{"kind":"expression","expression":{"expr_id":"1987","doc_id":"1987","label":"Anti-Money Laundering (Amendment) Regulations, 2020 (SL 2 of 2020)","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/amending\/2020\/1002\/eng@2020-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/amending\/2020\/1002\", \"expression\": \"\/akn\/ky\/act\/amending\/2020\/1002\/eng@2020-01-01\", \"manifestation\": \"\/akn\/ky\/act\/amending\/2020\/1002\/eng@2020-01-01.pdf\"}, \"pdf\": {\"md5\": \"b73e381ccb8a251cba2f9f67cb60da0e\", \"path\": \"\/Users\/q\/kyleg-data\/working\/AMENDING\/2020\/2020-1002\/2020-1002.pdf\", \"pages\": 12, \"filename\": \"2020-1002.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 2485, \"paragraph_count\": 22, \"text_char_count\": 17159}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"Proceeds of Crime Law (2020 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) REGULATIONS, 2020 (SL 2 of 2020) SL 2 of 2020 PUBLISHING DETAILS Anti-Money Laundering (Amendment) Regulations, 2020 Arrangement of Regulations SL 2 of 2020 Proceeds of Crime Law (2020 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) REGULATIONS, 2020 (SL 2 of 2020) Arrangement of Regulations Regulation 1.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Amendment of regulation 2 of the Anti-Money Laundering Regulations (2018 Revision) - 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Anti-Money Laundering (Amendment) Regulations, 2020 Regulation 1 SL 2 of 2020 Proceeds of Crime Law (2020 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) REGULATIONS, 2020 (SL 2 of 2020) In exercise of the powers conferred by section 145 of the Proceeds of Crime Law (2020 Revision) the Cabinet makes the following Regulations \u2014\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Citation 1. These Regulations may be cited as the Anti-Money Laundering (Amendment) Regulations, 2020. 2. Amendment of regulation 2 of the Anti-Money Laundering Regulations (2018 Revision) - definitions 2. The Anti-Money Laundering Regulations (2020 Revision), in these Regulations referred to as the \u201cprincipal Regulations\u201d, are amended in regulation 2 as follows \u2014 (a) by deleting the definition of the words \u201cMoney Laundering Reporting Officer\u201d and substituting the following definition \u2014 \u201c\u201cMoney Laundering Reporting Officer\u201d means the \u201cnominated officer\u201d as defined in the Law and \u201cDeputy Money Laundering Reporting Officer\u201d shall be construed accordingly;\u201d; and (b) by inserting in the appropriate alphabetical sequence the following definition \u2014 Regulation 3 Anti-Money Laundering (Amendment) Regulations, 2020 SL 2 of 2020 \u201c \u201cproliferation\u201d means the development or production, or the facilitation of the development or production, of nuclear, radiological, biological or chemical weapons or systems for their delivery;\u201d.3.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Amendment of regulation 5 - systems and training to prevent money laundering 3. The principal Regulations are amended in regulation 5(a)(viiia) by deleting the words \u201cprocedures for the ongoing monitoring of business relationships or one-off transactions\u201d and substituting the words \u201cprocedures for the assessment of one-off transactions and the ongoing monitoring of business relationships\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Amendment of regulation 8 - assessment of risk 4. The principal Regulations are amended in regulation 8 by deleting the header and substituting the following header \u2014 \u201cPart III - Assessing Risk and Applying a Risk-Based Approach\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Insertion of regulation 8A - risk assessment of a country or geographic area 5. The principal Regulations are amended by inserting after regulation 8, the following regulation \u2014 \u201cRisk assessment of a country or geographic area 8A. (1) When assessing the risk of money laundering or terrorist financing in a particular country or geographic area and the extent of the measures which should be taken to manage and mitigate that risk, a person carrying out relevant financial business shall take account of credible sources related to \u2014 (a) money laundering; (b) terrorist financing; (c) proliferation financing; (d) corruption; and (e) any other criminal activity. (2) When conducting a risk assessment, a person carrying out relevant financial business shall not assess a country or geographic area as having a low risk of money laundering or terrorism financing where any of the following factors are present \u2014 Anti-Money Laundering (Amendment) Regulations, 2020 Regulation 6 SL 2 of 2020 (a) the country or geographic