Jewellers warned of sector’s financial risks
(CNS): It is no longer just offshore financial institutions that are vulnerable to money laundering. Industries as diverse as real estate and jewellers are also at risk of being used to disguise the source of assets. Dealers in precious metals and stones (DPMS) were recently warned by government officials at a special workshop organised for their sector that they have an obligation to comply with international standards to keep Cayman off the Caribbean Financial Action Task Force (CFATF) grey list.
The premier has stated on a number of occasions that this jurisdiction is prioritising the implementation of the latest CFATF recommendations and this now includes closing down the gaps across various sectors that are exposed to potential money laundering, terrorist financing and other financial crimes.
The Department of Commerce and Investment (DCI) hosted the workshop as part of its CFATF requirements as supervisor of Designated Non-Financial Businesses and Professions (DNFBPs).
The training session last week outlined dealers’ obligations under anti-money laundering, counter-terrorist financing and proliferation financing regulations, whether they are gold brokers or jewellery stores, to ensure that they protect Cayman from the risks inherent in their sectors and prevent us from being on any current or future grey or black lists.
Commerce Minister Joey Hew said it was essential that Cayman did everything possible to meet its international obligations.
“DCI, in its framework as DNFBPs regulator, has a vital role to play in helping DPMS and real estate agents, brokers and developers to strengthen their anti-money laundering and counter-terrorist financing frameworks as a matter of utmost urgency,” the minister told the attendees, which officials said represented around 70% of the sector. “Failure to comply could lead to grey-listing, and this is not an option.”
The danger presented by this sector has been compounded by a recent case now winding its way through the criminal courts in which four men have been charged with various financial crimes relating to the smuggling of cash and the movement of some $6 million worth of gold that came to Cayman on a private jet and was handled by a precious metals brokerage here.
The ministry’s Acting Chief Officer Tamara Ebanks said dealers must look to DCI for support as the industry regulator, and Head of the Anti-Money Laundering Unit (AMLU) Francis Arana outlined the level of risk the industry faces. He explained how illicit cash can be converted into legitimate and difficult to trace products, such as precious metals and stones.
Deputy National Coordinator for government’s Anti-Money Laundering Steering Group (AMLSG) Justine Plenkiewicz discussed targeted financial sanctions (TFS) and proliferation financing (PF). Workshop attendees were instructed on their responsibilities for supporting national compliance.
Financial Reporting Authority (FRA) Director RJ Berry explained how to make a Suspicious Activity Report and the need to maintain up-to-date and thorough records, particularly when transactions raise red flags, such as customers attempting to run several credit cards for a single purchase, or buyers wishing to make a purchase with a large sum of cash.
DCI Head of Compliance and Enforcement Claudia Brady said dealers should establish their own AML/CFT frameworks and conduct a risk assessment of their businesses. She reminded the attendees that the DCI will conduct regular onsite and offsite monitoring of the industry to ensure compliance.
DCI Director Ryan Rajkumarsingh said the department was providing a video link of the session to all DPMS, so those who attended can review the information while those who did not can take a look before attending the next session on Thursday, 29 August. This mandatory session will focus on the requirements of real estate agents and brokers.
Interested stakeholders can contact enforcement@dci.gov.ky to register their attendance
Deputy National Coordinator for the AMLSG Justine Plenkiewicz discusses TFS and PF Acting Chief Officer Ministry of CPI Tamara Ebanks opens the DCI DPMS Workshop 
Head of the AMLU Francis Arana sets out the AMLCFT risk framework to DPMS 
FRA Director RJ Berry talks workshop attendees through SAR filing process
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Category: Brokers, Business, Crime, Crime Prevention
Doesn’t the constitution promise freedom from forced Labour? Seems like oCED and EU haven’t bothered research that. Force someone to do the Governments job sound unconstitutional too me. Waiting for that case….
None of these speakers could run a small business but are in top positions overwhelming small businesses with more and more red tape. The real money laundering is taking place in onshore jurisdictions. Leave us alone!
When will the private sector get its act together? The civil service leads in so many areas.
Thank you CIG for educating the private sector. They are so far behind
…the civil service that refuses to enact SIPL law, or adhere to Nolan Pronciples- spare us!
they are already looking at regulations on crypto currencies, that truly is the wild west, but without the slaughtering of the indinginous population
greed killin world..look at amazon on fire
How about Restaurants? Like the monopoly in EE? Who checks?
A lot of properties and houses are being bought by a restaurant in east end. Lots of money repairing them looking brand new now.
One things jewelers and realtors don’t care about: where your money came from.
They don’t know, or just lie about the provenance of their stock. Blood diamonds from Africa, butt rubies from Burma, emeralds from Venezuela, Taliban gold and lapis…it has all been here for sale, mirroring liquidation facilities in Dubai and Hong Kong…all part of the global criminal lattice.
No Da.
Woo-hoo! I’ll bet enforcement runs like a duty-free Swiss watch.
Maybe but they don’t check for fake Swiss watches that have been sold by one family here for decades.
I have often wondered why we have so many jewellery stores in George Town. Do they make large cash deposits in their bank accounts and if so, are there any checks?.
pretty sure you’ll find overwhelming majority are credit card purchases. that’s why we have a shortage of US dollars in the banks here. We don’t export US dollars to the onshore banks like in the ‘good old days’.
How is it possible that our “expert” regulators are only now figuring out the principal financing mechanisms of violent jihad and embargoed/sanctioned despot nations in 2019? Where have they been for 18 years? How about the crypto exchanges swapping between over 60 currencies…must we endure 20 years of clueless unworldiness before our “regulators” turn their inattention there too? Come on guys.