{"kind":"expression","expression":{"expr_id":"1947","doc_id":"1947","label":"Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 (SL 28 of 2019)","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/amending\/2019\/1028\/eng@2019-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/amending\/2019\/1028\", \"expression\": \"\/akn\/ky\/act\/amending\/2019\/1028\/eng@2019-01-01\", \"manifestation\": \"\/akn\/ky\/act\/amending\/2019\/1028\/eng@2019-01-01.pdf\"}, \"pdf\": {\"md5\": \"f5fffd595b83cb8b6881dc67cd25d5ec\", \"path\": \"\/Users\/q\/kyleg-data\/working\/AMENDING\/2019\/2019-1028\/2019-1028.pdf\", \"pages\": 31, \"filename\": \"2019-1028.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 8433, \"paragraph_count\": 25, \"text_char_count\": 53401}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"Proceeds of Crime Law (2019 Revision) ANTI-MONEY LAUNDERING (AMENDMENT)(NO.2) REGULATIONS, SL 28 of 2019 SL 28 of 2019 PUBLISHING DETAILS Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Arrangement of Regulations SL 28 of 2019 Proceeds of Crime Law (2019 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) (NO.2) REGULATIONS, 2019 SL 28 of 2019 Arrangement of Regulations Regulation 1.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Amendment of regulation 2 of the Anti-Money Laundering Regulations (2018 Revision) - 3. 4. 5. 6. 7. 8. 9. 10.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Amendment of regulation 40 - transfers of funds with missing or incomplete information\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Amendment of regulation 53A - duty of a person carrying out relevant financial business 13. 14. 15.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Arrangement of Regulations Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 17. 18. 19. 20. 21. 22.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_23\", \"num\": \"23.\", \"text\": \"Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 1 SL 28 of 2019 Proceeds of Crime Law (2019 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) (NO.2) REGULATIONS, 2019 SL 28 of 2019 In exercise of the powers conferred by section 145 of the Proceeds of Crime Law (2019 Revision) the Cabinet makes the following Regulations \u2014\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Citation 1. These Regulations may be cited as the Anti-Money Laundering (Amendment) (No.2) Regulations, 2019. 2. Amendment of regulation 2 of the Anti-Money Laundering Regulations (2018 Revision) - definitions 2. The Anti-Money Laundering Regulations (2018 Revision), in these Regulations referred to as the \u201cprincipal Regulations\u201d, are amended in regulation 2(1) as follows \u2014 (a) by inserting in the appropriate alphabetical sequence, the following definitions \u2014 \u201cappeal\u201d means an appeal for which leave is granted by the Grand Court under regulation 55ZK and any further appeals relating to the decision on such an appeal; \u201cbreach notice\u201d means a notice under regulation 55ZC, of a Supervisory Authority\u2019s intention to impose a fine, issued by a Regulation 2 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 Supervisory Authority, to a party that a Supervisory Authority believes has breached a prescribed provision; \u201cdiscount agreement\u201d means an agreement in principle between a Supervisory Authority and a party that has breached a prescribed provision about the amount of a proposed discretionary fine; \u201cdiscretionary fine\u201d means \u2014 (a) a proposed fine for which a Supervisory Authority has fine discretions; or (b) a fine in respect of which a Supervisory Authority exercised fine discretions; \u201cfine discretion\u201d means a Supervisory Authority\u2019s discretion under regulation 55S(5) to decide whether to impose a fine and the amount of the fine; \u201cfine notice\u201d means a notice issued by a Supervisory Authority under regulation 55ZG; \u201cgive\u201d, in relation to a notice or information, means to deliver, provide, send or transmit the notice or information; \u201cgovernment body\u201d means \u2014 (a) a government company; (b) an entity within the public service; or (c) a statutory authority, within the Islands; \u201cgovernment company\u201d means \u2014 (a) a company in which the Government has a controlling interest; and (b) in respect of each such company, includes all subsidiary entities of the company; \u201cinterest\u201d means interest accrued or accruing on a fine under regulation 55ZQ; \u201cminor fine\u201d means a fine under regulation 55S(1); \u201cminor fine (continuing)\u201d means a fine under regulation 55S(2); \u201cnotice\u201d means written information given, or to be given in hard copy, electronically, by hand, by post or by any other mode of communication; \u201coriginal decision\u201d