CILPA is the designated professional supervisory body for firms of attorneys and sole practitioners in the Cayman Islands. Such designation was granted in February 2019 by Cabinet Order pursuant to section 4(9) of the Proceeds of Crime Law (2019 Revision), which states that:
“The Cabinet may assign to the Financial Reporting Authority, a public body or a self-regulatory body the responsibility of monitoring compliance with money laundering regulations made under this Law in relation to persons conducting “relevant financial business”, who are not otherwise subject to such monitoring by the Cayman Islands Monetary Authority.”
In connection with the above designation, CILPA has also been assigned as the supervisory authority for firms of attorneys under section 55B(c) of the Cayman Islands Anti-Money Laundering Regulations (2018 Revision) (as amended) (the "AMLRs"), which states that:
“The following bodies are designated as Supervisory Authorities of the DNFBPs …. a public body or self-regulatory body assigned by Cabinet by Order - for firms of attorneys at law that engage in or assist other persons in the planning or execution of relevant financial business, or otherwise act for or on behalf of such persons in relevant financial business.”
Pursuant to the above mentioned legislation, the Cabinet designation was published in the Cayman Islands Extraordinary Gazette No. 26/2019 dated Wednesday 10 April 2019 (please see page 5) and CILPA was directly advised of the designation by the Cayman Islands Attorney General.
CILPA established a subcommittee to enable it to carry out its responsibilities as a self-regulatory body under the name of the Cayman Attorneys Regulation Authority ("CARA"), which is to function as an independent board comprised of persons with regulatory, legal, government and law enforcement expertise. The CARA board members will, amongst other things, oversee staff members responsible for: (a) producing guidance (b) supervision; (c) enforcement; and (d) liaising with law enforcement and other competent authorities.
CILPA also established another subcommittee to demonstrate CILPA’s commitment to the Caribbean Financial Action Task Force evaluation process and to enable CILPA to support it members through the supervisory process under the name of the CILPA CFATF Subcommittee (“CILPACS”). CILPACS is made up of legal industry volunteers focusing on industry outreach, training, communication, support and resources.