How long can the DIRTY money stay concealed?

Money laundering is known as the act of concealment and transformation of profits from illicit activities into any kind of apparently legitimate asset. These activities can also include corruption and it takes rigorous work and effort to track the dirty money. Countries have been working tirelessly to devise policies to minimize money laundering.

The Cayman Islands Anti-Money Laundering Regulations, 2017 (AML Regulations) requires all entities registered with the Cayman domicile, carrying out relevant financial businesses to appoint an individual as an AML Compliance Officer (CO), a Money Laundering Reporting Officer (MLRO) and a Deputy MLRO (DMLRO) to make assessment of all the activities that the business undertakes and classify them as being suspicious or non-suspicious.

The job of an AML compliance officer in the Cayman Islands is to assist the entities to develop, assist and maintain appropriate AML/CFT (counter-terrorist finance) policies. They are required to take care of the fact that regular audits are being performed with the due diligence procedures. Also to take written confirmations from the management and other relevant authorities that they have complied with all the policies and procedures under the AML regulations. They have to provide all the relevant information when required by any competent authority in acting power and report all the relevant financial activities periodically including how smoothly were the compliances followed and the issues arising in the systems.

Other than this, MLRO services in the Cayman Islandshelp businesses by providing them with an officer who receives and investigates all internal reporting, be it a suspicious customer or any act of the company that doesn’t seem transparent. These officers are independent of the company who employees them and maintain internal registers regarding the documents detailing the investigations, details and, determine if the report has to be submitted to the financial authorities, and the documents of money laundering reports.

The deputy MLRO services in the Cayman Islandsare used by businesses in the absence of MLRO. This is done in compliance with the law which states that if any MLRO is absent due to any reason, they are liable to appoint a deputy MLRO in their place.

All these acting authorities are sovereign and will hold the businesses accountable for any misconduct in reporting its assets and profits.

The Cayman Islands attracts many clients who are seeking offshore financial services due to the absence of taxation in the region, its political stability, foreign exchange controls and the quality of services provided. With a large boon of customers from all over the world, the Government needs to make sure that all the customers bring white money and that the financial intermediaries can prove with sufficient data that the money is coming from a legitimate source. This is to reduce illegal work and minimize corruption which hits the world economies negatively. The process has been carefully designed to encourage transparency at all levels of data recording. This scrutiny is not limited to the customers but also to the business entities operating in the Cayman Islands.