The chairman of the Cayman Islands Monetary Authority Board of Directors said Thursday that the agency will commission an internal review related to the involvement of local individuals and financial institutions in the wake of the ongoing FIFA corruption scandal.
The FIFA probe, being conducted in the U.S., led to the arrest of Caymanian businessman Jeffrey Webb – FIFA’s former vice president and ex-CONCACAF president – last week in Switzerland and has named at least one current and one former Cayman Islands bank in what American prosecutors allege were money laundering activities.
CIMA’s Managing Director Cindy Scotland’s husband, former government minister Mark Scotland, has worked since last year for the Cayman Islands Football Association under its president, Webb, and was in Switzerland with Webb at the time of his arrest on May 27. The family connection has prompted some concern among the local financial services industry over the appearance of conflicts of interest.
In addition, former government minister Cline Glidden’s wife Gloria currently serves as deputy head of CIMA’s banking division. Mr. Glidden was also in Switzerland with Webb last week for FIFA’s annual meeting and has been working for CONCACAF on the creation of a regional football dispute resolution court.
The CIMA board met Thursday to discuss a number of issues related to the ongoing FIFA scandal and how it could potentially affect Cayman’s financial services industry.
Board Chairman George McCarthy said members were “very much concerned about the events that are occurring,” but agreed that it was too early for direct board involvement in these matters.
Mr. McCarthy said the three-person internal review committee will include newly appointed CIMA head of banking Charles Ilako, head of compliance R.J. Berry and deputy general counsel Andre Mon Desir. After the review committee completes its work, it will present a report to CIMA’s management committee, and the management committee will report to the board, Mr. McCarthy said.
Mr. McCarthy confirmed that Ms. Scotland would remain in her role as managing director and that there was “no need for her to set aside her role at this time.” In addition, Mr. McCarthy said there was no evidence at the present time that any Cayman Islands banks had done anything wrong.