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(1) These Regulations may be cited as the Monetary Authority (Administrative Fines) Regulations, 2017. (2) These Regulations shall come into force immediately after the Monetary Authority (Amendment) Law, 2016 [Law 27 of 2016] comes into force. 2. Definitions 2. In these Regulations \u2014 \u201cappeal\u201d means an appeal for which leave is granted by the Grand Court under regulation 19 and any further appeals relating to the decision on such an appeal; \u201cbreach notice\u201d means a notice complying with regulation 11 of the Authority\u2019s intention to impose a fine, issued by the Authority to a party that the Authority believes has breached a prescribed provision; \u201cdiscretionary fine\u201d means \u2014 Regulation 2 SL 98 of 2017 (a) a proposed fine for which the Authority has fine discretions; or (b) a fine that the Authority exercised fine discretions to impose; \u201cdiscount agreement\u201d means an agreement in principle between the Authority and a party that has breached a prescribed provision about the amount of a proposed discretionary fine; \u201cfine discretions\u201d means the Authority\u2019s discretions under section 42B(5) of the Law about whether or not to impose a fine or its amount; \u201cfine notice\u201d means a notice complying with regulation 15 issued by the Authority to a party that has breached a prescribed provision of the fine; \u201cfixed fine\u201d means a fine referred to in section 42B(1) of the Law; \u201cfixed fine (continuing)\u201d means a fine referred to in section 42B(2) of the Law; \u201cgive\u201d, in relation to a notice or information, includes to deliver, provide, send or transmit the notice or information; \u201cinterest\u201d means interest accrued or accruing on a fine under regulation 25; \u201cnotice\u201d means written information given, or to be given, electronically or by another mode of communication; \u201coriginal decision\u201d means the Authority\u2019s decision \u2014 (a) in relation to a fixed fine or fixed fine (continuing), to impose the fine; or (b) in relation to a discretionary fine, to impose the fine, about its amount, or both; \u201cparty\u201d, in relation to a provision of these Regulations about a breach, fine or proposed fine, means the person on whom the fine has been imposed or is being proposed or considered to be imposed; \u201crectification notice\u201d means a notice to the Authority by a party that has breached a prescribed provision that the breach was rectified within thirty days after the party received the breach notice; \u201creply\u201d means a notice to the Authority by a party who has received a breach notice, making representations opposing the Authority\u2019s proposed action to impose a fine; \u201creply period\u201d means a period stated in a breach notice within which the party who received the notice may give a reply to the Authority; \u201cstayed\u201d, in relation to a fine, means that the fine may not be imposed because of the operation of an order under regulation 22(2); and \u201cwinding up notice\u201d means a demand under section 93(a) of the Companies Law (2016 Revision) as it applies under a law of the Islands or a similar demand under the legislation of another jurisdiction. Regulation 3 SL 98 of 2017 PART 2 - PRESCRIBED MATTERS Breaches and their categories 3. Breach of prescribed provisions to be proceeded with under Part VI of the Law 3. (1) The breach of a prescribed provision set out in column 2 of Schedule 1 of the Regulations set out in column 1 of that Schedule may be proceeded with under Part VIA of the Law. (2) In relation to proceedings under Part VIA of the Law, each breach of a prescribed provision is classified in column 3 of Schedule 1 as minor, serious or very serious. Discretionary fine criteria\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"When the criteria apply 4. Regulations 5 and 6 prescribe, in relation to section 42F(1)(a) of the Law, criteria for exercising fine discretions when \u2014 (a) issuing breach notices; (b) considering or reconsidering matters under regulations 12(2) or 23(2)(b); and (c) imposing discretionary fines.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"General criteria in relation to both fine and amount 5. The criteria referred to in regulation 4 are \u2014 (a) the nature and seriousness of the breach; (b) the degree of the party\u2019s inadvertence, intent or negligence in committing the breach; (c) if the breach is a continuing one, its duration; (d) the measures or precautions the party took to prevent the breach; (e) the measures or precautions that a reasonable person in the party\u2019s position, acting prudently and exercising due diligence, would have taken to prevent the breach; (f) whether or not the breach was due to \u2014 (i) reasonable reliance on information given to the party; or (ii) a cause beyond the party\u2019s control, including, for example, someone else\u2019s act or default or an accident; (g) the degree of difficulty in detecting the breach; (h) evidence of intent by the party to conceal the breach or mislead the Authority; Regulation 6 SL 98 of 2017 (i) the party\u2019s conduct after becoming aware of the breach, including, for example \u2014 (i) whether and how quickly the party brought the breach to the Authority\u2019s attention; and (ii) the party\u2019s efforts to remedy the breach or prevent its reoccurrence; (j) any financial or other damage or loss or other harm done or caused by the breach, including, for example, to \u2014 (i) the party\u2019s creditors, customers, investors, policyholders or shareholders; (ii) financial markets; or (iii) the performance of the Authority\u2019s functions; (k) whether, before or after the breach, there was a change to the party\u2019s business or affairs that affects or may affect the consequences of the breach for the party, including, for example, the party\u2019s ability to pay a fine; (l) if the Authority has imposed a fine on the party in similar circumstances to the breach, the amount of that fine; and (m) the party\u2019s history of compliance, in the five years before the breach, with the Anti-Money Laundering Regulations, 2017 and similar laws in other jurisdictions. (2) In considering the party\u2019s history of compliance, regard need only be had to the party\u2019s compliance with, and breaches of, those laws of which the Authority is aware or is made aware by the party. (3) Paragraph (2) applies even if no punishment was imposed or no other action relating to the breach was taken under those laws.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Additional criteria in relation to fine amount 6. In deciding the amount of a fine, the criteria also include \u2014 (a) the following in relation to the party \u2014 (i) any circumstances of mitigation that may exist; (ii) resources and ability to pay; and (iii) financial hardship; (b) potential adverse financial consequences on third parties of imposing a fine in the amount proposed; and (c) a circumstance that aggravates, or may tend to aggravate, the breach or its effects. Regulation 7 SL 98 of 2017 7. Power to discount usual fine to reflect agreement 7. (1) The Authority may, but need not, negotiate with a party to attempt to reach a discount agreement with the party, whether or not the Authority has given a breach notice. (2) Subject to paragraph (3), the Authority may discount the usual fine to reflect the fact of the discount agreement and the stage in the fine process under Part 3 at which the agreement was reached. (3) The Authority shall not discount any component of the usual fine that represents the application of the disgorgement principle under section 42F of the Law. (4) In this regulation, \u201cusual fine\u201d means the amount of the fine the Authority decided, or would otherwise have decided \u2014 (a) before taking into account the discount agreement; and (b) after considering \u2014 (i) all factors and criteria and the order of importance under section 42F of the Law; and (ii) the criteria prescribed in regulations 5 and 6. Forms 8. Prescribed forms 8. Schedule 2 prescribes forms for use, subject to regulation 10, under these Regulations. PART 3 - FINE PROCESS General\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Steps required 9. (1) The Authority may only impose a fixed fine or discretionary fine by taking the following steps \u2014 (a) giving the party a breach notice; (b) if regulation 12 or 13 applies, complying with that regulation; and (c) giving the party a fine notice. (2) However, the following exceptions apply in relation to discretionary fines \u2014 (a) if the party entered into a discount agreement for the breach and the fine is no more than the amount agreed under the agreement, a fine notice may be given without first giving a breach notice; and Regulation 10 SL 98 of 2017 (b) if, under regulation 23(2), a fine is varied on appeal, the steps do not apply to the fine as varied. (3) The Authority may only impose a fixed fine (continuing) \u2014 (a) by giving the party a fine notice; and (b) if the relevant fixed fine is not stayed. (4) A decision relating to the imposition of a fixed fine, a fixed fine (continuing) or a discretionary fine need only be made on the balance of probabilities. 10. General provisions in relation to fine and breach notices 10. The following apply in relation to a breach notice or fine notice \u2014 (a) it is not mandatory to use the prescribed form under Schedule 2; (b) the notice may be in another form that substantially complies with the relevant requirements under this Part; (c) the notice is deemed to comply with those requirements if \u2014 (i) its form appears to follow the prescribed form; and (ii) it has been completed, or substantially completed, in the way required by the prescribed form; and (d) if the notice contains an inaccuracy, it is only invalid because of the inaccuracy if the party establishes that the inaccuracy was material and it misled the party. Breach notice and reply\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Requirements for breach notice 11. (1) A breach notice shall be dated and state all of the following \u2014 (a) the party\u2019s name; (b) that the Authority proposes to impose a fine on the party for a specified breach that it believes the party committed; (c) the prescribed provision for which the fine is proposed to be imposed; (d) the nature of the specified breach; (e) a summary of the facts and circumstances that the Authority believes constituted the specified breach; (f) either \u2014 (i) in relation to a fixed fine, that the fine is fixed at five thousand dollars; or (ii) in relation to a discretionary fine, the fine the Authority proposes for the specified breach; (g) that the party may give the Authority a reply within the reply period; and Regulation 12 SL 98 of 2017 (h) that, for a fixed fine, the party may give the Authority a rectification notice. (2) The reply period is required to end at least thirty days after the giving of the breach notice.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Duty to consider reply 12. (1) This regulation applies only if \u2014 (a) a breach notice has been given for a fixed fine, fixed fine (continuing) or discretionary fine; (b) the reply period has ended; and (c) a reply has been given. (2) The Authority has a duty to \u2014 (a) reconsider whether it still holds the belief stated in the breach notice, in the light of all matters raised in the reply concerning that belief; and (b) if the notice was for a discretionary fine, consider the matters raised in the reply to the extent they are relevant to exercising fine discretions. 