Cayman Islands Takes Bold Steps to Combat Criminal Organizations in Finance

The Cayman Islands is making significant strides in protecting its financial system from criminal organizations, and it’s a matter that concerns us all. To achieve this, the country is creating a robust framework for Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Combating Proliferation Financing (CFP) that aligns with international standards.

What does this mean for locals and visitors?

You may be wondering why banks in Cayman require specific documentation to open a bank account or why non-profit organizations need to register with the government. The answer lies in the fight against money laundering, terrorist financing, and proliferation financing.

Understanding the threats: Money Laundering, Terrorist Financing, and Proliferation Financing

• Money Laundering: Disguising the illegal origin of criminal proceeds.
• Terrorist Financing: Providing financial support to individual terrorists or non-state actors.
• Proliferation Financing: Funding the development and movement of weapons of mass destruction.

Targeted Financial Sanctions: Freezing Assets and Prohibiting Transactions

To combat these threats, targeted financial sanctions are put in place, freezing assets and prohibiting transactions that would benefit those involved in illegal activities. The Financial Action Task Force (FATF) emphasizes the importance of vigilance against emerging risks from circumvention measures to protect the international financial system.

What can you do to help?

• Recognize suspicious activity: Look out for signs such as individuals trying to keep their identities hidden, businesses with few customers staying afloat, and strangers offering unusual deals.
• Report suspicious activity: If you suspect a crime has been committed, report it to the Royal Cayman Islands Police Service (RCIPS) or contact the Financial Crimes Unit at RCIPS.FCU@rcips.ky or +1 345 949-8797.

Conclusion

The fight against criminal organizations in finance is everyone’s business. By being aware of these threats and reporting suspicious activity, we can all play a role in keeping our financial system safe. Let’s work together to protect the Cayman Islands’ financial integrity!