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Regulatory Obligations

The new Anti-Money Laundering Regulations 2017 (the “Regulations”) expand the scope of the Cayman Islands Anti-Money Laundering (“AML”) regime and impose requirements on all Cayman domiciled funds (both regulated and unregulated) to appoint natural persons to perform the roles of AML Compliance Officer (“AMLCO”), Money Laundering Reporting Officer (“MLRO”) and Deputy MLRO (“DMLRO”) (together “AML Officers”).

The Cayman Islands Monetary Authority has issued a deadline of 30th September 2018 for all existing entities to appoint AML Officers. New entities registering as of 1st June 2018 must comply at the time of the submission of the registration application.

The same individual may act as AMLCO and either MLRO or DMLRO, however the roles of MLRO and DMLRO must be carried out by separate persons. The DMLRO must be of “similar status and experience to the MLRO”.

You can download a pdf version of our Cayman MLRO, Deputy MLRO and Compliance Officer Services brochure

AMLCO Role and Responsibilities:

The AMLCO will be the point of contact with supervisory and other competent authorities and will be responsible for reporting to the Board of Directors (the “Board”) on the fund’s systems and controls and AML/Combatting the Financing of Terrorism (“CFT”) compliance issues. The Board will be reliant on the information and recommendations of the AMLCO in order to satisfy itself that the fund’s statutory obligations are being met.

The AMLCO will be suitably qualified and have sufficient skills and experience in the area of compliance, particularly in the areas of AML and CFT. They will be of suitable seniority and authority for the Board to react to and act upon their recommendations.

AMLCO Activities:

In providing the AMLCO service KBA will:

  • Develop and maintain the fund’s systems and controls to prevent money laundering (“ML”) and terrorist financing (“TF”);
  • Report periodically to the Board on the fund’s systems and controls;
  • Respond promptly to requests for information from the relevant competent authorities;
  • Maintain logs including those with respect to politically exposed persons and requests from relevant competent authorities;
  • Advise the Board on AML/CFT compliance issues that require attention;
  • Ensure regular audits of the AML/CFT program.

MLRO/DMLRO Role and Responsibilities:

The MLRO/DMLRO must be independent and act autonomously. They are the point of contact for suspicious/unusual activity for all staff and will be responsible for filing suspicious activity reports to the authorities.

The MLRO/DMLRO will have sufficient expertise in the area of AML/CFT with the ability to identify suspicious activity and transactions. They too will be of suitable seniority and authority.

MLRO/DMLRO Activities:

In providing the MLRO/DMLRO service KBA will:

  • Be the point of contact for all suspicious activity reports;
  • Review and consider all suspicious activity reports to determine whether or not they give rise to knowledge or suspicion of ML/TF;
  • Report suspicious activity to the appropriate authorities.

KBA offers the provision of suitably qualified professionals to assume the roles of AMLCO, MLRO and DMLRO from its four person team, Clifford BurkeÁine SuttleDeirdre O’Callaghan and Angela Godfrey, dedicated exclusively to AML/CFT compliance.

The KBA AML team members have all been appointed by a number of global asset managers to act as MLROs to investment funds and to advise them on AML/CFT issues. They are responsible for providing guidance and expertise on AML/CFT documentation to fund boards, reviewing and testing the AML/CFT procedures of fund administrators, providing training to directors and reporting to the directors on AML/CFT compliance matters.

If you wish to discuss any of the above please contact Frank Connolly at frank.connolly@kbassociates.ie or on +353 1 667 1987.

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