13. Rectification of a breach subject to a fixed fine 13. (1) This regulation applies only if \u2014 (a) a breach notice has been given for a fixed fine; (b) the party subject to the breach notice rectified the breach specified in the notice within thirty days of receiving the notice; (c) the reply period has ended; and (d) a rectification notice has been given. (2) The Authority has a duty to consider, in light of the matters raised in the rectification notice, whether the specified breach was rectified within thirty days of the issue of the breach notice to its satisfaction. (3) If the Authority is satisfied that the breach was rectified as described in paragraph (2) and, in the case of the breach of a filing requirement that the party has requested a filing extension and paid any applicable filing extension fees, the Authority shall \u2014 (a) refrain from issuing a fine notice or imposing a fine on the party for the breach; and (b) give the party notice of its decision in accordance with regulation 14(6). Regulation 14 SL 98 of 2017 Imposing a fine\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Decision about fine 14. (1) This regulation applies at the end of the reply period in relation to a breach notice if \u2014 (a) no reply has been given; (b) a reply has been given and the Authority has complied with regulation 12; or (c) a rectification notice has been given and the Authority has complied with regulation 13. (2) If the breach notice was for a fixed fine or fixed fine (continuing) and the Authority still holds the belief stated in the notice and is not satisfied that the breach was rectified within thirty days of the issue of the notice, the Authority is required to impose the fine. (3) If the notice was for a discretionary fine, the fine discretions may be exercised. (4) The amount of a discretionary fine shall not be more than the amount stated in the notice. (5) If the Authority imposes a fine, it may decide that the fine is payable immediately on the giving of a fine notice or within a particular period after that time. (6) If the Authority decides not to impose any fine, it is required to give the party notice of the decision within fifteen days after the end of the reply period. 15. Requirements for fine notice 15. (1) A fine notice is required to be dated and state all of the following \u2014 (a) the party\u2019s name; (b) that the Authority has imposed a specified fine on the party; (c) the amount of the fine; and (d) when the fine is required to be paid. (2) If the specified fine is a fixed fine, the fine notice shall state \u2014 (a) the prescribed provision for which the fine is imposed; (b) a description of the breach; (c) if a reply was given during the reply period, the reasons why the Authority still holds the belief stated in the breach notice; (d) if a rectification notice was given within the reply period, the reasons why the Authority is not satisfied that the breach was rectified within thirty days of the issue of the breach notice; and Regulation 16 SL 98 of 2017 (e) that the party may, within thirty days after receiving the fine notice, apply to the Management Committee to review the decision to impose the fine. (3) If the specified fine is a fixed fine (continuing), the fine notice shall state \u2014 (a) the date of the fine notice given for the relevant fixed fine; and (b) that the party may, within thirty days after receiving the fine notice, apply to the Management Committee to review the decision to impose the fine. (4) If the specified fine is a discretionary fine, the fine notice shall state \u2014 (a) the prescribed provision for which the fine is imposed; (b) a description of the breach; (c) the reasons for the way in which fine discretions were exercised; and (d) that the party may, within thirty days after receiving the fine notice apply to the Grand Court for leave to appeal against the decision to impose the fine, its amount or both. PART 4 - REVIEWS AND APPEALS Internal review of fixed fines by the Authority\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Application to Management Committee for review 16. (1) A party that has received a fine notice for a fixed fine or fixed fine (continuing) may apply to the Authority for its Management Committee to review the original decision. (2) An application under this regulation shall be made in the prescribed form, within thirty days after receiving the notice.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"No stay of original decision 17. A review does not stay the operation of the original decision. 18. Management Committee decision on application for review 18. (1) The Management Committee shall, within twenty days after receiving an application for review, reconsider the original decision and decide whether to affirm it or set it aside. (2) The Management Committee shall, within ten days after making a decision on the application, give the party notice of its decision. (3) If the decision is to affirm the original decision, the notice of the decision on the application for review shall also state \u2014 (a) the reasons for the decision; and Regulation 19 SL 98 of 2017 (b) that the party may apply to the Grand Court for judicial review of the decision. (4) If the decision is to set aside the original decision, it is deemed never to have been made. (5) The Supervisory Head of the division of the Authority that made the original decision may make written representations to the Management Committee concerning an application for review of the original decision, but shall not otherwise participate in any discussion, decision, debate or vote of the Management Committee concerning the review. Appeal against discretionary fines to Grand Court\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Application to the Grand Court for leave to appeal 19. (1) A party that receives a fine notice for a discretionary fine may apply to the Grand Court for leave to appeal against the original decision within thirty days after receiving the notice. (2) The Grand Court may only grant leave to appeal under this regulation if \u2014 (a) the party has grounds for seeking judicial review of the decision; or (b) the decision was made with a lack of proportionality or was not rational. (3) Notwithstanding paragraph (1), a party may not apply for leave to appeal against the original decision if the party entered into a discount agreement for the breach and the fine is no more than the amount agreed to.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Application of Grand Court Rules and practice directions about judicial reviews 20. (1) The Grand Court Rules 1995 and the Court\u2019s practice directions about judicial reviews apply to an appeal, with necessary changes, as if the appeal were an application for judicial review. (2) Notwithstanding paragraph (1), the Court\u2019s rules about alternative dispute resolution do not apply to the appeal.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Security for costs 21. The Authority may apply to the Grand Court \u2014 (a) for an order that the appellant provide sufficient security for costs; and (b) for a stay of the appeal proceedings until such security is provided.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_22\", \"num\": \"22.\", \"text\": \"Stay of original decision only by application 22. (1) An appeal does not stay the operation of the original decision. Regulation 23 SL 98 of 2017 (2) However, the Grand Court may, on the appellant\u2019s application, order that the fine imposed by the original decision be stayed to secure the effectiveness of the appeal. (3) The stay ordered by the Grand Court \u2014 (a) may be given on conditions that the Court considers appropriate; (b) operates for the period fixed by the Court; and (c) may be amended or revoked by the Court. (4) The period of a stay shall not extend past when the Grand Court decides the appeal. 23. Hearing and outcome 23. (1) An appeal may only be decided on the evidence on which the Authority exercised the relevant fine discretions. (2) After hearing an appeal, the Grand Court may \u2014 (a) affirm, set aside or vary the original decision; or (b) set aside the original decision and remit the matter to the Authority for it to reconsider subject to such directions as the Court considers fit. (3) The following apply if the Grand Court\u2019s decision is to affirm the original decision or to vary it in a way that a fine is still imposed \u2014 (a) the Court\u2019s decision is (other than in relation to regulations 9, 16 and 19) deemed to have always been the original decision; (b) the Court may, at the Authority\u2019s request, give judgment against the party for all or any part of the fine that continues to be owing, and for interest; and (c) the Authority\u2019s request may be made during the appeal, when the Court\u2019s decision is handed down or at any later time on the tendering of a certificate under regulation 29(3)(d) about the amount owing. (4) If the Grand Court\u2019s decision is to set aside and not to remit the matter to the Authority for reconsideration \u2014 (a) both the fine and interest are deemed to have never been owing; and (b) any fixed fine (continuing) imposed for the breach is deemed to have also been set aside and to have never been owing. PART 5 - PAYMENT AND ENFORCEMENT\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_24\", \"num\": \"24.\", \"text\": \"Fine is a debt to the Crown 24. (1) A fine becomes a debt owing to the Crown on the day the fine was required to be paid under the relevant fine notice. Regulation 25 SL 98 of 2017 (2) Paragraph (1) is subject to any setting aside or variation of the fine on a review applied for under regulation 16 or an appeal.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_25\", \"num\": \"25.\", \"text\": \"Interest on fines 25. (1) Interest of five percent a year accrues while all or any part of a fine continues to be owing, starting on the day immediately after the fine becomes a debt to the Crown and ending on the day the fine is paid in full, both days inclusive. (2) The interest accrues daily and as compound interest. (3) The interest is also a debt owing to the Crown. (4) The accruing of interest applies even while the fine is stayed. (5) Payments relating to the fine are to be applied to the interest first. (6) This regulation is subject to any setting aside or variation of the fine in a review applied for under regulation 16 or an appeal.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_26\", \"num\": \"26.\", \"text\": \"Payment of more than one fine 26. If more than one fine has been imposed on a party, payments for the fines are to be applied in the order in which the fines and interest became owing. 27. Enforcement 27. (1) The Crown may recover in a civil proceeding, as a debt, the unpaid amount of a fine or interest, or both. (2) However, paragraph (1) does not apply while the fine is stayed. (3) A proceeding to recover a debt under this regulation does not prevent \u2014 (a) interest continuing to accrue on the total owing; or (b) if the party is a body corporate, the Crown enforcing the fine by serving a winding up notice for the debt. PART 6 - MISCELLANEOUS\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_28\", \"num\": \"28.