Cayman Islands' grey list tag may hurt FPI investments into India

FPIs from the region will face stricter KYC, may have to furnish updated ultimate beneficial ownership info for all investors holding over 10% in the fund as opposed to 25% now

The Cayman Islands, one of India’s richest routes for foreign investments, has been put on the grey list of countries/regions for increased monitoring by the Financial Action Task Force (FATF), an inter-governmental body that sets anti-money laundering standards.

The British overseas territory is among the 15 most preferred routes for foreign portfolio investments in India, with total assets under custody worth Rs 70,000-90,000 crore. It is also the third-most preferred source of foreign direct investments into India, based on the data for the first half of FY21. 

Burkina Faso, Morocco, and Senegal have also been put on the “grey list”, which requires