means a Supervisory Authority\u2019s decision \u2014 (a) in relation to a minor fine or minor fine (continuing), to impose the fine; Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 2 SL 28 of 2019 (b) in relation to a discretionary fine, to impose a fine of a specified amount; or (c) in relation to both (a) and (b); \u201cparty\u201d, in relation to a provision under these Regulations dealing with 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; \u201cpublic service\u201d includes Ministries, Portfolios, departments, agencies reporting directly to the Legislative Assembly, Governmental committees, statutory authorities and government companies; \u201crectification notice\u201d means a notice to a Supervisory Authority by a party who has breached a prescribed provision stating that the breach was rectified within thirty days after the party received the breach notice; \u201creply\u201d means a notice to a Supervisory Authority by a party who has received a breach notice, making representations opposing the Supervisory Authority\u2019s proposed action to impose a fine; \u201creply period\u201d means the period stated in a breach notice, within which the recipient of the breach notice may give a reply to the Supervisory Authority; \u201cstatutory authority\u201d means an entity established by a Law to carry out functions which are capable under that Law, of being funded, partly or entirely, by money provided by Cabinet, and for which the Governor or the Cabinet has the power to appoint or dismiss the majority of the Board or other governing body; \u201cstayed\u201d, in relation to a fine, means that the fine may not be imposed because of the operation of an order under regulation 55ZN(2); and \u201cwinding up notice\u201d means a demand under section 93(a) of the Companies Law (2018 Revision); and\u201d; (b) in the definition of the word \u201cfirm\u201d by deleting paragraph (b) and substituting the following paragraph \u2014 \u201c(b) in respect of accountants, a body corporate, association, partnership, limited liability partnership or sole practitioner \u2014 (i) engaging in public practice, as defined in the Accountants Law, 2016; or (ii) providing an accountancy service of recording, reviewing, analysing, calculating and reporting on Regulation 3 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 financial information, in the course of business, which includes the following \u2014 (A) bookkeeping services; (B) payroll services; (C) accounts preparation; or (D) providing tax advisory or tax compliance services;\u201d; and (c) in the definition of the words \u201cunique identifier\u201d by deleting the word \u201cand\u201d appearing at the end of the definition.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Amendment of regulation 5 - systems and training to prevent money laundering 3. The principal Regulations are amended in regulation 5 as follows \u2014 (a) in paragraph (a) \u2014 (i) by deleting the word \u201cand\u201d appearing at the end of subparagraph (viii); (ii) by inserting after subparagraph (viii), the following subparagraphs \u2014 \u201c(viiia) procedures for the ongoing monitoring of business relationships or one-off transactions for the purposes of preventing, countering and reporting money laundering, terrorist financing and proliferation financing and such procedures allowing for the identification of assets subject to targeted financial sanctions applicable in the Islands; (viiib) procedures to ensure compliance with targeted financial sanctions obligations applicable in the Islands; and\u201d; and (iii) in subparagraph (ix) by deleting the words \u201cand terrorist financing\u201d and substituting the words \u201c, terrorist financing and proliferation financing\u201d; (b) in paragraph (c)(ii) by inserting after the words \u201cmoney laundering\u201d the words \u201c, terrorist financing, proliferation financing and targeted financial sanctions\u201d; and (c) in paragraph (d) by inserting after the words \u201cmoney laundering\u201d the words \u201c, terrorist financing or proliferation financing, or whose assets are subject to targeted financial sanctions applicable in the Islands\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Amendment of regulation 6 - group-wide programmes 4. The principal Regulations are amended in regulation 6 as follows \u2014 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 5 SL 28 of 2019 (a) by renumbering regulation 6 as regulation 6(1); (b) in regulation 6(1) as renumbered, in subparagraph (c), by inserting after the words \u201cfinancing purposes\u201d the words \u201c, including information on, and if applicable analysis of, transactions or activities which appear unusual\u201d; and (c) by inserting after paragraph (1) the following paragraphs \u2014 \u201c(2) The information required to be provided under paragraph (1)(c) may include suspicious activity reports and their underlying information and the fact that a suspicious activity report has been filed. (3) Branches and subsidiaries of the financial group shall receive information provided under paragraph (1)(c), where relevant and appropriate to money laundering and terrorist financing risk management.