A new anti-money laundering (AML) regulator has been established in the Cayman Islands to supervise firms in the legal services sector.

Until now, lawyers conducting relevant financial business in the Cayman Islands were previously supervised for AML compliance by the Cayman Islands Legal Practitioners Association, which delegated the function to the Cayman Attorney Regulatory Authority (CARA).

Responsibility for this function has now been switched to the Cayman Islands Legal Services Council as the designated AML supervisory authority for attorneys-at-law, under s.5(1)(g) Legal Services Act 2020, s.4(9) Proceeds of Crime Act (2025 Revision) and s.55B(C) Anti-Money Laundering Regulations (2025 Revision). The Council has delegated the actual supervisory work to the newly formed Legal Services Supervisory Authority (LSSA).

Lawyers conducting relevant financial work, such as managing client funds or planning or execution of relevant financial business, are now required to register with the LSSA instead of CARA. The new authority will soon be contacting firms and sole practitioners who were previously registered with CARA. Previously unregistered law firms and practitioners can register with the LSSA directly. Failure to register may result in administrative fines.