Articles Tagged with #Cayman islands

tax havenA whistleblower by the name of Rudolf Elmer claimed that during his work as a private banker and internal auditor for the Swiss financial institution, Julius Baer Bank & Trust Company Ltd., he discovered actions that he found to be deceitful when relocated to the Cayman Islands. When Elmer acted as a whistleblower in this situation, instead of being supported in his efforts, he was fired, removed from the financial world, given time in prison, and even suffered a mental breakdown.

Whistleblower is a legal term that signifies anyone who chooses to report a person or organization for illicit activity. A large portion of whistleblowers are insiders and have directly interacted with the company in question as an employee.

Whistleblowers have the right to take legal action in the government’s name while the government may choose to step in at any point of the process to handle the allegations they find particularly detrimental or unlawful. The United States has a set of laws in place that are designed to protect whistleblowers known as the Whistleblower Protection Act, which has been around for over 30 years with the last major update being in 2012.

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.