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Amendment of regulation 11 - when customer due diligence is required 5. The principal Regulations are amended in regulation 11(b) by deleting the word \u201cfifteen\u201d and substituting the word \u201cten\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Amendment of regulation 12 - obligation to identify customer 6. The principal Regulations are amended in regulation 12 as follows \u2014 (a) in paragraph (2)(a) by inserting after the words \u201cstructure of the customer\u201d the words \u201cand the nature of the customer\u2019s business\u201d; and (b) by inserting after paragraph (4) the following paragraph \u2014 \u201c(5) Information collected and held under paragraph (4) shall be kept accurate and up to date and shall be updated on a timely basis.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Amendment of regulation 13 - customer due diligence re-beneficiary of life insurance 7. The principal Regulations are amended in regulation 13 as follows \u2014 (a) in paragraph (a) by deleting the words \u201clegal arrangement - taking the name of the person; and\u201d and substituting the words \u201clegal arrangement, taking the name of the person;\u201d; (b) in paragraph (b) by deleting the words \u201cby other means - obtaining sufficient information concerning the beneficiary to satisfy the person carrying out relevant financial business that it will be able to establish the identity of the beneficiary at the time of the pay out.\u201d and substituting the words \u201cby other means, obtaining sufficient information concerning the beneficiary to satisfy the person carrying out relevant financial business that it will be able to establish the identity of the beneficiary at the time of the pay out; and\u201d; and Regulation 8 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 (c) by inserting after paragraph (b) the following paragraph \u2014 \u201c(c) for a beneficiary under paragraph (a) or (b), verifying the identity of the beneficiary.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Insertion of regulation 17A - considerations for applying customer due diligence 8. The principal Regulations are amended by inserting after regulation 17, the following regulation \u2014 \u201cConsiderations for applying customer due diligence 17A. A person carrying out relevant financial business shall apply customer due diligence requirements to existing customers on the basis of materiality and risk, and conduct due diligence on such existing relationships at appropriate times, taking into account whether and when customer due diligence measures have been previously undertaken and the adequacy of the data obtained.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Amendment of regulation 25 - eligible introducer 9. The principal Regulations are amended by repealing regulation 25 and substituting the following regulation \u2014 \u201cEligible introducer\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_25\", \"num\": \"25.\", \"text\": \"(1) A person carrying out relevant financial business is not required to verify the identity of an applicant for business, or the beneficial owner, if applicable, in accordance with Part IV where a business relationship is formed or a one-off transaction is carried out with or for an applicant for business pursuant to an introduction effected by a person who falls within one of the categories under regulation 22(d) and who, upon that introduction, provides a written assurance to the person carrying out relevant financial business which confirms \u2014 (a) the identity of the applicant for business, and the identity of the beneficial owner, if applicable, of the applicant for business; (b) the nature and intended purpose of the business relationship; (c) that the introducer has identified and verified the identity of the applicant for business, and, where required, the beneficial owner of the applicant for business, under procedures maintained by the introducer in accordance with applicable laws; (d) that the introducer has identified the source of the funds of the applicant for business; and Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 10 SL 28 of 2019 (e) that the introducer shall make available on request and without delay copies of identification and verification data and any other relevant documentation relating to customer due diligence requirements in respect of the applicant for business and, where applicable, the beneficial owner of the applicant for business. (2) A person carrying out relevant financial business who relies on an introduction effected under paragraph (1) in respect of an applicant for business, is liable for any failure of the introducer to obtain and record satisfactory identification and verification documentation, or to make the same available on request and without delay. (3) In this regulation, the ultimate responsibility for compliance with the customer due diligence requirements set out under Part IV is that of the person carrying out relevant financial business who relies on an introduction effected under paragraph (1).