Anti-Money Laundering Regulations in the Cayman Islands: Protecting the Integrity of the Financial System
Introduction
The Cayman Islands is committed to maintaining a robust and adaptive Anti-Money Laundering (AML) framework, consistent with international standards. The goal is to protect the financial system against money laundering, terrorist financing, and proliferation financing.
Why AML is Everyone’s Business
You may have wondered why certain procedures are in place, such as:
- Banks requiring documentation to open a bank account
- Non-profit organisations registering with government
- Customs holding imported goods before release
- Immigration asking about countries visited
These common procedures help protect the public, local businesses, and the Islands from financial crime. It’s essential for everyone to be aware of the signs of money laundering, terrorist financing, and proliferation financing.
Understanding Financial Crimes
Money laundering is the processing of criminal proceeds to disguise their illegal origin. Terrorism financing involves providing finance or financial support to individual terrorists or non-state actors or funding terrorist activities. Proliferation financing funds the development and movement of ‘proliferation-sensitive’ items – items that can be used to manufacture, acquire, possess, develop, export, ship, stockpile, create or use weapons of mass destruction (WMDs).
What are Targeted Financial Sanctions?
In response to violations of international laws, targeted financial sanctions allow assets to be frozen and prohibitions to be put in place. This prevents persons or entities, who otherwise would benefit from these funds or other assets, from taking advantage of those benefits.
Recognising and Reporting Suspicious Activity
Suspicious activity for financial crimes can be both hard and easy to spot. Consider these potential signs:
- A person buying a property without revealing their identity
- A business that doesn’t seem to have many customers somehow manages to stay open
- A ‘business investor’ using multiple birthdates or various names
- A stranger offering to pay for a service in cash
If you suspect financial crimes, contact the Royal Cayman Islands Police Service’s Financial Crimes Unit on RCIPS.FCU@rcips.ky or +1 345 949-8797. The public is obligated to report all crimes taking place in the Cayman Islands.