Financial Crime World

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Financial Intelligence Unit Roles in Cayman Islands

The Financial Crime Investigation Unit (FCIU) plays a crucial role in investigating criminal offenses related to money laundering, terrorist financing, and fraud. In 2016 and 2017, the FCIU investigated 93 financial crime investigations and seized CI$160,000 and US$25,400 in cash. The unit also restrained several assets, including vehicles, houses, and cash deposits.

Collaboration with Prosecution Office

FCIU detectives work closely with the Office of the Director of Public Prosecutions (ODPP) to pursue convictions in complex cases. Recent court results include:

  • A 14-year sentence for an individual who fraudulently offered immigration advice and defrauded dozens of applicants
  • A 20-month sentence for a Bulgarian national found with cloned bank cards

Investigation of Online Scams

The FCIU also investigates online scams, which have become increasingly common due to the rise of internet-based commercial transactions and online banking. These scams often originate from other jurisdictions, requiring international cooperation to identify and arrest offenders.

Proactive Task Force

To combat money laundering and terrorist financing, the FCIU established a Proactive Task Force in 2017, which assists overseas law enforcement agencies with requests for information through mutual legal assistance treaties (MLATs) and international letters of request. Locally, the FCIU works with Cayman Islands agencies, including:

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

Education and Awareness

Every year, the FCIU organizes a Fraud Prevention Seminar in collaboration with local banks, De La Rue from the UK, and other overseas law enforcement agencies. Detectives also appear regularly in the media to provide crime and fraud prevention advice for the general public.

FCIU Structure

The FCIU consists of:

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

Cayman Islands Stakeholder Forum

In 2017, the Financial Crimes Investigation Unit (FCIU) established a Stakeholders Forum to engage compliance officers from Class A Banks and Money Services Bureaus. The forum aims to share sanitized information and intelligence to detect, prevent, and disrupt money laundering and economic crime threats against the Cayman Islands.

Objectives

The objectives of the Stakeholder Forum include:

  • Developing a more collaborative relationship between public agencies and regulated entities
  • Evolving Public-Private consultations into a mainstream component of the Cayman Islands AML/CTF/PF regime
  • Providing relevant updates to industry from law enforcement and/or regulatory authorities
  • Examining emerging international trends
  • Educating frontline staff within the private sector

COVID-19-related Financial Crime

The COVID-19 pandemic has led to unprecedented global challenges for law enforcement activity and economic disruption. The FCIU has highlighted increases in fraud and cybercrime due to the pandemic, and there have been reports of novel fraud, money laundering, and terrorist financing threats and vulnerabilities arising from the crisis.

National AML/CTF Structure

The Cayman Islands’ national AML/CTF structure is designed to prevent and combat financial crime. The FCIU works closely with other agencies, including:

  • Office of the Director of Public Prosecutions (ODPP)
  • Financial Reporting Authority (FRA)
  • Cayman Islands Monetary Authority (CIMA)
  • Department of Commerce and Investment (DCI)

to share intelligence and coordinate efforts to prevent and investigate financial crimes.