\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Amendment of regulation 27 - application of enhanced customer due diligence 10. The principal Regulations are amended in regulation 27 as follows \u2014 (a) by deleting the word \u201cor\u201d appearing at the end of paragraph (e); (b) in paragraph (f) by deleting the words \u201cactivity.\u201d and substituting the words \u201cactivity; or\u201d; and (c) by inserting after paragraph (f) the following \u2014 \u201c(g) in relation to business relationships and transactions with persons, including financial institutions, from countries for which this is requested by the Financial Action Task Force, and in each case, the enhanced customer due diligence shall be proportionate to the risk.\u201d. 11. Amendment of regulation 40 - transfers of funds with missing or incomplete information about payer 11. The principal Regulations are amended in regulation 40(5) by inserting after the words \u201cwhere the required\u201d the words \u201cpayer or\u201d. 12. Amendment of regulation 53A - duty of a person carrying out relevant financial business to produce information 12. The principal regulations are amended in regulation 53A by repealing paragraph (7) and substituting the following paragraph\u2013 \u201c(7) The production of a document does not affect any lien which a person has on the document.\u201d. Regulation 13 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Amendment of regulation 53C - requirement to share information 13. The principal Regulations are amended in regulation 53C by repealing paragraph (4).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Amendment of regulation 55A - designated non-financial business and professions 14. The principal Regulations are amended in regulation 55A as follows \u2014 (a) in paragraph (d) by deleting the word \u201cand\u201d appearing at the end of the paragraph; (b) in paragraph (e) by deleting the words \u201claw.\u201d and substituting the words \u201claw; and\u201d; and (c) by inserting after paragraph (e) the following paragraph \u2014 \u201c(f) any other business or profession for which a Supervisory Authority under regulation 55B is assigned, by Cabinet, under section 4(9) of the Law.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Amendment of regulation 55B - supervisory authorities of DNFBPs 15. The principal Regulations are amended in regulation 55B as follows \u2014 (a) in paragraph (a) by deleting the words \u201cand dealers in precious stones\u201d and substituting the words \u201c, dealers in precious stones and any other business or profession for which it has been designated the Supervisory Authority, by Cabinet, under section 4(9) of the Law\u201d; and (b) in paragraph (b) by deleting the words \u201cthat engage in or assist other persons in the planning or execution of relevant financial business, or otherwise act for or on behalf of such persons in relevant financial business\u201d. 16. Amendment of regulation 55E - duty to maintain DNFBP Register 16. The principal Regulations are amended in regulation 55E by inserting after paragraph (1) the following paragraphs \u2014 \u201c(1A) A Supervisory Authority may impose registration fees for the purpose of defraying the cost of establishing and maintaining the DNFBP Register and discharging its responsibilities under these Regulations. (1B) The fees imposed under paragraph (1A) shall be subject to the approval of Cabinet and published in the Gazette.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Repeal of regulation 55F and substitution - requirement for registration 17. The principal Regulations are amended by repealing regulation 55F and substituting the following regulation \u2014 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 18 SL 28 of 2019 \u201cRequirement for registration 55F. (1) A person who carries on or intends to carry on business as a DNFBP in or from within the Islands shall \u2014 (a) submit to the Supervisory Authority designated for that DNFBP \u2014 (i) a written declaration that the person carries on or intends to carry on business as a DNFBP; and (ii) subject to paragraph (2), the registration information required under regulation 55E(2); and (b) where applicable, pay the registration fee imposed by the Supervisory Authority under regulation 55E(1A). (2) A person is not required to submit the registration information under paragraph (1)(a)(ii) if the person who carries on or intends to carry on business as a DNFBP provides written consent to the relevant government body or any other competent authority which holds such information, to provide the information to the Supervisory Authority designated for that DNFBP.