I am a far from qualified person to talk about money laundering and the legislation in place to protect it. I can only comment on what I read and leave it to “experts”.

In a recent article in the Cayman Compass Francis Arana, the head of the Anti-Money Laundering Unit of the Attorney General’s Chambers, is reported as saying: “The island-wide evaluation of money laundering risks in the Cayman Islands has revealed outdated laws and regulations, weak supervision of nonprofits and non-financial organizations, and insufficient international cooperation”.

Arana revealed this at Anti-Money Laundering and Financial Crime conference at the Marriott resort in Grand Cayman last Thursday (8).

Alarmingly he said the Cayman Islands national risk assessment uncovered out-of-date laws and insufficient supervision and enforcement.

“We have outdated anti-money laundering, terrorism financing laws … that are in urgent need of updating,” he said, adding that the laws, regulations and guidance notes did not even speak to some of the threats.

To read the whole article go to: http://www.compasscayman.com/caycompass/2015/10/09/National-risk-assessment-reveals-major-money-laundering-threats/

Local lawyer Peter Polack sent me his thoughts about all this:

The Money Laundering Fiasco

In a disturbing outbreak of truth Francis Arana, the head of the Anti-Money Laundering Unit of the Attorney General’s Chambers outlined the delinquent disarray of our legislation on money-laundering at a recent conference.

This report amounts to another confirmation of the non-performance of his boss the Attorney-General and Jacqueline Wilson the chief officer of the portfolio.

Mr.Arana is a brave man to reveal that the emperor has no clothes. Perhaps we should have been forewarned by the recent and sudden departure of Superintendent Stephen Ratcliffe the former head of the Financial Crimes Unit who decamped to Zurich without a word on our perilous standing with the Financial Action Task Force.

The DPP has also advised that responsibility under the Proceeds of Crime Law lies with the RCIPS and her department only has an advisory role. So far as I am aware neither the RCIPS nor the Financial Crimes Unit employs any lawyers which must put them in a curious position.

The assessment was another failure by the Portfolio of Legal Affairs.

There is also the matter of the resource rich and well paid Financial Reporting Unit which has not been the subject of a performance review in light of recent events. The Director of the Financial Reporting Authority was appointed a mere two years after being an articled clerk with the Attorney-General chambers. According to the government release this former RCIPS officer of thirty three years’ service rocketed to the Director position in 2005 appointed by the Attorney-General. In addition to his substantial FRU salary he would likely receive a police pension while many qualified persons have neither. In taking the position he replaced a retired Commissioner of Police but it was unclear if the position was advertised.

So long as there is a pretense of performance the Caymanian public must pretend we have accountable leadership until 2017.

END