Financial Crime World

Financial Crime Soars in the Cayman Islands: Authorities Scramble to Keep Pace

Introduction

The Cayman Islands has been grappling with a surge in financial crimes, including money laundering, terrorism financing, and fraud. In response, authorities are working tirelessly to investigate and prosecute these cases.

The Financial Crime Investigation Unit Takes the Lead

  • The Financial Crime Investigation Unit (FCIU) is at the forefront of this effort, working closely with the Office of the Director of Public Prosecutions (ODPP) to pursue convictions in complex cases.
  • In 2016 and 2017, the FCIU investigated a total of 93 financial crime investigations, resulting in several high-profile convictions.

Notable Cases

  • A 14-year sentence for an individual who fraudulently offered immigration advice and defrauded dozens of applicants.
  • An eight-year sentence for an individual who defrauded the University College of the Cayman Islands of CI$500,000.

Online Scams: A Growing Concern

  • The FCIU has been proactive in dealing with online scams, which have become increasingly common in recent years.
  • These scams often use phishing emails or fake job advertisements to obtain funds by deception and personal information.

Anti-Money Laundering Efforts Intensify

  • The RCIPS is working to prevent money laundering and terrorist financing through its participation in international initiatives such as the Financial Action Task Force’s (FATF) 40 Recommendations on the Prevention of Money Laundering and the Countering of Terrorist Financing.
  • The Cayman Islands has implemented these recommendations and has been assessed against them.

Stakeholder Forum Sees Collision of Public-Private Partnerships

  • In 2017, the FCIU established a Stakeholders Forum to engage compliance officers from Class A Banks and Money Services Bureaus.
  • The forum has since been expanded to include trusts and corporate service providers.

COVID-19 Brings New Challenges for Financial Crime Fighters

  • The pandemic has brought unprecedented global challenges for law enforcement activity and economic disruption.
  • Authorities remain committed to combating financial crime and protecting the jurisdiction’s reputation.