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Cayman Islands Administrative Fines Regime

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 (CIMA) for breaches of a range of Cayman regulatory laws; such breaches are categorised as minor, serious or very serious.

Pursuant to the Monetary Authority Law (2020 Revision), CIMA 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 understand and comply with all filing deadlines, ongoing notification obligations and maintain appropriate systems and controls in accordance with applicable regulatory laws and CIMA guidance issued from time to time.

CIMA 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

It should be noted that where a breach committed by a corporate entity is shown to have been committed with the consent, connivance, knowledge or neglect of an individual, that individual may also be subject to an administrative fine as well as the corporate entity.

 

To continue reading full articles in PDF format:
Cayman Islands Administrative Fines Regime

 


Maree Martin
Counsel and Head of Knowledge Management - Cayman Islands

Cayman Islands   +1 345 814 7781


Craig T. Fulton
Partner

Cayman Islands   +1 345 814 7372


Christopher W.H. Bickley
Partner, Head of Hong Kong Office

Hong Kong   +852 2842 9556
Mobile  +852 6469 3356


Preetha Pillai
Director, Head of Singapore office

Singapore   +65 6603 0707


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