There are seven bills that increase the range and scope of CIMA’s powers to impose administrative penalties on natural and legal persons. The eighth bill, being the Proceeds of Crime (Amendment) Bill, allows the FRA to disseminate, at its discretion or upon request, information within its possession to CIMA and other organisations.
The bills are expected to become law during April – May 2023.
Cayman Islands Monetary Authority
CIMA’s powers to impose proportionate penalties were increased with the introduction of the following seven new bills proposed on the 27 March:
- Monetary Authority (Amendment) Bill, 2023;
- Companies Management (Amendment) Bill, 2023;
- Directors Registration and Licensing (Amendment) Bill, 2023;
- Insurance (Amendment) Bill, 2023;
- Money Services (Amendment) Bill, 2023;
- Securities Investment Business (Amendment) Bill, 2023;
- Virtual Asset (Service Providers) (Amendment) Bill, 2023.
Amendments
In summary CIMA’s powers have been extended to allow:
- the imposition of administrative fines up to US $120,000 for serious breaches and up to US $1.2 million for very serious breaches upon:
- individual directors;
- partnerships, exempted liability partnerships, limited liability partnerships, partners of such partnerships and unincorporated associations; and
- persons concerned in the management or control of those mentioned above.
- the pro-active sharing of non-public information of criminal conduct within its possession with other overseas regulators.
- the application of the disgorgement principle to all regulated entities and not just licensed entities. The disgorgement principle is intended to prevent any person who has breached the Monetary Authority Act or a regulatory law from avoiding loss or gaining financially.
- a simplified procedure for the exchange of information with the Minister for Financial Services.
Financial Reporting Authority
The FRA’s powers were enhanced with the introduction of the Proceeds of Crime (Amendment) Bill, 2023 on the 3 of April 2023.
Amendments
The FRA is able to disseminate, at its own discretion or upon request, information and results of any analysis to:
- any Competent Authority, including the Office of the Director of Public Prosecutions, the police or any public body charged with responsibility for combating money laundering and terrorist financing;
- any Supervisory Authority, including CIMA, Department of Commerce & Investment, the Cayman Islands Institute of Professional Accountants and the Cayman Islands Legal Practitioners Association; and
- to such other institutions or persons in the Islands as designated by the Anti-Money Laundering Steering Group.
It is expected that these bills will become law during April – May 2023.
All figures in US dollars are approximate.
If you have any questions about the proposed bills and their impact, please reach out to one of the below contacts.
