Regulatory Procedure – Assessing Fitness and Propriety (December 2020)

Summary

This is a CIMA regulatory procedure, dated December 2020, that sets out how the Cayman Islands Monetary Authority internally assesses whether persons proposed or already appointed to a 'controlled function' (e.g. directors, senior officers, managers, shareholders, licensed professional directors) at a Financial Service Provider (FSP) are fit and proper. It applies across CIMA's regulatory remit and should be read alongside CIMA's Regulatory Policy on Fitness and Propriety, the Regulatory Policy on Changes in Ownership and Control, the Enforcement Manual, and the Regulatory Procedure on Issuing Notices of Decisions to Declined Applicants.

• Documentation required: When a person applies to perform a controlled function, FSPs and applicants must submit a personal questionnaire, references, police certificates, a CV, evidence of qualifications, identification, and in some cases net worth or source-of-wealth documentation.
• Risk-rating and verification process: CIMA's Supervisory and Compliance Divisions apply low, medium or high risk assessments, conduct database and web searches, verify references, and carry out additional checks for high-risk cases.

The document also covers how CIMA reassesses previously approved persons, either when a new application is submitted or in the absence of a new application.

• Factors weighed when a person is no longer considered fit and proper: Seriousness of misconduct, personal culpability, cooperation, and prior compliance history, among other factors, in deciding whether to take action against the person.

While framed as CIMA's own internal procedure, it directly informs what FSPs and individuals must supply and how quickly, so compliance officers preparing controlled-function applications need to ensure the required documentation meets the specified standards (dating, format, certification, translation) to avoid delays. The document does not itself state a commencement or repeal date beyond its December 2020 publication, and its status is marked unknown in the metadata.

Key obligations

• When submitting an application for a controlled function, the FSP/applicant must provide a completed current CIMA Personal Questionnaire (PQ) dated within six months of submission.
• Applicants must provide at least three references (two character references and one financial reference) dated within six months of submission, meeting specified content and independence requirements.
• Applicants must obtain a police certificate or other satisfactory certificate/affidavit from the last country of residence where they resided for at least 12 months, confirming no conviction for a serious crime or dishonesty offence.
• Applicants must disclose supporting documents (e.g. report of final decision) if they answer 'Yes' to any probity question in the PQ.
• Applicants must provide evidence of professional qualifications/experience, an updated CV, and (for day-to-day management roles) a signed job description and organisational chart.
• Applicants must provide notarised/certified colour copies of photo identification.
• Individual beneficial shareholders above the prescribed shareholding threshold may be required to provide a notarised net worth statement prepared by a qualified accountant, bank, or acceptable institution.
• Individual shareholders/controllers holding 10% or more, or those subject to enhanced due diligence (e.g. PEPs, high-risk applicants), may be required to provide documentary evidence of source of wealth and source of funds; corporate shareholders may need to provide three years of audited financial statements.
• All documents/certificates not in English must be accompanied by a professional translation with a Certificate of Accuracy, including the translator's name, contact details, signature and date.
• FSPs must be aware that knowingly, recklessly or wilfully supplying false or misleading information, or making false statements in documents submitted to CIMA, may constitute an offence under the Regulatory Laws.

Applies to

Financial Service Providers (FSPs), persons performing or applying to perform a controlled function (directors, senior officers, managers, officers, shareholders, licensed professional directors)

Deadlines

• within six (6) months of submission: References and the Personal Questionnaire (PQ) must be dated within six months of submission to the Authority.
• at least twelve (12) months: Police or other certificate must be obtained from the last country of residence where the person was ordinarily resident for at least 12 months.
• 14–28 calendar days: Approximate processing time by the Compliance Division following receipt of fully completed forms and all supporting documentation.