GEORGE TOWN, Grand Cayman (HedgeWorld.com)–A team from the International Monetary Fund, Washington, completed an inspection of supervision and regulation of the financial sector of the Cayman Islands and concluded that the systems in place operate well within accepted international standards.
Jonathan Law, an associate at Conyers Dill & Pearman, an international law firm headquartered in Bermuda but with an office in the Caymans, said in a statement March 23, 2005, that the IMF team comprised a cross-section of experts from both the IMF itself and the global financial services industry and that it measured the Caymans’ system against the standards of the Basel Committee, the International Association of Insurance Supervisors, the International Organization of Securities Commissions and the Financial Action Task Force.
Mr. Law quoted Cindy Scotland, managing director of Cayman Islands’ Monetary Authority, who said that the IMF report demonstrates “how well the Cayman Islands’ approach to supervision and regulation is working, by ensuring the right balance between interests of government, regulators, the international community and the financial services industry.”
The report cautioned that it was giving the views of the staff team only and doesn’t necessarily reflect those of the IMF’s executive board.
The team did find room for improvements. It said that the anti-money laundering regime, for instance, is “rather complex, and both framework and implementation should be reinforced by consolidating legal provisions, extending international conventions, and strengthening and clarifying requirements in the areas of preventive measures and proceeds tracing.”
The team also suggested that the authorities in the Caymans could address staff shortages and improve their cooperation with other international regulators.
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