CIMA fines company $260k for breaches of Anti-Money Laundering Regs

The Cayman Islands Monetary Authority (CIMA) issued a public notice recently that Lion Brokers Limited was fined CI$261,990.72 for failure to comply with the requirements of the Anti-Money Laundering Regulations (the “AMLRs”).

According to the notice, the breaches were discovered by CIMA during a routine an onsite inspection.

Now, the company faces fines for the following breaches:  

• The application of Enhanced Customer Due Diligence measures
• Failing to conduct adequate risk assessments
• Failing to conduct and document all appropriate sanctions checks

The notice said that similar failings were also identified during a previous inspection.

CIMA said that this case highlights the importance of licensees having in place effective anti-money laundering/countering the financing of terrorism/proliferation financing (“AML/CFT/PF”) policies and procedures which are appropriate, effective and fully implemented to ensure compliance with the jurisdiction’s AML/CFT/PF and regulatory frameworks, thus avoiding the risk of entities being used as a conduit for money laundering, terrorist financing and any other financial crime.

CIMA added that they are committed to enhancing the Cayman Islands’ AML/CFT/PF regime and through its on-site, off-site, and other monitoring processes it will continue to exercise vigilance in that regard.

CIMA emphasized that CIMA will continue to treat breaches of the jurisdiction’s AMLRs or regulatory acts with particular seriousness and take the appropriate enforcement or other actions where necessary.