Cayman Islands Monetary Authority Imposes CI$250,000 Fine on Seven Mile Securities for AML Breaches
The Cayman Islands Monetary Authority (CIMA) has announced the imposition of discretionary administrative fines totaling CI$250,000 on Seven Mile Securities, a local securities firm, for contravening the Anti-Money Laundering Regulations (AMLRs) 2020.
Breaches of AMLRs by Seven Mile Securities
The authority identified the following breaches of the AMLRs by Seven Mile Securities:
- Insufficient customer due diligence
- Lack of appropriate risk assessment and mitigation
Fine Imposed and Reason for Non-Compliance
The fines were imposed under the provisions of sections 42A and 42B of the Monetary Authority Act 2020, as amended. CIMA Director, Mr. Samuel Wainwright, expressed his disappointment with the firm’s lapses and emphasized that CIMA would continue to take firm action against any instances of non-compliance.
“Maintaining the highest standards of regulatory compliance and effective risk management in the financial sector of the Cayman Islands remains a top priority,” stated Mr. Wainwright.
Consequences for Seven Mile Securities
Seven Mile Securities, which specializes in wealth management and securities trading, has been given 28 days to pay the fine. The firm has expressed its regret for the oversights and stated its commitment to strengthening its internal controls and procedures to prevent any future breaches.
Ongoing Efforts to Enhance Regulatory Compliance and Risk Management
This fine is part of the Cayman Islands Monetary Authority’s ongoing mission to ensure that financial institutions maintain the highest standards of regulatory compliance and risk management. The authority recently launched a new Financial Crime Risk Assessment framework to help identify and mitigate risks in the financial sector.
Importance of Adhering to Regulatory Requirements
Mr. Wainwright emphasized the importance of adhering to the AMLRs and other regulatory requirements in the Cayman Islands financial sector. He stated, “Maintaining a strong regulatory framework and taking decisive action against non-compliance is crucial as the Cayman Islands continues to establish itself as a reputable financial center.”
With the support of the industry, regulators, and the government, the Cayman Islands can continue to build a resilient and robust financial sector.