In time to help fund Anti-Money Laundering (‘AML’) Officers meet the 31 December 2018 deadline for regulated funds to notify the Cayman Islands Monetary Authority (‘CIMA’) of their appointment of AML Officers, CIMA has published answers to Frequently Asked Questions (‘FAQs’) on matters relating to forms (‘MLO-154-99’) which need to be completed on CIMA’s Regulatory Enhanced Electronic Forms Submission (‘REEFS’) Portal. The forms relate to all AML Officers which are: Money Laundering Reporting Officer (‘MLRO’), Deputy Money Laundering Reporting Officer (‘DMLRO’) and the Anti-Money Laundering Compliance Officer (‘AMLCO’).

The FAQs – in brief
Below is a brief summary of the FAQs by way of introduction. Those needing to notify CIMA should check the FAQs in full, here.

1. How should the Authority be notified of a fund’s AML Officer appointment(s) and where is this form located?

All CIMA regulated funds must notify via the REEFS Portal using REEFS Request Form MLO-154-99.

2. While attempting to notify a fund’s AML Officer appointment the fund could not be located.

The service provider/organization may not be linked to the fund in REEFS and evidence such as an offering document, directors’ resolutions, or a consent letter may be required in order to proceed.

3. In circumstances at 2, can the AML Officer information be submitted to the Authority via email?

No. All CIMA regulated funds must notify via the REEFS Portal using REEFS Request Form MLO-154-99.

4. How is the progress and status of a REEFS filing for AML Officers confirmed?

The progress and status of the MLO-154-99 Form is visible within the REEFS portal.

When the form is completed the ‘In-Progress Requests’ -tab shows ‘Ready To Submit’. Once validated this changes to ‘Submitted’ in the ‘Submitted Requests’ tab. When complete the status changes to ‘Processed’.

5. An error was made with the MLO-154-99 Form filing. How can this information be updated?

Contact CIMA to reject the filing – do not submit a new MLO-154-99 Form. Make the necessary changes and resubmit.

6. Why was the MLO-154-99 Form rejected?

 

  • - MLRO and DMLRO are not two different people

  • - Duplicate forms submitted

  • - Discrepancies needed clarification

7. Why is CIMA requesting additional information in relation to the submission of the MLO-154-99 Form?

Discrepancies were found and clarification was necessary

8. Will the Authority issue REEFS access login credentials to an overseas service provider?

No. Currently, REEFS access is only granted to local service providers, so you need one with current REEFS access to file before the deadline of 31 December 2018

9. How does a local service provider which currently does not have access to REEFS obtain login credentials?

 

The administrator/user of any local service providers licensed or otherwise approved and authorized by CIMA with a physical presence in the Cayman Islands but which has not yet been granted REEFS access should contact CIMA at contactinvestments@cimoney.com.ky.

10. Is there a penalty/fine for notification of AML Officers after the deadline of 31 December 2018 for regulated funds?

CIMA has the right to impose administrative fines for AML breaches and may pursue further enforcement action.

11. Is there a penalty/fine for appointing AML Officers after the deadline of 31 December 2018 for unregulated funds?

CIMA has the right to impose administrative fines for AML breaches and may pursue further enforcement action.

12. What is the timeline in which CIMA should be notified on a change in AML Officer(s) and where Board Resolutions have been concluded?

Any changes to the appointed AML Officers requires the filing of a new MLO-154-99 Form via the REEFS Portal, within 21 business days of passing the Resolutions effecting the change(s).

 

Solomon Harris
Solomon Harris has many years’ experience in the preparation of all types of Cayman investment vehicles and advising on fund management and regulation. We are able to assess and advise on regulatory or legal issues which may affect those vehicles contact Solomon Harris Partner Richard Addlestone or Senior Associate Tom Wright.
Disclaimer
The information contained in this article is necessarily brief and general in nature and does not constitute legal advice. Appropriate legal or other professional advice should be sought for any specific matter.
 

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