Financial Crime World

Cayman Islands Financial Crimes Unit: Tackling Money Laundering, Fraud, and Terrorist Financing

The Financial Crime Investigation Unit (FCIU) of the Royal Cayman Islands Police Service (RCIPS) is at the forefront of investigating and preventing financial crimes in the Cayman Islands. In the past two years, FCIU detectives have dealt with 93 investigations, resulting in several significant arrests and seizures.

Seizures and Arrests

During this period, they seized approximately CI$160,000 in cash and US$25,400. The unit also restrained the following assets:

  • Eight vehicles
  • A motorboat
  • Two houses
  • Cash deposits totaling CI$138,000

Additionally, the FCIU cooperated with the Office of the Director of Public Prosecutions (ODPP) to prosecute various cases. Some convictions include:

  1. A 14-year sentence for a man defrauding aspiring immigrants
  2. An eight-year sentence for a person defrauding the University College of the Cayman Islands
  3. A 12-year sentence for an elderly abuse case
  4. A 20-month sentence, a compensation order, and deportation for a Bulgarian national illegally possessing 62 cloned bank cards

Local Fraud Cases

FCIU detectives tackle local fraud cases, which have increased in recent years due to the rise of online scams and commercial transactions. These scams often utilize phishing emails disguised as legitimate bank communications or fake job advertisements. Nearly all these frauds originate from overseas. To identify and arrest offenders, FCIU detectives rely heavily on international law enforcement networks and information sharing.

Money Laundering and Terrorist Financing

The FCIU also combats money laundering and terrorist financing. In 2017, they established the Proactive Task Force for International Money Laundering and Terrorist Financing. They assist overseas law enforcement agencies with mutual legal assistance treaties (MLATs) and international letters of request. The FCIU collaborates with local entities like the Financial Reporting Authority (FRA), Cayman Islands Monetary Authority (CIMA), and Department of Commerce and Investment (DCI) to protect the Cayman Islands from financial crimes.

Annual Fraud Prevention Seminar

In conjunction with local partners, the FCIU organizes the annual Fraud Prevention Seminar to raise awareness and educate the public on financial crimes. They regularly share crime prevention advice in the media to keep the community informed of the latest trends in online scams and counterfeit currency.

Specialized Training and Expertise

With the intricacies and complexities of financial crimes, FCIU detectives possess specialized skills and extensive training. All are certified financial investigators with expertise in areas such as anti-money laundering and compliance. They receive continuous, specialized education overseas and locally to maintain a high level of competency in investigating financial crimes.

Team Structure and International Cooperation

This dedicated team of detectives consists of:

  • Seven Detective Constables
  • One Detective Sergeant
  • Two Detective Inspectors
  • One Detective Chief Inspector
  • Led by a Detective Superintendent

Recognizing the international nature of financial crimes, the FCIU plays a significant role in fostering international relationships to address these issues. Their key objectives include enhanced collaboration between public agencies and regulated entities, regular industry updates, and education of frontline staff to create an informed and proactive response to financial crime threats. During the COVID-19 pandemic, the FCIU and other entities have faced challenges in investigating these types of crimes. However, through international cooperation and adaptability, they continue to minimize the risks and vulnerabilities posed by financial criminals.

CFATF Membership and Proactive Measures

The Cayman Islands, as a founding member of the Caribbean Financial Action Task Force (CFATF), has committed to implementing FATF’s 40 Recommendations on the Prevention of Money Laundering and Countering of Terrorist Financing. The Government is taking proactive measures to address financial crimes and protect the reputation of the jurisdiction.