What Can We Learn From Recent Enforcement Actions In The Cayman Islands?

Walkers' regulatory partners Lucy Frew and Ian Mason consider the learning points for financial services providers (FSPs) from recent enforcement actions by Cayman regulatory bodies.

While financial services and related regulation on the Cayman Islands is not concentrated within a single authority, the Cayman Islands Monetary Authority (CIMA) is responsible for most areas of financial regulation. This includes the licensing of banks, investment funds, securities, insurance, money services and corporate services.

With the exception of actions under the Directors Registration and Licensing Act (as amended) in 2020-21, where individual directors were de-registered for non-compliance with their obligations, CIMA's caseload has tended to be fairly steady year-on-year. However, there are clear indications for FSPs of key areas of particular regulatory focus and likely future enforcement actions.