\", \"text\": \"Electronic notices by the Authority 28. (1) The Authority may give a party a notice for any purpose of these Regulations by sending it to an email address that the party last gave the Authority notice of, as follows \u2014 (a) the party\u2019s email address; (b) if the party is a body corporate (either in its own right or as a trustee of a trust), the email address of \u2014 (i) any of its directors or members; or (ii) its registered office provider; or Regulation 29 SL 98 of 2017 (c) if the party is a partnership, the email address of \u2014 (i) any of its partners; or (ii) its registered office provider (if it has a registered office). (2) In this regulation \u2014 \u201cpartners\u201d does not include a limited partner of a limited partnership; and \u201cregistered office provider\u201d means the person who provides or maintains the party\u2019s registered office as required under a Law.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_29\", \"num\": \"29.\", \"text\": \"Evidentiary provisions 29. (1) This regulation applies to a proceeding under Part VIA of the Law, including a review applied for under regulation 16, an appeal, a proceeding referred to in regulation 26 and a proceeding resulting from the giving of a winding up notice for a fine or interest. (2) A signature purporting to be the signature of the managing director or anyone else acting on the Authority\u2019s behalf is evidence of the signature it purports to be. (3) A certificate signed, or purporting to be signed, by the managing director or the managing director\u2019s delegate stating a matter as follows is evidence of that matter \u2014 (a) that a stated document is a copy of a notice given under these Regulations; (b) that an email address stated in the copy was, when the notice was given to its stated recipient, the recipient\u2019s email address under regulation 28; (c) that on a stated day the recipient was given the notice in a stated way; (d) that a fine or interest of a stated amount, or both, are owing to the Crown by a stated person; or (e) that stated terms are the terms of a discount agreement. (4) For section 17 of the Electronic Transactions Law (2003 Revision), a certificate under paragraph (3)(b) is evidence that the notice was electronically given to its recipient at the time of giving stated in the notice.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_30\", \"num\": \"30.\", \"text\": \"Consultation requirements before issuing rules 30. Before issuing rules under section 42G of the Law, the Authority shall carry out private sector consultation and consult the Minister charged with responsibility for Financial Services about the proposed rules. 31. Transitional provision 31. The Authority may not impose a fixed fine, fixed fine (continuing) or discretionary fine, or take any steps to do so under Part 3 \u2014 Regulation 31 SL 98 of 2017 (a) until the expiry of a period of ninety days after the coming into force of these Regulations; and (b) in respect of a breach of a prescribed provision that began and ended before the coming into force of these Regulations. SCHEDULE 1 SL 98 of 2017 SCHEDULE 1 (Regulation 3) PRESCRIBED PROVISIONS AND BREACH CATEGORIES Item Column 1 Title of Regulation Column Prescribed provision Column Category of breach 1. The Anti-Money Laundering Regulations, 2017 Regulation 5(a), (c) , (d) or (e) Serious 5(b) Very serious Very serious Serious Serious Serious 40(1) to (5) Serious 40(6) Very serious Serious Serious Serious 47(3) to (5) Serious Very serious 50 and 51 Very serious 52 and 53 Serious Same as for the body corporate SCHEDULE 2 SL 98 of 2017 SCHEDULE 2 PRESCRIBED FORMS (Regulations 8 and 10) PART 1 - BREACH AND FINE NOTICES FORM 1 BREACH NOTICE FOR PROPOSED FIXED FINE The Monetary Authority Law (2016 Revision), ss 42A and 42B The Monetary Authority (Administrative Fines) Regulations, 2017 To: [Here insert the party\u2019s name and address] (\u201cyou\u201d). At [delete whichever of the following is not applicable]: [Here insert the party\u2019s physical address. OR Here insert the party\u2019s email for notices from the Authority to the party under regulation28.] TAKE NOTICE that the Cayman Islands Monetary Authority proposes to impose a fixed fine of five thousand dollars on you. Particulars are as follows: \u2022 The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] \u2022 The facts and circumstances the Authority believes constituted the breach are: [Here insert the facts and circumstances contended to constitute the breach and any relevant surrounding circumstances.] \u2022 The amount of five thousand dollars is fixed under s 42B(1) of the Law. AND TAKE FURTHER NOTICE that, within [Here insert \u201c30 days\u201d OR \u201cany longer period the Authority decides] after the giving of this notice to you, you may give the Authority a rectification notice or a notice making representations about whether it should impose the fine. Dated ______________________, 20_____ ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority SCHEDULE 2 SL 98 of 2017 FORM 2 BREACH NOTICE FOR PROPOSED DISCRETIONARY FINE The Monetary Authority Law (2016 Revision), ss 42A and 42B The Monetary Authority (Administrative Fines) Regulations, 2017 To: [Here insert the party\u2019s name and address] (\u201cyou\u201d). At [delete whichever of the following is not applicable]: [Here insert the party\u2019s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority proposes to impose a discretionary fine of [Here insert the amount of the proposed fine.] on you. Particulars are as follows: \u2022 The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] \u2022 The facts and circumstances the Authority believes constituted the breach are: [Here insert the facts and circumstances contended to constitute the breach and any relevant surrounding circumstances.] AND TAKE FURTHER NOTICE that within [Here insert \u201c30 days\u201d OR \u201cany longer period the Authority decides] after the giving of this notice to you, you may give the Authority a notice making representations about whether it should impose the fine, the proposed amount of the fine, or both. Dated ______________________, 20_____ ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority SCHEDULE 2 SL 98 of 2017 FORM 3 FINE NOTICE FOR FIXED FINE The Monetary Authority Law (2016 Revision), ss 42A and 42B The Monetary Authority (Administrative Fines) Regulations, 2017 To: [Here insert the party\u2019s name and address] (\u201cyou\u201d). At [delete whichever of the following is not applicable]: [Here insert the party\u2019s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority has imposed a fixed fine of five thousand dollars on you. You are required to pay the fine [Here insert \u201cimmediately\u201d or, if the Authority has decided to give time to pay, the period within which the fine is required to be paid.] Particulars are as follows: \u2022 The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] \u2022 The reasons for the decision to impose the fine are [delete whichever of the following is not applicable]: [Here insert: (a) If no reply to the relevant breach notice was given during the reply period: \u201cthe reply period has ended, the Authority still holds the belief stated in the relevant breach notice and that, consequentially, s 42B of the Law and regulation14(2) of the Regulations requires the fine to be imposed\u201d. OR (b) if such a reply was given, the Authority\u2019s findings on each matter raised in the reply that is relevant to the issue of whether a fine should be imposed.] AND TAKE FURTHER NOTICE of the following under the Law and Regulations: \u2022 Under s 42B(1), the amount of the fine is fixed at five thousand dollars. \u2022 Under regulation 13 you may, within 30 days after receiving this notice, issue a rectification notice to the Authority if you have rectified the breach specified in this notice within that period. \u2022 Under Part 4 of the Regulations you may, within 30 days after receiving this notice, apply to the Authority\u2019s Management Committee to review the SCHEDULE 2 SL 98 of 2017 decision to impose the fine. However, you cannot apply for a review of the amount of the fine. \u2022 Form 6 under Schedule 2 to the Regulations is to be used for any such application. \u2022 Compound interest accrues on the fine at daily rests until all of the fine and the interest have been paid. \u2022 The Authority may enforce the fine and interest as a debt. \u2022 Under s 42B, the Authority may also impose further fines on you of up to twenty thousand dollars in total if the fine is not paid and the breach does not stop or is not remedied. Dated ______________________, 20_____ ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority SCHEDULE 2 SL 98 of 2017 FORM 4 FINE NOTICE FOR FIXED FINE (CONTINUING) The Monetary Authority Law (2016 Revision), ss 42A and 42B The Monetary Authority (Administrative Fines) Regulations, 2017 To: [Here insert the party\u2019s name and address] (\u201cyou\u201d). At [delete whichever of the following is not applicable]: [Here insert the party\u2019s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority has imposed a fixed fine (continuing) of five thousand dollars (\u201cthis fine\u201d) on you. You are required to pay this fine [Here insert \u201cimmediately\u201d or, if the Authority has decided to give time to pay, the period within which this fine is required to be paid.] Particulars are as follows: \u2022 This fine relates to a fine notice for a fixed fine (primary) given to you that was dated [Here insert date of the relevant fixed fine and, if more than 2 were given on that day, otherwise identify that fine.]