Section 34Part 5 — Operations
Relations with banks and other financial institutions
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After private sector consultation and consultation with the Minister charged with responsibility for Financial Services, the Authority may —
issue or amend rules or statements of principle or guidance concerning the conduct of licensees and their officers and employees, and any other persons to whom and to the extent that the regulatory laws may apply;
issue or amend statements of guidance concerning the requirements of the anti-money laundering regulations or the provisions of the regulatory laws; and
issue or amend rules or statements of principle or guidance to reduce the risk of financial services business being used for money laundering or other criminal purposes.
Repealed by section 6(b) of the Monetary Authority (Amendment) Law, 2010 [Law 9 of 2010].
Rules or statements of principle or guidance issued under subsection (1) shall be consistent with this Law and the regulatory laws and with any regulations or directions made or given thereunder and shall state the provision of this Law, the regulatory Law, the regulations or the directions, as the case may be, to which they relate.
The guidance notes referred to as "The Guidance Notes on the Prevention and Detection of Money Laundering and Terrorist Financing in the Cayman Islands" issued on the 13th December, 2017, shall be deemed to have been issued under subsection (1).
The Authority shall, without delay, publish in the Gazette notice of the issue or amendment of rules or statements of principle or guidance under subsection (1) and forward to the Minister charged with responsibility for Financial Services copies of the rules or statements of principle or guidance as issued or amended.
A breach of the rules or statements of principle or guidance issued under subsection (1) shall not constitute an offence, or of itself give rise to any right of action by persons affected, or affect the validity of any transaction.
Subsection (6) shall not affect the power to fine for a breach of a provision of the rules that is a prescribed provision.
The Authority may at all reasonable times, by notice in writing given —
to a person regulated under the regulatory laws;
to a connected person; or
to a person reasonably believed to have information relevant to an enquiry by the Authority, require that person —
to provide specified information or information of a specified description; or
to produce specified documents or documents of a specified description, as it may reasonably require in connection with the exercise by the Authority of its regulatory functions.
Where, in accordance with section 50, the Authority is satisfied that assistance should be provided in response to a request by an overseas regulatory authority it may in writing direct —
a person regulated under the regulatory laws;
a connected person;
a person that is engaging in an activity that is subject to regulation under the regulatory laws; or
a person reasonably believed to have information relevant to enquiries to which the request relates, within a stated time, to —
provide the Authority with specified information or information of a specified description with respect to any matter relevant to the inquiries to which the request relates;
produce specified documents or documents of a specified description relevant to those inquiries; or
give to the Authority such assistance in connection with those inquiries as the Authority may specify in writing.
Where a person fails to comply with a requirement under subsection (8) or a direction given under subsection (9) within three days from the date of the requirement or direction or such longer period as the Authority may permit, the Authority may apply to the court for an order requiring the person to comply with the requirement or direction.
Where, in connection with a requirement under subsection (8) or a direction given under subsection (9), the Authority considers it necessary to examine a person on oath, the Authority may apply to a court of summary jurisdiction to have that person examined by the court and to have the results of that examination sent to the Authority.
The court shall process an application under subsection (11) within seven days of its receipt and shall send the results of the examination to the Authority within fourteen days of the examination.
Where documents are produced pursuant to subsection (8) or (9), the Authority may take copies of them or extracts from them.
A person shall not be required under this section to disclose information or to produce a document which that person would be entitled to refuse to disclose or to produce on the grounds of legal professional privilege in court proceedings except that an attorney-at-law may be required to provide the name and address of that attorney-at-law's client or principal.
Where a person claims a lien on a document, its production under this section is without prejudice to that person's lien.
In this section — "document" includes information recorded in any form and, in relation to information recorded otherwise than in legible form, the power to require its production includes power to require the production of a copy of it in legible and intelligible form.
For the purposes of this section, any information or other matter comes to a professional legal adviser in privileged circumstances if it is communicated or given to that professional legal adviser —
by, or by a representative of, a client of that professional legal adviser in connection with the giving by the adviser of legal advice to the client;
by, or by a representative of, a person seeking legal advice from the adviser; or
by any person —
in contemplation of, or in connection with, legal proceedings; and
for the purpose of those proceedings.
No information or other matter shall be treated as coming to a professional legal adviser in privileged circumstances if it is communicated or given with a view to furthering any criminal purpose.
For the purposes of subsections (8) and (9), a person is connected with a person regulated under the regulatory laws ("A") if that person is or has at any relevant time been —
a member of A's group;
a controller of A;
any other member of a partnership of which A is a member; or
a member, officer, manager, employee or agent of A.
A person who, without reasonable cause —
fails to comply with a requirement of the Authority under subsection (8) or a direction of the Authority under subsection (9);
with intent to avoid the provisions of subsection (8) or (9) destroys, mutilates, defaces, hides or removes a document; or
wilfully obstructs an inquiry by the Authority, made in accordance with subsection (8) or (9),
commits an offence and is liable on summary conviction to a fine of ten thousand dollars and on conviction on indictment to a fine of one hundred thousand dollars, and if the offence of which that person is convicted is continued after conviction that person commits a further offence and is liable to a fine of ten thousand dollars for every day on which the offence is so continued.
Where an offence under this section, which has been committed by a body corporate, is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, commits that offence and is liable to be proceeded against and punished accordingly.
Where the affairs of a body corporate are managed by its members, paragraph (a) shall apply in relation to the acts and defaults of a member in connection with that member's functions of management as if that member were a director of the body corporate.
Where a person complies with a requirement under subsection (8), a direction under subsection (9) or an order under subsection (10), or gives evidence under subsection (11), such compliance shall not be treated as a breach of any restriction upon disclosure of information by or under any law and shall not give rise to any civil liability.
Defined Terms
documentprofessional legal adviserprivileged circumstancesconnected person
Cross References
- Section 6 of Monetary Authority Amendment Law
Repealed by section 6(b) of the Monetary Authority (Amendment) Law, 2010
- Section 50 of Monetary Authority Actexternal
Referenced in subsections (9)
- Section 37 of Monetary Authority Actexternal
Referenced in section 36(i)