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Proceeds of Crime Act (2024 Revision)

Summary

The primary legislation governing anti-money laundering, the recovery of proceeds of criminal conduct, and the functions of the Financial Reporting Authority (FRA).

Sources

Proceeds_of_Crime_Act_(2024_Revision).pdf

Last Updated

2026-04-27

The Proceeds of Crime Act (POCA) is the cornerstone of the Cayman Islands' aml-compliance framework. It provides the legal definitions for money laundering and the powers for authorities to seize and confiscate illicit assets.

Money Laundering Offences

POCA defines three main categories of money laundering:

  1. Concealing: Concealing, disguising, converting, or transferring criminal property (Section 133).
  2. Arrangements: Entering into an arrangement which a person knows or suspects facilitates the acquisition, retention, use, or control of criminal property by another (Section 134).
  3. Acquisition, Use or Possession: Acquiring, using, or possessing criminal property (Section 135).

Reporting Obligations

  • Suspicious Activity Reports (SARs): Persons in the "regulated sector" (as defined in Schedule 4) have a statutory duty to report any knowledge or suspicion of money laundering to the Financial Reporting Authority (FRA).
  • Failure to Disclose: It is an offence for a person in the regulated sector to fail to report a suspicion as soon as is practicable.
  • Tipping Off: It is a criminal offence to disclose that a SAR has been filed or that an ML investigation is underway if such disclosure is likely to prejudice the investigation.

Asset Recovery and Enforcement

POCA provides broad powers to the authorities and the Grand Court:

  • Confiscation Orders: Imposed on convicted persons to recover the value of their "benefit" from crime.
  • Restraint Orders: Used to freeze property at the start of an investigation to prevent its disposal.
  • Civil Recovery: Enables the Director of Public Prosecutions to sue for the recovery of "recoverable property" (property obtained through unlawful conduct) in civil proceedings, without requiring a criminal conviction.

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