Cayman freezes US$8.7 billion in Russian assets

| 12/07/2022 | 29 Comments

(CNS): Over US$8.4 billion and €297.8 million in assets have been frozen in the Cayman Islands since Russia sanctions were imposed at the beginning of March. The Financial Reporting Authority has received 801 Compliance Reporting Forms (CRFs) related to the sanctions and 144 suspicious activity reports. This represents over US$1 billion more than initially reported in April by the cross-government task force established to coordinate the application of sanctions against Russia.

“Financial services providers continue to identify and report funds or economic resources owned or controlled, directly or indirectly, by designated persons, and are freezing those assets or economic resources,” said FRA Director R.J. Berry.

The General Registry, which registers local and overseas companies, and the Lands and Survey Department, which registers land transfers within the Cayman Islands, continue to check their databases against the latest lists of sanctioned individuals and entities.

The task force said its goal is to solidify the Cayman Islands’ understanding of its exposure to individuals and entities that have been designated and are subject to sanctions under the Russia Sanctions Regime. It has also worked to ensure that relevant agencies are effectively implementing the sanctions. As part of this remit, the task force has been actively monitoring changes made by the UK Government to its Russia Sanctions Regime.

Since February 2022, there have been ten amendments covering various measures to the UK’s Russia (Sanctions) (EU Exit) Regulations 2019. Of these, seven amendments have since been extended to the Cayman Islands. Amendment 1 was extended automatically, with amendments 2 to 7 reflected in the Russia (Sanctions) (Overseas Territories) (Amendment) Order 2022 that came into effect on 14 April. The UK Government has continued to update the Russia sanctions list frequently, with over 1,600 designations since the invasion of Ukraine.

Locally, the FRA and the Cayman Islands Monetary Authority (CIMA) continue to ensure that Financial Sanctions Notices are posted and circulated in a timely manner to enable relevant firms to comply with obligations.

Governor Martyn Roper said it was important that the Cayman Islands was seen to be implementing the sanctions in real-time.

“The Cayman Islands’ effective implementation of sanctions bolsters its strong reputation internationally as a highly responsible, efficient and professional financial services centre, as FCDO Minister for the Overseas Territories Amanda Milling confirmed on her visit earlier this year,” he said. “My office will continue to support the Cayman Islands with this vital work.”

To ensure wide awareness of the sanctions and their implications among local industry, the sanctions coordinator at the FRA participated in two outreach sessions in June. The first event was a presentation on the topic of the evolving sanctions landscape and provided key updates from the FRA.

The virtual session was hosted by the School of International Financial Services (SIFS) and attended by 140 people. This was followed by a panel discussion entitled “Cayman Sanctions: The Basics and Beyond”, which was hosted by the Cayman Islands Legal Practitioners Association and the Alternative Investment Management Association. While the task force is primarily focused on fulfilling its remit within the Cayman Islands, members are also working diligently to international cooperation obligations as appropriate.

Members of the Russia Sanctions task force comprise the Financial Reporting Authority (Chair), Governor’s Office, Portfolio of Legal Affairs, Ministry of Financial Services and Commerce, Cabinet Office, Maritime Authority of the Cayman Islands, Cayman Islands Monetary Authority, Cayman Islands Bureau of Financial Investigations, Cayman Islands Customs and Border Control, General Registry, Civil Aviation Authority of the Cayman Islands and the Lands and Survey Department.


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Category: Politics

Comments (29)

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  1. Anonymous says:

    Split it up among the citizens, works out to about $125k a head i believe

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  2. Anonymous says:

    Great, but anyone who works here knows we didnt freeze anything really. All the assets are held onshore.

    The yachts are seized by the local police. The bank accounts by large banks ect ect.

    Yeah we freeze the company, but the actual assets are not here. Sounds good for the press though.

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    • Anonymous says:

      I bet Cayman Shipping is still charging and accepting payments for annual tonnage for all the Russian Owned vessels?

  3. Anonymous says:

    Modern Day Piracy.

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  4. Round and Round in circles we go says:

    Is that why it takes them so long to do their job?

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  5. Anonymous says:

    Who checked Dart for his source of funds in the 1990s in Russia?

    Does anyone ensure “Know Your Customer” checks are conducted on secretive Dart?

    Bet not!

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  6. Anonymous says:

    PPM and Mac promoted many projects.

    How many realestate transactions involve Putin’s Russia oligarchs and others with business ties to Russia.

    PPM gave: away hundreds of Millions of $$$ in secret concessions to developers,

    How many of these developers corrupt Russian oligarchs?

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  7. Anonymous says:

    The funds are not actually sitting in Cayman Banks. This article is misleading. The actual funds are mostly in thr states. Its just through a Cayman Fund that is used.

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    • Anonymous says:

      Yes but we get hammered by the FATF et al where the same accounts are used for laundering. If Cayman can’t win the game, we might as well use the game to win. This is good messaging.

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      • Anonymous says:

        FATF et al mean no good for the Cayman Islands. My lawyer cannot represent me right now because busy dealing with AML issues and has taken legal action has been taken. Hope AG is ready for a big fight that is coming.

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  8. Crab Claw says:

    Does this mean the EU will stop calling Cayman a Tax Haven if these assets were so easily identified and seized?

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  9. Anonymous says:

    Russia will still be victorious.

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  10. Anonymous says:

    All funds should given to Ukraine to fight the war against the evil Ruski.

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  11. Anonymous says:

    That should cover Pirates Week costs.

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