The Fifth Circuit was the first federal court of appeals to examine the extent to which the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 protects internal whistleblowers, or those who report violations of the securities laws to their supervisors rather than directly to the SEC, from retaliation
If there is a demand for a good or service, whether legal or not, it will be supplied by someone. This basic fact of life is understood by most people, except for those who believe in utopia or are so power-possessed that they deny reality. All too often, attempts by government to ban or regulate an activity make the situation worse.
The Cayman Islands, as a British Overseas Territory, has sanctions legislation enacted by a statutory instrument that is extended from the United Kingdom in this case the Ukraine (Sanctions) (Overseas Territories) Order 2014 which came into force on March 7, 2014, with immediate effect.2
It is time to fundamentally reevaluate the information exchange and reporting system that has grown up over the past two decades and begin the process of considering how to better meet the needs of the people these laws are meant to serve.
For more than five years, entities conducting relevant financial business in the Cayman Islands have been required to maintain an appropriate internal audit function to test and evaluate its anti-money laundering and anti-terrorist financing system of controls.
Financial system policymakers around the world continue to respond vigorously to the problems in financial markets, financial institutions, and financial system regulation and supervision brought into high relief by the 2007-2009 global financial crisis.
We have four decades of experience with anti-money laundering laws in the Unites States starting with the misnamed Bank Secrecy Act of 1970 (not counting the state AMLs before that). Any objective analysis would question the effectiveness of our approach.
The initial and on-going risk assessment is the foundation of any compliance system regardless of its scope. There are a number of compliance processes reliant on country risk assessments and a reasonable methodology for country risk assessment is vital.
In June 2013 the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-08, Financial Services – Investment Companies – Topic 946 – Amendments to the Scope, Measurement, and Disclosure Requirements (ASU 2013-08).
A generally accepted definition of a “beneficial owner” is “someone who has a level of control over or use of funds or assets in an account, or has control of a company, which allows that person to directly or indirectly control or manage the account or company.”
The convergence of anti-financial crime compliance is a much welcomed international development. It reflects a collective professional consciousness in this field, regardless of discipline, which is driven by logic and practical necessity.
The new agreement on global banking regulation known as Basel III has generated a spirited debate in the banking community and the financial press.
Given the intense political grandstanding that surrounded the G8 Summit in June, the likely benefit and cost of implementation of the various measures described was understandably hard to discern.
A Model I Intergovernmental Agreement (IGA) has been initialed with the United States the Cayman Islands funds industry now has the necessary information to move forward with U.S. FATCA compliance.
In February 2012 FATF published its revised International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation where Recommendation 1 and its Interpretative Notes referred to the need for countries to conduct and produce an assessment of the risks, to update that assessment and to make it available.
A number of recent proposals highlight two worrying trends in financial services regulation: the increased tendency for countries to build walls around their domestic operations and the tendency of regulators in the largest markets to exert control outside their borders.
In June 2010, I asked the owner of a Cayman registered agent to provide me with a copy of the register of members of a resident company, which any member of the public is entitled to – for a negligible statutory fee – under Section 44 of The Companies Law. He refused to do so, despite my repeated requests.