Cayman Islands regulator's sanctions regime to be expanded to unincorporated bodies

Once passed, the Bills will allow CIMA to enforce sanctions against partnerships, exempted liability partnerships and limited liability partnerships, as well as against the partners of such undertakings. It will also be able to penalise unincorporated associations other than partnerships and any persons concerned in the management or control of such associations.

The relevant bills are the Monetary Authority (Amendment) Bill, the Companies Management (Amendment) Bill, the Directors Registration and Licensing (Amendment) Bill, the Insurance (Amendment) Bill, the Money Services (Amendment) Bill, the Securities Investment Business (Amendment) Bill; and the Virtual Asset (Service Providers) (Amendment) Bill. The Cayman Islands Ministry of Financial Services says it consulted with the local financial services industry throughout 2021 during the drafting of these amendments.

Amendments to the Monetary Authority Act are also being proposed. They will give CIMA more discretion to cooperate with overseas regulatory authorities. It will be authorised to disclose any confidential information of criminal conduct it discovers during its investigations to foreign regulators, either spontaneously or on request. The process of passing beneficial ownership information to foreign authorities will also be simplified. The scope of the 'disgorgement principle' will also be extended to prevent law-breakers from benefitting financially.

The Bills will be tabled for debate at the next sitting of parliament.

Sources

• Cayman Islands Ministry of Financial Services