Monetary Authority (Administrative Fines) Regulations (2025 Revision)
Detailed regulations prescribing the categories of breaches, the criteria for exercising fine discretions, the procedural steps for imposing fines, and the review/appeal process for administrative fines in the Cayman Islands.
Monetary_Authority_(Administrative_Fines)_Regulations_(2025_Revision).pdf
2026-04-27
These regulations provide the procedural framework for cima to exercise its power to impose administrative fines under the monetary-authority-act-2020.
Breach Categories
Breaches of regulatory laws are classified into three categories:
- Minor: Less severe breaches that may be resolved via a rectification notice.
- Serious: Significant non-compliance.
- Very Serious: The most severe breaches, often involving high-level regulatory failures.
Schedule 1 of the regulations provides an exhaustive list of hundreds of specific sections from across the regulatory laws (AML, Banking, Insurance, Funds, Securities, etc.) and assigns each a category (source: Monetary_Authority_(Administrative_Fines)Regulations(2025_Revision).pdf).
The Fine Process
- Breach Notice: CIMA issues a notice identifying the breach and the proposed fine.
- Reply Period: The party has at least 30 days to respond and make representations.
- Rectification (Minor Only): For minor breaches, if the party rectifies the breach within 30 days to CIMA's satisfaction, CIMA may refrain from imposing a fine.
- Fine Notice: CIMA issues a final notice imposing the fine.
Types of Fines
- Fixed Fines: Predetermined amounts (typically $5,000 for a single breach).
- Fixed Fine (Continuing): Daily fines for ongoing breaches, up to a maximum of $20,000 in total for minor breaches.
- Discretionary Fines: Variable amounts determined by CIMA based on criteria such as the nature/seriousness of the breach, intent/negligence, and the party's compliance history.
Reviews and Appeals
- Internal Review: Parties can apply for a review of a fixed fine by CIMA's Management Committee within 30 days.
- Grand Court Appeal: Parties can seek leave to appeal a discretionary fine to the Grand Court within 30 days.