Cayman Islands Regulatory Inspections and Remediation

The Cayman Islands has a high level of regulation and a careful regulator, the Cayman Islands Monetary Authority (CIMA), that is actively engaged in protecting the integrity of the country’s regulatory space. Conyers has considerable expertise in assisting those responding to regulatory enforcement.

With the potential for serious consequences for breaches of the ever-growing regulatory landscape, it is important for everyone – whether individuals or corporate entities – regulated under the laws to understand their obligations. Everyone regulated under these laws needs to understand and comply with regulations, including filing deadlines, ongoing notification obligations and maintaining ongoing controls. The laws apply to banks and trust companies, insurers/reinsurers/insurance managers/brokers and their clients, securities licensees and investment funds, fund administrators and virtual asset providers.

Conyers’ Regulatory & Risk Advisory team has experience in advising compliance officers, directors and general counsel of CIMA-regulated entities when responding to regulatory breaches, or alleged regulatory breaches.

We advise on compliance, inspections, challenges, appeals and judicial reviews. We are able to advise if you are required to undergo a regulatory inspection and any subsequent remediation actions. We can represent you if you need to challenge any administrative fine. We also offer training to CIMA-regulated entities on policy and practice to ensure they comply with Cayman Islands regulations.

Administrative fines

Fines can be imposed for breaches of regulations covering:

• Anti-money laundering
• Banking and trust laws
• Company management
• Directors’ duties
• Insurance
• Money services
• Mutual funds
• Private funds
• Securities investments

Dealing with fines

Breaches of regulatory laws are categorised as minor, serious or very serious. The fines can be significant, ranging from CI$5,000 for minor breaches to CI$1 million for very serious breaches by corporates.

For minor breaches, unless the CIMA can be satisfied the breach has been rectified, fines are non-discretionary. For serious or very serious fines, the fines are discretionary. CIMA will consider mitigating or aggravating circumstances. CIMA is required to make its decisions in a lawful, rational, proportionate and procedurally fair manner.

How Conyers can help

Your Conyers team can advise on the best approach when you are faced with an administrative fine. Where there is scope for challenging the fine, or the level of fine imposed, we are able to assist pursue appeals including, where appropriate, to the Grand Court or for a judicial review.