Financial Crime World

Financial Crime in Cayman Islands: What You Need to Know

The Financial Crime Investigation Unit (FCIU) is a specialized unit dedicated to investigating criminal offenses related to money laundering, terrorism financing, and fraud. In this article, we will explore the various aspects of financial crime in the Cayman Islands and how the FCIU works to combat it.

Investigating Financial Crimes

In 2016 and 2017, the FCIU investigated 93 financial crime investigations and dealt with 13 cash seizures, detaining a total of CI$160,000 and US$25,400. The unit is staffed by certified financial investigators who receive continuous training overseas and locally in areas such as:

  • Cash seizures
  • Forfeiture
  • Asset confiscation
  • Restraints

These detectives work closely with the Office of the Director of Public Prosecutions (ODPP) to pursue convictions in complex cases, setting forth comprehensive and compelling evidence that leads to authoritative verdicts and sentences.

Fraud Cases

In addition to major cases, FCIU detectives also investigate fraud cases resulting from online scams. These scams often originate in other jurisdictions and use phishing emails or fake job advertisements to obtain funds by deception and personal information. The unit works closely with international law enforcement agencies to combat these types of crimes.

International Cooperation

To combat financial crime, the FCIU relies heavily on international law enforcement networks and information-sharing. The unit has 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 Partnerships

Locally, the FCIU works with Cayman agencies, including:

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

to protect the Cayman Islands from financial crime. Every fall, the FCIU organizes the Fraud Prevention Seminar in collaboration with these agencies, local banks, De La Rue from the UK, and other overseas law enforcement agencies.

Public-Private Partnerships

The Royal Cayman Islands Police Service (RCIPS) plays a key role in facilitating public-private partnerships to combat financial crime. The Stakeholders Forum was established by the Financial Crimes Investigation Unit (FCIU) in 2017 to engage compliance officers from Class A Banks and Money Services Bureaus. The forum aims to provide an environment for participants from industry, law enforcement, and regulatory authorities to share sanitized information and intelligence that may serve to detect, prevent, and disrupt money laundering and wider economic crime threats against the Cayman Islands.

COVID-19’s Impact

The COVID-19 pandemic has led to unprecedented global challenges for law enforcement activity and economic disruption. The RCIPS FCIU has reported increases in fraud and cybercrime due to COVID-19, while ARIN CARIB has published reports on the impact of remote hearings in asset recovery matters. The effects of COVID-19 on financial crime and compliance have also been extensively studied.

Conclusion

Overall, the FCIU’s efforts aim to create a collective and more sophisticated response to financial crime driven by better-informed law enforcement agencies, regulators, and industry professionals, resulting in increased resilience to financial crime and further protecting the reputation of the Cayman Islands.