Articles Posted in terrorist funding

money laundering and terrorism financing The Cayman Islands, three islands located in the western Caribbean, lack the capacity to spot money laundering and terrorism financing. This is a major fault considering the Cayman’s role as an international financial center.

The Caribbean Financial Action Task Force (CFATF) took control over the evaluation of this region in 2017, when they visited the Cayman Islands to compile a report on the deficiencies. This report specifically analyzed how the Cayman Islands complied with 40 Financial Action Task Force standards in relation to combating money laundering and terrorism financing. The Cayman evaluation was discussed by the CFATF and Plenary was held in November of 2018 in Barbados and published by March of 2019. The CFATF found much during their evaluation of Cayman.

They discovered that while the Inter Agency Coordination Committee and the Anti-Money Laundering Steering Group are a strong combination, they could use more cooperation with law enforcement organizations and the Financial Reporting Authority.

Various governments including the United States are taking great pains to follow money trails that lead to terrorist groups in an effort to understand who they are connected too and who is feeding their operations. The monitoring is broad based and not limited to foreign nations but also on large corporations and conglomerates whose operations might purposefully or mistakenly make payments that end up in the hands of our enemies. Back in 2007, Chiquita Brands International plead guilty to engaging in transactions with a specially designated global terrorist in Columbia. The company paid a $25 million fine. The difficulty  is that companies cannot always tell who they are dealing with and whether their connections might be affiliated with terrorists. The law is clear however, that individuals and companies are prohibited from conducting transactions with terrorist organizations, states or individuals and have an obligation to check and see whether such connections exist.  Banks are making efforts to determine whether funds are flowing to organizations designated as terrorists but frequently they use intermediaries.

 

Jeffrey Newman represents whistleblowers