Cayman on US money laundering list

| 24/03/2015 | 2 Comments

(CNS Business): Seven Caribbean countries find themselves on the US “Major Money Laundering List for 2015”. The United States Government published its “2015 International Narcotics Control Strategy Report” on Wednesday, and the Cayman Islands is on the list.

The other six Caribbean countries listed are Antigua and Barbuda, Bahamas, Belize, British Virgin Islands, Dominican Republic and Haiti. The well over 200-page report from the US State Department focuses on financial crimes and money laundering issues throughout the world, naming 65 countries in all (see below).

See Cayman Finance response

In the Cayman Islands, the US stated in the report, “most money laundering is primarily related to fraud and drug trafficking”, adding, “Due to its status as a zero-tax regime, the Cayman Islands is also considered attractive to those seeking to evade taxes in their home jurisdictions.”

The report acknowledges the Cayman Islands as a well-developed offshore financial center that provides a range of services, but also urges the Cayman Island’s Government to pay greater attention to risks and better supervise all non-profit sectors, which the report said, “is at a risk of being used to launder fraud and drug related acquired money.”

The United States defines a major money laundering country as a jurisdiction “whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking”.

According to the Cayman Islands Monetary Authority, as of September 2014 there were approximately 8,056 registered mutual funds, of which 397 were administered and 106 were licensed. The report noted that anonymous accounts and shell banks are prohibited in the Cayman Islands.

The 2015 International Narcotics Control Strategy Report also explained the major sources of laundered proceeds stem from illicit trafficking activities, tax evasion and fraudulent financial activities, particularly transactions with forged credit cards.

Belize along with Antigua and Barbuda, Bahamas, the Dominican Republic and Haiti made the list last year.

International Narcotics Control Strategy Report Volume II: Money Laundering and Financial Crimes March 2015

Major Money Laundering Countries in 2014: Afghanistan, Antigua and Barbuda, Argentina, Australia, Austria, Bahamas, Belize, Bolivia, Brazil, British Virgin Islands, Burma, Cambodia, Canada, Cayman Islands, China, Colombia, Costa Rica, Curacao, Cyprus, Dominican Republic, France, Germany, Greece, Guatemala, Guernsey, Guinea-Bissau, Haiti, Hong Kong, India, Indonesia, Iran, Iraq, Isle of Man, Israel, Italy, Japan, Jersey, Kenya, Latvia, Lebanon, Liechtenstein, Luxembourg, Macau, Mexico, Netherlands, Nigeria, Pakistan, Panama, Paraguay, Philippines, Russia, Singapore, Somalia, Spain, St. Maarten, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Venezuela, West Bank and Gaza, and Zimbabwe.

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Category: Featured, Finance, Financial Crime, Uncategorized

Comments (2)

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  1. alesta mills says:

    excellent information to the public FATCA is a big joke.there is no privacy in this world.

  2. Anonymous says:

    I wonder why the state of Delaware isn’t on the list? Even after FATCA, the US continues to blame Cayman for its own burdensome tax code and loopholes.

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