Financial Crime World

Cayman Islands Struggles to Combat Criminal Organizations in Finance

The Cayman Islands is facing a growing menace of criminal organizations in the finance sector, and a specialist unit is working tirelessly to tackle this issue. The Financial Crime Investigation Unit (FCIU) has been instrumental in combating money laundering, terrorism financing, and fraud, with a significant increase in cases and seizures over the past two years.

Recent Successes

In 2016 and 2017, the FCIU investigated 93 financial crime investigations, resulting in:

  • Cash seizures totaling CI$160,000 and US$25,400
  • The restraint of several assets, including:
    • Eight vehicles
    • One motor boat
    • Two houses
    • Cash deposits amounting to CI$138,000

Collaboration with the ODPP

FCIU detectives work closely with the Office of the Director of Public Prosecutions (ODPP) to pursue convictions in complex cases. Recent court results have seen:

  • A 14-year sentence for an individual who fraudulently offered immigration advice and defrauded dozens of applicants
  • An eight-year sentence for another individual who defrauded the University College of the Cayman Islands of CI$500,000

Investigating Online Scams

In addition to major cases, FCIU detectives investigate fraud cases resulting from online scams. These scams have become increasingly common in recent years, with internet- based commercial transactions and online banking being particularly vulnerable. The unit has seen an increase in:

  • Phishing emails disguised as legitimate communications from banks
  • Fraudulent websites designed to steal personal and financial information

Stakeholders Forum

To combat these threats, the FCIU has established a Stakeholders Forum, which brings together compliance officers from Class A Banks and Money Services Bureaus, as well as representatives from the trust and corporate service provider sectors. The forum aims to:

  • Promote intelligence sharing and analysis
  • Detect, prevent, and disrupt money laundering and wider economic crime threats

Challenges during the COVID-19 Pandemic

The COVID-19 pandemic has presented new challenges for law enforcement activity, with an increase in fraud and cybercrime reported by the FCIU. In response, the unit has launched a series of reports highlighting:

  • Trends
  • Good practices
  • Policy responses to novel fraud, money laundering, and terrorist financing threats arising from the crisis

Global Recognition

The Cayman Islands is committed to maintaining its reputation as a safe and secure financial hub, and the FCIU plays a critical role in this effort. The unit’s work has been recognized globally, with representatives participating in:

  • Regional asset recovery networks
  • International organizations dedicated to combating financial crime