CI 2025–2026 National Risk Assessment Factsheet
The Cayman Islands has launched its 2025–2026 National Risk Assessment (NRA), a two-year initiative to strengthen our anti-money laundering, countering the financing of terrorism, and counter-proliferation financing (AML/CFT/CPF) framework.
The NRA assists the jurisdiction’s preparations for the 5th Round Caribbean Financial Action Task Force (CFATF) Mutual Evaluation, scheduled to begin in 2027. The NRA also reinforces the Cayman Islands’ reputation as a global financial services leader.
Objectives of the NRA
The 2025–2026 NRA is designed to achieve several core objectives:
- Risk Identification and Assessment: Provide a detailed, evidence-based understanding of current and emerging ML/TF/PF threats and vulnerabilities.
- Support for Risk-Based Policy Development: Inform national strategies, legislation, and supervisory frameworks that prioritize high-risk areas while streamlining compliance for lower-risk sectors.
- Global Standards Alignment: Maintain Cayman’s adherence to international standards, including the Financial Action Task Force (FATF) Recommendations.
- Reputation and Confidence: Demonstrate the Cayman Islands’ ongoing commitment to transparency, compliance, and global cooperation.
Stakeholder Roles and Participation
The NRA process is a collaborative effort involving stakeholders from both the public and private sectors:
|
Stakeholder |
Role in NRA Process |
|
Office for Strategic Action on Illicit Finance (OSAIF) |
Lead coordinator, methodology oversight, stakeholder engagement |
|
Government Ministries and Agencies |
Data collection, legislative support, inter-agency coordination |
|
AML/CFT Supervisors |
Supervisory insights, risk data, enforcement perspectives |
|
Private Sector Stakeholders |
Industry expertise, operational risk insights, compliance feedback |
|
Law Enforcement and Financial Intelligence Unit |
Threat detection, typology analysis, cross-border intelligence sharing |
Process and Timeline
The NRA will run over one year to ensure a comprehensive assessment:
|
Phase |
Timeline |
Key Activities |
|
Step 1: Planning and Process |
Jul–Sep 2025 |
Plan the risk assessment process and deliver virtual and in-person workshops to launch and guide the NRA process. |
|
Step 2: Inherent Risk Assessment |
Sep-Dec 2025 |
Develop and validate risk profiles for the National Inherent Risk Assessment, compile inherent risks, draft the risk assessment report, and design an outreach strategy to communicate the assessment results. |
|
Step 3: Residual Risk Assessment |
Dec 2025-Feb 2026 |
Assess Technical Compliance and Effectiveness, develop strategies and action plans, and present the National Residual Risk Assessment results through workshops. |
|
Step 4: National Action Plan |
Mar–Apr 2026 |
Prioritize residual risks, integrate measures into the 2025–2027 plan, develop action plans, and present results through a workshop. |
|
Step 5: Ongoing Risk-Based Approach |
Apr-Jun 2026 |
Build capacity to sustain risk assessments, implement the National Action Plan, and enhance risk-based supervision and profiling. |
Strategic Importance
- Directs resources to high-risk areas
- Clarifies compliance expectations for industry
- Shows international commitment to financial integrity
- Bolsters national economic drivers
Anticipated Outcomes
- Comprehensive, risk-based national strategy to combat financial crime
- Updated and more responsive regulatory frameworks
- Enhanced resilience and compliance across financial and non-financial sectors
- Stronger positioning ahead of the 2027 CFATF mutual evaluation
Next Steps
- Continued engagement with stakeholders through workshops, surveys, and consultations
- Periodic progress updates for the public and industry partners
- Developing threat/vulnerability/consequence profiles, and
- Public outreach on the findings and recommendations, once complete.
Frequently Asked Questions (FAQs)
Q: Which sectors are included in the assessment?
A: Financial Institutions (e.g., banking, securities and insurance sectors); Virtual Assets Service Providers; and DNFBPs (e.g., trust and company service providers, real estate agents and legal professionals). In addition, the entire Cayman Islands Government is involved in this exercise.
Q: How will private sector input be collected?
A: Private sector input will be collected through outreach sessions, templates, and workshops.
Q: Will the findings be public?
A: Yes, the main findings and recommendations will be released publicly, with sensitive data summarized to protect confidentiality. Where appropriate, outreach on the findings may be supplemented by sectoral briefs and typology case studies.
Q: How will this support the 2027 CFATF evaluation?
A: The NRA will directly support the 2027 CFATF evaluation by demonstrating compliance with Recommendation 1 and by providing a basis for applying a risk-based approach across the jurisdiction’s AML/CFT framework.
It will guide the deployment of resources, prioritization of national AML/CFT policies and ensure that proportionate mitigating measures are developed and implemented. These outcomes align with the objectives of Immediate Outcome 1, showing that the jurisdiction has assessed and understood its risks and applied resources and measures commensurate with them.
