New office bolsters Cayman’s defence against illicit finance and advances FATF effectiveness

The Cayman Islands Government has established the Office for Strategic Action on Illicit Finance (OSAIF), a centralised authority that reinforces the jurisdiction’s alignment with international standards, particularly those of the Financial Action Task Force (FATF).

Based within the Ministry of Financial Services and Commerce, OSAIF consolidates the nation’s strategic leadership, interagency coordination and operational delivery in anti-money laundering, counter-terrorist financing, and counter-proliferation financing (AML/CFT/CPF).

This move marks a strategic progression from policy development to demonstrable effectiveness, an essential benchmark under the FATF framework, the ministry said in a press release.

“The establishment of OSAIF reflects our unwavering commitment to effectiveness, not just technical compliance,” said the Premier and Minister of Financial Services André Ebanks MP. “We must demonstrate that the Cayman Islands can swiftly and cohesively respond to the evolving threats of illicit finance, while meeting the FATF’s expectations for tangible outcomes.”

The office’s remit includes oversight of the national coordination team preparing for the next Caribbean Financial Action Task Force (CFATF) evaluation in December 2027. This evaluation will assess the Cayman Islands’ effectiveness in achieving the FATF’s so-called immediate outcomes, which are key performance indicators used to measure how well countries prevent and combat illicit finance in practice.

In addition to national risk assessments, policy leadership and legislative coordination, OSAIF integrates the former Anti-Money Laundering Unit and other ministry experts to deliver progress across all AML/CFT/CPF functions.

“The FATF’s global standards continue to evolve, placing increasing emphasis on effectiveness,” the premier said. “OSAIF ensures we remain at the forefront of these developments, proactively mitigating risks, demonstrating impact and upholding our international reputation as a country of financial services integrity, particularly as we prepare for the 2027 CFATF Evaluation.”

By transitioning from fragmented functions to a unified strategic and operational centre, OSAIF solidifies the Cayman Islands’ ability to deter, detect and respond to illicit financial activity locally and globally, the ministry added.