DCI introduces new rules in face of risks

| 22/04/2019 | 22 Comments

Cayman News Service(CNS): The Department of Commerce and Investment has introduced several new board policies that will come into force on Wednesday, 1 May, as part of its new role supervising designated non-financial businesses and professions, such as real estate agents and precious metal dealers. The DCI is now tasked with ensuring that measures are in place to prevent these types of commercial activity from facilitating financial crime. The new rules are part of Cayman’s response to the Caribbean Financial Action Task Force (CFATF) review that raised red flags over vulnerabilities in unregulated areas.

In future, money-lending businesses, such as payday loan providers, must submit proof of their source of funds with their applications. They will also be subject to due diligence by the DCI Compliance and Enforcement Unit before the board decides on the application.

Realtors and businesses dealing with precious metals will also be subject to this new scrutiny by the DCI, while outside developers making applications under the Local Companies Control Law where they do not have local business partners may get shorter licence periods. They will also be required to resubmit applications, updating information about the status of projects.

This policy change has been introduced to guard against developments being left incomplete or delayed excessively, and to prevent any negative impacts on investors and the Cayman Islands’ realty market. All future LCCL applications will have to include detailed information on the project and the exact location of developments. Every LCCL application should be for a specific project or location.

Officials said that the DCI will amend the Trade and Business Licensing Law later this year as part of its wider ambition to streamline bureaucracy and make doing business here easier.

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Category: Business, Real Estate, Retail

Comments (22)

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  1. Anonymous says:

    This from the same bunch that can’t even deal with illegal beach vendors.

    • Anonymous says:

      8:04, If they do not get the approval from their political masters the DCI cannot enforce anything. Don’t blame DCI for inaction and enforcement but blame their political masters.

      • Anonymous says:

        A law enforcement agency that is controlled by the political arm of government is corrupt. It really is that simple. Any politician that tries to intervene in the investigation and prosecution of offenses should themselves be arrested immediately. Enough of this bullshit! If we want to be treated as a country we need to start acting like one!

  2. Anonymous says:

    Leave these businesses alone as we need as much new investment as we can get.

  3. Anonymous says:

    I’m from the private sector and I work with DCI a lot to get licenses etc for my clients.

    DCI is one of very few government agencies that is proactive and consistently looking for ways to improve customer service. I wish you all the best taking on this additional role.

  4. Anonymous says:

    Since the DCI plainly does not enforce the laws regarding fronting, which itself constitutes money laundering, why would anyone even worry about an LCCL?

    • Anonymous says:

      $1,000 a month is now the going rate charged by “Caymanian” (including a large number of “new Caymanian”) partners. The absolute refusal by the DCI to do anything about it, ever, makes any suggestion that they are to be responsible for enforcing any law a total farce. If Caymanians ever actually wonder how their entire economy got handed to foreigners despite laws designed to prevent that from happening, they should ask Alden and our world class civil service.

    • Anonymous says:

      How would they know it is fronting? Does anyone report to them about a company fronting?

      • Anonymous says:

        They never ask. They never investigate. It is now mainstream.

        • Anonymous says:

          They ask for evidence of Caymanian ownership. Anything after that unless they have evidence of needing to investigate, why would they go on a witch-hunt?

          • Anonymous says:

            Because significant numbers of persons claiming to own 60% do not. The evidence they ask for proves nothing. Fronting is widespread and there has been no hint of any investigation, let alone enforcement, for decades.

      • Anonymous says:

        Countless SAR’s for a start.

        • Anonymous says:

          SARs don’t go to the DCI though do they?

          • Anonymous says:

            Not my problem. SAR’s are often the proper channel for reporting the crime to the authorities. If the authorities are so corrupt or inept that nothing ever happens, then it rather emphasizes the point.

          • Anonymous says:

            SARs are filed with the Financial Reporting Authority which is a financial intelligence unit. If there is evidence of a crime, it is forwarded to police for investigation

            • Anonymous says:

              And it seems the police do not investigate. Corrupt, inept, or fronting does not exist. Which is it?

    • Anonymous says:

      The fronting of money laundering operations is one of Cayman’s dirty little secrets.

      Action needs to be taken on the fronting.

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