The Cayman Islands has received an invitation to join the Financial Action Task Force (FATF) as a guest member for the upcoming year, signaling a shift in diplomatic relations between the territory and global financial watchdogs. This marks a notable step in Cayman’s efforts to improve its global reputation regarding anti-money laundering practices.
Cayman had only been removed from the FATF’s ‘grey list’ of countries under heightened scrutiny for money laundering and terrorism financing in the previous year. The move came after significant reforms, including stricter reporting standards on company ownership and the creation of a new police unit focused on international financial crimes.
Financial Services Minister André Ebanks, currently attending the FATF plenary sessions in Paris, described the invitation as a “profound moment” for the Cayman Islands, highlighting the positive shift in its global standing.
“For the Cayman Islands to have its own seat at the FATF table, alongside G20 countries, is a clear indication of our strengthened international reputation,” said Ebanks.
The invitation allows Cayman to be recognized as a country with a voice in discussions that directly affect global financial standards, particularly regarding money laundering and terrorism financing prevention. This development was warmly welcomed by local industry leaders.
Steve McIntosh, CEO of Cayman Finance, emphasized the importance of having a seat at the table when decisions are made, stating, “It’s far better to be in the room when rules are being set than to be excluded and merely observe from the sidelines.”
Cayman, along with Senegal, will serve as guest members of the FATF for one year as part of a new initiative designed to increase the diversity of the organization beyond its 40 core members. As guest members, Cayman’s representatives will have the opportunity to participate in FATF meetings and working groups, influencing global standards on preventing financial crimes.
Financial services advocates in Cayman view this improved relationship with the FATF as a victory, highlighting the diplomatic efforts that have contributed to reshaping the island’s image as a business-friendly jurisdiction.
The FATF made the announcement on social media, stating that both Cayman and Senegal will share their experiences and promote the importance of combating financial crime in their respective regions.
Elisa de Anda Madrazo, the FATF’s new president, introduced the “regional bodies guest initiative” to expand the organization’s reach and give underrepresented regions a stronger voice in global financial crime prevention efforts.
Cayman Finance CEO McIntosh added that the invitation is a testament to the professionalism of the Cayman delegation and the mutual respect it has cultivated with the FATF community. Minister Ebanks is attending the plenary in Paris alongside Attorney General Samuel Bulgin and Cindy Scotland, president of the Cayman Islands Monetary Authority.
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