Charities warned over vulnerabilities

| 09/09/2019 | 6 Comments
Cayman News Service

(CNS): With more than 450 local churches, sports clubs, community groups, charities and other non-profit organisations registered with government, the registrar for NPOs hosted an information session recently to help these entities manage their risk of being used for money laundering, terrorist financing and financial sanctions dodgers. This was the latest in a number presentations to sectors vulnerable to financial crime. The Cayman government is currently under a Financial Action Task Force ‘observation period’ and has just five months to correct AML/CFT deficiencies.

Precious metal dealers and jewellers as well as realtors and developers have already been invited to various awareness sessions, as government works to plug the vulnerability gaps outside of its offshore finance industry.

Last Thursday’s meeting also featured presentations from other government agencies, namely the Anti-Money Laundering Steering Group, the Financial Reporting Authority and the Financial Crime Investigations Unit within the Royal Cayman Islands Police Service.

“‘Based on their unique purposes and activities, these NPOs were invited in for this targeted outreach session to educate them on these risks,” said Paul Inniss, the Head of Compliance at General Registry. “This session will help these NPOs to fulfill their administrative duties in compliance with local laws and global standards for anti-money laundering, countering the financing of terrorism, targeted financial sanctions and proliferation financing.”

Inniss facilitated the session, alongside Ben Evans of Financial Transparency Advisors (FTA). The Ministry of Financial Services has contracted FTA to assist with Cayman’s preparations for the 2020 CFATF (Caribbean Financial Action Task Force) review of Cayman’s anti-money laundering and counter terrorist financing regime.

Government is working to address all of the recommendations of the Caribbean Financial Action Task Force (CFATF) following the March assessment of Cayman’s AML/CFT regime. The current ‘observation period’ ends in February when Cayman expected to correct all of the strategic AML/CFT deficiencies noted by the OECD group.

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Comments (6)

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  1. Anonymous says:

    Used for Money Laundering?
    What if Charities, Restaurants, WaterSports Businesses, Churches and other cash entities are set up FOR the purpose of Money Laundering? Who checks?

  2. anon says:

    The focus needs to be on local businesses that generate large cash deposits, I don’t see charities as being a high risk area.

  3. Anonymous says:

    So someone is policing the churches? Pull the other one!

  4. Anonymous says:

    Where is the snooze button?

  5. Underdog says:

    Cayman Brac left out again!

    • Anonymous says:

      Thank your lucky stars. This entire debacle is an unmitigated waste of time and money which will achieve not one single ‘Financial Action’ benefit. The CFATF, etc., who came up with these idiotic reporting requirements should be embarrassed.

      (I don’t blame CIG because its do this or get black-listed. But the whole thing is a waste of everyone’s time and money. Which, as an NGO, there’s not a lot of either.)

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