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Money Laundering Laws and Procedures in the Cayman Islands

The Cayman Islands have strict laws and procedures in place to prevent and combat money laundering. The following sections provide an overview of these regulations.

Definitions and Key Concepts

  • Money laundering refers to the process of disguising the origin of illicitly obtained funds to make them appear legitimate.
  • The Cayman Islands’ Anti-Money Laundering Regulations (2018) set out the framework for preventing money laundering and combating terrorist financing.

Defences and Resolutions

  • In the event of a suspected money laundering offence, individuals or entities may be entitled to certain defences, such as:
    • Lack of knowledge or reason to believe that funds were obtained through illicit means
    • Compliance with relevant regulations and procedures
    • Cooperation with law enforcement agencies
  • Resolutions may also be available for individuals or entities who have been implicated in money laundering activities but are willing to cooperate fully with authorities.

Sanctions, Asset Freezing, and Forfeiture

  • The Cayman Islands has implemented various sanctions regimes to combat money laundering, including:
    • Asset freezing: the temporary or permanent seizure of assets suspected of being linked to illicit activity
    • Forfeiture: the permanent confiscation of assets deemed to be proceeds of crime
  • Sanctions may be imposed on individuals or entities found to have engaged in money laundering activities.

Limitation Periods

  • The Cayman Islands has established limitation periods for bringing money laundering charges, which typically range from 2-10 years depending on the nature of the offence.
  • These time limits ensure that cases are pursued within a reasonable timeframe and avoid unnecessary delays.

Extraterritorial Reach

  • The Cayman Islands’ anti-money laundering laws have extraterritorial reach, allowing authorities to investigate and prosecute individuals or entities located outside the jurisdiction.
  • This provision enables the country to effectively combat money laundering and other financial crimes that may involve international participants.

If you have any specific questions or would like me to clarify any of the points mentioned above, please feel free to ask.