Cayman Islands assists in US fraud case

 

Cayman Islands International Cooperation Regime Instrumental in Bringing Two U.S. Fraud CasesSuccessfully to JusticeMore than 15 Years After Its Ratification, Mutual Legal Assistance Treaty Still A Key Resource inthe Fight Against Global Financial Crime    WASHINGTON, May 27 /PRNewswire-FirstCall/ -- The Cayman Islandscooperation with the U.S. Department of Justice on two criminal investigations-- including one that began more than seven years ago -- culminated in aspecial meeting Thursday between senior Cayman and U.S. officials inWashington, D.C.    Cayman Islands Chief Justice Anthony Smellie and Attorney General SamuelBulgin met with U.S. Attorney General Alberto R. Gonzales and other officialsat the U.S. Department of Justice to exchange funds, stemming from the asset-sharing agreement as part of Cayman's Mutual Legal Assistance Treaty (MLAT)with the U.S.    The Cayman delegation received just over US$1.7 million, the result of thesuccessful prosecution of the two fraud cases. For the second case, the CaymanIslands in return presented the U.S. government with US$675,000, to be used asrestitution for the victims of that fraud, which has been successfullyprosecuted and the proceeds confiscated.    "Our relationship with the U.S. and our moral obligations as a member ofthe global community to assist in the efforts to combat the scourge oforganised crime and money laundering are of the highest importance to theCayman Islands," said Chief Justice Smellie. He also expressed Cayman'sappreciation to several members of the Office of International Affairs andcommended the strong working relationship that has developed between the twogovernments.    Attorney General Bulgin made the following remarks: "The occasion heretoday is indeed a reaffirmation of the long history of cooperation between theU.S. and the Cayman Islands -- with able guidance from the U.K. -- in thefight against criminal activities. It is an unequivocal pledge of the CaymanIslands to continue to cooperate with other countries, including the U.S., innot only prosecuting the perpetrators, but in confiscating their proceeds ofcrime."    Since the MLAT's introduction in 1990, in excess of US$10 million, arisingfrom some 230 cases in which the two governments have cooperated, has beenshared with the Cayman Islands. Several million dollars have also beenreturned to the United States for the restitution of victims of fraud andother cases.    The Cayman Islands has an agreement with the U.S. to share any proceedsfrom cases in which the two governments cooperated which are not to bereturned, for various reasons, to victims, shareholders or creditors. The MLATencourages use of funds for local drug rehabilitation, law enforcement andjustice administration programmes.    The Cayman Islands was the first regionally, and among the firstworldwide, to criminalise the laundering of the proceeds of all seriouscrimes, extending such legislation beyond the ambit of drug-money laundering.The legislation gives the courts of the Cayman Islands power to restrain andultimately to forfeit the proceeds of drug trafficking and all other seriouscrime, including fraud and official corruption.    In 2003, the Cayman Islands passed a comprehensive piece of anti-terrorismlegislation in addition to adopting, as part of its domestic law, UnitedNations Security Council resolutions dealing with the financing of terrorism.    The Cayman Islands Government has been continuously working bothdomestically and internationally to maintain a strong regulatory andcompliance framework. Domestically, this includes adherence to the FATFinternational anti-money laundering standards and the Basel Committee, IOSCOand IAIS global standards in the regulation of financial services and updatesto governing legislation.    Internationally, this includes bilateral mutual co-operation arrangementssuch as the mutual legal assistance treaty with the U.S. and variousregulatory co-operation arrangements maintained by the Cayman Islands MonetaryAuthority.    The Monetary Authority Law (2003 Revision) vests CIMA with powers to makelicensing, supervisory and enforcement decisions, and to co-operate withinternational regulatory authorities.About the Cayman Islands Financial Services IndustryBuilding on more than 40 years of steady growth, the Cayman Islands todayis recognised as a sophisticated, mature and diverse financial centre. Overthe past 15 years in particular, the Cayman Islands has focused on two mainobjectives:  building a world-class specialization of institutional businessand developing strong international cooperation agreements with the U.S. andother countries. The Cayman Islands financial services industry encompassesbanking, trust services, company services, mutual funds, insurance, vesselregistration, capital markets products and the Cayman Islands Stock Exchange.SOURCE Portfolio of Finance & EconomicsWeb Site: http://www.gov.kyCopyright © 1996- PR Newswire Association LLC. All Rights Reserved.