Combating Financial Crime in the Cayman Islands

Introduction

The Cayman Islands has been at the forefront of efforts to combat financial crime, with the Financial Crimes Investigation Unit (FCIU) playing a key role in investigating and prosecuting complex cases. In 2016 and 2017, the FCIU investigated 93 financial crime investigations, detaining over CI$160,000 and US$25,400, while successfully restraining several assets, including vehicles, houses, and cash deposits.

New Proactive Task Force Tackles Money Laundering and Terrorist Financing

In 2017, the FCIU established a new Proactive Task Force for International Money Laundering and Terrorist Financing to combat these crimes. The task force assists overseas law enforcement agencies with requests for information through mutual legal assistance treaties (MLATs) and international letters of request.

Implementing FATF Recommendations

The Cayman Islands has implemented the Financial Action Task Force’s (FATF) 40 Recommendations on the Prevention of Money Laundering and the Countering of Terrorist Financing. The RCIPS plays a key role in facilitating these recommendations, and the FCIU is certified to investigate financial crimes.

Enhancing Public-Private Partnerships through Stakeholder Forum

The Stakeholder Forum was established by the Financial Crimes Investigation Unit (FCIU) in 2017 to bring together compliance officers from Class A Banks and Money Services Bureaus. The forum has since been expanded to include a wider cross-section of the financial sector, including Trusts and Corporate Service Providers.

Rising Threat of COVID-19-Related Financial Crime

The COVID-19 pandemic has led to unprecedented global challenges for law enforcement activity and economic disruption. The RCIPS FCIU reports an increase in fraud and cybercrime cases due to the pandemic, highlighting the need for innovative approaches to combat financial crime.

Commitment to Financial Crime Prevention

The Cayman Islands is committed to preventing and disrupting money laundering, terrorist financing, and other economic crimes. The country’s efforts include implementing FATF recommendations, establishing a proactive task force, and enhancing public-private partnerships through the Stakeholder Forum.

Key Partners in the Fight Against Financial Crime

• Financial Crimes Investigation Unit (FCIU)
• Royal Cayman Islands Police Service (RCIPS)
• Cayman Islands Monetary Authority (CIMA)
• Cayman Islands Banking Supervision Department
• International partners and law enforcement agencies

The Cayman Islands is a leader in financial crime prevention, with a strong commitment to protecting its reputation and preventing economic crimes.