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(CNS): The Financial Action Task Force has expressed concerns that the Cayman Islands is still failing to complete its action plan to address the “remaining strategic deficiencies” by demonstrating that all types of money laundering cases are being prosecuted in line with the jurisdiction’s risk profile. Officials here were hoping that the FATF would have announced its intention to remove this jurisdiction from its grey list this month. However, while Cambodia and Morocco have been de-listed, Cayman remains under scrutiny.
Financial Services Minister André Ebanks and other government senior officials participated in the most recent plenary, which was held in Paris and concluded Friday. The FATF has strongly urged the Cayman Islands to “swiftly demonstrate significant progress in completing its action plan by June 2023 or the FATF will consider next steps if there is insufficient progress”.
Of the original 63 recommendations made, Cayman has addressed 62. The task force has also noted the country’s high-level political commitment to work with the FATF and the Caribbean Financial Action Task Force (CFATF) to strengthen the effectiveness of its Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) regime and the steps towards improving it. But it is still not enough.
“The Cayman Islands should continue to work on implementing its action plan to address its remaining strategic deficiencies by demonstrating that they are prosecuting all types of money laundering cases in line with the jurisdiction’s risk profile and that such prosecutions are resulting in the application of dissuasive, effective, and proportionate sanctions,” the FATF said in the notes about the session.
In a release from his ministry about the current situation, Ebanks explained the issue at the heart of the problem of getting Cayman off the grey list.
“For FATF to consider this recommended action as addressed, the Cayman Islands must demonstrate, among other things, that those convicted have been sentenced,” he said, adding that in accordance with FATF procedures, the Cayman Islands will provide an update during the FATF Joint Group’s review meeting this April, prior to the FATF Plenary this June.
According to some local industry experts, the refusal to remove the Cayman Islands from the grey list continues to relate to global politics of the countries driving the agenda at FATF, a sentiment that the minister has also noted on previous occasions.
“The reality is that Cayman is in good shape and progressing and should get off the ‘grey list’ in June during the next sitting,” one financial sector stakeholder told CNS. “More has been achieved in the last 12-18 months by this minister to address the issues and make real progress than anything done by previous ministers for financial services.”
Others, however, have also told CNS that there are problems in relation to prosecutions because the RCIPS and the Ani-Corruption Commission are short of the experts needed to conduct complex financial crime investigations. Criticisms have also been levelled over a tendency for law enforcement officials here to go after the “lower hanging fruit” rather than delving into more complex potential crimes.
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