Financial Crime World

Combating Financing of Terrorism in Cayman Islands: Strengthening Legislative Framework

The Cayman Islands has taken significant steps to enhance its legislative framework aimed at preventing and detecting money laundering, terrorist financing, and proliferation financing. This article will explore the country’s efforts to combat financing of terrorism through a risk-based approach.

Legislative Framework

The Cayman Islands’ AML/CFT (Anti-Money Laundering/ Combating the Financing of Terrorism) legal and regulatory framework is designed to address emerging risks and threats. The key legislation that underpins these efforts includes:

  • Proceeds of Crime Act: Establishes a risk-based approach to preventing and detecting money laundering and terrorist financing.
  • Anti-Money Laundering Regulations: Empowers the Cayman Islands Monetary Authority to take action against individuals or entities engaged in activities linked to terrorist financing, money laundering, or the development of weapons of mass destruction.
  • Proliferation Financing (Prohibition) Act: Prohibits activities related to proliferation financing and empowers the authority to publish orders issued under this act in the Cayman Islands Gazette.
  • Terrorism Act: Criminalizes terrorism and terrorist financing, aligning with the UN Convention on the Suppression of Financing of Terrorism.

Key Provisions

The Terrorism Act includes several key provisions aimed at preventing and detecting terrorist financing:

  • Soliciting or receiving property for terrorist purposes: It is an offence to solicit, receive, or provide property intending that it be used for terrorist purposes.
  • Using property for terrorist purposes: Using property for terrorism is prohibited under this act.
  • Possessing property intended for terrorism: Possessing property with the intention of using it for terrorism is also prohibited.
  • Acquiring property used in acts of terrorism: Acquiring property used in acts of terrorism is an offence.

International Cooperation and Commitment

The Cayman Islands’ efforts to combat financing of terrorism are backed by international cooperation and United Nations resolutions. The country has implemented measures aimed at preventing the proliferation of weapons of mass destruction and is committed to addressing emerging risks and threats in the financial sector.

By strengthening its legislative framework, the Cayman Islands demonstrates its commitment to combating financing of terrorism and promoting a safer financial environment for all.