Acting Chief Officer Tamara Ebanks (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
