On July 20, 2026, the Cayman Islands Monetary Authority (CIMA) published the Rule on Effective Compliance Programme for the Prevention and Detection of Money Laundering, Terrorist Financing and Proliferation Financing for Financial Services Providers (AML Rule) and the Rule on Compliance with Financial Sanctions and Targeted Financial Sanctions (together with the AML Rule, Rules). The Rules went into effect on September 18, 2026. At an industry briefing on September 30, 2026, CIMA announced a program of desk-based anti-money laundering reviews of regulated entities, including investment funds. For the most part, the Rules restate obligations that should already be familiar to CIMA-registered and licensed financial services providers, including all registered investment funds; managers; advisers; and other registered or licensed entities. They also introduce certain expanded requirements, however, most notably as to independent audits and training, which will require some practical adjustments by applicable investment advisers. In a guest article, Walkers partner Lucy Frew details the relevant provisions of the Rules and offers guidance on how PE sponsors can comply. For more on Cayman Islands, see “Private Funds Act’s Role in Enhancing and Modernizing the Cayman Islands’ Private Funds Industry” (Jun. 8, 2021); and “Practical Impact of the Cayman Islands Private Funds Regime on Closed‑End Fund Managers” (Apr. 7, 2020).