Financial Crime World

Cayman Islands Financial Crime Unit: Battling Money Laundering, Terrorist Financing, and Fraud with International Cooperation

The Financial Crime Investigation Unit (FCIU) in the Cayman Islands is a specialized agency focused on investigating and preventing financial crimes, including:

  • Money laundering
  • Terrorist financing
  • Fraud

Significant Investigations and Seizures (2016-2017)

FCIU detectives handled 93 investigations, made 13 cash seizures, and confiscated:

  • Approximately CI$165,000 in cash
  • US$25,400
  • 8 vehicles
  • 1 motor boat
  • 2 houses
  • CI$138,000 in cash deposits

They also supported an international request to restrain a yacht worth over US$100 million.

Notable Convictions

Recent court results include:

  • A 14-year sentence for a man defrauding immigrants
  • An 8-year sentence for a man defrauding the University College of the Cayman Islands
  • A 12-year sentence for a woman committing financial abuse against an elderly person
  • A 20-month sentence, compensation order, and deportation for a Bulgarian national found with 62 cloned bank cards

Combating Internet-Based Scams

Internet-based scams, such as phishing emails and fake job ads, are becoming more common and originate mainly from other jurisdictions. The FCIU collaborates with international law enforcement networks and local agencies to combat these scams.

Money Laundering and Terrorist Financing

The FCIU, in collaboration with the Cayman Islands Anti-Money Laundering Unit, the Financial Reporting Authority (FRA), the Department of Commerce and Investment (DCI), and the Cayman Islands Monetary Authority (CIMA), focuses on money laundering and terrorist financing. In 2017, they established the Proactive Task Force for International Money Laundering and Terrorist Financing.

Raising Awareness and Training

The Cayman Islands, along with various local partners, organizes annual Fraud Prevention Seminars and provides media appearances to raise awareness about financial crime prevention.

Expert Team and Training

The FCIU’s team consists of:

  • 7 Detective Constables
  • 1 Detective Sergeant
  • 2 Detective Inspectors
  • 1 Detective Chief Inspector
  • 1 Detective Superintendent

All team members are certified financial investigators, with expertise in anti-money laundering, compliance, and other areas. They undergo continuous training, both domestically and abroad, to stay at the forefront of financial crime investigation and prevention.

International Standards and Collaboration

The Cayman Islands, a founding member of the Caribbean Financial Action Task Force (CFATF), has implemented the Financial Action Task Force’s (FATF) 40 Recommendations. The RCIPS and the FCIU contribute to promoting these international standards to protect the Cayman Islands.

The Stakeholder Forum

The FCIU recently established the Stakeholder Forum to facilitate collaboration and intelligence sharing between law enforcement agencies and the financial sector. This forum provides an environment for industry stakeholders to discuss financial crime detection and prevention measures and fosters a heightened level of collective ownership for financial crime risks in the jurisdiction.

Adapting to New Challenges

Due to the COVID-19 pandemic, law enforcement and the financial sector in the Cayman Islands face new vulnerabilities and challenges. The FCIU is working closely with international partners and leveraging technology to adapt and stay informed about emerging threat trends and vulnerabilities.