Financial Crime World

Financial Crime Prevention Strategies in Cayman Islands

The Financial Crime Investigation Unit (FCIU) is a specialist unit dedicated to investigating criminal offences related to money laundering, the financing of terrorism, and fraud. In this article, we will explore the various strategies employed by the FCIU to prevent financial crime in the Cayman Islands.

Investigations and Court Results

In 2016 and 2017, the FCIU investigated 93 financial crime investigations and dealt with 13 cash seizures, detaining a total of CI$160,000 and US$25,400. The unit’s detectives work closely with colleagues from the Office of the Director of Public Prosecutions (ODPP) to pursue convictions in complex cases.

  • Recent court results include:
    • A 14-year sentence for a man who fraudulently offered immigration advice and defrauded dozens of applicants.
    • An eight-year sentence for another man who defrauded the University College of the Cayman Islands of CI$500,000.
    • A 12-year sentence for a woman who committed financial abuse against an elderly person.

Fraud Investigations

In addition to major cases, FCIU detectives investigate fraud cases resulting from online scams. These scams have become more common in recent years with internet-based commercial transactions and online banking. The unit works closely with international law enforcement networks and information-sharing to combat these types of crimes.

  • The FCIU has established a new Proactive Task Force for International Money Laundering and Terrorist Financing, which assists overseas law enforcement agencies with requests for information through mutual legal assistance treaties.
  • The unit also has representation on ARIN-Carib, a regional asset recovery network.

Public-Private Partnership

To further engage the public-private partnership in tackling financial crime, the FCIU established the Cayman Islands Stakeholder Forum in 2017. The forum brings together compliance officers from Class A Banks and Money Services Bureaus, as well as trusts and corporate service providers, to share information and intelligence on financial crime risks.

  • Objectives of the 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’ anti-money laundering and counter-terrorist financing regime.
    • Educating frontline staff within the private sector on emerging trends and best practices.

COVID-19 Pandemic

In light of the COVID-19 pandemic, the FCIU has reported increases in fraud and cybercrime. The unit is working closely with international partners to identify challenges, trends, good practices, and policy responses to novel fraud, money laundering, and terrorist financing threats and vulnerabilities arising from the crisis.

Conclusion

The Cayman Islands’ national anti-money laundering and counter-terrorist financing structure includes the FCIU, ODPP, and regulatory authorities. The unit’s efforts are aimed at protecting the reputation of the jurisdiction in tackling financial crime.