Cayman Monetary Regulatory Authority International Issues CI$250,000 Fine to Seven Mile Securities

The Cayman Monetary Regulatory Authority International (the “Authority”) has levied discretionary administrative fines amounting to CI$250,000 on Seven Mile Securities (the “Company”) under sections 42A and 42B of the Monetary Authority Act (2020 Revision) (as amended) for violations of the Anti-Money Laundering Regulations (2020 Revision) (as amended) (the “AMLRs”).

The fines were imposed due to the Company’s non-compliance with the following AMLR requirements:

1. Failure to implement Customer Due Diligence measures;
2. Failure to apply Enhanced Customer Due Diligence measures;
3. Inadequate monitoring of the risk-based approach;
4. Failure to understand the nature and purpose of business relationships;
5. Failure to conduct and document all relevant sanctions checks.

These findings arose from an onsite inspection.

This case underscores the critical need for registered entities to have robust and well-implemented anti-money laundering, counter-terrorism financing, and proliferation financing (“AML/CFT/PF”) policies and procedures. Effective compliance ensures alignment with the jurisdiction’s AML/CFT/PF and regulatory frameworks, thereby mitigating the risk of being exploited for financial crimes.

The Authority remains steadfast in its commitment to bolstering the Cayman Islands’ AML/CFT/PF regime through its ongoing on-site, off-site, and monitoring activities. The Authority will continue to handle violations of the AMLRs or other regulatory acts with the utmost seriousness and will take the necessary enforcement actions when required.