area has been identified by credible sources as not having effective systems to counter money laundering, terrorist financing and proliferation financing; (b) the country or geographic area has been identified by credible sources as having significant levels of corruption, terrorism and money laundering; (c) the country or geographic area is subject to sanctions related to its risk of money laundering, terrorist financing or proliferation financing by \u2014 (i) the United Kingdom; or (ii) the United Nations; (d) the country or geographic area has been identified by the Financial Action Task Force as a country or geographic area to which counter-measures or enhanced due diligence measures proportionate to the risks arising from the country or geographic area should be applied; and (e) the country or geographic area is subject to an Order made under section 201(3) of the Law. (3) In this regulation, \u201ccredible sources\u201d includes evaluations, detailed assessment reports or follow-up reports published by \u2014 (a) the Financial Action Task Force; (b) the International Monetary Fund; (c) the World Bank; (d) the Organisation for Economic Co-operation and Development; (e) the United Nations; or (f) any competent authority or government body designated in writing by the Cabinet.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Amendment of regulation 21 - simplified customer due diligence application 6. The principal Regulations are amended in regulation 21 as follows \u2014 (a) by repealing paragraph (1) and substituting the following paragraphs \u2014 \u201c(1) Notwithstanding Part IV, a person carrying out relevant financial business may apply simplified customer due diligence measures under this Part where it has identified and assessed a low level of risk in accordance with regulation 8. (1A) The simplified customer due diligence measures applied under paragraph (1) shall be commensurate with the lower risk factors Regulation 7 Anti-Money Laundering (Amendment) Regulations, 2020 SL 2 of 2020 identified in the risk assessment carried out in accordance with regulation 8.\u201d; and (b) in paragraph (4), by deleting the words \u201cmoney laundering and terrorist financing\u201d and substituting the words \u201cmoney laundering, terrorist financing and proliferation financing\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Amendment of regulation 22 - acceptable applicants 7. The principal Regulations are amended in regulation 22 as follows \u2014 (a) by renumbering the regulation as regulation 22(1); (b) in paragraphs (1)(d)(ii) and (iii) by deleting the words \u201cspecified in the list published by the Anti-Money Laundering Steering Group\u201d wherever they appear and substituting the words \u201cassessed by the person carrying out relevant financial business as having a low degree of risk of money laundering and terrorist financing\u201d; and (c) by inserting after paragraph (1) the following paragraph \u2014 \u201c(2) A person carrying out relevant financial business shall evidence in writing the basis for its determination of the applicability of paragraph (1) to the customer or applicant for business.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Amendment of regulation 23 - payments delivered in person or electronically 8. The principal Regulations are amended in regulation 23(1) by deleting the words \u201cspecified in the list published by the Anti-Money Laundering Steering Group\u201d and substituting the words \u201cassessed by the person carrying out relevant financial business as having a low degree of risk of money laundering and terrorist financing\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Amendment of regulation 53C - requirement to share information 9. The principal Regulations are amended in regulation 53C(1) by repealing paragraph (a) and substituting the following paragraph \u2014 \u201c(a) assessing money laundering, terrorist financing and proliferation financing risks; or\u201d. Anti-Money Laundering (Amendment) Regulations, 2020 Regulation 10 SL 2 of 2020\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Insertion of Part XIB - reporting requirements of supervisory authorities 10. The principal Regulations are amended by inserting after Part XIA, the following Part \u2014 \u201cPART XIB \u2013 Reporting requirements of Supervisory Authorities Supervisory authorities to submit annual report 53D. Every Supervisory Authority shall, no later than three months after the end of its financial year \u2014 (a) submit to the Steering Group an annual report on its activities; and (b) publish the annual report in such detail and manner as it thinks appropriate. Contents of annual report 53E. An annual report under regulation 