CAIR Multilateral Memorandum of Understanding

Summary

This is a multilateral Memorandum of Understanding entered into by the insurance regulatory authorities of numerous Caribbean jurisdictions, including the British Virgin Islands Financial Services Commission and the Cayman Islands Monetary Authority, under the umbrella of the Caribbean Association of Insurance Regulators (CAIR). It establishes a framework for mutual cooperation, consultation and exchange of information among the signatory regulators regarding the supervision of insurance companies and insurance intermediaries operating across borders in the region.

The Memorandum expressly states that it does not create legally binding obligations, confer enforceable rights on any person, or modify domestic law. It is a statement of regulatory intent rather than a rule imposed on regulated entities themselves, though it governs how signatory Authorities request, share, use and protect confidential supervisory information about insurance companies and intermediaries.

• Scope: Covers mutual assistance in enforcement, fit and proper assessments, harmonisation of laws, identification of financial crime and beneficial ownership, and insurance education among Authorities.
• Requests for assistance: Requesting Authorities must submit written, signed requests to the listed contact person of the Requested Authority, containing specified details (facts, purpose, legal basis, sensitivities).
• Urgent requests: Urgent requests may be made by email or fax but must be confirmed in an original signed document within seven days by the Requesting Authority; the Requested Authority must similarly confirm its urgent response within seven days.
• On site inspections: An Authority wishing to inspect a Regulated Entity in another Authority's Jurisdiction must give at least thirty days written notice (absent exceptional circumstances) and identify the inspection team; findings from inspections addressing issues raised under Clause 8.6 must be shared within thirty days of the inspection's end.
• Confidentiality: Authorities must keep requests, information received or provided, and related matters confidential to the fullest extent permitted by their own laws, and may only pass information to third parties or other domestic agencies with prior written consent of the Requested Authority.
• Permissible use of information: Information obtained under the Memorandum may only be used by the Requesting Authority for the regulatory purpose stated in its original request unless the Requested Authority consents in writing to a different use.
• Rights of Requested Authority: A Requested Authority may deny a request on several grounds, including conflict with its own laws, lack of reciprocity, or public interest concerns in its Jurisdiction.

Because this is an inter-regulator cooperation agreement rather than a rule directed at industry, it does not itself impose filing, reporting or licensing obligations on insurance companies or intermediaries. Its practical relevance to compliance officers is that supervisory information about their entities may be shared between CIMA, the BVI FSC and other regional insurance regulators under the terms described above.

Key obligations

• Authorities must confirm urgent requests for assistance, and responses to them, in an original signed document within seven days
• An Authority requesting an on site inspection must give at least thirty days written notice and identify the inspection team, absent exceptional circumstances
• Information obtained during an on site inspection addressing issues identified under Clause 8.6 must be shared with the Requesting Authority within thirty days of the inspection's end
• Authorities must keep requests, information exchanged, and related matters confidential to the extent permitted by their domestic laws
• A Requesting Authority may not use information obtained for any purpose other than that stated in its original request without the Requested Authority's prior written consent
• An Authority must promptly notify the Requested Authority if legally compelled by a court order to disclose information received under the Memorandum to a third party

Applies to

Insurance Companies, Insurance Intermediaries, Regional Regulatory Authorities (insurance regulators)

Deadlines

• 7 days: Urgent requests for assistance made by email or fax must be confirmed in an original signed document by the Requesting Authority within seven days; the Requested Authority's urgent response must likewise be confirmed within seven days
• 30 days: Minimum written notice a Requesting Authority must give before conducting an on site inspection of a Regulated Entity, absent exceptional circumstances
• 30 days after the end of the on site inspection: Deadline for the Requested Authority to share with the Requesting Authority information relating to issues identified under Clause 8.6