Monetary Authority (Administrative Fines) Regulations (2025 Revision)

Summary

This is a consolidated revision (as at 31 December 2024, published February 2025) of the Cayman Islands Monetary Authority (Administrative Fines) Regulations, which set out CIMA's administrative fines regime under the Monetary Authority Act. The Regulations establish the process CIMA must follow when it believes a regulated entity or individual has breached a 'prescribed provision' - a specific requirement drawn from a long list of Cayman financial services laws, regulations and CIMA Rules set out in Schedule 1 (covering AML regulations, banking and trust, insurance, mutual funds, private funds, securities investment business, virtual asset service providers, and various CIMA prudential Rules, among others).

• Breach severity: Each listed breach is classified as minor, serious or very serious.
• Fine types: A breach can attract either a fixed fine, a fixed fine (continuing, for ongoing breaches) or a discretionary fine.

• Breach notice and reply: CIMA must give a breach notice, allow a reply period, and consider the reply.
• Discretionary fine criteria: For discretionary fines, CIMA must apply prescribed criteria relating to seriousness, intent, mitigation, harm caused, compliance history and ability to pay before deciding whether to impose a fine and its amount.
• Discount agreements: The Regulations allow discount agreements.
• Internal review and appeal: Rights to internal review are provided for fixed fines, via the Authority's Management Committee, and a right of appeal to the Grand Court is provided for discretionary fines.
• Payment and enforcement: The Regulations cover payment, interest on unpaid fines, and enforcement; a fine is a debt to the Crown.
• Schedule 2 forms: Schedule 2 contains the prescribed forms (breach notices, fine notices, review applications/decisions, and a certificate of fine and interest owing) that must be used in the process.

Because the Regulations operate mainly as CIMA's internal procedural and enforcement framework, most obligations fall on CIMA itself (how it must notify, consult and process fines) rather than creating new standalone duties for licensees beyond compliance with the underlying prescribed provisions referenced in Schedule 1. However, entities that receive a breach notice have specific procedural obligations and options.

• Rectification: Rectification within 30 days.
• Reply: Replying within the stated reply period.
• Review or appeal: Applying for review or appeal within set timeframes.

Key obligations

• A party that receives a breach notice for a breach subject to a fixed fine may rectify the breach and must do so, and notify CIMA via a rectification notice, within thirty days after receiving the breach notice to potentially avoid the fine.
• A party wishing to dispute a breach notice must submit any reply within the reply period stated in the breach notice.
• A party subject to a fixed fine may apply to CIMA's Management Committee for an internal review of the decision (using the prescribed form).
• A party subject to a discretionary fine may apply to the Grand Court for leave to appeal, following the Grand Court Rules and practice directions applicable to judicial reviews.
• Any fine imposed, once due, constitutes a debt to the Crown and is subject to interest under the Regulations if unpaid.
• CIMA must follow the prescribed process (breach notice, consideration of reply/rectification, fine notice) using the prescribed forms in Schedule 2 before imposing any fixed or discretionary fine.
• CIMA must apply the prescribed general and additional criteria (regulations 5 and 6) when deciding whether to impose a discretionary fine and its amount.
• CIMA must consult in accordance with the consultation requirements before issuing rules under these Regulations.

Applies to

banks, trust companies, private trust companies, building societies, companies management licensees, cooperative societies, development bank, directors registration and licensing licensees, insurers (Class A, B, C and D), insurance agents and brokers, money services businesses, mutual funds, mutual fund administrators, private funds, securities investment business licensees/registrants, virtual asset service providers, any person or entity subject to a prescribed provision listed in Schedule 1

Deadlines

• thirty days after the party received the breach notice: Deadline for a party to rectify a breach subject to a fixed fine and submit a rectification notice to CIMA.
• 31st December, 2024: Date as at which this consolidated revision of the Regulations is stated to be revised.
• 21st day of January, 2025: Date on which publication of the consolidated and revised Regulations was authorised by Cabinet.

Related documents

• This document is made under Monetary Authority Law (2020 Revision)