Financial Crime World

Cayman Islands’ Financial Crime Prevention Unit: Waging a Global Battle against Money Laundering, Fraud, and Terrorist Financing

Overview of the Financial Crime Investigation Unit (FCIU)

The Financial Crime Investigation Unit (FCIU) of the Royal Cayman Islands Police Service (RCIPS) is a specialized squad dedicated to investigating financial crimes. Since its inception, the FCIU has made significant strides in combating financial crimes, including money laundering, terrorism financing, and fraud.

Major Investigations and Convictions

  • Immigration Fraud: A man was given a 14-year sentence for defrauding immigration applicants.
  • University College Fraud: A man was given an 8-year jail term for defrauding the University College of the Cayman Islands of CI$500,000.
  • Elder Abuse: A woman was sentenced to 12 years in prison for financially abusing an elderly person.
  • Bank Card Fraud: A Bulgarian national was deported after receiving a 20-month sentence and a compensation order for being in possession of 62 cloned bank cards.

Dealing with International Scams

FCIU detectives handle scams originating from other jurisdictions, which have surged in recent years due to the prevalence of online transactions and banking. These scams mainly come in the form of phishing emails or fake job advertisements and aim to deceive victims into transferring funds or disclosing sensitive personal information.

International Cooperation

Given that many financial crimes have an international dimension, FCIU investigators must conduct overseas inquiries and rely on international law enforcement networks and information sharing to identify and apprehend offenders.

Proactive Task Force for International Money Laundering and Terrorist Financing

In 2017, the FCIU established a Proactive Task Force for International Money Laundering and Terrorist Financing to assist overseas law enforcement agencies through mutual legal assistance treaties (MLATs) and international letters of request.

Local Collaboration

The FCIU works with local agencies like the Financial Reporting Authority (FRA), the Cayman Islands Monetary Authority (CIMA), and the Department of Commerce and Investment (DCI) to safeguard the Cayman Islands from financial crimes. Together, they have organized the Fraud Prevention Seminar since autumn 2017 to raise awareness and share knowledge about financial crime trends and compliance.

Highly Skilled Personnel

FCIU detectives are all certified financial investigators with expertise in anti-money laundering, compliance, cash seizures, forfeiture, asset confiscation, and restraints. They undergo continuous training to stay up-to-date with the latest financial crime trends and techniques.

Adherence to International Standards

The Cayman Islands have implemented the Financial Action Task Force’s (FATF) 40 Recommendations against Money Laundering and Counter-terrorist Financing (CFTF). The jurisdiction is a founding member of the Caribbean Financial Action Task Force (CFATF), which ensures its members comply with the FATF Recommendations.

Evaluation and Public-Private Partnership

In 2017, the Cayman Islands underwent an assessment based on the FATF’s 40 Recommendations, with the mutual evaluation report available at the Cayman Islands Anti-Money Laundering Unit website. The Stakeholder Forum, established by the FCIU in 2017, represents a crucial Public-Private Partnership for the sharing of information and intelligence to detect, prevent, and disrupt money laundering and economic crime threats against the Cayman Islands. Through the Stakeholder Forum, various industry stakeholders collaborate and inform the development of targeted controls to mitigate common characteristics in money laundering, terrorism financing, and economic crime.