The Cayman Islands Monetary Authority listed three more websites of unregistered and unlicensed companies using Cayman addresses earlier this month.
The list now includes the websites of 67 entities that are neither registered nor licensed by CIMA in the Cayman Islands. CIMA began the list in 2003 and updates it whenever it becomes aware of new instances.
CIMA Head of Compliance Robert James Berry said most, if not all, of the entities are likely not legitimate companies that have been formally incorporated anywhere in the world.
‘Our experience has been that in all cases where the Authority has been able to obtain further information, the websites are linked to advance fee frauds,’ he said. ‘These websites and the correspondence issued by the entities listed attempt to give the impression that they are legitimate entities offering, for example, banking services or the ability to trade in securities.
‘However based on the information available to the Authority, it does not appear that they entities actually engage in these activities, but just give the impression that they do.’
The three new websites added to the list this month include one under the name Gulf Union Bank; one for Thatcher & Thatcher Ltd; and one for Cayman National.
The CIMA listing makes it clear that the Cayman National listed is not the same entity as or related to Cayman National Corporation. The non-licensed entity lists the same postal address as CNC, but gives a Thuraya satellite telephone number and a 1-800 fax number.
The Gulf Union website gives the fictitious Cayman address of 56 Lincol Street, Wilfox Layout, South Cayman, Cayman Islands. It also has a Thuraya satellite telephone number and a fax number with a country code from India.
The websites for all three of the most recently added bogus companies have already been terminated. Mr. Berry said that sometimes when CIMA first becomes aware of such a website, it is already inaccessible.
‘However, we post it anyway as the website might be reactivated or another website with a very similar name might be created.’
Some websites on the list are still active, including the one for NCB (Cayman) Limited, which CIMA added to its list in February. The listed company uses the exact same name and address as a company registered and licensed in the Cayman Islands as a money service business, but it is not the same entity.
Mr. Berry said CIMA becomes aware of the websites through complaints and inquiries from individuals; through the licensees and registrants whose names and address are being used without authorisation; and through other regulatory bodies or law enforcement agencies.
CIMA makes assessments on a case-by-case basis as to whether onward disclosure to local authorities or overseas regulatory authorities is warranted, Mr. Berry said.
‘The Authority’s procedures for dealing with these websites does include sending an email – as this is usually the only means for communicating – to the entity requiring it to cease and desist from engaging, or purporting to engage, in the regulated activity that they are not licensed to conduct.’
The bogus entity websites have the potential to harm the Cayman Islands and individuals.
‘These websites pose a regulatory risk in that the persons behind such websites are fraudulently soliciting assets from persons using the Cayman Islands’ reputation as an established financial jurisdiction as a lure to entice persons to invest or deposit funds,’ Mr. Berry said. ‘This could in turn result in undue financial losses to these persons and damage to the reputation of the Cayman Islands.’
Mr. Berry said the bogus entity websites were not unique to the Cayman Islands.
‘Most regulators post public notices alerting the public of these types of entities.’
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