phase One also comes as the Cayman Islands is being assessed by the FATF [Financial Action Task Force] as well as the CFATF [Caribbean Financial Action Task Force] on its efforts to combat proliferation financing [CPF] – that’s, funding of weapons of mass destruction.

The new rules aim to align businesses within the jurisdiction with the CFP, AML, and CFT rules, the Ministry ruled.

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