53D shall contain information with respect to \u2014 (a) the number of persons under the supervision of the Supervisory Authority including the proportion of natural and legal persons; (b) the relevant financial business carried on by persons under the supervision of the Supervisory Authority and its methodology for risk-rating such persons; (c) the number of contraventions of the Regulations by persons under the supervision of the Supervisory Authority which the Supervisory Authority has identified; (d) the number of inspections of persons under its supervision for the purposes of the Regulations conducted by the Supervisory Authority; (e) the number and amount of fines imposed by the Supervisory Authority; (f) the number of times that the Supervisory Authority has exercised its enforcement powers; (g) the number of persons under the supervision of the Supervisory Authority who, following the exercise of enforcement powers by the Supervisory Authority, have contravened the requirements imposed by such enforcement measures; Regulation 11 Anti-Money Laundering (Amendment) Regulations, 2020 SL 2 of 2020 (h) the activities that the Supervisory Authority has engaged in to educate persons under its supervision with respect to their responsibilities under the Regulations; (i) anti-money laundering, combating terrorist financing, and combating proliferation financing training and development undertaken within the Supervisory Authority; (j) a summary of any money laundering, terrorist financing and proliferation financing risk assessments conducted for sectors under the supervision of the Supervisory Authority during the relevant period; and (k) any updates to the description of indications which may suggest that a transfer of criminal funds is taking place in the sectors under the supervision of the Supervisory Authority.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Amendment of regulation 55D - duties of Supervisory Authorities 11. The principal Regulations are amended in regulation 55D by repealing paragraph (2).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Amendment of regulation 55S - fine amounts 12. The principal Regulations are amended in regulation 55S by inserting after paragraph (1), the following paragraph \u2014 \u201c(1A) Notwithstanding section 43 of the Interpretation Law (1995 Revision), where the fine under paragraph (1) is imposed as an administrative fine by the Supervisory Authority, the fine is the exact amount stated in paragraph (1) and not the maximum amount.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Amendment of regulation 55Z - power to discount usual fine to reflect agreement 13. The principal Regulations are amended in regulation 55Z(2) by deleting the words \u201c55ZE,\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Amendment of regulation 55ZA - steps required 14. The principal Regulations are amended in regulation 55ZA(1)(b) by deleting the words \u201cor 55ZE\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Amendment of regulation 55ZC - requirements for breach notice 15. The principal Regulations are amended in regulation 55ZC(1) by repealing paragraphs (g) and (h) and substituting the following paragraphs \u2014 \u201c(g) that, for a discretionary fine, the party may give the Supervisory Authority a reply within the reply period under paragraph (2); Anti-Money Laundering (Amendment) Regulations, 2020 Regulation 16 SL 2 of 2020 (h) that, for a minor fine, the party shall rectify the breach and submit a rectification notice to the Supervisory Authority indicating that the breach has been rectified within thirty days of receipt of the notice.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Amendment of regulation 55ZD - duty to consider reply 16. The principal Regulations are amended in regulation 55ZD(1)(a) by deleting the words \u201cminor fine, minor fine (continuing) or\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Repeal of regulation 55ZE - rectification of a breach subject to a minor fine 17. The principal Regulations are amended by repealing regulation 55ZE and inserting immediately below the division heading \u201cImposing a fine\u201d, the following regulation \u2014 \u201cImposition of a minor fine or minor fine (continuing) 55ZE.(1) A Supervisory Authority designated for a DNFBP which issues a breach notice for a minor fine shall impose a fine in accordance with regulation 55S(1). (2) Where a breach notice is issued for a minor fine and a Supervisory Authority is not satisfied that the breach was rectified within thirty days of receipt of the notice, the Supervisory Authority may impose a fine in accordance with regulation 55S (2). (3) Where a Supervisory Authority designated for a DNFBP imposes a minor fine or a minor fine (continuing), it may decide that the fine is payable immediately on the giving of a fine notice or within a particular period stated in the fine notice.