. \u2022 The reason for imposing this fine is that the ground under s 42B(2) of the Law for imposing this fine exists, namely that: (a) the breach for which the fixed fine was imposed has not stopped and has not been remedied; and (b) the fine imposed by the fixed fine (and any previous fixed fines (continuing) imposed for the fixed fine) have not been paid. AND TAKE FURTHER NOTICE of the following under the Law and Regulations: \u2022 Under s 42B(2), the amount of this fine is fixed at five thousand dollars. \u2022 Under Part 4 of the Regulations you may, within 30 days after receiving this notice, apply to the Authority\u2019s Management Committee to review the decision to impose the fine. However, you cannot apply for a review of the amount of this fine. \u2022 Form 6 under Schedule 2 to the Regulations is to be used for any such application. \u2022 Compound interest accrues on this fine at daily rests until all of this fine and the interest have been paid. \u2022 The Authority may enforce this fine and the interest against you as a debt. Dated ______________________, 20_____ SCHEDULE 2 SL 98 of 2017 ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority SCHEDULE 2 SL 98 of 2017 FORM 5 FINE NOTICE FOR DISCRETIONARY FINE The Monetary Authority Law (2016 Revision), ss 42A and 42B The Monetary Authority (Administrative Fines) Regulations, 2017 To: [Here insert the party\u2019s name and address] (\u201cyou\u201d). At [delete whichever of the following is not applicable]: [Here insert the party\u2019s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority has imposed a discretionary fine of [Here insert the amount of the discretionary fine.] on you. You are required to pay the fine [Here insert \u201cimmediately\u201d or, if the Authority has decided to give time to pay, the period within which the fine is required to be paid.] Particulars are as follows: \u2022 The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] \u2022 The reasons for the decision to impose the fine are: [Here insert the reasons. Also, if a reply was given to the relevant breach notice (if any) during the reply period, also insert the Authority\u2019s findings on each matter raised in the reply that addressed the issue of whether a fine should be imposed.] \u2022 The reasons for the amount of the fine are: [Here insert the reasons. Also, if a reply addressed the issue of the amount, also insert the Authority\u2019s findings on each relevant matter raised in the reply.] AND TAKE FURTHER NOTICE of the following under the Law and Regulations: \u2022 Under Part 4 of the Regulations you may within 30 days after receiving this notice, apply to the Grand Court for leave to appeal against the decision to impose the fine or its amount, or both. [Omit this paragraph if the party entered into a discount agreement for the breach and the fine is no more than the amount agreed under the agreement.] \u2022 Compound interest accrues on the fine at daily rests until all of the fine and the interest have been paid. \u2022 The Authority may enforce the fine and interest as a debt. SCHEDULE 2 SL 98 of 2017 Dated ______________________, 20_____ ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority SCHEDULE 2 SL 98 of 2017 PART 2 - REVIEWS AND APPEALS FORM 6 APPLICATION TO REVIEW FIXED FINE The Monetary Authority (Administrative Fines) Regulations, 2017 To: the Cayman Islands Monetary Authority At [delete whichever of the following is not applicable]: [Here insert the Authority\u2019s physical address. OR If the Authority has accepted the sending of applications to review fixed fines at a particular email address, here insert that address.] TAKE NOTICE that, under regulation 16, the following party applies to the Authority\u2019s Management Committee for that committee to review the decision to impose the fixed fine imposed by the fine notice received by the party on [Here insert date the notice was received and, if more than 2 were given on that day, otherwise identify the fine.]. Party\u2019s full name: [Here insert the party\u2019s full name] The party\u2019s physical address is: [Here insert the party\u2019s physical address] The party\u2019s email address for notices from the Authority to the party is [Here insert the party\u2019s email address] Particulars about the application are as follows: \u2022 The relevant prescribed provision set out in the fine notice is: [Here insert the prescribed provision as per the fine notice.] \u2022 The grounds on which the party relies on for the review are: [Here insert fully the grounds relied on.] \u2022 The facts and circumstances that the party relies on for the grounds are: [Here insert the facts and circumstances relied on, including those contended to be different from those set out in the relevant breach notice and any relevant surrounding circumstances.] Dated ______________________, 20_____ ______________________________________________________ Signed on behalf of the Party Position with the party (If the party is not an individual) SCHEDULE 2 SL 98 of 2017 FORM 7 REVIEW DECISION FOR FIXED FINE The Monetary Authority (Administrative Fines) Regulations, 2017 To: Party\u2019s full name: [Here insert the party\u2019s full name] To: [Here insert the party\u2019s name and address] (\u201cyou\u201d). At [delete whichever of the following is not applicable]: [Here insert the party\u2019s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] Date of relevant fixed fine: [Here insert the date of relevant fixed fine and, if more than 2 were given on that day, otherwise identify that fine.]. TAKE NOTICE that the Authority\u2019s Management Committee has reconsidered the decision to impose the fine and decided to [affirm the decision OR set the decision aside. (delete whichever is not applicable)]. [Omit the following 2 paragraphs if the review decision is to set aside.] The Committee\u2019s findings on each ground on which the review was sought and its reasons for each finding are: [Here insert the findings on each ground and the reasons for each finding.] Dated ______________________, 20_____ ______________________________________________________ Signed on behalf of the Management Committee of the Cayman IslandsMonetary Authority SCHEDULE 2 SL 98 of 2017 PART 3 - ENFORCEMENT FORM 8 CERTIFICATE OF FINE AND INTEREST OWING The Monetary Authority Law (2016 Revision) The Monetary Authority (Administrative Fines) Regulations, 2017 I certify as follows under regulation 30(3)(d): 1. I am the managing director\/acting managing director [delete whichever is not applicable] under s 13 of the Law of the Cayman Islands Monetary Authority, having been duly appointed under s 13 of the Law. 2. The following fine and interest on it are owing to the Crown under the Law and Regulations: Debtor: [Here  insert party\u2019s name as per the fine notice] Amount of fine: [Here insert amount of fine] Due date: [Here insert the day the fine was required to be paid under the relevant fine notice] Interest to date: [Here insert the amount of interest, worked out under regulation25]. Total of fine and interest: [Here insert the total amount of the fine and interest]. 3. Annexed and marked with the letter \u201cA\u201d is a true copy of the fine notice that imposed the fine, given to the debtor. 4. The fine has not been stayed. Dated ______________________, 20_____ ______________________________________________________ Signature ______________________________________________________ Full name Managing Director\/Managing Director\u2019s delegate [delete whichever is not applicable] under s 13 of the Law of the Cayman Islands Monetary Authority SCHEDULE 2 SL 98 of 2017 Made in Cabinet the 15th day of December, 2017. 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Regulations\n\nc\nSL 98 of 2017\nPage 3\n\nCAYMAN ISLANDS\n\nMonetary Authority Law\nMONETARY AUTHORITY (ADMINISTRATIVE\nFINES) REGULATIONS, 2017\n(SL 98 of 2017)\nArrangement of Regulations\nRegulation\nPage\nPART 1 - PRELIMINARY\n1.\nCitation and commencement .....................................................................................................5\n2.\nDefinitions ..................................................................................................................................5\nPART 2 - PRESCRIBED MATTERS\nBreaches and their categories\n7\n3.\nBreach of prescribed provisions to be proceeded with under Part VI of the Law ........................7\nDiscretionary fine criteria\n7\n4.\nWhen the criteria apply ..............................................................................................................7\n5.\nGeneral criteria in relation to both fine and amount ....................................................................7\n6.\nAdditional criteria in relation to fine amount ................................................................................8\n7.\nPower to discount usual fine to reflect agreement ......................................................................9\nForms\n9\n8.\nPrescribed forms .......................................................................................................................9\nPART 3 - FINE PROCESS\nGeneral\n9\n9.\nSteps required ...........................................................................................................................9\n10.\nGeneral provisions in relation to fine and breach notices ......................................................... 10\nBreach notice and reply\n10\n\nArrangement of Regulations\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 4\nSL 98 of 2017\nc\n\n11.\nRequirements for breach notice ............................................................................................... 10\n12.\nDuty to consider reply .............................................................................................................. 11\n13.\nRectification of a breach subject to a fixed fine ........................................................................ 11\nImposing a fine\n12\n14.\nDecision about fine .................................................................................................................. 12\n15.\nRequirements for fine notice .................................................................................................... 12\nPART 4 - REVIEWS AND APPEALS\nInternal review of fixed fines by the Authority\n13\n16.\nApplication to Management Committee for review ................................................................... 13\n17.\nNo stay of original decision ...................................................................................................... 13\n18.\nManagement Committee decision on application for review ..................................................... 13\nAppeal against discretionary fines to Grand Court\n14\n19.\nApplication to the Grand Court for leave to appeal ................................................................... 14\n20.\nApplication of Grand Court Rules and practice directions about judicial reviews ...................... 14\n21.\nSecurity for costs ..................................................................................................................... 14\n22.\nStay of original decision only by application ............................................................................. 14\n23.\nHearing and outcome .............................................................................................................. 15\nPART 5 - PAYMENT AND ENFORCEMENT\n24.\nFine is a debt to the Crown ...................................................................................................... 15\n25.\nInterest on fines ....................................................................................................................... 16\n26.\nPayment of more than one fine ................................................................................................ 16\n27.\nEnforcement ............................................................................................................................ 16\nPART 6 - MISCELLANEOUS\n28.\nElectronic notices by the Authority ........................................................................................... 16\n29.\nEvidentiary provisions .............................................................................................................. 17\n30.\nConsultation requirements before issuing rules ........................................................................ 17\n31.\nTransitional provision ............................................................................................................... 