CARA Enforcement
Enforcement is responsible for investigating and taking action against firms that may have committed the most clear and serious breaches of the AMLRs.
Enforcement will investigate those breaches brought to its attention in a fair and robust manner before deciding what, if any, action to take.
Under the AMLRs, CARA can remove a firm from its register, refer the matter to the Office of the Director of Public Prosecutions for a criminal prosecution to be considered, or pursue an administrative penalty through the fines regime.
What to Expect from Enforcement by CARA
Our role is to investigate potential breaches of the AMLRs and ensure that the highest standards of AML compliance are maintained on island.
Decisions are made on the balance of probabilities after in-depth consideration of all relevant factors in accordance with the AMLRs.
Below is an outline of the enforcement process. For more information, please refer to our Enforcement Policy.
Information Gathering
CARA may require a regulated firm to provide documents, statements or any other information that CARA requires in connection with its investigation into a suspected breach.
CARA will do this by sending an Information Request or a Notice to Attend. Failure to comply with such requests may constitute a further breach under the AMLRs.
Breach Notices
As one of the first steps in the investigation process, it is issued if CARA believes that a breach of the AMLRs has occurred.
It states the potential fine that may be imposed if it is confirmed that the breach has occurred.
A firm has at least 30 days to respond with any preferred representations. All information and relevant factors will then be taken into consideration by CARA, who may also request additional information.
CARA will then decide whether they are satisfied that the breach has occurred.
If it is found that a breach has not occurred on the balance of probabilities, a notification to this affect will be sent.
If it is found that a breach has occurred, a Fine Notice will be issued.
Fine Notices
Issued if CARA is satisfied that a breach has occurred.
It outlines CARA’s findings and confirms the amount of the administrative fine to be paid.
The decision may be appealed, within 30 days from the Notice date, by application:
- for an internal review (in the case of a minor fine); or
- to the Grand Court (in the case of a discretionary fine).
Warning Notices
Issued if CARA believes that a regulated firm’s registration should be cancelled due to:
- such contravention of the AMLRs whereby imposition of an administrative fine would be inadequate; or
- contravention/failure to comply being so clear and serious and/or frequent as to preclude the firm being permitted to continue RFB in the Cayman Islands
A firm has at least 30 days to respond with any preferred representations. All information and relevant factors will then be taken into consideration by CARA, who may also request additional information.
CARA will then decide whether:
- they are satisfied that the breach has occurred; and
- the firm’s registration should be cancelled.
If it is found that a breach has not occurred on the balance of probabilities, a notification to this affect will be sent.
If it is found that a breach has occurred, but the firm’s registration should not be cancelled, the Breach Notice procedure will be initiated.
If it is found that a breach has occurred, and the firm’s registration should be cancelled, a Decision Notice will be issued.
Decision Notices
Issued if CARA is satisfied that a breach has occurred, and a regulated firm’s registration should be cancelled.
It outlines CARA’s findings and confirms that the firm’s registration has been cancelled.
The decision may be appealed, within 30 days from the Notice date, by application:
- for an internal review (in the case of a minor fine); or
- to the Grand Court (in the case of a discretionary fine).