Cayman Islands to sluice out the money launderers

THOSE who have amassed significant wealth from organised crime were this week warned to steer clear of the Cayman Islands, a popular port of call for concealing or laundering the proceeds of illicit activities. The Caribbean island grouping has introduced new legislation to discourage hot money within its territory, making it a criminal offence if a provider of financial services fails to report any suspicions that a client may be involved with or be benefiting from crime. The regulatory authorities can apply to the courts for an order to temporarily seize and eventually confiscate criminal assets, be they the contents of a bank account or property, pending prosecution. Confiscation orders made in designated nations may now be registered and enforced. Legitimate users of the island's financial services have been reassured that for them it is business as usual.

While the crackdown primarily targets sophisticated financial advisers representing drug barons and other criminals, the strictures presumable also apply to any investment broker on the run clutching a suitcase of other people's money.