17\nSCHEDULE 1\n19\nPRESCRIBED PROVISIONS AND BREACH CATEGORIES\n19\nSCHEDULE 2\n20\nBREACH NOTICE FOR PROPOSED FIXED FINE\n20\nBREACH NOTICE FOR PROPOSED DISCRETIONARY FINE\n21\nFINE NOTICE FOR FIXED FINE\n22\nFINE NOTICE FOR FIXED FINE (CONTINUING)\n24\nFINE NOTICE FOR DISCRETIONARY FINE\n26\nAPPLICATION TO REVIEW FIXED FINE\n28\nREVIEW DECISION FOR FIXED FINE\n29\nCERTIFICATE OF FINE AND INTEREST OWING\n30\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nRegulation 1\n\nc\nSL 98 of 2017\nPage 5\n\nCAYMAN ISLANDS\n\nMonetary Authority Law\nMONETARY AUTHORITY (ADMINISTRATIVE\nFINES) REGULATIONS, 2017\n(SL 98 of 2017)\nThe Cabinet, in exercise of the powers conferred by sections 2, 42A, 42F(1)(a), 42H and\n46 of the Monetary Authority Law (2016 Revision), makes the following Regulations \u2014\nPART 1 - PRELIMINARY\n1.\nCitation and commencement\n1.\n(1) These Regulations may be cited as the Monetary Authority (Administrative\nFines) Regulations, 2017.\n(2) These Regulations shall come into force immediately after the Monetary\nAuthority (Amendment) Law, 2016 [Law 27 of 2016] comes into force.\n2.\nDefinitions\n2.\nIn these Regulations \u2014\n\u201cappeal\u201d means an appeal for which leave is granted by the Grand Court\nunder regulation 19 and any further appeals relating to the decision on such an\nappeal;\n\u201cbreach notice\u201d means a notice complying with regulation 11 of the\nAuthority\u2019s intention to impose a fine, issued by the Authority to a party that\nthe Authority believes has breached a prescribed provision;\n\u201cdiscretionary fine\u201d means \u2014\n\nRegulation 2\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 6\nSL 98 of 2017\nc\n\n(a)\na proposed fine for which the Authority has fine discretions; or\n(b) a fine that the Authority exercised fine discretions to impose;\n\u201cdiscount agreement\u201d means an agreement in principle between the\nAuthority and a party that has breached a prescribed provision about the\namount of a proposed discretionary fine;\n\u201cfine discretions\u201d means the Authority\u2019s discretions under section 42B(5) of\nthe Law about whether or not to impose a fine or its amount;\n\u201cfine notice\u201d means a notice complying with regulation 15 issued by the\nAuthority to a party that has breached a prescribed provision of the fine;\n\u201cfixed fine\u201d means a fine referred to in section 42B(1) of the Law;\n\u201cfixed fine (continuing)\u201d means a fine referred to in section 42B(2) of\nthe Law;\n\u201cgive\u201d, in relation to a notice or information, includes to deliver, provide, send\nor transmit the notice or information;\n\u201cinterest\u201d means interest accrued or accruing on a fine under regulation 25;\n\u201cnotice\u201d means written information given, or to be given, electronically or by\nanother mode of communication;\n\u201coriginal decision\u201d means the Authority\u2019s decision \u2014\n(a)\nin relation to a fixed fine or fixed fine (continuing), to impose the fine; or\n(b) in relation to a discretionary fine, to impose the fine, about its amount,\nor both;\n\u201cparty\u201d, in relation to a provision of these Regulations about a breach, fine or\nproposed fine, means the person on whom the fine has been imposed or is\nbeing proposed or considered to be imposed;\n\u201crectification notice\u201d means a notice to the Authority by a party that has\nbreached a prescribed provision that the breach was rectified within thirty days\nafter the party received the breach notice;\n\u201creply\u201d means a notice to the Authority by a party who has received a breach\nnotice, making representations opposing the Authority\u2019s proposed action to\nimpose a fine;\n\u201creply period\u201d means a period stated in a breach notice within which the party\nwho received the notice may give a reply to the Authority;\n\u201cstayed\u201d, in relation to a fine, means that the fine may not be imposed because\nof the operation of an order under regulation 22(2); and\n\u201cwinding up notice\u201d means a demand under section 93(a) of the Companies\nLaw (2016 Revision) as it applies under a law of the Islands or a similar\ndemand under the legislation of another jurisdiction.\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nRegulation 3\n\nc\nSL 98 of 2017\nPage 7\n\nPART 2 - PRESCRIBED MATTERS\nBreaches and their categories\n3.\nBreach of prescribed provisions to be proceeded with under Part VI of\nthe Law\n3.\n(1) The breach of a prescribed provision set out in column 2 of Schedule 1 of the\nRegulations set out in column 1 of that Schedule may be proceeded with under\nPart VIA of the Law.\n(2) In relation to proceedings under Part VIA of the Law, each breach of a\nprescribed provision is classified in column 3 of Schedule 1 as minor, serious\nor very serious.\nDiscretionary fine criteria\n4.\nWhen the criteria apply\n4.\nRegulations 5 and 6 prescribe, in relation to section 42F(1)(a) of the Law, criteria\nfor exercising fine discretions when \u2014\n(a)\nissuing breach notices;\n(b) considering or reconsidering matters under regulations 12(2) or\n23(2)(b); and\n(c)\nimposing discretionary fines.\n5.\nGeneral criteria in relation to both fine and amount\n5.\nThe criteria referred to in regulation 4 are \u2014\n(a)\nthe nature and seriousness of the breach;\n(b) the degree of the party\u2019s inadvertence, intent or negligence in committing\nthe breach;\n(c)\nif the breach is a continuing one, its duration;\n(d) the measures or precautions the party took to prevent the breach;\n(e)\nthe measures or precautions that a reasonable person in the party\u2019s\nposition, acting prudently and exercising due diligence, would have taken\nto prevent the breach;\n(f)\nwhether or not the breach was due to \u2014\n(i)\nreasonable reliance on information given to the party; or\n(ii) a cause beyond the party\u2019s control, including, for example, someone\nelse\u2019s act or default or an accident;\n(g) the degree of difficulty in detecting the breach;\n(h) evidence of intent by the party to conceal the breach or mislead the\nAuthority;\n\nRegulation 6\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 8\nSL 98 of 2017\nc\n\n(i)\nthe party\u2019s conduct after becoming aware of the breach, including, for\nexample \u2014\n(i)\nwhether and how quickly the party brought the breach to the\nAuthority\u2019s attention; and\n(ii) the party\u2019s efforts to remedy the breach or prevent its reoccurrence;\n(j)\nany financial or other damage or loss or other harm done or caused by the\nbreach, including, for example, to \u2014\n(i)\nthe party\u2019s creditors, customers, investors, policyholders or\nshareholders;\n(ii) financial markets; or\n(iii) the performance of the Authority\u2019s functions;\n(k) whether, before or after the breach, there was a change to the party\u2019s\nbusiness or affairs that affects or may affect the consequences of the\nbreach for the party, including, for example, the party\u2019s ability to pay\na fine;\n(l)\nif the Authority has imposed a fine on the party in similar circumstances\nto the breach, the amount of that fine; and\n(m) the party\u2019s history of compliance, in the five years before the breach,\nwith the Anti-Money Laundering Regulations, 2017 and similar laws in\nother jurisdictions.\n(2) In considering the party\u2019s history of compliance, regard need only be had to\nthe party\u2019s compliance with, and breaches of, those laws of which the\nAuthority is aware or is made aware by the party.\n(3) Paragraph (2) applies even if no punishment was imposed or no other action\nrelating to the breach was taken under those laws.\n6.\nAdditional criteria in relation to fine amount\n6.\nIn deciding the amount of a fine, the criteria also include \u2014\n(a)\nthe following in relation to the party \u2014\n(i)\nany circumstances of mitigation that may exist;\n(ii) resources and ability to pay; and\n(iii) financial hardship;\n(b) potential adverse financial consequences on third parties of imposing a\nfine in the amount proposed; and\n(c)\na circumstance that aggravates, or may tend to aggravate, the breach or\nits effects.\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nRegulation 7\n\nc\nSL 98 of 2017\nPage 9\n\n7.\nPower to discount usual fine to reflect agreement\n7.\n(1) The Authority may, but need not, negotiate with a party to attempt to reach a\ndiscount agreement with the party, whether or not the Authority has given a\nbreach notice.\n(2) Subject to paragraph (3), the Authority may discount the usual fine to reflect\nthe fact of the discount agreement and the stage in the fine process under\nPart 3 at which the agreement was reached.\n(3) The Authority shall not discount any component of the usual fine that\nrepresents the application of the disgorgement principle under section 42F of\nthe Law.\n(4) In this regulation, \u201cusual fine\u201d means the amount of the fine the Authority\ndecided, or would otherwise have decided \u2014\n(a)\nbefore taking into account the discount agreement; and\n(b) after considering \u2014\n(i)\nall factors and criteria and the order of importance under\nsection 42F of the Law; and\n(ii) the criteria prescribed in regulations 5 and 6.\nForms\n8.\nPrescribed forms\n8.\nSchedule 2 prescribes forms for use, subject to regulation 10, under these\nRegulations.\nPART 3 - FINE PROCESS\nGeneral\n9.\nSteps required\n9.\n(1) The Authority may only impose a fixed fine or discretionary fine by taking the\nfollowing steps \u2014\n(a)\ngiving the party a breach notice;\n(b) if regulation 12 or 13 applies, complying with that regulation; and\n(c)\ngiving the party a fine notice.\n(2) However, the following exceptions apply in relation to discretionary fines \u2014\n(a)\nif the party entered into a discount agreement for the breach and the fine\nis no more than the amount agreed under the agreement, a fine notice\nmay be given without first giving a breach notice; and\n\nRegulation 10\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 10\nSL 98 of 2017\nc\n\n(b) if, under regulation 23(2), a fine is varied on appeal, the steps do not\napply to the fine as varied.\n(3) The Authority may only impose a fixed fine (continuing) \u2014\n(a)\nby giving the party a fine notice; and\n(b) if the relevant fixed fine is not stayed.\n(4) A decision relating to the imposition of a fixed fine, a fixed fine (continuing)\nor a discretionary fine need only be made on the balance of probabilities.\n10.\nGeneral provisions in relation to fine and breach notices\n10. The following apply in relation to a breach notice or fine notice \u2014\n(a)\nit is not mandatory to use the prescribed form under Schedule 2;\n(b) the notice may be in another form that substantially complies with the\nrelevant requirements under this Part;\n(c)\nthe notice is deemed to comply with those requirements if \u2014\n(i)\nits form appears to follow the prescribed form; and\n(ii) it has been completed, or substantially completed, in the way\nrequired by the prescribed form; and\n(d) if the notice contains an inaccuracy, it is only invalid because of the\ninaccuracy if the party establishes that the inaccuracy was material and it\nmisled the party.\nBreach notice and reply\n11.\nRequirements for breach notice\n11. (1) A breach notice shall be dated and state all of the following \u2014\n(a)\nthe party\u2019s name;\n(b) that the Authority proposes to impose a fine on the party for a specified\nbreach that it believes the party committed;\n(c)\nthe prescribed provision for which the fine is proposed to be imposed;\n(d) the nature of the specified breach;\n(e)\na summary of the facts and circumstances that the Authority believes\nconstituted the specified breach;\n(f)\neither \u2014\n(i)\nin relation to a fixed fine, that the fine is fixed at five thousand\ndollars; or\n(ii) in relation to a discretionary fine, the fine the Authority proposes\nfor the specified breach;\n(g) that the party may give the Authority a reply within the reply period; and\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nRegulation 12\n\nc\nSL 98 of 2017\nPage 11\n\n(h) that, for a fixed fine, the party may give the Authority a rectification\nnotice.