Notice to Industry - SIBL Excluded Persons - AML/CFT Reporting Forms & Re-registration (2019-06-19)

Summary

This is a June 2019 CIMA notice directed at persons registered as "excluded persons" under the Securities Investment Business Law (SIBL EPs), extending a filing deadline and explaining a new re-registration process tied to the (not-yet-in-force) Securities Investment Business (Amendment) Law, 2019 (SIB Amendment Law). It follows earlier notices of 6 and 12 June 2019 that first required SIBL EPs to file AML/CFT Reporting Forms.

The notice extends the deadline for filing two AML/CFT Reporting Forms (AIR-157-75 - AML/CFT Inherent Risk, and ARC-158-75 - AML/CFT Risk Controls), required under regulation 53A of the Anti-Money Laundering (Amendment) Regulations, 2019, to 15 August 2019. These forms must be filed via the REEFS portal by all SIBL EPs regardless of whether they intend to re-register.

Re-registration requirements

• Trigger and filing: Once the SIB Amendment Law comes into force, SIBL EPs that wish to continue operating must apply to become a "Registered Person" by filing Form RRP-160-75 via REEFS by 15 January 2020.
• Eligibility criteria: Applicants must meet criteria including good standing, fit-and-proper shareholders/directors/officers, a minimum of two directors, and directors registered/licensed under the Directors Registration and Licensing Law.
• Precondition: Filing the AML/CFT forms by 15 August 2019 is itself a precondition for being considered for re-registration.
• Consequence of missing deadlines: Entities that miss either the 15 August 2019 AML/CFT filing deadline or the 15 January 2020 re-registration deadline will not be eligible for re-registration under the transitional provisions and, after 15 January 2020, must instead apply as a new applicant for registration or licensing under the SIB Amendment Law, and may not carry on securities investment business until registered or licensed.

Key obligations

• SIBL excluded persons must file AML/CFT Reporting Forms AIR-157-75 (AML/CFT Inherent Risk - Securities) and ARC-158-75 (AML/CFT Risk Controls - Securities) via the REEFS portal by 15 August 2019, regardless of whether they intend to re-register.
• SIBL excluded persons wishing to continue carrying on business in or from the Cayman Islands must apply to re-register as a Registered Person by filing Form RRP-160-75 via REEFS by 15 January 2020.
• To qualify for re-registration, applicants must be in good standing under current SIBL, have fit-and-proper shareholders/directors/senior officers, maintain a minimum of two directors, and have directors currently registered or licensed under the Directors Registration and Licensing Law, 2014 (as amended).
• SIBL excluded persons must provide any additional information requested by the Authority by 15 August 2019 as part of the re-registration process.
• Entities that fail to file the AML/CFT Reporting Forms by 15 August 2019 and the re-registration Application by 15 January 2020 must, if they wish to continue business after 15 January 2020, apply as new applicants under section 5 or 6 of the SIB Amendment Law and obtain registration or a licence before continuing to operate.

Applies to

SIBL excluded persons (persons registered as excluded persons under the Securities Investment Business Law)

Deadlines

• 15 August 2019: Extended deadline for SIBL excluded persons to file AML/CFT Reporting Forms AIR-157-75 and ARC-158-75 via REEFS.
• 15 August 2019: Deadline for SIBL excluded persons to provide any information requested by the Authority as part of the re-registration process.
• 15 January 2020: Deadline for SIBL excluded persons to complete re-registration by filing Application Form RRP-160-75 via REEFS to become a Registered Person under the SIB Amendment Law.