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Cayman Islands Administrative Fines Regime for Insurance Licensees

August 2020 Rob Humphries

The Monetary Authority (Administrative Fines) (Amendment) Regulations, 2020 (the “Amendment Regulations”) came into force on 26 June 2020. The Amendment Regulations serve to amend Schedule 1 of the Monetary Authority (Administrative Fines) Regulations (2019 Revision) (the “Fines Regulations”) and extend the scope of the fines which may be levied by the Cayman Islands Monetary Authority (the “Authority”) for breaches of a range of Cayman Islands regulatory laws; such breaches are categorised as minor, serious or very serious.

Pursuant to the Monetary Authority Law (2020 Revision), the Authority may impose administrative fines under the Fines Regulations pertaining to breaches committed under the following laws and regulations:

  • Anti-Money Laundering Regulations (2020 Revision);
  • Banks and Trust Companies Law (2020 Revision);
  • Companies Management Law (2018 Revision) (as amended);
  • 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; and
  • Securities Investment Business Law (2020 Revision).

It is therefore important that all persons regulated under these laws, including insurance managers and their client (re)insurers, understand and comply with all filing deadlines, ongoing notification obligations and maintain appropriate systems and controls in accordance with applicable regulatory laws and the Authority guidance issued from time to time.

The Authority has the ability to issue administrative fines as follows:

Category of breach Cayman Dollars US Dollars
Minor CI$5,000 US$6,100
Serious (individual)

Serious (corporate)

CI$50,000

CI$100,000

US$61,000

US$122,000

Very Serious (individual)

Very Serious (corporate)

CI$100,000

CI$1,000,000

US$122,000

US$1,220,000

 

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Cayman Islands Administrative Fines Regime for Insurance Licensees

 


Rob Humphries
Counsel

Cayman Islands   +1 345 814 7793
Mobile  +1 345 922 1907


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