Cayman prepares for FATF Assessment
The Financial Services Industry in Cayman is experiencing significant developments in various sectors. One of which is to strengthen the Regulatory Framework ahead of the upcoming Financial Action Task Force (FATF) 5th Round Mutual Evaluation in 2027. The Government of the Cayman Islands is ‘making commercial enhancements to sustain and attract innovation and investment in our financial services industry’ said the Premier and Minister for Financial Services, André Ebanks.
According to Cayman Finance – The Cayman Islands Government published two important legislative bills designed to ensure Cayman’s readiness for the Evaluation: The Churches Incorporation (Amendment) Bill, 2025 and The Virtual Asset (Service Providers) (Amendment) Bill, 2025.
The Churches Incorporation (Amendment) Bill, 2025 seeks to address a longstanding compliance issue. This bill ensures that churches registered as non-profit organisations (NPOs) are fully aligned with the registration and governance requirements of the Non-Profit Organisation Act. This amendment aims provide transparency and mitigate financial crime risk within the non-profit sector.
The Virtual Asset (Service Providers) (Amendment) Bill, 2025 aims to clarify the treatment of tokensied investment funds, where traditional equity or investment interests are represented digitally on a blockchain, bringing them within the scope of the Cayman Islands’ virtual asset regime.
According to FATF, the mutual evaluation report is an assessment of a country’s measures to combat money laundering and the financing of terrorism and proliferation of weapons of mass destruction. This includes an assessment of a country’s actions to address the risks emanating from designated terrorists or terrorist organisations. The mutual evaluation report is without prejudice to the status or justification that led to the designation of an entity as a terrorist or terrorist group or organisation.
The Cayman Government is dedicated to maintaining the Cayman Islands’ global standing and as such these Bills are only the first in a series of planned legislative enhancements (others include the DAML Regime and Beneficial Ownership Transparency) that form part of a broader agenda to align The Cayman Islands with international expectations whilst fostering innovation and investment in the financial services industry. Whilst also ensuring that The Cayman Islands maintains its status as a premier international financial centre, embracing technological innovations and fostering talent development.
At SteppingStones Recruitment, we see these regulatory advancements not only as a reinforcement of Cayman’s global credibility, but also as a catalyst for growth and opportunity across the financial services sector. As the jurisdiction continues to raise the bar on compliance and innovation, it also elevates the demand for high-quality professionals who can help businesses navigate and thrive in this evolving environment. We’re proud to support our clients and candidates through this dynamic period, connecting forward-thinking organisations with the skilled talent they need to lead with confidence in a globally respected financial hub.