The Cayman Islands can summarise in one word why financial crime must be fought in our three Islands: Reputation.

And we can summarise in one word why being in this fight, for as long as Cayman has been, is the right thing to do for the global economy: Safety.

The Premier, Hon. Alden McLaughlin, MBE JP MLA

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Why AML is everyone’s business

Have you ever wondered why:

  • Banks in Cayman require certain types of documentation to open a bank account?
  • Non-profit organisations in Cayman now have to be registered with Government?
  • Cayman is enacting regulations for virtual assets?
  • Customs requires a hold on your imported goods before releasing them to you?
  • Immigration asks about the countries you’ve visited as part of their entry procedures?

Common procedures like these help to protect you, local businesses, and our Islands from being victimised by criminals. It’s important for everyone to be aware of the signs of money laundering, terrorist financing and financing weapons of mass destruction (also called proliferation financing), and to understand the reasons for certain procedures.

Fighting financial crime affects everyone – that’s why it’s everyone’s business!

What is money laundering?

The goal of a large number of criminal acts is to generate a profit for the individual or group that carries out the crime. Money laundering is the processing of these criminal proceeds to disguise their illegal origin.

Financial Action Task Force (adapted)

What is terrorism financing?

The financing of terrorism involves providing finance or financial support to individual terrorists or non-state actors or funding terrorist activities. Unlike money laundering that is from criminal activities, terrorist financing can also be derived from legitimate sources, such as salaries, revenue from a legitimate business, or donations raised through a non-profit organisation.

Financial Action Task Force (adapted)

What is proliferation financing?

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)

Financial Action Task Force (adapted)

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.

Financial Action Task Force (adapted)

How to recognise and report suspicious activity

Suspicious activity for financial crimes can be both hard and easy to spot.
Consider these potential signs:

  • The person buying your property doesn’t want their identity revealed to you
  • A business that doesn’t seem to have many customers somehow manages to stay open
  • Your business ‘investor’ uses multiple birthdates, or various names
  • A stranger offers to pay you $100, if you cash a $1,000 cheque for them
  • You get an offer from someone living overseas to buy the vehicle you have for sale, on behalf of an unnamed person

 

Report suspected crimes

The general public is obligated to report all crimes taking place in the Cayman Islands to the Royal Cayman Islands Police Service (RCIPS).

If these crimes involve financial matters, contact the Royal Cayman Islands Police Service’s Financial Crimes Unit on RCIPS.FCU@rcips.ky or +1 345 949-8797 .