The Monetary Authority Amendment Law – Administrative Fines

The Cayman Islands Government has enacted the Monetary Authority (Amendment) Law, 2016 (the "Law").  Although the Law will not be in force until a Cabinet Order is made to that effect, the Law gives the Cayman Islands Monetary Authority ("CIMA") the power to impose administrative fines for non-compliance on persons (entities and individuals) subject to Cayman Islands regulatory laws (including CIMA Rules) or the Money Laundering Regulations.  This will give CIMA equivalent powers to those which are customary for onshore regulators. 

Breaches are to be categorised as being "minor", "serious" or "very serious".  There will be a sliding scale of fines from CI$5,000 for minor breaches to CI$100,000 for individuals and CI$1 million for entities for very serious breaches.  Fines for ongoing minor breaches can be applied at intervals on a continuing basis up to a CI$20,000 cap.