Monetary Authority of the Cayman Islands Decision-Making Process

The Monetary Authority of the Cayman Islands (MA) has established a decision-making process to ensure effective regulation and enforcement of financial institutions in the Cayman Islands. This document outlines the key aspects of this process, including the decision procedure, exceptional circumstances, and urgent situations.

Decision Procedure

The decision-making process involves several key steps:

• A Decision Notice will be issued to relevant parties after the Executive Committee approves a decision.
• The decision notice will include information about:
  • The reasons for the decision (unless exceptional circumstances apply).
  • The effective date of the decision.
  • Information on how to appeal or seek reconsideration.

Exceptional Circumstances

In certain situations, the Authority may withhold information related to the reasons for a decision. These situations include:

• Cases where full disclosure is not possible due to:
  • Confidentiality agreements with legal advisors.
  • Court orders directing secrecy.
  • Protection of money laundering or terrorist financing investigations.
  • Information received on a confidential basis from regulatory or law enforcement authorities.
  • Disclosure that could compromise national security or public interest.

Decision Procedure in Urgent Situations

The Authority may need to act quickly in situations where:

• Exercising statutory powers is crucial to protect stakeholders’ interests.
• Responding to imminent failure of an institution, heightened contagion risks, or threats to the financial system.
• Characteristics that indicate urgent action are required include:
  • Significant loss or risk of loss for stakeholders.
  • Conduct putting parties at risk of being used for financial crime.
  • Inaccurate or misleading information submitted to the Authority.
  • Serious problems within a party’s structure or management.
  • Exposure to heightened risk due to lack of fitness and propriety of directors, operators, or senior officers.

Factors Considered in Urgent Situations

When dealing with urgent situations, the Authority considers:

• The seriousness of suspected contravention of regulatory laws and Anti-Money Laundering Regulations.
• Steps required to correct the contravention.
• Risk posed by the party’s conduct or business to other financial system participants, the financial system, and confidence in the financial system.
• Public interest concerns.
• Nature and extent of false or inaccurate information provided by parties.
• Impact on parties and stakeholders.