Cayman Monetary Regulatory Authority International Issues CI$72,800 Fine to Star Insurance
The Cayman Monetary Regulatory Authority International (“the Authority”) has imposed a total discretionary administrative fine of CI$72,800.00 on Star Insurance Company (Cayman) Ltd. (the “Company”) under sections 42A and 42B of the Monetary Authority Act (2020 Revision, as amended) for breaches of the Anti-Money Laundering Regulations (2020, as amended) (“the AMLRs”).
The fines were imposed due to the Company’s failure to meet the following AMLR requirements:
- The application of customer due diligence measures;
- The implementation of enhanced due diligence measures;
- Failure to verify the source of funds;
- Failure to understand the nature and purpose of business relationships; and
- Failure to file a suspicious activity report.
These deficiencies were identified during an onsite inspection carried out in 2019.
This case underscores the importance of licensees implementing effective anti-money laundering, counter-terrorism financing, and proliferation financing (“AML/CFT/PF”) policies and procedures that are well-suited, effective, and fully executed to ensure compliance with the jurisdiction’s AML/CFT/PF frameworks. This helps prevent entities from becoming channels for money laundering, terrorism financing, or other financial crimes.
The Authority remains dedicated to strengthening the Cayman Islands' AML/CFT regime. Through ongoing onsite and offsite inspections, it will maintain strict vigilance. Breaches of the jurisdiction’s AMLRs or related regulatory acts will be treated with the utmost seriousness, and the appropriate enforcement actions will be taken as necessary.
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