Financial crimes on the uptick in the Caribbean

By Shanieka Smith

Staff Writer

December 19, 2022 – The Caribbean has seen a significant increase in financial crimes over the last few years – according to the Global Financial Integrity (GFI) in the US.  In a report on Wednesday, it said the economic security of countries in the region has been negatively impacted by this trend.

The types of fraud most commonly seen in the Caribbean are advance fee frauds such as pyramid schemes, lottery scams, online shopping scams and romance scams. Monies gained from these schemes are usually moved by cash smuggling, bank transfers, online transfers and trade-based money laundering.

“Caribbean countries have laws in place to cover the types of fraud discussed in this report, however many countries face challenges when translating these laws into effective enforcement actions. The prevention and investigation of fraud in the region face cultural barriers,” the report said.

GFI’s report made mention of case studies on five islands in the Caribbean, which were used to analyze the different methods of fraud, facilitators, and responses from law enforcement. President of the GFI, Tom Caramone said crime evolves over time and is influenced by local and international developments. Governments and citizens within the region should remain alert in order to adapt and respond effectively to these crimes.