\n(2) The reply period is required to end at least thirty days after the giving of the\nbreach notice.\n12.\nDuty to consider reply\n12. (1) This regulation applies only if \u2014\n(a)\na breach notice has been given for a fixed fine, fixed fine (continuing) or\ndiscretionary fine;\n(b) the reply period has ended; and\n(c)\na reply has been given.\n(2) The Authority has a duty to \u2014\n(a)\nreconsider whether it still holds the belief stated in the breach notice, in\nthe light of all matters raised in the reply concerning that belief; and\n(b) if the notice was for a discretionary fine, consider the matters raised in\nthe reply to the extent they are relevant to exercising fine discretions.\n13.\nRectification of a breach subject to a fixed fine\n13. (1) This regulation applies only if \u2014\n(a)\na breach notice has been given for a fixed fine;\n(b) the party subject to the breach notice rectified the breach specified in the\nnotice within thirty days of receiving the notice;\n(c)\nthe reply period has ended; and\n(d) a rectification notice has been given.\n(2) The Authority has a duty to consider, in light of the matters raised in the\nrectification notice, whether the specified breach was rectified within thirty\ndays of the issue of the breach notice to its satisfaction.\n(3) If the Authority is satisfied that the breach was rectified as described in\nparagraph (2) and, in the case of the breach of a filing requirement that the\nparty has requested a filing extension and paid any applicable filing extension\nfees, the Authority shall \u2014\n(a)\nrefrain from issuing a fine notice or imposing a fine on the party for the\nbreach; and\n(b) give the party notice of its decision in accordance with regulation 14(6).\n\nRegulation 14\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 12\nSL 98 of 2017\nc\n\nImposing a fine\n14.\nDecision about fine\n14. (1) This regulation applies at the end of the reply period in relation to a breach\nnotice if \u2014\n(a)\nno reply has been given;\n(b) a reply has been given and the Authority has complied with\nregulation 12; or\n(c)\na rectification notice has been given and the Authority has complied with\nregulation 13.\n(2) If the breach notice was for a fixed fine or fixed fine (continuing) and the\nAuthority still holds the belief stated in the notice and is not satisfied that the\nbreach was rectified within thirty days of the issue of the notice, the Authority\nis required to impose the fine.\n(3) If the notice was for a discretionary fine, the fine discretions may be exercised.\n(4) The amount of a discretionary fine shall not be more than the amount stated in\nthe notice.\n(5) If the Authority imposes a fine, it may decide that the fine is payable\nimmediately on the giving of a fine notice or within a particular period after\nthat time.\n(6) If the Authority decides not to impose any fine, it is required to give the party\nnotice of the decision within fifteen days after the end of the reply period.\n15.\nRequirements for fine notice\n15. (1) A fine notice is required to be dated and state all of the following \u2014\n(a)\nthe party\u2019s name;\n(b) that the Authority has imposed a specified fine on the party;\n(c)\nthe amount of the fine; and\n(d) when the fine is required to be paid.\n(2) If the specified fine is a fixed fine, the fine notice shall state \u2014\n(a)\nthe prescribed provision for which the fine is imposed;\n(b) a description of the breach;\n(c)\nif a reply was given during the reply period, the reasons why the\nAuthority still holds the belief stated in the breach notice;\n(d) if a rectification notice was given within the reply period, the reasons\nwhy the Authority is not satisfied that the breach was rectified within\nthirty days of the issue of the breach notice; and\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nRegulation 16\n\nc\nSL 98 of 2017\nPage 13\n\n(e)\nthat the party may, within thirty days after receiving the fine notice,\napply to the Management Committee to review the decision to impose\nthe fine.\n(3) If the specified fine is a fixed fine (continuing), the fine notice shall state \u2014\n(a)\nthe date of the fine notice given for the relevant fixed fine; and\n(b) that the party may, within thirty days after receiving the fine notice,\napply to the Management Committee to review the decision to impose\nthe fine.\n(4) If the specified fine is a discretionary fine, the fine notice shall state \u2014\n(a)\nthe prescribed provision for which the fine is imposed;\n(b) a description of the breach;\n(c)\nthe reasons for the way in which fine discretions were exercised; and\n(d) that the party may, within thirty days after receiving the fine notice apply\nto the Grand Court for leave to appeal against the decision to impose the\nfine, its amount or both.\nPART 4 - REVIEWS AND APPEALS\nInternal review of fixed fines by the Authority\n16.\nApplication to Management Committee for review\n16. (1) A party that has received a fine notice for a fixed fine or fixed fine\n(continuing) may apply to the Authority for its Management Committee to\nreview the original decision.\n(2) An application under this regulation shall be made in the prescribed form,\nwithin thirty days after receiving the notice.\n17.\nNo stay of original decision\n17. A review does not stay the operation of the original decision.\n18.\nManagement Committee decision on application for review\n18. (1) The Management Committee shall, within twenty days after receiving an\napplication for review, reconsider the original decision and decide whether to\naffirm it or set it aside.\n(2) The Management Committee shall, within ten days after making a decision on\nthe application, give the party notice of its decision.\n(3) If the decision is to affirm the original decision, the notice of the decision on\nthe application for review shall also state \u2014\n(a)\nthe reasons for the decision; and\n\nRegulation 19\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 14\nSL 98 of 2017\nc\n\n(b) that the party may apply to the Grand Court for judicial review of the\ndecision.\n(4) If the decision is to set aside the original decision, it is deemed never to have\nbeen made.\n(5) The Supervisory Head of the division of the Authority that made the original\ndecision may make written representations to the Management Committee\nconcerning an application for review of the original decision, but shall not\notherwise participate in any discussion, decision, debate or vote of the\nManagement Committee concerning the review.\nAppeal against discretionary fines to Grand Court\n19.\nApplication to the Grand Court for leave to appeal\n19. (1) A party that receives a fine notice for a discretionary fine may apply to the\nGrand Court for leave to appeal against the original decision within thirty days\nafter receiving the notice.\n(2) The Grand Court may only grant leave to appeal under this regulation if \u2014\n(a)\nthe party has grounds for seeking judicial review of the decision; or\n(b) the decision was made with a lack of proportionality or was not rational.\n(3) Notwithstanding paragraph (1), a party may not apply for leave to appeal\nagainst the original decision if the party entered into a discount agreement for\nthe breach and the fine is no more than the amount agreed to.\n20.\nApplication of Grand Court Rules and practice directions about judicial\nreviews\n20. (1) The Grand Court Rules 1995 and the Court\u2019s practice directions about judicial\nreviews apply to an appeal, with necessary changes, as if the appeal were an\napplication for judicial review.\n(2) Notwithstanding paragraph (1), the Court\u2019s rules about alternative dispute\nresolution do not apply to the appeal.\n21.\nSecurity for costs\n21. The Authority may apply to the Grand Court \u2014\n(a)\nfor an order that the appellant provide sufficient security for costs; and\n(b) for a stay of the appeal proceedings until such security is provided.\n22.\nStay of original decision only by application\n22. (1) An appeal does not stay the operation of the original decision.\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nRegulation 23\n\nc\nSL 98 of 2017\nPage 15\n\n(2) However, the Grand Court may, on the appellant\u2019s application, order that the\nfine imposed by the original decision be stayed to secure the effectiveness of\nthe appeal.\n(3) The stay ordered by the Grand Court \u2014\n(a)\nmay be given on conditions that the Court considers appropriate;\n(b) operates for the period fixed by the Court; and\n(c)\nmay be amended or revoked by the Court.\n(4) The period of a stay shall not extend past when the Grand Court decides the\nappeal.\n23.\nHearing and outcome\n23. (1) An appeal may only be decided on the evidence on which the Authority\nexercised the relevant fine discretions.\n(2) After hearing an appeal, the Grand Court may \u2014\n(a)\naffirm, set aside or vary the original decision; or\n(b) set aside the original decision and remit the matter to the Authority for it\nto reconsider subject to such directions as the Court considers fit.\n(3) The following apply if the Grand Court\u2019s decision is to affirm the original\ndecision or to vary it in a way that a fine is still imposed \u2014\n(a)\nthe Court\u2019s decision is (other than in relation to regulations 9, 16 and 19)\ndeemed to have always been the original decision;\n(b) the Court may, at the Authority\u2019s request, give judgment against the\nparty for all or any part of the fine that continues to be owing, and for\ninterest; and\n(c)\nthe Authority\u2019s request may be made during the appeal, when the Court\u2019s\ndecision is handed down or at any later time on the tendering of a\ncertificate under regulation 29(3)(d) about the amount owing.\n(4) If the Grand Court\u2019s decision is to set aside and not to remit the matter to the\nAuthority for reconsideration \u2014\n(a)\nboth the fine and interest are deemed to have never been owing; and\n(b) any fixed fine (continuing) imposed for the breach is deemed to have also\nbeen set aside and to have never been owing.\nPART 5 - PAYMENT AND ENFORCEMENT\n24.\nFine is a debt to the Crown\n24. (1) A fine becomes a debt owing to the Crown on the day the fine was required to\nbe paid under the relevant fine notice.\n\nRegulation 25\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 16\nSL 98 of 2017\nc\n\n(2) Paragraph (1) is subject to any setting aside or variation of the fine on a review\napplied for under regulation 16 or an appeal.\n25.\nInterest on fines\n25. (1) Interest of five percent a year accrues while all or any part of a fine continues\nto be owing, starting on the day immediately after the fine becomes a debt to\nthe Crown and ending on the day the fine is paid in full, both days inclusive.\n(2) The interest accrues daily and as compound interest.\n(3) The interest is also a debt owing to the Crown.\n(4) The accruing of interest applies even while the fine is stayed.\n(5) Payments relating to the fine are to be applied to the interest first.\n(6) This regulation is subject to any setting aside or variation of the fine in a\nreview applied for under regulation 16 or an appeal.