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CIMA now has the power to impose significant fines

24 Jul 2020

The Cayman Islands Monetary Authority (CIMA) can now impose significant financial penalties for any breach of a regulatory law, regulation or CIMA rule, with the passing of the Monetary Authority (Administrative Fines) (Amendment) Regulations, 2020.

CIMA previously had the power to impose fines for breaches of the Anti-Money Laundering Regulations, however, this new framework vastly expands the scope of CIMA’s reach, as CIMA’s powers to impose financial penalties now spans across 13 laws plus their respective regulations and CIMA rules.

The fines are scaled according to a three tier system, divided into breaches of a minor, serious and very serious nature. For individuals, the penalty ranges from US$6,100 for a minor breach to US$122,000 for a very serious breach. For entities, the penalty for a minor breach is the same, however, a very serious breach attracts a penalty of up to US$1,220,000. Where a minor breach continues, the penalty may be imposed multiple times up to a maximum of US$24,400.

Any person or entity that breaches any provision of a regulatory law can be fined by CIMA.

In particular, all entities that hold a licence issued by CIMA fall within the scope of CIMA’s new powers, as do those entities registered with CIMA as a Registered Person, a mutual fund or a private fund, those conducting "relevant financial business", and those persons or entities registered with CIMA as a director.

Please see our client alert for more details.

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