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Amendment of regulation 55ZF - decision about fine 18. The principal Regulations are amended in regulation 55ZF as follows \u2014 (a) in subsection (1) by repealing paragraph (c); and (b) by repealing subsection (2).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Amendment of regulation 55ZG - requirements for fine notice 19. The principal Regulations are amended in regulation 55ZG as follows \u2014 (a) in subsection (2) by repealing paragraphs (c) and (d); and (b) in subsection (3) by repealing paragraphs (a) and (b) and substituting the following paragraphs \u2014 \u201c(a) the date of the fine notice given for the relevant minor fine; (b) if a rectification notice was given within thirty days of the issue of a breach notice for the relevant minor fine, the reasons why the Supervisory Authority is not satisfied that the breach Regulation 20 Anti-Money Laundering (Amendment) Regulations, 2020 SL 2 of 2020 was rectified within thirty days of the issue of the breach notice; and (c) that the party may, within thirty days after receiving the fine notice, apply to the relevant person or body within the Supervisory Authority to review the decision to impose the fine.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Amendment of Schedule 2 - prescribed provisions and breach categories 20. The principal Regulations are amended in Schedule 2 as follows \u2014 (a) by deleting the reference to regulation \u201c53A\u201d in column 1 and \u201cMinor\u201d in column 2 and substituting the following \u2014 \u201c53A Very serious\u201d; (b) by deleting the reference to regulation \u201c55M\u201d in column 1 and \u201cMinor\u201d in column 2 and substituting the following \u2014 \u201c55M Very serious\u201d; and (c) by deleting the reference to regulation \u201c55O\u201d in column 1 and \u201cMinor\u201d in column 2 and substituting the following \u2014 \u201c55O Very serious\u201d. 21. Transitional provision 21. The matters under regulations 5, 7 and 8 of these amending Regulations shall not apply for a period of six months after the day on which these Regulations come into force. Made in Cabinet the 4th day of February, 2020. Kim Bullings Clerk of the Cabinet\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2020_01_01\", \"date\": \"2020-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_2020_01_01\", \"timeInterval\": [{\"end\": null, \"start\": \"#e_commence_2020_01_01\", \"duration\": null, \"refersTo\": \"#inForce\"}]}]}, \"classification\": null, \"identification\": {\"source\": \"#cilegis\", \"FRBRWork\": {\"FRBRuri\": \"\/akn\/ky\/act\/amending\/2020\/1002\", \"FRBRdate\": [{\"date\": \"2020-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/amending\/2020\/1002\/!main\", \"FRBRalias\": [{\"name\": \"cmsId\", \"value\": \"2020-1002\"}], \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRnumber\": \"1002 of 2020\", \"FRBRcountry\": \"ky\", \"FRBRsubtype\": \"amending\"}, \"FRBRExpression\": {\"FRBRuri\": \"\/akn\/ky\/act\/amending\/2020\/1002\/eng@2020-01-01\", \"FRBRdate\": [{\"date\": \"2020-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/amending\/2020\/1002\/eng@2020-01-01\/!main\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/act\/amending\/2020\/1002\/eng@2020-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/amending\/2020\/1002\/eng@2020-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"Anti-Money Laundering (Amendment) Regulations, 2020 (SL 2 of 2020)\", \"actNumber\": \"1002 of 2020\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nProceeds of Crime Law\n(2020 Revision)\nANTI-MONEY LAUNDERING\n(AMENDMENT) REGULATIONS, 2020\n(SL 2 of 2020)\nSupplement No.3 published with Legislation Gazette No. 7 dated 5th February, 2020.\n\u2000\n\nPage 2\nSL 2 of 2020\nc\n\nPUBLISHING DETAILS\n\nAnti-Money Laundering (Amendment) Regulations, 2020\nArrangement of Regulations\n\nc\nSL 2 of 2020\nPage 3\n\nCAYMAN ISLANDS\n\nProceeds of Crime Law\n(2020 Revision)\nANTI-MONEY LAUNDERING (AMENDMENT)\nREGULATIONS, 2020\n(SL 2 of 2020)\nArrangement of Regulations\nRegulation\nPage\n1.\nCitation ......................................................................................................................................5\n2.\nAmendment of regulation 2 of the Anti-Money Laundering Regulations (2018 Revision) -\ndefinitions ..................................................................................................................................5\n3.\nAmendment of regulation 5 - systems and training to prevent money laundering .......................6\n4.