CIMA outlines new Regulatory Regime. Part 1
Recently, Managing Director of the Cayman Islands Monetary Authority (CIMA), Cindy Scotland spoke at an Ernst and Young Symposium at the Ritz Carlton Hotel on Grand Cayman. In her speech, she outlined both recent and upcoming changes to the Cayman regulatory regime.
First of all, Scotland described the CIMA’s ethos and commitment to achieve the Cayman Islands being a well-regulated international financial centre. According to her, “CIMA’s philosophy on the regulation and supervision is that effectiveness is best achieved through a combination of rules-based and risk-based approaches. We seek to ensure that only businesses of the highest caliber become licensed or registered and that the framework governing financial services and how that framework is applied fit the level of risk of the types of businesses and the individual entities.”
She noted that extensive guidance is provided to regulated entities with a view to assist them in interpreting and meeting the requirements of the legislation and rules. Such guidance notes include the “Guidance Note on the Prevention and Detection of Money Laundering and Terrorist Financing in the Cayman Islands” that has recently been amended. Scotland said that the latest amendments were issued in September and December to provide specific guidance relating to wire transfers and to money services businesses.