7 amendment bills to strengthen AML laws published

(CMR) Seven amendment Bills proposed to strengthen the Cayman Islands Monetary Authority's (CIMA) powers to apply proportionate and dissuasive sanctions to all types of legal persons within its supervision were published on 27 March in The Cayman Islands Gazette.

The Bills are:

-Monetary Authority (Amendment) Bill, 2023;

-Companies Management (Amendment) Bill, 2023;

-Directors Registration and Licensing (Amendment) Bill, 2023;

-Insurance (Amendment) Bill, 2023;

-Money Services (Amendment) Bill, 2023;

-Securities Investment Business (Amendment) Bill, 2023; and the

-Virtual Asset (Service Providers) (Amendment) Bill, 2023.

The Bills seek to extend CIMA's sanctions regime to these legal persons who fall under CIMA's supervision: partnerships, exempted liability partnerships (ELPs), limited liability partnerships (LLPs), partners of such partnerships, and unincorporated associations other than a partnership; and the persons concerned in the management or control of such associations.

In addition, amendments to the Monetary Authority Act allow CIMA to spontaneously share non-public information of criminal conduct uncovered during the carrying on of its duties with an overseas regulatory authority.

The Monetary Authority (Amendment) Bill, 2023, introduces clauses that propose enhancing international cooperation with overseas regulatory authorities, which would allow CIMA to provide these authorities with information, either proactively or upon request, relating to criminal conduct it discovers during the performance of its regulatory functions for regulated entities.

It also proposes simplifying the exchange of information process with the local beneficial ownership competent authority and extending the application of the disgorgement principle to prevent persons who breach this law from gaining financially.

The Ministry consulted with local members of the financial services industry throughout 2021 regarding the preparation of these amendment Bills.

“Ultimately, they are intended to improve our AML enforcement regime and further strengthen our local and international cooperation. This maintains the integrity of the local and international financial services industry,” Minister of Financial Services and Commerce Hon. André Ebanks said.

Minister Ebanks will present the amendment Bills at the next sitting of Parliament.