Cayman Authority mandates exclusive reporting officers for remittance companies

(Jamaica Observer) – GraceKennedy group whose subsidiary GraceKennedy Money Services (GKMS) operates branches of Western Union in the British Overseas Territory of the Cayman Islands is seeking an individual familiar with Cayman law to fill the role of Money Laundering reporting officer.

Grace Burnett, CEO, GraceKennedy Financial Group (GKFG) said that while some regional authorities permit sharing of the function between islands, the Cayman Islands Monitoring Authority (CIMA) requires a dedicated officer solely focused on activities within the jurisdiction.

The manager indicated that the role in Cayman was previously held by an officer with multiple roles and now the company will hire an individual whose sole responsibility will be to track activity which could be related to illegal transfer of funds in the Cayman Islands.

Remittance operators in the Cayman Islands now have tighter oversight following a fallout with correspondent banks in 2015 — a turbulent period in which some companies where shuttered for good.

GraceKennedy entered the island in partnership with Western Union, following discussions with CIMA and correspondent banking facilities provided by Scotiabank.

GK Money services now operates within 11 markets in the Caribbean. Burnett outlined that the international remittance company, Western Union with which GK partners, spends US$300 million on money laundering reporting annually. Aside from dedicated reporting officers, she said, the monitoring function involved auditors and other managers tasked with oversight.

In relation to Cayman, Burnett told the Jamaica Observer, “The money transfer industry is a highly regulated one where compliance is one of the key requirements.

“It is a requirement of the Cayman Islands Monitoring Authority that a Money Laundering Reporting Officer is in place to ensure that the country meets both its local and international obligations.”

She told the Business Observer that in general, “GraceKennedy Money Services, the agent for Western Union, works closely with all the regulators in the various markets in which we operate to ensure we meet the respective requirements.

“In all these markets, there is an officer designated to monitor compliance, making it one of the strongest assets of our business.”

The officer required for Cayman is expected to have compliance certification. He or she must provide continuous transaction reporting and analysis and also ensure statutory requirements are met.

In November 2015, GKMS opened four locations in Grand Cayman and one in Cayman Brac, thereby replacing the previous Western Union partners who exited the market mid-year when banks withdrew their services, citing correspondent banking pressures.

Under a 26-year-old partnership, GKMS represents Western Union in 11 countries across the Caribbean, the other 10 being Cuba, Jamaica, Trinidad and Tobago, Guyana, St Vincent and the Grenadines, St Kitts and Nevis, Antigua and Barbuda, Anguilla and Montserrat and the British Virgin Islands.