Cayman Islands Monetary Authority Imposes Administrative Fine of CI$72,800 on Star Insurance
The Cayman Islands Monetary Authority (the “Authority”) has imposed discretionary administrative fines totalling CI$72,800.00 on the Star Insurance Company (Cayman) Ltd. (the “Company”) pursuant to the provisions of sections of 42A and 42B the Monetary Authority Act (2020 Revision, as amended) for breaches of the Anti-Money Laundering Regulations (2020, as amended) (the “AMLRs”).
The administrative fines were imposed for the Company’s failure to comply with the following legislative requirements of the AMLRs:
- The application of customer due diligence measures;
- The application of enhanced due diligence measures;
- Failing to verify source of funds;
- Failing to understand the nature ,purpose of business relationships; and
- Failing to file a suspicious activity report.
The failings of the Company were initially identified during an onsite inspection which was conducted in 2019.
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 conduits for money laundering, terrorist financing and any other financial crime.
The Authority is committed to enhancing the Cayman Islands’ AML/CFT regime and through its on-site, off-site, and other monitoring processes it will continue to exercise vigilance in that regard. We will also 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.
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