Financial Crime World

Title: Cayman Islands Warns Financial Institutions of Money Laundering Threats: Real-life Case Studies Revealed

Introduction

The Cayman Islands Anti-Money Laundering Steering Group (AMLSG) has released a new publication titled “Money Laundering Typologies and Trends,” which highlights real-life crime cases from the Cayman Islands and beyond. In this article, we will discuss the purpose of this publication, notable cases, and the impact of the report on financial institutions.

Purpose of the Publication

The objective of “Money Laundering Typologies and Trends” is to:

  1. Educate financial institutions, designated non-financial businesses and professions (DNFBPs), and the public on various ways criminals exploit different industry sectors.
  2. Increase awareness of money laundering, terrorist financing, tax evasion, drug trafficking, and proliferation financing, and the role these activities play in society.

Notable Cases

The publication presents cases of misuses in legal persons and real estate, jewellery, and corporate services. Some examples include:

  • Misuse of legal persons
  • Misuse of real estate
  • Misuse of jewellery
  • Misuse of corporate services

During outreach sessions in November, AMLSG discussed these cases in detail.

Importance of the Publication

Attorney General Samuel Bulgin believes that the publication will aid financial institutions and DNFBPs in developing robust policies and procedures to:

  1. Prevent
  2. Detect
  3. Respond effectively to money laundering crimes

Data Sources

Data for the report was sourced from several local and international organizations, including:

  • Financial Crime Unit of the Royal Cayman Islands Police Service
  • Cayman Islands Monetary Authority
  • Financial Reporting Authority
  • Department of Commerce and Investment
  • Cayman Islands General Registry
  • Cayman’s 2015 National Risk Assessment
  • International sources

CFATF Recommendations

This publication is part of the Cayman Islands’ efforts to meet the recommendations outlined in the Caribbean Financial Action Task Force’s (CFATF) March 2019 report. The Cayman Islands have until February 2020 to demonstrate their progress.

Ongoing Support

AMLSG’s National Coordinator, Elisabeth Lees, confirmed that international consultants Financial Transparency Advisors are supporting the Cayman Islands’ implementation of interactive meetings and an outreach session scheduled for November 8, 2019.