Cayman Islands investigates money laundering allegations against Mexican bank

by: - August 20, 2012
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CIMA’s managing director, Cindy Scotland. Photo credit:

GEORGE TOWN, Cayman Islands — The Cayman Islands Monetary Authority (CIMA) is investigating whether the Cayman Islands branch of HSBC Mexico SA breached any local laws or regulations following news reports of global anti-money laundering (AML) breaches by UK-based HSBC.

As the regulator of financial services institutions in the Cayman Islands, CIMA officials insist they take seriously the apparent breakdown of AML procedures at the Cayman Islands branch.

CIMA’s managing director, Cindy Scotland said that apart from the investigations into the actions of the Cayman Islands branch, CIMA also would conduct a complete review of its regulatory framework including the home host relationship (meaning the relationship between the regulators of HSBC Mexico SA and CIMA); and the relevant sections of the Cayman Islands’ Money Laundering Regulations and The Guidance Notes on the Prevention and Detection of Money Laundering and Terrorist Financing in the Cayman Islands.

“CIMA has a long history and strong reputation of acting to ensure that the regulatory framework in the Cayman Islands is sound,” Scotland said. “We intend to continue, and moreover, enhance that reputation in light of the growing complexity and interconnectedness of the global financial services industry.”

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