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Asset Forfeiture Laws in the Cayman Islands

The Proceeds of Crime Act (POCA) and other laws provide a framework for asset forfeiture and anti-money laundering in the Cayman Islands. Here are key points to consider:

Asset Forfeiture

Under POCA, property obtained through unlawful conduct can be forfeited. This includes cash and other assets.

  • Cash Forfeiture: Cash may also be forfeited under POCA if it represents or is intended to be used in unlawful conduct.
  • Court Proceedings: The Director of Public Prosecutions (DPP) can apply to a summary court for the forfeiture of cash or other property.
  • Seizure of Property: Section 192(1) of the Criminal Procedure Code allows any court to order the seizure of property that has been obtained through an offense.

Civil Asset Forfeiture

POCA also provides for civil asset forfeiture, where the DPP can bring proceedings before a court to recover property obtained through unlawful conduct.

  • Civil Proceedings: Cash or other property may be forfeited in civil proceedings if it is or represents property obtained through unlawful conduct.
  • No Conviction Required: A conviction is not necessary for there to be a determination that property is criminal property.

Anti-Money Laundering

Financial institutions and other businesses must have anti-money laundering (AML) policies and procedures in place to prevent money laundering and terrorist financing.

  • AML Measures: These measures include customer due diligence, recordkeeping, implementing a risk-based approach, ongoing monitoring, and internal reporting of suspicious activities.
  • Compliance Requirements: The Cayman Islands Monetary Authority’s Guidance Notes provide more detailed compliance requirements for financial institutions.