(CNS): The Financial Action Task Force plenary session wrapped up in Paris on Friday, but the Cayman Islands is still on the FATF “grey” list, meaning that this jurisdiction’s measures to combat money laundering and terrorist financing (AML/CFT) remain under increased monitoring. Although Cayman has “substantially completed its action plan”, it will not be removed from the list before a successful onsite assessment by FATF officials in late summer to verify the implementation and sustainability of the reforms.

Cayman is now very close to being delisted but is not completely out of the woods. Despite the local optimism, the FATF has implied that the visit is an important step in the removal process to ensure the commitment made to reform is a reality in practice.

A press release from the Ministry of Financial Services said that having “fully satisfied the action plan” set out by FATF, the Cayman Islands is eligible to be removed from the list of countries being monitored, subject to the “successful completion of an onsite visit”, which has been tentatively scheduled for late August or early September.

A report of the visit will then be presented at the next FATF plenary meeting, scheduled for October, at which the Cayman Islands will receive confirmation as to whether or not it will be delisted.

“Satisfying all of the 63 recommended actions is a major step towards the Cayman Islands being delisted,” said Financial Services Minister André Ebanks, who was in Paris this week leading the local delegation. “But, as is the case for other listed countries that met this milestone, there is one more step to complete, and all relevant stakeholders need to remain focused.”

In a summary of the situation in the Cayman Islands, the FATF listed the key reforms that have been rolled out to strengthen the effectiveness of its AML/CFT regime. It found that Cayman has implemented administrative penalties and enforcement actions against obliged entities to address breaches in a timely manner. The jurisdiction has also committed to the effective prosecution of all types of money laundering in line with its risk profile.

Attorney General Sam Bulgin said preparations were already underway for the onsite visit. “The FATF process is rigorous with reason. Its purpose, among other things, is to ensure that local authorities can effectively deter, detect, investigate and prosecute serious crimes,” he said.

Cayman Finance CEO Steve McIntosh said the organisation recognised that there was still work to be done during the upcoming onsite inspection. However, he welcomed the FATF announcement, and on behalf of Cayman Finance’s board and members, he congratulated “the entire government delegation and all those in the many departments and agencies that contributed to reaching this milestone on the road to delisting”.

Cayman Finance Board Chairperson Conor O’Dea said the announcement was testament to the perseverance of both the government and the private sector.