Financial Intelligence Units Shine in Cayman Islands’ Fight Against Money Laundering and Terrorism

The Financial Crime Investigation Unit (FCIU) has been a crucial component in tackling financial crimes in the Cayman Islands, including money laundering, terrorist financing, and fraud. In 2016 and 2017 alone, the unit investigated 93 financial crime investigations, seized $185,400 in cash, and restrained assets valued at over $2 million.

Effective Collaboration

The FCIU works closely with local agencies, including the Office of the Director of Public Prosecutions (ODPP), to pursue convictions in complex cases. Recent court results have seen sentences ranging from 14 years for immigration fraud to 20 months for possession of cloned bank cards.

Online Scams and Fraud Prevention

In addition to major cases, FCIU detectives investigate online scams that have become increasingly common in recent years. These scams often use phishing emails or fake job advertisements to obtain funds and personal information. While the majority of these scams originate abroad, the unit works with international law enforcement agencies to identify and prosecute offenders.

Combating Money Laundering and Terrorist Financing

The FCIU plays a key role in combating money laundering and terrorist financing. In 2017, the unit established a new Proactive Task Force for International Money Laundering and Terrorist Financing, which assists overseas law enforcement agencies with requests for information through mutual legal assistance treaties (MLATs) and international letters of request.

Local Collaboration

Locally, the FCIU collaborates with Cayman agencies, including:

Financial Reporting Authority (FRA)
Cayman Islands Monetary Authority (CIMA)
Department of Commerce and Investment (DCI)

to protect the islands from financial crime. The unit also organizes an annual Fraud Prevention Seminar in partnership with local banks, De La Rue from the UK, and other overseas law enforcement agencies.

Certified Financial Investigators

Detectives assigned to the FCIU are certified financial investigators who receive continuous, specialized training. Their expertise is essential in identifying and disrupting financial crimes that threaten the Cayman Islands’ reputation as a safe and secure financial hub.

Stakeholder Forum Established

In response to the CFATF Recommendations, the FCIU established the Stakeholders Forum, which brings together compliance officers from Class A Banks and Money Services Bureaus. The forum aims to further engage and evolve the public-private partnership in the fight against financial crime.

The objectives of the forum include:

Developing a more collaborative relationship between public agencies and regulated entities
Evolving public-private consultations into a mainstream component of the Cayman Islands’ anti-money laundering (AML), combating the financing of terrorism (CFT), and preventing the proliferation of weapons of mass destruction (WMD) regime

The COVID-19 pandemic has led to an increase in fraud and cybercrime, according to the RCIPS FCIU. The unit is working to identify challenges, trends, good practices, and policy responses to novel fraud, money laundering, and terrorist financing threats and vulnerabilities arising from the crisis.

Reports and Recommendations

The ARIN CARIB Report highlights the importance of remote hearings in asset recovery, while the Effects of COVID-19 on Financial Crime and Compliance report emphasizes the need for enhanced control frameworks to protect against financial crime.