Aug 2020
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 |