\nAmendment of regulation 8 - assessment of risk ........................................................................6\n5.\nInsertion of regulation 8A - risk assessment of a country or geographic area .............................6\n6.\nAmendment of regulation 21 - simplified customer due diligence application .............................7\n7.\nAmendment of regulation 22 - acceptable applicants .................................................................8\n8.\nAmendment of regulation 23 - payments delivered in person or electronically ............................8\n9.\nAmendment of regulation 53C - requirement to share information ..............................................8\n10.\nInsertion of Part XIB - reporting requirements of supervisory authorities ....................................9\n11.\nAmendment of regulation 55D - duties of Supervisory Authorities ............................................ 10\n12.\nAmendment of regulation 55S - fine amounts .......................................................................... 10\n13.\nAmendment of regulation 55Z - power to discount usual fine to reflect agreement ................... 10\n14.\nAmendment of regulation 55ZA - steps required ...................................................................... 10\n15.\nAmendment of regulation 55ZC - requirements for breach notice............................................. 10\n16.\nAmendment of regulation 55ZD - duty to consider reply ........................................................... 11\n17.\nRepeal of regulation 55ZE - rectification of a breach subject to a minor fine ............................. 11\n18.\nAmendment of regulation 55ZF - decision about fine ............................................................... 11\n19.\nAmendment of regulation 55ZG - requirements for fine notice ................................................. 11\n20.\nAmendment of Schedule 2 - prescribed provisions and breach categories ............................... 12\n21.\nTransitional provision ............................................................................................................... 12\n\nAnti-Money Laundering (Amendment) Regulations, 2020\nRegulation 1\n\nc\nSL 2 of 2020\nPage 5\n\nCAYMAN ISLANDS\n\nProceeds of Crime Law\n(2020 Revision)\nANTI-MONEY LAUNDERING (AMENDMENT)\nREGULATIONS, 2020\n(SL 2 of 2020)\nIn exercise of the powers conferred by section 145 of the Proceeds of Crime Law\n(2020 Revision) the Cabinet makes the following Regulations \u2014\n1.\nCitation\n1.\nThese Regulations may be cited as the Anti-Money Laundering (Amendment)\nRegulations, 2020.\n2.\nAmendment of regulation 2 of the Anti-Money Laundering Regulations\n(2018 Revision) - definitions\n2.\nThe Anti-Money Laundering Regulations (2020 Revision), in these Regulations\nreferred to as the \u201cprincipal Regulations\u201d, are amended in regulation 2 as follows \u2014\n(a)\nby deleting the definition of the words \u201cMoney Laundering Reporting\nOfficer\u201d and substituting the following definition \u2014\n\u201c\u201cMoney Laundering Reporting Officer\u201d means the \u201cnominated\nofficer\u201d as defined in the Law and \u201cDeputy Money Laundering\nReporting Officer\u201d shall be construed accordingly;\u201d; and\n(b) by inserting in the appropriate alphabetical sequence the following\ndefinition \u2014\n\nRegulation 3\nAnti-Money Laundering (Amendment) Regulations, 2020\n\nPage 6\nSL 2 of 2020\nc\n\n\u201c \u201cproliferation\u201d means the development or production, or the\nfacilitation of the development or production, of nuclear,\nradiological, biological or chemical weapons or systems for their\ndelivery;\u201d.3.\n3.\nAmendment of regulation 5 - systems and training to prevent money\nlaundering\n3.\nThe principal Regulations are amended in regulation 5(a)(viiia) by deleting the\nwords \u201cprocedures for the ongoing monitoring of business relationships or one-off\ntransactions\u201d and substituting the words \u201cprocedures for the assessment of one-off\ntransactions and the ongoing monitoring of business relationships\u201d.\n4.\nAmendment of regulation 8 - assessment of risk\n4.\nThe principal Regulations are amended in regulation 8 by deleting the header and\nsubstituting the following header \u2014\n\u201cPart III - Assessing Risk and Applying a Risk-Based\nApproach\u201d.\n5.\nInsertion of regulation 8A - risk assessment of a country or geographic\narea\n5.