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Cayman Chamber Of Commerce Urges Government To Follow UK's Lead Over KYC

by Philip Morton, Investors Offshore.com

07 August 2003

The president of the Cayman Islands Chamber of Commerce, Conor O'Dea has written to the Caymanian government urging it to follow the UK's lead, and not to impose additional mandatory regulatory requirements on the jurisdiction's financial sector.

Following last month's announcement from the UK Financial Services Authority (FSA) that a proposed industry-wide 'know your customer' (KYC) review of existing banking customers will not now be imposed following the completion of a cost-benefit analysis, Mr O'Dea has written to the Leader of Government Business urging the Cayman government to follow suit.

In a letter to the Hon. McKeeva Bush on July 29, he observed that:

'The Cayman Islands have to-date been the leaders in implementing legislation imposing stringent regulations and requirements on the financial industry, due in no small part to pressure from foreign organisations and the UK Government,' continuing:

'Despite the concerns expressed of the financial industry as to the increased costs or doing business in the Cayman Islands, the inconvenience to our customer base and the lack of a level playing field with other competing countries (including the UK and the United States), we have forged ahead in implementing such legislation, not the least of which includes the amendment to the Money Laundering Regulations 2000 which created the very requirements that the UK's FSA has now determined not to impose on its financial industry. Cayman never had the benefit of adopting a similar approach by the UK, of undertaking an independent cost benefit analysis.'

Noting that although the jurisdiction should maintain its standards at internationally recognised levels, and honour its commitments to countering money laundering, he announced that the government also has a commitment to ensuring that Cayman remains at the cutting edge as a finance centre, and that it provides a business-friendly environment.

 

 






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