Significant New Enforcement Powers For CIMA The Cayman Islands Monetary Authority

 The Cayman Government is proposing legislative changes which would give the Cayman Islands Monetary Authority (CIMA) significant new powers to impose administrative fines on licensed and regulated individuals and entities. These range from non-discretionary fines of $5,000 (or potentially $20,000) for a minor breach to $1 million for a very serious breach. CIMA would be able to impose cumulative fines of up to $20,000 for a single minor breach.

It is important that individuals and entities take note, as the proposed changes mean that potentially contraventions or failures to act could give rise to fines.

Another key point is that directors of mutual funds regulated under the Mutual Funds Law or companies registered as excluded persons under the Securities Investment Business Law would be amongst those persons liable for fines, irrespective of whether or not that director is resident in the Cayman Islands.