(CNS): Since Russia’s sanctions were imposed in early March, more than US $ 8.4 billion and € 297.8 million in assets have been frozen in the Cayman Islands. The Financial Reporting Authority has received 801 Compliance Reporting Form (CRF) and 144 suspicious activity reports related to sanctions. This is more than US $ 1 billion more than originally reported in April by the Intergovernmental Task Force, which was established to coordinate the application of sanctions on Russia.
“Financial services providers continue to identify and report funds or economic resources that are directly or indirectly owned or controlled by a designated person and freeze their assets or economic resources.” FRA Director RJ Berry said.
The General Register, which registers domestic and international companies, and the Land Survey Office, which registers land transfers within the Cayman Islands, continue to check the database for an up-to-date list of authorized individuals and groups.
The Task Force stated that its goal was to consolidate the Cayman Islands’ understanding of exposure to individuals and groups designated and subject to sanctions under the Russian sanctions regime. We have also worked to ensure that relevant agencies are implementing sanctions effectively. As part of this mission, the Task Force has been actively monitoring changes made by the British government to the Russian sanctions regime.
Since February 2022, there have been 10 amendments covering various measures of the UK’s Russian (Sanctions) (EU Exit) Rule 2019. Of these, seven amendments have been expanded to the Cayman Islands. Amendments 1 have been automatically extended and Amendments 2 to 7 have been reflected in Russia (Sanctions) (Overseas Territories) (Amendment) Order 2022, which came into effect on April 14. Since the invasion of Ukraine, the British government has frequently updated Russia’s sanctions list with more than 1,600 designations.
Locally, the FRA and the Cayman Islands Monetary Authority (CIMA) continue to ensure that economic sanctions notices are posted and circulated in a timely manner so that affiliates can comply with their obligations.
Governor Martyn Roper said it was important that the Cayman Islands appear to be imposing sanctions in real time.
“The effective implementation of sanctions on the Cayman Islands has an international reputation as a responsible, efficient and professional financial services center, as confirmed by FCDO’s Foreign Minister Amanda Milling during his visit earlier this year. Is increasing, “he said. “My office will continue to support the Cayman Islands with this important task.”
To raise awareness of sanctions and their impact on local industry, the FRA’s sanctions coordinator participated in two outreach sessions in June. The first event was a presentation on the evolving sanctions situation, which provided important updates from the FRA.
The virtual session was hosted by the Faculty of International Financial Services (SIFS) and was attended by 140 people. This was followed by a panel discussion entitled “Cayman Sanctions: Basics and Beyond” hosted by the Cayman Islands Legal Practitioners Association and the Alternative Investment Management Association. The Task Force is primarily focused on carrying out missions within the Cayman Islands, but members are also enthusiastic about their obligations of international cooperation as needed.
Members of the Russian Sanctions Task Force consist of the Financial Reporting Authority (Chair), the Governor’s Office, the Legal Portfolio, the Ministry of Finance and Commerce, the Cabinet Office, the Cayman Islands Maritime Bureau, the Cayman Islands Currency Bureau, and the Cayman Islands Bureau. Financial Investigation, Customs and Border Control in the Cayman Islands, General Register, Civil Aviation Bureau and Land Investigation Bureau in the Cayman Islands.