Reported by Editorial Staffq

A Grand Court judge ruled largely in favor of financial services group Maples in a complex legal ruling after it challenged the regulator, CIMA, over new rules surrounding the recording of clients’ details under regulations rolled out in 2020 as part of the enhanced local anti-money laundering regime. The decision comes against the backdrop of Cayman’s fight to be removed from the FATF’s grey list, and government officials have stated that an appeal is being explored.

Following an on-site investigation at both Maples Corporate Services Ltd and MaplesFS Ltd in 2020, CIMA published a report concluding that both firms had failed to meet their AML obligations in some areas.

The Maples Group, on the other hand, requested a judicial review of how the new laws were being applied, namely clarifying the interpretation of Regulation 12 of the Anti-Money Laundering Regulations (2020 Revision). Maples contended that CIMA had gone beyond basic anti-money laundering legislation and had misconstrued the regulation, which was unreasonable and commercially onerous.

While the court emphasized its understanding of the “genuine and well-founded concern” about the importance of strengthening the Cayman Islands financial system and the rigorous approach CIMA had taken in carrying out its statutory duties, Justice Ian Kawaley, who presided over the case, said the regulator should have been more flexible in dealing with disagreements that arose during the inspection process.

Read full report: https://www.stvincenttimes.com/cayman-islands-cimas-money-laundering-rules-overruled-by-court/