The Cayman Islands has frozen assets worth US$7.3 billion under the Russia sanctions enforcement. Cayman applies UK sanctions and has made more than 800 asset freeze designations against Russian individuals and entities.
Local financial services providers have submitted more than 400 compliance reporting forms to Cayman’s Financial Reporting Authority (FRA), which is in charge of sanctions enforcement.
FRA Director RJ Berry said in a statement, “The level of reporting to date is indicative that financial services providers are able to identify funds or economic resources owned or controlled, directly or indirectly, by designated persons and are freezing those assets or economic resources.
“The relevant agencies within the Cayman Islands also have a long-standing track record of responsiveness and cooperation with international counterparts and will continue to maintain that record in our approach to the Russia Sanctions.”
Recent UK amendments to the Russia (Sanctions) (EU Exit) Regulations are expected to be extended to the Cayman Islands via the Russia (Sanctions) (Overseas Territories) (Amendment) Order 2022, and will come into force on 14 April, 2022.
These amendments include new financial, trade, and maritime measures, and restrict specified financial services with the Russian Central Bank and other Russian Federation agencies.
The sanction measures apply in the Cayman Islands in the same way they do in the United Kingdom.
Sanctions Task Force established
The Cayman Islands government has established a task force to coordinate the implementation of the sanctions imposed on Russia, in response to its war in Ukraine.
The main purpose of the task force is to discuss and decide on policy and communications arising from the ongoing sanctions, the government said in a press release.
The task force is chaired by the FRA director. The Cabinet Office, as task force coordinator, facilitates and coordinates inter-agency cooperation, policy, and communications.
In addition, the task force includes representatives from the Governor’s Office, the Ministry of Financial Services and Commerce, the Cayman Islands Monetary Authority, the Civil Aviation Authority, the Maritime Authority, General Registry, Land Registry, Customs and Border Control and the Cayman Islands Bureau of Financial Investigations.
The task force meets on a weekly basis to review development and determine actions that need to be taken by each agency, domestically and internationally.
Premier Wayne Panton said the establishment of the task force demonstrated Cayman’s proactive approach to compliance with international sanctions.
“Collaboration and coordination between our public service entities has resulted in swift, unequivocal action,” he said. “Our commitment to robust regulations in the Cayman Islands financial services sector has ensured that we are able to contribute to international peacekeeping, global security, and good governance.”
Governor Martyn Roper said, “I am grateful for all the hard work that has gone into implementing Russia sanctions. This underlines the reputation of the Cayman Islands as a responsible and reputable financial center working to implement the highest standards.”
The government said it continues to monitor the global situation and will continue to issue sanctions updates primarily via the FRA and CIMA circulation lists and websites as advised by the Foreign, Commonwealth and Development Office.
April 7, 2022 Published by The Cayman Compass.