Last week, the Attorney General’s Chambers released findings from the first ever National Money Laundering and Terrorist Financing Risk Assessment (NRA).

Attorney General Samuel Bulgin said, “It is important for us to understand the threats, risks and vulnerabilities that face our jurisdiction. These summary results are based on analyses of reports from competent authorities, government agencies, financial institutions and law enforcement agencies, and as such they represent a first-time review of the key risks in the Cayman Islands.”

The Assessment pointed to the lack of supervision of relevant non-financial businesses and professions and a sanctions regime which required enhancement to meet the effective, proportionate and dissuasive standard required by the Caribbean Financial Action Task Force (CFATF).

The most worrying finding was the Cayman Islands had not won the battle yet against money laundering, terrorist financing, tax evasion and other financial crime!

A “less than fulsome implementation of the risk-based approach to AML/CFT regulation”, and shortcomings in domestic cooperation among government agencies at the operational level, despite strong inter-agency cooperation at the policy level, was also found.

The government has addressed some of these issues:

Need for a legal practitioners law

Strengthening non offshore risky areas (eg. cash transfer sector)

Setting up anAnti-Money Laundering Unit under the Attorney General’s Chambers to enhance interagency cooperation and policy coordination on the issue

Broadening the ability for the authorities to freeze assets to troublesome countries and people

Improving the monitoring and supervision of non-profit organisations (although I disagree with the reasoning and implementation of this)

Real estate agents and dealers of precious metals and stones

Removing the criminal sanction for breach of confidential information by repealing the Confidential Information (Preservation) Law, by replacing it with the Confidential Information Disclosure Law

Stepping up cooperation with international law enforcement agencies

Implementing new investigative methods, including K-9 resources – sniffer dogs

There is, however, more work to be done including all the findings of the National Risk Assessment into a comprehensive strategy, further legislative enhancements, improved cooperation between local stakeholders, and increased awareness of anti-money laundering and counter-terrorist financing among the industry and general public, among others.

The CFATF mutual evaluation will take place from 4 -15 December 2017.

Will the battle against money laundering ever be won? I don’t think so because the rewards are too great. We can only hope we can make it much harder for the crooks who have become more sophisticated and use professional and highly respected bankers to assist them.