Cayman's representative inthe UK, Mrs. Jennifer Dilbert - responds to the Jersey EveningPost
The Editor The Jersey Evening Post
Dear Sirs:
The Cayman Islands was indeed listedas a non-cooperative country by the FATF, along with a numberof other countries and territories. However, the Cayman Islandsis convinced that its financial services industry has consistentlyfollowed the highest levels of regulation in practice.
The FATF's concerns were that they were not codified in law. Whilstthis is true, practitioners in Cayman do adhere very closely tobest practice since any failure to do so would leave them liableto prosecution themselves on charges of money laundering.
These details notwithstanding, the Cayman Islands has always beenkeen to address international concerns and has since introducednew regulations. Although we are yet to receive the FATF response(it is to revisit the Cayman's position in October) we were heartenedby recent comments by the British Banking Association made inits Money Laundering Guidance Notes for the Financial Sector (28thJuly 2000) which acknowledged our efforts stating:
"Since the FATF decision the Cayman Islands has enacted legislationaimed at removing the detrimental practices identified by theFATF and securing Caymans removal from the FATF list. In particularMoney Laundering Regulations have been introduced which applyUK anti-money laundering standards to regulated institutions andwill impose criminal penalties for failing to apply them.
The FATF will review the list at its meeting in October 2000.Until then Caymans remains listed but UK financial institutions,in considering business relations with Cayman entities, may takeinto account the recent changes in Caymans law when consideringthe need for additional due diligence"
Cayman is not prepared to comment on actions undertaken by anyparticular jurisdiction in the same way that it would not seekto discredit another jurisdiction with respect to any of the financialinitiatives facing banking centres around the world.
We consider ourselves a mature, well regulated and important financialjurisdiction. Our approach has been, and will continue to be,to cooperate with other countries and to strive to correct anyshortcomings in our financial industry, whether they relate toregulation or the fight against economic crime.
We continue to improve our standing as a financial centre, ourimage, our level of regulation, and our fight against money laundering.We have been pro active and cooperative in our discussions withthe various bodies concerned with these issues - specificallythe OECD, the FATF and Her Majesty's Government.
The Cayman Islands has taken the position that the way forwardis to ensure that the financial industry is as ìcleanîas possible, and has been in the forefront over the years withlegislation and practices to ensure this goal. As a result, wehave seen our industry grow and mature, and we believe that theway forward is to continue on this route.
Jennifer Dilbert
The Cayman Islands' Government Representative in the UK