\nThe principal Regulations are amended by inserting after regulation 8, the following\nregulation \u2014\n\n\u201cRisk assessment of a country or geographic area\n8A. (1) When assessing the risk of money laundering or terrorist financing\nin a particular country or geographic area and the extent of the\nmeasures which should be taken to manage and mitigate that risk, a\nperson carrying out relevant financial business shall take account of\ncredible sources related to \u2014\n(a)\nmoney laundering;\n(b) terrorist financing;\n(c)\nproliferation financing;\n(d) corruption; and\n(e)\nany other criminal activity.\n(2) When conducting a risk assessment, a person carrying out relevant\nfinancial business shall not assess a country or geographic area as\nhaving a low risk of money laundering or terrorism financing where\nany of the following factors are present \u2014\n\nAnti-Money Laundering (Amendment) Regulations, 2020\nRegulation 6\n\nc\nSL 2 of 2020\nPage 7\n\n(a)\nthe country or geographic area has been identified by credible\nsources as not having effective systems to counter money\nlaundering, terrorist financing and proliferation financing;\n(b) the country or geographic area has been identified by credible\nsources as having significant levels of corruption, terrorism\nand money laundering;\n(c)\nthe country or geographic area is subject to sanctions related\nto its risk of money laundering, terrorist financing or\nproliferation financing by \u2014\n(i)\nthe United Kingdom; or\n(ii) the United Nations;\n(d) the country or geographic area has been identified by the\nFinancial Action Task Force as a country or geographic area\nto which counter-measures or enhanced due diligence\nmeasures proportionate to the risks arising from the country or\ngeographic area should be applied; and\n(e)\nthe country or geographic area is subject to an Order made\nunder section 201(3) of the Law.\n(3) In this regulation, \u201ccredible sources\u201d includes evaluations, detailed\nassessment reports or follow-up reports published by \u2014\n(a)\nthe Financial Action Task Force;\n(b) the International Monetary Fund;\n(c)\nthe World Bank;\n(d) the\nOrganisation\nfor\nEconomic\nCo-operation\nand\nDevelopment;\n(e)\nthe United Nations; or\n(f)\nany competent authority or government body designated in\nwriting by the Cabinet.\u201d.\n6.\nAmendment of regulation 21 - simplified customer due diligence\napplication\n6.\nThe principal Regulations are amended in regulation 21 as follows \u2014\n(a)\nby repealing paragraph (1) and substituting the following paragraphs \u2014\n\u201c(1) Notwithstanding Part IV, a person carrying out relevant financial\nbusiness may apply simplified customer due diligence measures\nunder this Part where it has identified and assessed a low level of\nrisk in accordance with regulation 8.\n(1A) The simplified customer due diligence measures applied under\nparagraph (1) shall be commensurate with the lower risk factors\n\nRegulation 7\nAnti-Money Laundering (Amendment) Regulations, 2020\n\nPage 8\nSL 2 of 2020\nc\n\nidentified in the risk assessment carried out in accordance with\nregulation 8.\u201d; and\n(b) in paragraph (4), by deleting the words \u201cmoney laundering and terrorist\nfinancing\u201d and substituting the words \u201cmoney laundering, terrorist\nfinancing and proliferation financing\u201d.\n7.\nAmendment of regulation 22 - acceptable applicants\n7.\nThe principal Regulations are amended in regulation 22 as follows \u2014\n(a)\nby renumbering the regulation as regulation 22(1);\n(b) in paragraphs (1)(d)(ii) and (iii) by deleting the words \u201cspecified in the\nlist published by the Anti-Money Laundering Steering Group\u201d wherever\nthey appear and substituting the words \u201cassessed by the person carrying\nout relevant financial business as having a low degree of risk of money\nlaundering and terrorist financing\u201d; and\n(c)\nby inserting after paragraph (1) the following paragraph \u2014\n\u201c(2) A person carrying out relevant financial business shall evidence in\nwriting the basis for its determination of the applicability of\nparagraph (1) to the customer or applicant for business.\u201d.\n8.\nAmendment of regulation 23 - payments delivered in person or\nelectronically\n8.\nThe principal Regulations are amended in regulation 23(1) by deleting the words\n\u201cspecified in the list published by the Anti-Money Laundering Steering Group\u201d and\nsubstituting the words \u201cassessed by the person carrying out relevant financial\nbusiness as having a low degree of risk of money laundering and terrorist\nfinancing\u201d.\n9.\nAmendment of regulation 53C - requirement to share information\n9.\nThe principal Regulations are amended in regulation 53C(1) by repealing paragraph\n(a) and substituting the following paragraph \u2014\n\u201c(a) assessing money laundering, terrorist financing and proliferation\nfinancing risks; or\u201d.\n\nAnti-Money Laundering (Amendment) Regulations, 2020\nRegulation 10\n\nc\nSL 2 of 2020\nPage 9\n\n10.