Amendments to the Proceeds of Crime Act

Further to our previous client alert, the Proceeds of Crime (Amendment) Act 2023 (the Amendment Act) was gazetted on 6 October 2023.

The Amendment Act signifies the commencement of a consent framework designed to introduce specific anti-money laundering (AML) defences conditional on obtaining consent for certain actions, which will be beneficial to financial institutions, particularly banks and payment service providers.

While the Amendment Act is not yet in force, the timing of its enactment will hinge on the availability of necessary resources within the Cayman Islands Financial Reporting Authority to support a functional consent regime. We anticipate that this may take some time to materialise.

The new framework will address the handling of Suspicious Activity Reports (SARs) and how they interact with the defences against money laundering offences. This includes clarifying the interplay between internal SARs and external ones and the implications for AML defences.

We will continue to monitor developments, and once the Amendment Act is in force, we will provide further insights as necessary. Should you have any queries or require further information in the interim, please reach out to your usual Harneys contact.