Financial Crime Laws and Regulations: A Q&A Guide for Businesses in the Cayman Islands

The Cayman Islands, renowned for its prosperous financial services sector, is not exempt from financial and business crimes. In this Q&A guide, we explore matters relating to corporate fraud, bribery and corruption, insider dealing and market abuse, money laundering and terrorist financing, financial record keeping, due diligence, corporate liability, immunity and leniency, and whistleblowing, all within the context of Cayman Islands laws.

Key Laws Dealing with Corporate Fraud

What are the key laws dealing with corporate fraud in the Cayman Islands?
- The Fraud and Theft (Bail) Law (2011 Revision) and the Companies Law (2020 Revision) are the primary legislations.

Bribery and Corruption

Is bribery and corruption illegal in the Cayman Islands?
- Yes. The Prevention of Corruption Law (1968 Revision) criminalizes offering, giving, requesting, or accepting bribes.

Insider Dealing and Market Abuse

What are the regulations regarding insider dealing and market abuse in the Cayman Islands?
- The Securities Investment Business Law (2020 Revision) deals with insider dealing and market manipulation.

Money Laundering and Terrorist Financing

What are the main laws addressing money laundering and terrorist financing in the Cayman Islands?
- The Proceeds of Criminal Conduct Law (2017 Revision) prohibits money laundering activities and financing of terrorism.

Financial Record Keeping

What are businesses required to do with regards to financial record keeping in the Cayman Islands?
- Maintain accurate and complete records according to the Companies Law (2020 Revision) and other relevant regulations.

Due Diligence

What is due diligence, and what are the expectations in the Cayman Islands?
- Conducting reasonable investigations before entering into a business relationship to reduce the risk of engaging in financial or business crimes.

Corporate Liability

Who can be held corporately liable for financial and business crimes in the Cayman Islands?
- The Companies Law (2020 Revision) and other legislations identify circumstances under which a corporation can be held liable.

Immunity and Leniency

Can companies or individuals receive immunity or leniency for reporting financial and business crimes in the Cayman Islands?
- This depends on the precise circumstances, as outlined in the Proceeds of Criminal Conduct Law (2017 Revision).

Protections for Whistleblowers

What protections are available for whistleblowers reporting financial and business crimes in the Cayman Islands?
- The Protection of Whistleblowers Law (2021 Revision) provides protection for reporting suspected wrongdoing.

Resources

Additional Information

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Disclaimer

This document is intended to provide a summary of the subject matter covered and is not a substitute for professional legal advice or research.
The cited laws and regulations may have changed since being last updated.
Any actions based upon the information provided in this document are your responsibility. Please consult your legal advisor for guidance on your specific situation.

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