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Amendment of regulation 55G - cancellation of registration 18. The principal Regulations are amended in regulation 55G(2)(a) by deleting the words \u201cunder regulation 55U\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Amendment of regulation 55H - fit and proper person test 19. The principal Regulations are amended in regulation 55H by deleting paragraph (1) and substituting the following paragraph \u2014 \u201c(1) In determining whether a person who carries on business as a DNFBP or a connected person is a fit and proper person, the Supervisory Authority designated for that DNFBP shall have regard to \u2014 (a) the person\u2019s probity, competence and soundness of judgement for fulfilling the responsibilities of the position; (b) the diligence with which the person is fulfilling or likely to fulfil the responsibilities; and (c) whether the interests of the DNFBP are, or are likely to be, in any way threatened by the person holding the position.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Amendment of regulation 55J - notification of cancellation of registration 20. The principal Regulations are amended in regulation 55J(1)(b) by deleting the words \u201cProfessional Institute of Public Accountants\u201d and substituting the words \u201cCayman Islands Institute of Professional Accountants\u201d. Regulation 21 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Amendment of regulation 55R - power to impose administrative fines 21. The principal Regulations are amended in regulation 55R as follows \u2014 (a) in paragraph (1) by inserting after the words \u201cadministrative fine\u201d the words \u201c, under regulation 55S,\u201d; and (b) by repealing paragraph (2) and substituting the following paragraphs \u2014 \u201c(2) Where a DNFBP contravenes a prescribed provision in Column 1 of the Table in Schedule 2, the categories of breach in Column 2 of the Table in Schedule 2, shall be prescribed as minor, serious or very serious and the breach may be proceeded with under regulation 55S. (3) A Supervisory Authority may issue guidance on the enforcement of administrative fines for a breach prescribed as minor under these regulations.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_22\", \"num\": \"22.\", \"text\": \"Repeal of regulations 55S through 55ZE and substitution 22. The principal Regulations are amended by repealing regulations 55S through 55ZE and substituting the following regulations \u2014 \u201cFine amounts 55S. (1) For a breach prescribed as minor the fine is five thousand dollars. (2) For a breach prescribed as minor, a Supervisory Authority designated for a DNFBP may impose one or more continuing fines of five thousand dollars each, in addition to the fine already imposed for the breach (the \u201cinitial fine\u201d), at intervals it decides, until the earliest of the following occurs \u2014 (a) the breach stops or is remedied; (b) payment of the initial fine and continuing fines imposed for the breach; or (c) the total of the initial fine and continuing fines for the breach reaches twenty thousand dollars. (3) For a breach prescribed as serious, the fine is a single fine of \u2014 (a) fifty thousand dollars for an individual; or (b) one hundred thousand dollars for a body corporate. (4) For a breach prescribed as very serious, the fine is a single fine of \u2014 (a) one hundred thousand dollars for an individual; or (b) two hundred and fifty thousand dollars for a body corporate. (5) For breaches prescribed as serious or very serious the Supervisory Authority designated for a DNFBP has a discretion to decide Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 22 SL 28 of 2019 whether to impose a fine and the amount of the fine, taking into consideration the criteria under regulations 55V, 55X and 55Y. Limitation period 55T. (1) A Supervisory Authority designated for a DNFBP shall not impose an administrative fine after the expiration of the following period from the date on which it became aware of the breach \u2014 (a) six months for a breach prescribed as minor; or (b) two years for a breach prescribed as serious or very serious. (2) For the purposes of paragraph (1), a Supervisory Authority