\n26.\nPayment of more than one fine\n26. If more than one fine has been imposed on a party, payments for the fines are to be\napplied in the order in which the fines and interest became owing.\n27.\nEnforcement\n27. (1) The Crown may recover in a civil proceeding, as a debt, the unpaid amount of\na fine or interest, or both.\n(2) However, paragraph (1) does not apply while the fine is stayed.\n(3) A proceeding to recover a debt under this regulation does not prevent \u2014\n(a)\ninterest continuing to accrue on the total owing; or\n(b) if the party is a body corporate, the Crown enforcing the fine by serving a\nwinding up notice for the debt.\nPART 6 - MISCELLANEOUS\n28.\nElectronic notices by the Authority\n28. (1) The Authority may give a party a notice for any purpose of these Regulations\nby sending it to an email address that the party last gave the Authority notice\nof, as follows \u2014\n(a)\nthe party\u2019s email address;\n(b) if the party is a body corporate (either in its own right or as a trustee of a\ntrust), the email address of \u2014\n(i)\nany of its directors or members; or\n(ii) its registered office provider; or\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nRegulation 29\n\nc\nSL 98 of 2017\nPage 17\n\n(c)\nif the party is a partnership, the email address of \u2014\n(i)\nany of its partners; or\n(ii) its registered office provider (if it has a registered office).\n(2) In this regulation \u2014\n\u201cpartners\u201d does not include a limited partner of a limited partnership; and\n\u201cregistered office provider\u201d means the person who provides or maintains the\nparty\u2019s registered office as required under a Law.\n29.\nEvidentiary provisions\n29. (1) This regulation applies to a proceeding under Part VIA of the Law, including a\nreview applied for under regulation 16, an appeal, a proceeding referred to in\nregulation 26 and a proceeding resulting from the giving of a winding up\nnotice for a fine or interest.\n(2) A signature purporting to be the signature of the managing director or anyone\nelse acting on the Authority\u2019s behalf is evidence of the signature it purports\nto be.\n(3) A certificate signed, or purporting to be signed, by the managing director or\nthe managing director\u2019s delegate stating a matter as follows is evidence of that\nmatter \u2014\n(a)\nthat a stated document is a copy of a notice given under these\nRegulations;\n(b) that an email address stated in the copy was, when the notice was given\nto its stated recipient, the recipient\u2019s email address under regulation 28;\n(c)\nthat on a stated day the recipient was given the notice in a stated way;\n(d) that a fine or interest of a stated amount, or both, are owing to the Crown\nby a stated person; or\n(e)\nthat stated terms are the terms of a discount agreement.\n(4) For section 17 of the Electronic Transactions Law (2003 Revision), a\ncertificate under paragraph (3)(b) is evidence that the notice was electronically\ngiven to its recipient at the time of giving stated in the notice.\n30.\nConsultation requirements before issuing rules\n30. Before issuing rules under section 42G of the Law, the Authority shall carry out\nprivate sector consultation and consult the Minister charged with responsibility for\nFinancial Services about the proposed rules.\n31.\nTransitional provision\n31. The Authority may not impose a fixed fine, fixed fine (continuing) or discretionary\nfine, or take any steps to do so under Part 3 \u2014\n\nRegulation 31\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 18\nSL 98 of 2017\nc\n\n(a)\nuntil the expiry of a period of ninety days after the coming into force of\nthese Regulations; and\n(b) in respect of a breach of a prescribed provision that began and ended\nbefore the coming into force of these Regulations.\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nSCHEDULE 1\n\nc\nSL 98 of 2017\nPage 19\n\n SCHEDULE 1\n(Regulation 3)\nPRESCRIBED PROVISIONS AND BREACH CATEGORIES\nItem\nColumn 1 Title of Regulation\nColumn\n2\nPrescribed\nprovision\nColumn\n3\nCategory of\nbreach\n1.\nThe Anti-Money Laundering Regulations, 2017\nRegulation\n5(a), (c) , (d)\nor (e)\nSerious\n\n5(b)\nVery serious\n\n10\nVery serious\n\n36\nSerious\n\n37\nSerious\n\n39\nSerious\n\n40(1) to (5)\nSerious\n\n40(6)\nVery serious\n\n42\nSerious\n\n43\nSerious\n\n44\nSerious\n\n47(3) to (5)\nSerious\n\n48\nVery serious\n\n50 and 51\nVery serious\n\n52 and 53\nSerious\n\n57\nSame as for\nthe\nbody\ncorporate\n\nSCHEDULE 2\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 20\nSL 98 of 2017\nc\n\nSCHEDULE 2\nPRESCRIBED FORMS\n(Regulations 8 and 10)\nPART 1 - BREACH AND FINE NOTICES\nFORM 1\nBREACH NOTICE FOR PROPOSED FIXED FINE\nThe Monetary Authority Law (2016 Revision), ss 42A and 42B\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nTo: [Here insert the party\u2019s name and address] (\u201cyou\u201d).\nAt [delete whichever of the following is not applicable]:\n[Here insert the party\u2019s physical address. OR\nHere insert the party\u2019s email for notices from the Authority to the party under\nregulation28.]\nTAKE NOTICE that the Cayman Islands Monetary Authority proposes to impose a fixed\nfine of five thousand dollars on you.\nParticulars are as follows:\n\u2022\nThe relevant prescribed provision is:\n[Here insert the prescribed provision from column 2 in Schedule 1 that the\nAuthority believes has been breached and the full citation of the primary\nlaw.]\n\u2022\nThe facts and circumstances the Authority believes constituted the breach\nare:\n[Here insert the facts and circumstances contended to constitute the breach and\nany relevant surrounding circumstances.]\n\u2022\nThe amount of five thousand dollars is fixed under s 42B(1) of the Law.\nAND TAKE FURTHER NOTICE that, within [Here insert \u201c30 days\u201d OR \u201cany longer\nperiod the Authority decides] after the giving of this notice to you, you\nmay give the Authority a rectification notice or a notice making representations about\nwhether it should impose the fine.\nDated ______________________, 20_____\n\n______________________________________________________\nSigned on behalf of the Cayman Islands Monetary Authority\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nSCHEDULE 2\n\nc\nSL 98 of 2017\nPage 21\n\nFORM 2\nBREACH NOTICE FOR PROPOSED DISCRETIONARY FINE\nThe Monetary Authority Law (2016 Revision), ss 42A and 42B\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nTo: [Here insert the party\u2019s name and address] (\u201cyou\u201d).\nAt [delete whichever of the following is not applicable]:\n[Here insert the party\u2019s physical address. OR\nHere insert any email address under regulation28 for notices from the Authority to\nthe party.]\nTAKE NOTICE that the Cayman Islands Monetary Authority proposes to impose a\ndiscretionary fine of [Here insert the amount of the proposed fine.] on you.\nParticulars are as follows:\n\u2022\nThe relevant prescribed provision is:\n[Here insert the prescribed provision from column 2 in Schedule 1 that\nthe Authority believes has been breached and the full citation of the\nprimary law.]\n\u2022\nThe facts and circumstances the Authority believes constituted the breach\nare:\n[Here insert the facts and circumstances contended to constitute the\nbreach and any relevant surrounding circumstances.]\nAND TAKE FURTHER NOTICE that within [Here insert \u201c30 days\u201d OR \u201cany longer\nperiod the Authority decides] after the giving of this notice to you, you may give the\nAuthority a notice making representations about whether it should impose the fine, the\nproposed amount of the fine, or both.\nDated ______________________, 20_____\n\n______________________________________________________\nSigned on behalf of the Cayman Islands Monetary Authority\n\nSCHEDULE 2\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 22\nSL 98 of 2017\nc\n\nFORM 3\nFINE NOTICE FOR FIXED FINE\nThe Monetary Authority Law (2016 Revision), ss 42A and 42B\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nTo: [Here insert the party\u2019s name and address] (\u201cyou\u201d).\nAt [delete whichever of the following is not applicable]:\n[Here insert the party\u2019s physical address. OR\nHere insert any email address under regulation28 for notices from the Authority to\nthe party.]\nTAKE NOTICE that the Cayman Islands Monetary Authority has imposed a fixed fine of\nfive thousand dollars on you. You are required to pay the fine [Here insert\n\u201cimmediately\u201d or, if the Authority has decided to give time to pay, the period within\nwhich the fine is required to be paid.]\nParticulars are as follows:\n\u2022\nThe relevant prescribed provision is:\n[Here insert the prescribed provision from column 2 in Schedule 1 that the\nAuthority believes has been breached and the full citation of the primary law.]\n\u2022\nThe reasons for the decision to impose the fine are [delete whichever of the\nfollowing is not applicable]:\n[Here insert:\n(a)\nIf no reply to the relevant breach notice was given during the reply\nperiod: \u201cthe reply period has ended, the Authority still holds the belief\nstated in the relevant breach notice and that, consequentially, s 42B of the\nLaw and regulation14(2) of the Regulations requires the fine to be\nimposed\u201d.\nOR\n(b) if such a reply was given, the Authority\u2019s findings on each matter raised\nin the reply that is relevant to the issue of whether a fine should be\nimposed.]\nAND TAKE FURTHER NOTICE of the following under the Law and Regulations:\n\u2022\nUnder s 42B(1), the amount of the fine is fixed at five thousand dollars.\n\u2022\nUnder regulation 13 you may, within 30 days after receiving this notice, issue\na rectification notice to the Authority if you have rectified the breach specified\nin this notice within that period.\n\u2022\nUnder Part 4 of the Regulations you may, within 30 days after receiving this\nnotice, apply to the Authority\u2019s Management Committee to review the\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nSCHEDULE 2\n\nc\nSL 98 of 2017\nPage 23\n\ndecision to impose the fine. However, you cannot apply for a review of the\namount of the fine.\n\u2022\nForm 6 under Schedule 2 to the Regulations is to be used for any such\napplication.\n\u2022\nCompound interest accrues on the fine at daily rests until all of the fine and the\ninterest have been paid.\n\u2022\nThe Authority may enforce the fine and interest as a debt.\n\u2022\nUnder s 42B, the Authority may also impose further fines on you of up to\ntwenty thousand dollars in total if the fine is not paid and the breach does not\nstop or is not remedied.\nDated ______________________, 20_____\n\n______________________________________________________\nSigned on behalf of the Cayman Islands Monetary Authority\n\nSCHEDULE 2\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 24\nSL 98 of 2017\nc\n\nFORM 4\nFINE NOTICE FOR FIXED FINE (CONTINUING)\nThe Monetary Authority Law (2016 Revision), ss 42A and 42B\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nTo: [Here insert the party\u2019s name and address] (\u201cyou\u201d).\nAt [delete whichever of the following is not applicable]:\n[Here insert the party\u2019s physical address. OR\nHere insert any email address under regulation28 for notices from the Authority to\nthe party.]