The two principal enactments in relation to the criminalization of terrorist financing in the Cayman Islands are the Terrorism (United Nations Measures) (Overseas Territories) Order, 2001 and the Terrorism Law.
The Terrorism (United Nations Measures) (Overseas Territories) Order, 2001 (TUNMOTO) is a UK order in council made pursuant to United Nations Security Council Resolution 1373 and extended by the UK to all of its overseas territories.
Article 3 (Collection of funds) criminalizes the act of soliciting, receiving or providing funds with knowledge or intent that will or may be used for the purposes of terrorism.
Article 4 (Making funds available) further extends criminal liability to making any funds or financial services available directly or indirectly for the benefit of persons committing, attempting to commit, facilitating or participating in an act of terrorism. Article 2 defines 'funds' consistent with the definition in the UN Convention on the Suppression of Financing of Terrorism.
The Terrorism Law is a domestic legislation criminalizing terrorism and terrorist financing, the latter in accordance with the UN Convention on the Suppression of Financing of Terrorism.
Section 19 makes it an offence to solicit, receive or provide property intending that it be used, or having reasonable cause to suspect that it may be used, for the purposes of terrorism. Section 2 defines property as including money and all other property, real or personal, including things in action and other intangible property. Section 18 defines 'terrorist property' as property which is 'likely to be used' for the purposes of terrorism and proceeds from the commission of acts of terrorism.
Section 20 makes it an offence for a person to use property for the purposes of terrorism or to possess property intending that it be used, or having reasonable cause to suspect that it may be used, for the purposes of terrorism.
Section 21 makes it an offence for a person to enter into or become concerned with an arrangement as a result of which property is made available to another knowing or having reasonable cause to suspect that it will or may be used for the purposes of terrorism.
Section 22 makes it an offence to enter into or become concerned with an arrangement which facilities the retention or control by or on behalf of another person of terrorist property by concealment, by removal from the jurisdiction or by transfer to nominees.
Under the Proceeds of Crime Law section 144(3), criminal property includes terrorist property. Section 200 of the Proceeds of Crime Law notes an amendment to the Terrorism Law by stating that a person comments an offence under that law if:
(a) he uses property for the purpose of terrorism;
From time to time, Financial Services Providers operating in the Cayman Islands will be required to comply with various orders that impose financial sanctions in an effort to combat terrorist financing. The Cayman Islands Monetary Authority publishes these orders on its Sanctions webpage for informational purposes. Please note that the Authority does not guarantee that the list of sanctions published by the Authority on its website is accurate, complete and up to date. As such, it is the responsibility of every Financial Services Provider to inform itself of and to comply with the sanctions applicable to Financial Services Providers in the Cayman Islands. Official sanctions orders applicable in the Cayman Islands are published in the Cayman Islands Gazette. For more information, please visit the Sanctions page on this website.
Proliferation Financing refers to the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical, or biological weapons and their means of delivery and related materials (including both technologies and dual use goods used for illegitimate purposes), in contravention of national laws or, where applicable, international obligations. The Proliferation Financing (Prohibition) Law, empowers the Cayman Islands Monetary Authority to take action against persons engaged in activities that may have some connection with terrorist financing, money laundering or the development of weapons of mass destruction. Orders issued under the Proliferation Financing (Prohibition) Law are published in the Cayman Islands Gazette. The United Nations has passed two resolutions relating to anti-proliferation, one related to North Korea and the other related to Iran. These resolutions are in force in the Cayman Islands via orders passed in the United Kingdom, namely The Iran (Restrictive Measures) (Overseas Territories) Order 2012 and the North Korea (United Nations Measures) (Overseas Territories) Order 2006. For more information, please visit the Sanctions page on this website.
Further details can be obtained from the Cayman Islands Monetary Authority.