The Cayman Islands is stepping up its efforts to stop criminals from hiding their dirty money. From gold bars and luxury condos to cryptocurrencies and digital tokens, the methods used to move illegal funds are becoming more advanced and harder to detect.
Millions Seized as Cayman Fights Crime in Digital and Physical Worlds
Last year alone, police in Cayman froze or seized over US$38 million in criminal assets. A big portion of that came from crimes involving virtual currencies like Bitcoin. The island’s law enforcement teams are working hard to keep up with the fast-changing world of money laundering. With over 100,000 registered companies and a growing interest in digital finance, Cayman is under pressure to stay ahead of international crime.
The global watchdog group, the Financial Action Task Force, closely watches how well countries fight money laundering and terrorist financing. Cayman was once on the “grey list” for not doing enough. But now, after major improvements, the country has been removed from that list. Cayman’s focus now is to stay alert and ready to handle any new tricks criminals might use.
High-Stakes Investigations Span the Globe
Two recent cases show just how different and complex money laundering can be. One involved $6 million worth of gold being secretly moved from Venezuela to Switzerland. Investigators in Cayman acted fast to stop the gold at Heathrow Airport in London. They shared key evidence with their UK partners, leading to most of the gold being seized under crime laws.
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In a completely different case, a Cayman-based technology firm was the victim of a digital heist. Hackers stole a large amount of cryptocurrency. Cayman’s cyber crime experts worked with international partners to follow the trail of the stolen digital tokens. The team tracked the movement of these virtual assets and helped recover the funds for the victim.
Digital crime is becoming more common, and Cayman is increasing its ability to fight it. Special investigators now use advanced tools to follow the digital money trail. Even though digital coins can be stored on a small USB stick, every transaction is recorded permanently on a public blockchain. This helps law enforcement track where the money goes and where it came from.
In 2024, about US$32 million in virtual assets was either frozen, returned to victims, or claimed as proceeds of crime in eight major cases. In one case, over $1.5 million in stolen tokens were returned to the victim. However, by the time the tokens were returned, their value had dropped — showing another challenge with digital money.
One case involved a suspect from Ukraine, operating from France, who was later arrested in Italy. Cayman worked closely with other countries to get the money back for the local victim. In many of these cases, law enforcement has to figure out which country should bring criminal charges and where to try and recover the money.
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Keeping the Financial Industry Clean and Safe
Cayman’s growing role as a financial and tech center means it must stay sharp. New laws and rules have been created to check who is doing business in Cayman, especially when it comes to companies working with digital currencies.
Virtual asset companies now need special licenses, and they must follow strict anti-money laundering rules. So far, Cayman has avoided the big crypto scandals seen in other places. That success is thanks to detailed checks and strong laws designed to keep criminals out.
But the fight is not only about crypto. Cayman must still watch out for old-school methods like gold, expensive art, cash, and high-end condos. Real estate deals and law firms offering services to overseas companies are also being watched closely. These areas carry a higher risk for money laundering and must follow new rules to stay safe.
Despite strong efforts, getting full money-laundering convictions still remains a challenge. But Cayman is getting credit for helping other countries with big cases, freezing illegal assets, and returning stolen funds. This work is crucial in stopping crime across the globe.
By following the money — whether it’s gold in a suitcase or digital coins in a USB stick — Cayman investigators are playing a key role in making crime harder and riskier for bad actors.