The Observed Effects of Money Laundering for Jamaica - Caribbean ...

such wide use and convertibility of foreign currency and cash oriented
society increases the risk of the region falling prey to the illicit influx
of illegal proceeds.
In recent years Bermuda has been a growing destination for the
establishment of insurance companies. With the growth of the
establishment of insurance companies it has benefited Bermuda’s
economy drastically; unfortunately it has aid laundered in their
activities as well. Boyle(2003) noted that insurance policies has been
increasingly used to launder money. Therefore this is one of the
factors that attract launderers to the Caribbean. Boyle(2003)
highlighted how money launderers take advantage of insurance
schemes, by purchasing the insurance policy with cash then request
an early redemption of the policy or make a claim against property
insurance, which will then result in the insurance company making a
payment to the bank.
Another factor that can contribute to the pervasiveness of money
laundering in the Caribbean with the aid of lack of monitoring by the
authorities is through the use of the Stock Exchange. In recent years
there has been a buoyant Stock Exchange presently there are seven
stock exchanges in the Caribbean. The stock exchange has been noted
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