More than 800 asset freeze designations of Russian individuals and entities have been enforced

Financial service providers (FSPs) in Cayman have submitted more than 400 compliance reporting forms confirming that US$7.3 billion in Russian assets have been frozen.

This is in compliance with the Russia (Sanctions) (Overseas Territories) Order 2020. 

Since the Russian invasion of Ukraine in February, more than 800 asset freeze designations of Russian individuals and entities have been enforced in The Cayman Islands, officials said in a release.

The release also announced the creation of a task force to coordinate the new sanctions regime.

The Financial Reporting Authority (FRA) is part of a joint task force created by the Cayman government to deal with policy amendments required to implement the Russia Sanctions.

“The level of reporting to date is indicative that FSPs are able to identify funds or economic resources owned or controlled, directly or indirectly, by designated persons and are freezing those assets or economic resources,” said FRA Director RJ Berry.

The sanctions imposed by Cayman impact multiple public sector agencies with the cross-government team being part of Cayman’s pro-active response, officials said in the release.

Details about new task force

The task force, which is to meet weekly, includes representatives from the land registry and the general registry as well as the more directly impacted agencies, such as the Cayman Islands Monetary Authority, the Civil Aviation and Maritime Authorities and the Ministry of Financial Services and Commerce.

Law enforcement agencies are also part of the task force, including the Customs and Border Control, the RCIPS Bureau of Financial Investigations, the Financial Reporting Authority and the Cabinet Office.

The goal is to provide a central point around policy and communication. With the Cabinet Office as coordinator, facilitating and coordinating inter-agency cooperation, which is chaired by Berry, who added that, “the relevant agencies within the Cayman Islands also have a long-standing track record of responsiveness and cooperation with international counterparts and will continue to maintain that record in our approach to the Russia Sanctions”.

Further, recent amendments to the Russia (Sanctions) (EU Exit) Regulations will be extended to Cayman effective April 14. These amendments include new financial, trade and maritime measures and restrict specified financial services with the Russian Central Bank and other Russian Federation agencies.

Sanction measures apply in Cayman in the same way they do in the UK. For many years Russian oligarchs and companies have invested in overseas property, yachts and private jets. However, the purchase of these assets is often made through complex offshore structures which local real estate agents don’t necessarily have the wherewithal to check.  

For many years, Russian oligarchs and companies have invested in overseas property, yachts and private jets, but the purchase of these assets is often made through complex offshore structures which local real estate agents don’t necessarily have the means and resources to check.