Monetary Authority (Amendment) Act, 2023 (Act 1 of 2023)

Summary

This is an amendment to the Cayman Islands Monetary Authority Act (2020 Revision), passed in 2023, that broadens CIMA's administrative fining and enforcement powers.

Expanded Fining and Liability Categories

• Extended categories: The categories of persons who can be fined or held liable for offences are extended beyond individuals and bodies corporate to include partnerships, limited liability partnerships, exempted limited partnerships, and unincorporated associations, along with the officers, partners, or managers responsible for a breach through consent, connivance or neglect.
• Fine tiers: The fine tiers (minor, serious, very serious) are restated in words rather than figures, and specific maximum fine amounts are set for each new entity type (e.g. up to $100,000 for a serious breach and up to $1,000,000 for a very serious breach by a partnership, LLP, ELP or unincorporated association).
• Regulation-making power: The regulation-making power for this Part is repealed and replaced so that Cabinet regulations must categorise each prescribed breach as minor, serious or very serious.

New Offence-Liability Provision and Confidentiality Changes

• Section 44A: The Act adds a new corporate/partnership offence-liability provision (section 44A) mirroring the fining provisions, so that directors, managers, partners or persons managing an unincorporated association can be personally liable for offences committed by the entity where there was consent, connivance or neglect.
• Section 50 confidentiality: The Act amends the confidentiality regime in section 50 to permit CIMA, at its discretion, to share information about criminal conduct discovered through its regulatory or cooperative functions with overseas regulatory authorities.
• New section 50A: The Act inserts a new section 50A allowing CIMA to share information about regulated persons or entities with the 'competent authority' (the Minister responsible under the beneficial ownership provisions of the Companies Act, or a person the Minister designates).

The amendments apply broadly to any person or entity regulated under the Monetary Authority Act or the 'regulatory laws' administered by CIMA (i.e. the various sector-specific laws covering banks, trust companies, insurance, securities, mutual funds, and virtual asset service providers), as well as to their directors, managers, partners and other controlling persons. There is no separate transitional or grace period specified in the text; the amendments took effect as part of the Act's commencement.

Key obligations

• Persons regulated under the Monetary Authority Act or a regulatory law (including individuals, bodies corporate, partnerships, LLPs, ELPs and unincorporated associations) are subject to administrative fines for breaches of the Act, a regulatory law, or the Anti-Money Laundering Regulations (2023 Revision).
• Directors, managers, secretaries or similar officers of a body corporate, partners concerned in management/control of a partnership, LLP or ELP, and persons concerned in management/control of an unincorporated association can be personally fined or prosecuted where a breach or offence by the entity is proved to have been committed with their consent or connivance, or is attributable to their neglect.
• Fines for a breach prescribed as serious must not exceed the stated caps (e.g. $50,000 for an individual; $100,000 for a body corporate, partnership, LLP, ELP or unincorporated association).
• Fines for a breach prescribed as very serious must not exceed the stated caps (e.g. $100,000 for an individual; $1,000,000 for a body corporate, partnership, LLP, ELP or unincorporated association).

Applies to

individuals, bodies corporate, partnerships, limited liability partnerships, exempted limited partnerships, unincorporated associations, persons regulated under the Monetary Authority Act or a regulatory law, directors, managers, secretaries or similar officers, partners concerned in management or control of a partnership, LLP or ELP

Related documents

• This document amends Monetary Authority Law (2020 Revision)