\nInsertion of Part XIB - reporting requirements of supervisory authorities\n10. The principal Regulations are amended by inserting after Part XIA, the following\nPart \u2014\n\u201cPART XIB \u2013 Reporting requirements of Supervisory\nAuthorities\nSupervisory authorities to submit annual report\n53D. Every Supervisory Authority shall, no later than three months after the\nend of its financial year \u2014\n(a)\nsubmit to the Steering Group an annual report on its activities;\nand\n(b) publish the annual report in such detail and manner as it thinks\nappropriate.\nContents of annual report\n53E. An annual report under regulation 53D shall contain information with\nrespect to \u2014\n(a)\nthe number of persons under the supervision of the\nSupervisory Authority including the proportion of natural and\nlegal persons;\n(b) the relevant financial business carried on by persons under the\nsupervision of the Supervisory Authority and its methodology\nfor risk-rating such persons;\n(c)\nthe number of contraventions of the Regulations by persons\nunder the supervision of the Supervisory Authority which the\nSupervisory Authority has identified;\n(d) the number of inspections of persons under its supervision for\nthe purposes of the Regulations conducted by the Supervisory\nAuthority;\n(e)\nthe number and amount of fines imposed by the Supervisory\nAuthority;\n(f)\nthe number of times that the Supervisory Authority has\nexercised its enforcement powers;\n(g) the number of persons under the supervision of the\nSupervisory Authority who, following the exercise of\nenforcement powers by the Supervisory Authority, have\ncontravened the requirements imposed by such enforcement\nmeasures;\n\nRegulation 11\nAnti-Money Laundering (Amendment) Regulations, 2020\n\nPage 10\nSL 2 of 2020\nc\n\n(h) the activities that the Supervisory Authority has engaged in to\neducate persons under its supervision with respect to their\nresponsibilities under the Regulations;\n(i)\nanti-money laundering, combating terrorist financing, and\ncombating proliferation financing training and development\nundertaken within the Supervisory Authority;\n(j)\na summary of any money laundering, terrorist financing and\nproliferation financing risk assessments conducted for sectors\nunder the supervision of the Supervisory Authority during the\nrelevant period; and\n(k)\nany updates to the description of indications which may\nsuggest that a transfer of criminal funds is taking place in the\nsectors under the supervision of the Supervisory Authority.\u201d.\n11.\nAmendment of regulation 55D - duties of Supervisory Authorities\n11. The principal Regulations are amended in regulation 55D by repealing paragraph\n(2).\n12.\nAmendment of regulation 55S - fine amounts\n12. The principal Regulations are amended in regulation 55S by inserting after\nparagraph (1), the following paragraph \u2014\n\u201c(1A) Notwithstanding section 43 of the Interpretation Law (1995\nRevision), where the fine under paragraph (1) is imposed as an\nadministrative fine by the Supervisory Authority, the fine is the\nexact amount stated in paragraph (1) and not the maximum\namount.\u201d.\n13.\nAmendment of regulation 55Z - power to discount usual fine to reflect\nagreement\n13. The principal Regulations are amended in regulation 55Z(2) by deleting the words\n\u201c55ZE,\u201d.\n14.\nAmendment of regulation 55ZA - steps required\n14. The principal Regulations are amended in regulation 55ZA(1)(b) by deleting the\nwords \u201cor 55ZE\u201d.\n15.\nAmendment of regulation 55ZC - requirements for breach notice\n15. The principal Regulations are amended in regulation 55ZC(1) by repealing\nparagraphs (g) and (h) and substituting the following paragraphs \u2014\n\u201c(g) that, for a discretionary fine, the party may give the\nSupervisory Authority a reply within the reply period under\nparagraph (2);\n\nAnti-Money Laundering (Amendment) Regulations, 2020\nRegulation 16\n\nc\nSL 2 of 2020\nPage 11\n\n(h) that, for a minor fine, the party shall rectify the breach and\nsubmit a rectification notice to the Supervisory Authority\nindicating that the breach has been rectified within thirty days\nof receipt of the notice.\u201d.\n16.\nAmendment of regulation 55ZD - duty to consider reply\n16. The principal Regulations are amended in regulation 55ZD(1)(a) by deleting the\nwords \u201cminor fine, minor fine (continuing) or\u201d.\n17.\nRepeal of regulation 55ZE - rectification of a breach subject to a minor fine\n17. The principal Regulations are amended by repealing regulation 55ZE and inserting\nimmediately below the division heading \u201cImposing a fine\u201d, the following\nregulation \u2014\n\n\u201cImposition of a minor fine or minor fine (continuing)\n55ZE.