Financial Crime World

Embezzlement and Financial Crimes Soar in Cayman Islands, Authorities Fight Back with Tougher Measures

The Cayman Islands have seen a significant increase in embezzlement and financial crimes in recent years. The Financial Crime Investigation Unit (FCIU) has been at the forefront of combating these crimes, working closely with other authorities to investigate and prosecute offenders.

A Growing Problem

In 2016 and 2017 alone, the FCIU investigated a staggering 93 financial crime investigations, resulting in cash seizures totaling CI$160,000 and US$25,400. These cases included fraudulently offering immigration advice and defrauding dozens of applicants, as well as stealing CI$500,000 from University College of the Cayman Islands.

Online Scams on the Rise

In addition to major cases, FCIU detectives also investigate online scams that have become increasingly prevalent in recent years. These scams often involve phishing emails or fake job advertisements designed to obtain funds and personal information. The majority of these scams originate from other jurisdictions.

Proactive Measures

To combat this growing threat, the FCIU has established a 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.

Public-Private Partnership

The Cayman Islands also hosts the Stakeholders Forum, a public-private partnership that brings together compliance officers from Class A Banks and Money Services Bureaus to share intelligence on financial crime risks and incidents. The forum aims to create a culture of collective ownership for financial crime risks in the jurisdiction.

Response to COVID-19

In response to the COVID-19 pandemic, the FCIU has reported an increase in fraud and cybercrime, with scammers taking advantage of the crisis to perpetuate novel fraud schemes. Authorities are working closely together to identify challenges, trends, and policy responses to these emerging threats.

National AML/CFT Structure

The Cayman Islands’ national AML/CFT structure is designed to ensure a coordinated response to financial crime, with representation on ARIN-Carib, a regional asset recovery network. The FCIU’s efforts have been praised for their effectiveness in combating financial crimes and protecting the jurisdiction’s reputation.

Commitment to Combating Financial Crime

As authorities continue to fight back against embezzlement and financial crimes, it remains to be seen whether these measures will be enough to stem the tide of criminal activity in the Cayman Islands. One thing is certain, however - the FCIU’s commitment to tackling financial crime has never been more crucial.

Key Points

  • The FCIU investigated 93 financial crime investigations in 2016 and 2017, resulting in cash seizures totaling CI$160,000 and US$25,400.
  • Online scams have become increasingly prevalent in recent years, with the majority originating from other jurisdictions.
  • The FCIU has established a Proactive Task Force for International Money Laundering and Terrorist Financing to combat this threat.
  • The Stakeholders Forum brings together compliance officers from Class A Banks and Money Services Bureaus to share intelligence on financial crime risks and incidents.
  • Authorities are working closely together to identify challenges, trends, and policy responses to the increase in fraud and cybercrime during the COVID-19 pandemic.