\nTAKE NOTICE that the Cayman Islands Monetary Authority has imposed a fixed fine\n(continuing) of five thousand dollars (\u201cthis fine\u201d) on you. You are required to pay this\nfine [Here insert \u201cimmediately\u201d or, if the Authority has decided to give time to pay, the\nperiod within which this fine is required to be paid.]\nParticulars are as follows:\n\u2022\nThis fine relates to a fine notice for a fixed fine (primary) given to you that\nwas dated [Here insert date of the relevant fixed fine and, if more than 2 were\ngiven on that day, otherwise identify that fine.].\n\u2022\nThe reason for imposing this fine is that the ground under s 42B(2) of the Law\nfor imposing this fine exists, namely that:\n(a)\nthe breach for which the fixed fine was imposed has not stopped and has\nnot been remedied; and\n(b) the fine imposed by the fixed fine (and any previous fixed fines\n(continuing) imposed for the fixed fine) have not been paid.\nAND TAKE FURTHER NOTICE of the following under the Law and Regulations:\n\u2022\nUnder s 42B(2), the amount of this fine is fixed at five thousand dollars.\n\u2022\nUnder Part 4 of the Regulations you may, within 30 days after receiving this\nnotice, apply to the Authority\u2019s Management Committee to review the\ndecision to impose the fine. However, you cannot apply for a review of the\namount of this fine.\n\u2022\nForm 6 under Schedule 2 to the Regulations is to be used for any such\napplication.\n\u2022\nCompound interest accrues on this fine at daily rests until all of this fine and\nthe interest have been paid.\n\u2022\nThe Authority may enforce this fine and the interest against you as a debt.\nDated ______________________, 20_____\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nSCHEDULE 2\n\nc\nSL 98 of 2017\nPage 25\n\n______________________________________________________\nSigned on behalf of the Cayman Islands Monetary Authority\n\nSCHEDULE 2\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 26\nSL 98 of 2017\nc\n\nFORM 5\nFINE NOTICE FOR DISCRETIONARY FINE\nThe Monetary Authority Law (2016 Revision), ss 42A and 42B\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nTo: [Here insert the party\u2019s name and address] (\u201cyou\u201d).\nAt [delete whichever of the following is not applicable]:\n[Here insert the party\u2019s physical address. OR\nHere insert any email address under regulation28 for notices from the Authority to\nthe party.]\nTAKE NOTICE that the Cayman Islands Monetary Authority has imposed a\ndiscretionary fine of [Here insert the amount of the discretionary fine.] on you.\nYou are required to pay the fine [Here insert \u201cimmediately\u201d or, if the Authority has\ndecided to give time to pay, the period within which the fine is required to be paid.]\nParticulars are as follows:\n\u2022\nThe relevant prescribed provision is:\n[Here insert the prescribed provision from column 2 in Schedule 1 that the\nAuthority believes has been breached and the full citation of the primary law.]\n\u2022\nThe reasons for the decision to impose the fine are: [Here insert the reasons.\nAlso, if a reply was given to the relevant breach notice (if any) during the reply\nperiod, also insert the Authority\u2019s findings on each matter raised in the reply\nthat addressed the issue of whether a fine should be imposed.]\n\u2022\nThe reasons for the amount of the fine are:\n[Here insert the reasons. Also, if a reply addressed the issue of the amount,\nalso insert the Authority\u2019s findings on each relevant matter raised in the\nreply.]\nAND TAKE FURTHER NOTICE of the following under the Law and Regulations:\n\u2022\nUnder Part 4 of the Regulations you may within 30 days after receiving this\nnotice, apply to the Grand Court for leave to appeal against the decision to\nimpose the fine or its amount, or both.\n[Omit this paragraph if the party entered into a discount agreement for the breach\nand the fine is no more than the amount agreed under the agreement.]\n\u2022\nCompound interest accrues on the fine at daily rests until all of the fine and the\ninterest have been paid.\n\u2022\nThe Authority may enforce the fine and interest as a debt.\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nSCHEDULE 2\n\nc\nSL 98 of 2017\nPage 27\n\nDated ______________________, 20_____\n\n______________________________________________________\nSigned on behalf of the Cayman Islands Monetary Authority\n\nSCHEDULE 2\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 28\nSL 98 of 2017\nc\n\nPART 2 - REVIEWS AND APPEALS\nFORM 6\nAPPLICATION TO REVIEW FIXED FINE\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nTo: the Cayman Islands Monetary Authority\nAt [delete whichever of the following is not applicable]:\n[Here insert the Authority\u2019s physical address. OR\nIf the Authority has accepted the sending of applications to review fixed fines at a\nparticular email address, here insert that address.]\nTAKE NOTICE that, under regulation 16, the following party applies to the Authority\u2019s\nManagement Committee for that committee to review the decision to impose the fixed\nfine imposed by the fine notice received by the party on [Here insert date the notice was\nreceived and, if more than 2 were given on that day, otherwise identify the fine.].\nParty\u2019s full name: [Here insert the party\u2019s full name]\nThe party\u2019s physical address is: [Here insert the party\u2019s physical address]\nThe party\u2019s email address for notices from the Authority to the party is [Here insert the\nparty\u2019s email address]\nParticulars about the application are as follows:\n\u2022\nThe relevant prescribed provision set out in the fine notice is: [Here insert the\nprescribed provision as per the fine notice.]\n\u2022\nThe grounds on which the party relies on for the review are: [Here insert fully\nthe grounds relied on.]\n\u2022\nThe facts and circumstances that the party relies on for the grounds are:\n[Here insert the facts and circumstances relied on, including those contended to be\ndifferent from those set out in the relevant breach notice and any relevant surrounding\ncircumstances.]\nDated ______________________, 20_____\n\n______________________________________________________\nSigned on behalf of the Party\nPosition with the party (If the party is not an individual)\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nSCHEDULE 2\n\nc\nSL 98 of 2017\nPage 29\n\nFORM 7\nREVIEW DECISION FOR FIXED FINE\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nTo:\nParty\u2019s full name: [Here insert the party\u2019s full name]\nTo: [Here insert the party\u2019s name and address] (\u201cyou\u201d).\nAt [delete whichever of the following is not applicable]:\n[Here insert the party\u2019s physical address. OR\nHere insert any email address under regulation28 for notices from the Authority to\nthe party.]\nDate of relevant fixed fine: [Here insert the date of relevant fixed fine and, if more than 2\nwere given on that day, otherwise identify that fine.].\nTAKE NOTICE that the Authority\u2019s Management Committee has reconsidered the\ndecision to impose the fine and decided to [affirm the decision OR set the decision aside.\n(delete whichever is not applicable)].\n[Omit the following 2 paragraphs if the review decision is to set aside.]\nThe Committee\u2019s findings on each ground on which the review was sought and its\nreasons for each finding are:\n[Here insert the findings on each ground and the reasons for each finding.]\nDated ______________________, 20_____\n\n______________________________________________________\nSigned on behalf of the Management Committee of the Cayman IslandsMonetary\nAuthority\n\nSCHEDULE 2\nMonetary Authority (Administrative Fines) Regulations, 2017\n\nPage 30\nSL 98 of 2017\nc\n\nPART 3 - ENFORCEMENT\nFORM 8\nCERTIFICATE OF FINE AND INTEREST OWING\nThe Monetary Authority Law (2016 Revision)\nThe Monetary Authority (Administrative Fines) Regulations, 2017\nI certify as follows under regulation 30(3)(d):\n1.\nI am the managing director\/acting managing director [delete whichever is not\napplicable] under s 13 of the Law of the Cayman Islands Monetary Authority,\nhaving been duly appointed under s 13 of the Law.\n2.\nThe following fine and interest on it are owing to the Crown under the Law and\nRegulations:\nDebtor:\n[Here  insert party\u2019s name as per the fine notice]\nAmount of fine:\n[Here insert amount of fine]\nDue date:\n[Here insert the day the fine was required to be paid under\nthe relevant fine notice]\nInterest to date:\n[Here insert the amount of interest, worked out under\nregulation25].\nTotal of fine and interest:\n[Here insert the total amount of the fine and interest].\n3.\nAnnexed and marked with the letter \u201cA\u201d is a true copy of the fine notice that\nimposed the fine, given to the debtor.\n4.\nThe fine has not been stayed.\nDated ______________________, 20_____\n\n______________________________________________________\nSignature\n______________________________________________________\nFull name\nManaging Director\/Managing Director\u2019s delegate [delete whichever is not applicable]\nunder s 13 of the Law of the Cayman Islands Monetary Authority\n\nMonetary Authority (Administrative Fines) Regulations, 2017\nSCHEDULE 2\n\nc\nSL 98 of 2017\nPage 31\n\nMade in Cabinet the 15th day of December, 2017.\nDavina Wilson\nActing Clerk of the Cabinet.","akn_extracted_at":"2026-06-22 15:39:21.117297+00","cms_id":"2017-0098","law_type":"subordinate","year":"2017","number":"98","title":"Monetary Authority (Administrative Fines) Regulations, 2017","status":"in_force"},"provenance":{"files":[{"file_id":"6706","expr_id":"1905","kind":"akn_xml","filename":"2017-0098_SL 98 of 2017.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2017\/2017-0098\/2017-0098_SL 98 of 2017.akn.xml","content_md5":"2bb9fd94968886f8e7d4747015f114ae","byte_size":"47897","http_last_modified":null,"fetched_at":"2026-06-22 15:39:21.379138+00"},{"file_id":"3809","expr_id":"1905","kind":"pristine_pdf","filename":"2017-0098_SL 98 of 2017.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2017\/2017-0098\/2017-0098_SL 98 of 2017.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/SUBORDINATE\/2017\/2017-0098\/2017-0098_SL 98 of 2017.pdf","content_md5":"86edc1145f0b5764495bc04f6665e5c3","byte_size":"551834","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.086907+00"},{"file_id":"3810","expr_id":"1905","kind":"working_pdf","filename":"2017-0098_SL 98 of 2017.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2017\/2017-0098\/2017-0098_SL 98 of 2017.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2017\/2017-0098\/2017-0098_SL 98 of 2017.pdf","content_md5":"86edc1145f0b5764495bc04f6665e5c3","byte_size":"551834","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.086907+00"}],"paragraph_count":23,"latest_history":null},"quality":{"expr_id":"1905","doc_id":"1905","quality_state":"needs_review","quality_score":"72","needs_human_review":"t","deterministic_categories":"{commencement_metadata_problem,duplicate_text,page_header_footer_noise}","llm_categories":"{truncated_text,other}","repair_actions":"{collapse_duplicate_text,manual_review,reextract_full_text,strip_page_furniture,verify_commencement_metadata}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"Sample ends with omitted characters and form templates; review completeness of extracted content.","assessed_at":"2026-06-22 15:29:45.869234+00","updated_at":"2026-06-22 15:29:45.869234+00"}}