Financial Reporting Requirements in the Cayman Islands

The Financial Reporting Authority (FRA) of the Cayman Islands was established under The Proceeds of Criminal Conduct (Amendment) Law 2003, ("PCCL"). This body is a combination of two agencies: the first being the Reporting Authority which is the body created by the PCCL to receive suspicious activity reports (SARs) from the financial service industry and other business sectors. The second agency is the Royal Cayman Islands Police Service, who have an investigative role in following up on SARs.

The FRA is the intelligence component at the heart of the Cayman Islands fight against money laundering and the financing of terrorism. It is responsible for receiving suspicious reports from the industry process and analyzing this information. The product of the FRA's work may then be disseminated to the most appropriate agency (e.g. police, customs, or immigration) to investigate further, with a view toward preparing the way for a possible prosecution.

The Cayman Islands was admitted to the Egmont Group in 2001. The Egmont Group is the international body which promotes the standards of, and cooperation between, national financial intelligence units such as the Cayman Islands FRA.

The FRA is governed by the Anti-Money Laundering Steering Group ("AMLSG") which is chaired by the Hon. Attorney General. Other members of the AMLSG include the Hon. Financial Secretary, the Managing Director of the Cayman Island Monetary Authority, the Commissioner of Police, Solicitor General and the Collector of Customs.