The Cayman Islands has received favourable mention in the 24th annual International Narcotics Strategy Report released 1 March.
Produced by the United States Department of State Bureau for International Narcotics and Law Enforcement Affairs, it describes the efforts of the United States and its international partners in combating narcotics and money laundering activities around the world.
‘We must continue to target the financial networks that allow criminals to reap their ill-gotten gains, and terrorists to finance their activities. Directly confronting these scourges is a task of vital necessity,’ said Anne W. Patterson, assistant secretary for International Narcotics and Law Enforcement Affairs, on the release of the report.
It states the Cayman Islands continues to make strides in strengthening its anti-money laundering program, and is noteworthy for its membership in the Caribbean Financial Action Task Force.
‘A robust and accurate country write-up on the Cayman Islands in the 2007 INCSR is an important event, as the report is a key reference tool for many governments, regulators and private sector compliance officers around the world,’ said Ted Bravakis, director, public relations unit, Portfolio of Finance and Economics, Cayman Islands Government.
The report outlines the numerous anti-money laundering structures in place in the Cayman Islands. These include Terrorism Bill 2003, which extends criminal liability to the use of money or property for the purposes of terrorism,
It also mentions strict supervision of licensees by the Cayman Islands Monetary Authority which is mandated to provide assistance to overseas regulatory authorities and which has signed an MOU with the US Securities and the Exchange Commission.
The report also makes notes of Cayman’s anti-money laundering regulations, the Misuse of Drugs Law which criminalizes narcotics-related money laundering, and the Proceeds of Criminal Conduct Law, which criminalizes money laundering related to all other serious crimes.
The report makes specific note of the Cayman Islands Financial Reporting Authority, a member of the international AML Egmont Group. The FRA is responsible for receiving, analyzing and disseminating disclosures of financial information regarding proceeds or suspected proceeds, including those relating to the financing of terrorism. From June 2005 to June 2006, the FRA developed 221 new cases.
While it praises the AML action already being taken, the report warns that the Cayman Islands remain vulnerable to money laundering due to its significant offshore sector.
‘From Government’s perspective, we must remain diligent in ensuring that our continued commitment to and investments in AML/CFT regimes are known and understood in the global community,’ said Mr. Bravakis.
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