Cayman freezes US$7.3 billion of Russian assets

| 07/04/2022 | 51 Comments
Destroyed Russian armored vehicles on the streets of Bucha, pictured on April 2022 (The Kyiv Independent)

(CNS): Since the Russian invasion of Ukraine in February, more than 800 asset freeze designations of individuals and entities have been enforced in the Cayman Islands, officials said in a release about the creation of a task force to coordinate the new sanctions regime.

In compliance with their obligations under the Russia (Sanctions) (Overseas Territories) Order 2020, numerous financial service providers (FSPs) have submitted over 400 compliance reporting forms confirming that assets with an estimated value of US$7.3 billion have been frozen.

The government has created a joint task force to deal with policy amendments required to implement the Russia Sanctions here. The sanctions impact multiple public sector agencies, and this cross-government team is part of Cayman’s pro-active response, officials said. The goal is to provide a central point around policy and communication.

With the Cabinet Office as coordinator, facilitating and coordinating inter-agency cooperation it is being chaired by Financial Reporting Authority Director RJ Berry.

“The level of reporting to date is indicative that financial services providers are able to identify funds or economic resources owned or controlled, directly or indirectly, by designated persons and are freezing those assets or economic resources,” said Berry.

“The relevant agencies within the Cayman Islands also have a long-standing track record of responsiveness and cooperation with international counterparts, and will continue to maintain that record in our approach to the Russia Sanctions.”

The recent amendments to the Russia (Sanctions) (EU Exit) Regulations are expected to be extended to the Cayman Islands via another amendment order, which will come into force on 14 April.

These amendments include new financial, trade and maritime measures, and restrict specified financial services with the Russian Central Bank and other Russian Federation agencies. Sanction measures apply in the Cayman Islands in the same way they do in the United Kingdom.

“The establishment of this task force demonstrates the Cayman Islands’ proactive approach to compliance with international sanctions,” said Premier Wayne Panton. “Collaboration and coordination between our public service entities has resulted in swift, unequivocal action. Our commitment to robust regulations in the Cayman Islands financial services sector has ensured that we are able to contribute to international peacekeeping, global security, and good governance.”

While the financial services sector is used to implementing sanctions and dealing with global compliance issues, the rollout of these sanctions impacts more sectors than the offshore industry. Other sectors, such as jewellery dealers and real estate, where compliance with anti-money laundering safeguards has proved to be less effective, will require greater supervision.

For many years Russian oligarchs and companies have invested in overseas property, yachts and private jets, but the purchase of these assets is often made through complex offshore structures which local real estate agents don’t necessarily have the wherewithal to check.

As a result, the task force, which meets weekly, includes representatives from the land registry and the general registry as well as the more directly impacted agencies, such as the Cayman Islands Monetary Authority (CIMA), the Civil Aviation and Maritime Authorities and the Ministry of Financial Services and Commerce.

Law enforcement agencies are also part of the task force, including the Customs and Border Control, the RCIPS Bureau of Financial Investigations, the Financial Reporting Authority (FRA) and the Cabinet Office.

“I am grateful for all the hard work that has gone into implementing Russia sanctions,” Governor Martyn Roper said. “This underlines the reputation of the Cayman Islands as a responsible and reputable financial centre working to implement the highest standards.”

Officials said Cayman will continue to monitor the global situation and issue sanctions updates primarily via the FRA and CIMA circulation lists and websites as advised by the Foreign, Commonwealth and Development Office. 


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Category: Business, Financial Services, Politics

Comments (51)

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  1. Anonymous says:

    Expert discusses how difficult it would be to hold President Putin accountable for war crimes.
    https://www.winknews.com/2022/04/11/president-putin/

  2. Anonymous says:

    This news needs to hit the NY Times, The Guardian, etc, etc. But the frustrating thing is that they will choose not to report and instead continue to report misleading, half truths about our KYC process here in Cayman.

    Cayman Finance – please take this to your international media contacts.

  3. Anonymous says:

    Good practice for the main exercise of tracking down and freezing all the Chinese state actor money…wait for it.

  4. Anonymous says:

    A little clarity, the funds/assets are held by Cayman entities but in 90% of the cases they are in accounts held in custodians/brokers/banks outside of Cayman. Very unlikely any of these assets will ever see Cayman shores.

  5. Anonymous says:

    From the beginning of the terrorist invasion of a peaceful nation, I predicted that the invading terrorists would be defeated. Some of the terrorist sympathizers that post here said I was delusional, what will you say now? The Ukrainians have ran those scumbags back and taken back several cities. Ukraine is now on the offensive against those cowardly invading terrorists. The Russians are such cowardly scumbags that they’ve resorted to pursuing soft targets, innocent civilians. Get prepared, Russia is on the verge of getting fully evicted by the brave United people of Ukraine. 🇺🇦 Where are you Rasputin???

  6. Anonymous says:

    Out of the billions in assets that have been frozen in this jurisdiction, does the Cayman Islands get to keep these assets if they are, ultimately, confiscated? Asking because I don’t know.

    • Anonymous says:

      How does that make any sense? Wouldnt you think the money should go to the ukrainian people?

    • Anonymous says:

      That would be cool.

    • Anonymous says:

      “They” are good at getting money…… but they would just be stealing other people’s money, which isn’t anything new.

    • Anonymous says:

      The assets aren’t here, just the legal structures and even if they were, no.

    • Anonymous says:

      So, if frozen assets are actually confiscated, does this have the potential of contributing to the public purse of the Cayman Islands?

      Seems like responses were from varying different angles of favor or concern. But, with the greatest respect to all, no conclusive answer.

      I asked the question, because I did not know. However, whilst I am grateful for all responses, but think I might need to thoroughly review for myself — trust, but verify.

