Cayman Islands Monetary Authority Fines Seven Mile Securities CI$250,000 (2021-10-08)

Summary

This is an enforcement notice announcing that CIMA has imposed discretionary administrative fines totalling CI$250,000 on Seven Mile Securities for multiple breaches of the Anti-Money Laundering Regulations (2020 Revision), identified during an onsite inspection. It is informational, reporting a completed enforcement action rather than creating new ongoing rules.

• Legal basis: Fines imposed under sections 42A and 42B of the Monetary Authority Act (2020 Revision) for breaches of the AML Regulations
• CDD failures: Failure to properly apply Customer Due Diligence measures
• EDD failures: Failure to properly apply Enhanced Customer Due Diligence measures
• Risk based approach: Failure to monitor implementation of a risk based approach
• Business relationship understanding: Failure to understand the nature and purpose of business relationships
• Sanctions checks: Failure to conduct and document appropriate sanctions checks

CIMA uses the case to emphasise the importance of registered persons maintaining effective, fully implemented AML/CFT/PF policies and procedures, and states it will continue to treat AMLR breaches with particular seriousness through onsite and offsite monitoring.

Applies to

registered persons, securities investment business licensees