Financial Crime World

Cayman Islands Monetary Authority (CIMA) Strengthens Enforcement with New Fining Regulations

In a bid to expand its regulatory powers, the Cayman Islands Monetary Authority (CIMA) passed new administrative fines regulations on June 26, 2020. Known as the Monetary Authority (Administrative Fines) (Amendment) Regulations, 2020, or the “Fines Regulations,” these amendments enable CIMA to impose fines on entities and individuals for non-compliance with a broader range of financial rules.

Expanded Regulatory Scope

Under the Fines Regulations, CIMA now holds the authority to impose fines for breaches of the following laws and associated regulations and rules:

  • Anti-Money Laundering Regulations (2020 Revision)
  • Banks and Trust Companies Law (2020 Revision)
  • Companies Management Law (2018 Revision)
  • Directors Registration and Licensing Law, 2014 (as amended)
  • Insurance Law, 2010 (as amended)
  • Money Services Law (2020 Revision)
  • Mutual Funds Law (2020 Revision)
  • Private Funds Law, 2020
  • Securities Investment Business Law (2020 Revision)

Fines and Timelines

Breach notices with a 30-day window to rectify the offense will be issued. Failure to comply may result in fines:

  • Minor breaches: up to CI$5,000 for individuals and CI$1 million for entities.
  • Serious breaches: up to CI$100,000 for individuals and CI$3 million for entities.
  • Very serious breaches: up to CI$100,000 for individuals and CI$1 million for entities.

Repeated minor breaches can net ongoing fines, capped at CI$20,000. CIMA has six months from becoming aware of a minor breach or three years for serious or very serious breaches to impose fines.

If a breach constitutes a statutory offense, the imposition of a fine will not bar the pursuit of criminal charges, and vice versa.

Procedures for Imposing Fines

The Fines Regulations lay out procedures for imposing fines, including the criteria CIMA must adopt, along with parties’ options to contest the decision before the Management Committee or the Grand Court.

The Importance of Regulatory Compliance

Adhering to regulatory requirements, particularly those related to licensing, registration, and notification obligations, has never been more crucial. Maples Group’s Regulatory & Compliance team provides assistance through regulatory calendars, updates, reporting matrices, and training.

Contact Maples Group for Assistance

For more information, contact your Maples Group representative or the following team members:

This article is intended for informational purposes only and does not constitute legal advice.

July 2020

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