(1) A Supervisory Authority designated for a DNFBP which issues a\nbreach notice for a minor fine shall impose a fine in accordance\nwith regulation 55S(1).\n(2) Where a breach notice is issued for a minor fine and a Supervisory\nAuthority is not satisfied that the breach was rectified within thirty\ndays of receipt of the notice, the Supervisory Authority may impose\na fine in accordance with regulation 55S (2).\n(3) Where a Supervisory Authority designated for a DNFBP imposes a\nminor fine or a minor fine (continuing), it may decide that the fine\nis payable immediately on the giving of a fine notice or within a\nparticular period stated in the fine notice.\u201d.\n18.\nAmendment of regulation 55ZF - decision about fine\n18. The principal Regulations are amended in regulation 55ZF as follows \u2014\n(a)\nin subsection (1) by repealing paragraph (c); and\n(b) by repealing subsection (2).\n19.\nAmendment of regulation 55ZG - requirements for fine notice\n19. The principal Regulations are amended in regulation 55ZG as follows \u2014\n(a)\nin subsection (2) by repealing paragraphs (c) and (d); and\n(b) in subsection (3) by repealing paragraphs (a) and (b) and substituting the\nfollowing paragraphs \u2014\n\u201c(a)\nthe date of the fine notice given for the relevant minor fine;\n(b) if a rectification notice was given within thirty days of the\nissue of a breach notice for the relevant minor fine, the reasons\nwhy the Supervisory Authority is not satisfied that the breach\n\nRegulation 20\nAnti-Money Laundering (Amendment) Regulations, 2020\n\nPage 12\nSL 2 of 2020\nc\n\nwas rectified within thirty days of the issue of the breach\nnotice; and\n(c)\nthat the party may, within thirty days after receiving the fine\nnotice, apply to the relevant person or body within the\nSupervisory Authority to review the decision to impose the\nfine.\u201d.\n20.\nAmendment of Schedule 2 - prescribed provisions and breach categories\n20. The principal Regulations are amended in Schedule 2 as follows \u2014\n(a)\nby deleting the reference to regulation \u201c53A\u201d in column 1 and \u201cMinor\u201d in\ncolumn 2 and substituting the following \u2014\n\u201c53A\nVery serious\u201d;\n(b) by deleting the reference to regulation \u201c55M\u201d in column 1 and \u201cMinor\u201d\nin column 2 and substituting the following \u2014\n\u201c55M\nVery serious\u201d; and\n\n(c)\nby deleting the reference to regulation \u201c55O\u201d in column 1 and \u201cMinor\u201d in\ncolumn 2 and substituting the following \u2014\n\u201c55O\nVery serious\u201d.\n21.\nTransitional provision\n21. The matters under regulations 5, 7 and 8 of these amending Regulations shall not\napply for a period of six months after the day on which these Regulations come into\nforce.\n\nMade in Cabinet the 4th day of February, 2020.\nKim Bullings\nClerk of the Cabinet","akn_extracted_at":"2026-06-22 15:43:46.859085+00","cms_id":"2020-1002","law_type":"amending","year":"2020","number":"1002","title":"Anti-Money Laundering (Amendment) Regulations, 2020 (SL 2 of 2020)","status":"spent"},"provenance":{"files":[{"file_id":"6772","expr_id":"1987","kind":"akn_xml","filename":"2020-1002.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2020\/2020-1002\/2020-1002.akn.xml","content_md5":"5fc9736ac84d74d58da34d781145f817","byte_size":"19819","http_last_modified":null,"fetched_at":"2026-06-22 15:43:46.954822+00"},{"file_id":"3973","expr_id":"1987","kind":"pristine_pdf","filename":"2020-1002.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2020\/2020-1002\/2020-1002.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/AMENDING\/2020\/2020-1002\/2020-1002.pdf","content_md5":"b73e381ccb8a251cba2f9f67cb60da0e","byte_size":"617995","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.14272+00"},{"file_id":"3974","expr_id":"1987","kind":"working_pdf","filename":"2020-1002.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2020\/2020-1002\/2020-1002.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2020\/2020-1002\/2020-1002.pdf","content_md5":"b73e381ccb8a251cba2f9f67cb60da0e","byte_size":"617995","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.14272+00"}],"paragraph_count":13,"latest_history":null},"quality":{"expr_id":"1987","doc_id":"1987","quality_state":"needs_review","quality_score":"84","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise}","llm_categories":"{}","repair_actions":"{collapse_duplicate_text,strip_page_furniture}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"repeated line furniture detected: cayman islands x3; proceeds of crime law x3; 2020 revision x3; duplicate-line ratio is 10.70%","assessed_at":"2026-06-22 15:29:46.241971+00","updated_at":"2026-06-22 15:29:46.241971+00"}}