DCI working to fulfil Caribbean Financial Action Task Force (CFATF) requirements as supervisor of Designated Non-Financial Businesses and Professions (DNFBPs). 

GRAND CAYMAN (GIS) – The Department of Commerce and Investment (DCI) hosted a training session for dealers in precious metals and stones (DPMS) on Thursday, 15 August. 

The evening outreach workshop provided attendees from the precious metals and stones industry with information pertaining to their obligations underanti-money laundering, counter-terrorist financing and proliferation financing regulations.

The goal of such outreach events is to ensure the industry is complaint with international standards and, as a result, protects the Cayman Islands from being placed upon the “grey list” by CFATF.

The Minister for Commerce, Planning and Infrastructure Hon. Joey Hew thanks the industry for their strong turnout at the workshop.

“It is essential that the Cayman Islands as a jurisdiction does everything possible to meet its international obligations. This is why the Hon. Premier has designated the implementation of CFATF recommendations a matter of national priority. DCI, in its framework as DNFBPs regulator, has a vital role to play in helping DPMS and real estate agents, brokers and developers to strengthen their anti-money laundering and counter-terrorist financing frameworks as a matter of utmost urgency,” the Minister adds.      

He stresses: “failure to comply could lead to greylisting and this is not an option.”

The session began with a welcome from the Ministry’s (Acting) Chief Officer Tamara Ebanks. Ms Ebanks reiterated the importance of the workshop and stressed that DPMS should look to DCI for support as the industry regulator, which the department has been since March 2017. 

The Head of the Anti-Money Laundering Unit (AMLU), Francis Arana then presented attendees with details of a National Risk Assessment (NRA) that Cayman has conducted, to better understand the level of risk the industry faces when it comes to money laundering, terrorist and proliferation financing. He detailed the ways in which illicit cash can be converted into legitimate and difficult to trace products, such as precious metals and stones.

Building on Mr. Arana’s presentation, Deputy National Coordinator for Government’s Anti-Money Laundering Steering Group (AMLSG) Justine Plenkiewicz discussed targeted financial sanctions (TFS) and proliferation financing (PF) within the context of the DPMS industry in the Cayman Islands.     

Workshop attendees were then instructed on their responsibilities for supporting national compliance with the CFATF recommendations, which are the global standard for combatting money laundering, counter-terrorist financing and proliferation financing. This included a demonstration from the Director of the Financial Reporting Authority (FRA) RJ Berry on how dealers should fill out Suspicious Activity Reports (SARs). He detailed the reasons for maintaining up-to-date and thorough records, particularly when there is a transaction that raises a red flag in their business. Examples included customers attempting to run several credit cards for a single purchase, or buyers wishing to make a purchase with a large sum of cash.

In the last session of the evening, the group was educated on how DCI will evaluate their actions in the event of suspicious activity. Head of Compliance and Enforcement for DCI Claudia Brady illustrated how dealers can set up their own AML/CFT frameworks and the ways to conduct a risk assessment (RA) for their businesses. She reminded the attendees that DCI will conduct regular onsite and offsite monitoring of the industry, to ensure compliance.

Ms Brady then hosted a Q&A session, in which attendees could ask questions of the panelists anonymously. Dealers were given a feedback form to help shape future outreach events and to better assist the DCI team in providing support to the DNFBPs.

Director of DCI, Ryan Rajkumarsigh reveals the workshop was attended by around 70% of registered entities and applauds his team for their many efforts to drive attendance. 

“We are also providing a video link of the session to all DPMS, so they can review any complex subject areas again. The small number of dealers who were unable to attend will be invited to further workshops and also encouraged to view the video session,” Mr Rajkumarsigh explains.

The Director also reminds DNFBPs that the next outreach session hosted by the department will be on Thursday, 29 August. This mandatory session will focus on the requirements of real estate agents and brokers. Interested stakeholders are asked to contact [email protected] to register their attendance.