Financial Crime World

Banks in Cayman Islands Use Advanced Techniques to Detect Fraud

The Financial Crimes Investigation Unit (FCIU) in Cayman Islands has been working tirelessly to combat financial crimes, including fraud. In 2016 and 2017, the unit investigated 93 financial crime investigations and seized a total of CI$160,000 and US$25,400 in cash. It also restrained several assets, including vehicles, houses, and cash deposits.

Collaborative Efforts

FCIU detectives work closely with prosecutors to build comprehensive cases against fraudsters. In recent years, they have convicted numerous individuals for various crimes, including:

  • Immigration fraud
  • Financial abuse
  • Online scams

The unit has also been successful in detecting fraudulent activities related to online banking and commercial transactions.

International Cooperation

To combat the international nature of financial crimes, FCIU detectives often conduct overseas enquiries and rely on international law enforcement networks and information-sharing. They have established a new Proactive Task Force for International Money Laundering and Terrorist Financing to assist overseas agencies with requests for information.

Local Collaboration

Locally, the unit works closely with various government agencies, including:

  • Financial Reporting Authority (FRA)
  • Cayman Islands Monetary Authority (CIMA)
  • Department of Commerce and Investment (DCI)

to protect the island from financial crime. Every year, FCIU organises a Fraud Prevention Seminar in collaboration with local banks, the Cayman Islands Chamber of Commerce, and other agencies to raise awareness about the latest trends in online scams and counterfeit currency.

Expertise

The unit consists of highly trained and experienced detectives who are certified financial investigators. They receive continuous training overseas and locally in areas such as:

  • Cash seizures
  • Forfeiture
  • Asset confiscation
  • Restraints

Implementing FATF Recommendations

In addition to investigating fraud cases, FCIU also plays a key role in implementing the Financial Action Task Force’s (FATF) 40 Recommendations on the Prevention of Money Laundering and the Countering of Financing of Terrorism. The unit has established a Stakeholders Forum to engage compliance officers from various financial institutions to share intelligence and best practices in preventing money laundering and terrorist financing.

Challenges during COVID-19

The COVID-19 pandemic has led to an increase in fraud and cybercrime, prompting FCIU to issue several reports on the challenges and trends related to these crimes. Despite the challenges posed by the pandemic, the unit remains committed to protecting the financial sector and the reputation of Cayman Islands as a safe and secure jurisdiction for international business.