The Cayman Islands has been removed from the “grey list” of the Financial Action Task Force (FATF) — a welcome development hailed by the real estate sector as it is expected to have a positive impact on the local economy and help restore confidence among property investors.
ERA Cayman broker Jeanette Totten, who also served as CIREBA president for six terms, believes that this removal from the grey list is a reinforcement of the country’s sound reputation and assures foreign property investors that the Cayman Islands follows global best practices in terms of financial regulation and compliance.
“Large investors and developers are now more comfortable in planning their future long-term investments in the Cayman Islands,” she says.
The decision to delist the Cayman Islands was announced last October 27 during the FATF’s plenary in Paris, which was attended by representatives of Cayman’s financial services sector.
A global money-laundering watchdog, the FATF included the Cayman Islands in its grey list two years ago, primarily due to concerns regarding its anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
In response to this, the Cayman government promptly took action to address the deficiencies highlighted by the FATF and immediately implemented a comprehensive action plan that included enacting new legislation, setting up a police unit dedicated to investigating international financial crime, and strengthening regulatory standards for non-financial businesses and professionals that were previously not supervised under the anti-money laundering regime (such as attorneys, accountants, real estate developers, realtors, and precious metal dealers).
For the real estate sector, the enhanced regulations ensure transparency and accountability in property transactions, thereby reducing the risks associated with money laundering and other fraudulent activities. Investors can have greater confidence in the legitimacy of property deals and the security of their investments.
This increased safety and reliability is expected to attract more individuals and businesses to consider investing in Cayman’s thriving real estate market, opening up new and exciting opportunities for further growth and development.