      • Anonymous says:

        The assets aren’t confiscated, they are frozen. The assets aren’t in Cayman so no they can not contribute to our public finances. Even if the assets were in Cayman they wouldn’t become ours just as they have not become the US’s or the UK’s.

        The assets have been frozen because, in large part, they have been gained fraudulently, effectively stolen from the Russian people through Putin’s klepocratic governance. If they belong to anyone it’s the Russian people although hopefully they will be bypassed and the money used to rebuild Ukraine but that’s not up to us!.

      • Anonymous says:

        The answer to your question is no. Verify away.

  7. Anonymous says:

    Barely scratches the surface. So many management and legal firms have assisted in further obscuring the assets. Their fees enable the continued murder of ukranian people.

    • Anonymous says:

      There could be aspects of being an accessory to (international and other) crimes and profiting from unlawful proceeds of crime, which the AML-CTF regime, inter alia, seeks to prevent.

  8. Anonymous says:

    I lucked out! Got a nice deal from a local Russian on a nice property he was unloading before sanctions!

    sig. Caymanian buyer.

  9. Anonymous says:

    Local real estate agents only have the wherewithal to count the excessive commission they gouge from their victims aka sellers.

    • Anonymous says:

      Investment funds and private equity is effected too. Seems like more deflection.

      However, if such Caymnan law, which sanctions apply as to ownership (actual or beneficial) can CIG confiscate proprietorship and it become Crown land?

  10. Anonymous says:

    Why are we bragging about this on a public forum? has anyone considered retaliation by Russia against our nationals when they are in the Russian part of the world ?

    • Rasputin says:

      Keep it down! We dont want anyone to know this or that there are actual nazis on the Ukraine side!

      CNS: The existence of the Azov Battalion has been widely covered by the media, so among the things that you are wrong about is the insinuation that this is a big secret. However, this one battalion is being used by Putin’s propagandists (and his useful idiots) to suggest that the whole army and the government is Nazi, which is his main justification for the war and all the horrors going on right now to the Ukraine people.

      Spreading this propaganda is beyond disgusting and there is no excuse for it. There are no Nazis in the Ukraine government and its president is Jewish. The people and it’s army are fighting desperately for survival against an invading army that kills, rapes and tortures civilians indiscriminately.
      Here is one article on the Azov Battalion.

      • Aldo Serena says:

        The FT also ran an article on the Azov battalion. The Sea of Azov is Ukrainian territory and lies between annexed Crimea and the so-called and self-declared People’s Republic of Donetsk which is not internationally recognised. Therefore, it would be expected that the Azov battalion operates within a more than tough neighborhood which however by no means justifies any antisemitic tendencies.

        Not only is the Ukrainian President Jewish, but also his Prime Minister. So not only does de-nazification of Ukraine make no sense at all, it is also a very sickening show of disrespect towards 6 million Jews that were really killed by Nazis in the last century.

      • N says:

        Thanks CNS!

      • Anonymous says:

        Some facts for Ras:
        The Azov were certainly a far right inspired militia. However, it’s original founders gave long since moved on and it is now considered a mainstream regiment.
        All western military and civilian organisations will inevitably contain members whose politics could be described as far right, it doesn’t mean that the entire organisation is systematically extreme.
        Putins Russian military tactics are the same cowardly and inhuman ones that Peter the Great would recognise, indeed Stalin employed the same against his own people and of course Nazi Germany. Followed by successive Soviet dictatorships crushing Eastern European post war independence.

        None of this should be a surprise and the west, (including Cayman) should have had no dealings with money coming from Putins gangster regime and it’s oligarch supporters.
        Cayman has been, and continues to be built on money stolen or hidden from the tax regimes or the national assets of sovereign states. The days of hockey bags full of cash coming in on light aircraft with no questions asked maybe over, but money laundering through the property ownership and development sector is obviously rife. It’s about time every purchase was scrutinised and limits placed on overseas ownership.
        The financial sector has its issues, but real estate and development are far worse, (especially for local people and affordability) and in need of tighter regulation.

    • Anonymous says:

      Common sense would suggest staying away from “ the Russian part of the world” for quite some time.

    • Anonymous says:

      Why would anyone living in cayman be traveling to Russia when every western airline has closed all flights and there is effectively a new iron curtain?

    • Anonymous says:

      You Cayman “nationals” (lol) will want to stay out of the Russian part of the world. They’re pretty pissed off, as everyone knows, and it’s at least possible you would be treated like other UK citizens.

      • Anonymous says:

        Thanks for the news flash, Captain Obvious. Any other wisdom you care to bestow on us, oh ye of eternal knowledge?

      • Anonymous says:

        When will you bigoted people stop referring to the Caymanian identity with such disrespect. A nation is a group of people with a common place, origin, culture, ethnicity, etc. No more! Being sovereign or a UN member or anything else is not required. Case in point: the Navajo Nation covers parts of three U.S. states, and has its own executive, legislature and judiciary. Use a dictionary and keep your opinions (lol) to yourself.

    • Anonymous says:

      CNS comment of the year so far!

      So few words but so many levels of comedy gold here…

      • Anonymous says:

        20 years ago no one would touch Russian assets which were for the most part stripped from the economy after the breakup of USSR. But the slimy law firms saw the huge fees for hiding theses ill gotten assets from future claims and a fee frenzy commenced. So truly no prudent Caymanian should go to Russia…either the subjects of the sanctions will get you or their victoms you helped rob.

    • Gray Mattet says:

      Only if you are on vacation with Bernie Sanders.

    • Anonymous says:

      7:06 – Why would any decent person want to go to the “Russian part of the world”? Stay away from that dump and you’ll be alright… nothing to see there

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