is deemed to have become aware of the breach when the Supervisory Authority first received information from which the breach could have reasonably been inferred. Relationship with penalties 55U. (1) Where a breach of a prescribed provision is an offence, a Supervisory Authority designated for a DNFBP may, subject to paragraphs (2) and (3) \u2014 (a) impose an administrative fine in accordance with these Regulations; or (b) recommend to the Director of Public Prosecutions that the contravention be prosecuted as an offence. (2) Where a breach of a prescribed provision is an offence, the imposition of an administrative fine for the breach shall not preclude a prosecution for the breach where the administrative fine remains unpaid after twenty-eight days of the issue of a fine notice. (3) Where a breach of a prescribed provision is prosecuted as an offence, the prosecution of the breach as an offence shall preclude a Supervisory Authority designated for a DNFBP from imposing an administrative fine in accordance with these Regulations. (4) Where a Supervisory Authority designated for a DNFBP commences proceedings for a breach of a prescribed provision by imposing an administrative fine, the payment of the administrative fine within twenty-eight days of the issue of a fine notice constitutes a discharge from liability for conviction for a breach of a prescribed provision that is an offence. Principles for making fine decision 55V. (1) In making a decision under regulation 55S(5), a Supervisory Authority designated for a DNFBP shall consider any relevant factors including the following criteria \u2014 Regulation 22 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 (a) the criteria under regulations 55X and 55Y, after applying any prescribed relative weight that must be given to the criteria; and (b) the following principles, in the following order of importance \u2014 (i) firstly, the disgorgement principle; (ii) secondly, the disciplinary principle; and (iii) thirdly, the deterrence principle. (2) In exercising a fine discretion under regulation 55S(5), the principles under paragraph (1)(b) shall prevail over the criteria prescribed under regulations 55X and 55Y. (3) Notwithstanding paragraph (2), a Supervisory Authority designated for a DNFBP may consider the criteria under regulation 55X or 55Y and reduce the amount of a fine. (4) Notwithstanding paragraph (1)(a), a Supervisory Authority designated for a DNFBP may consider a particular criteria to the extent it considers the criteria relevant to making the decision. (5) In this regulation \u2014 \u201cdeterrence principle\u201d means the principle applied to deter DNFBPs which carry out relevant financial business and connected persons from breaching prescribed provisions; \u201cdisciplinary principle\u201d means the principle applied to punish intentional, reckless or negligent breaches of prescribed provisions; and \u201cdisgorgement principle\u201d means the principle applied to ensure that \u2014 (a) DNFBPs which carry out relevant financial business and connected persons do not gain (including by avoiding losses) from breaching prescribed provisions; and (b) persons mentioned in paragraph (a) disgorge all such gains. Discretionary fine criteria Application of discretionary fine criteria 55W. For the purposes of regulation 55S(5) and 55V(1)(a), the criteria for exercising fine discretions shall apply when \u2014 (a) issuing breach notices; Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 22 SL 28 of 2019 (b) considering or reconsidering matters under regulation 55ZD(2) or 55ZO(2)(b); and (c) imposing discretionary fines. Criteria in relation to both fine and amount 55X. (1) The following are the criteria for exercising fine discretions under regulation 55W \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) where 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 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 Supervisory Authority; (i) the party\u2019s conduct after becoming aware of the breach, including \u2014 (i) whether and how quickly the party brought the breach to the attention of the Supervisory Authority; 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; or (ii) the performance of the functions of the Supervisory Authority; (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; Regulation 22 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 (l) where the Supervisory Authority previously imposed a fine on the party for a similar breach, the amount of that fine; and (m) the party\u2019s history of compliance with these Regulations and similar laws in other jurisdictions in the five years before the breach. (2) A Supervisory Authority designated for a DNFBP shall only take into account the party\u2019s compliance with and breaches of those laws in other jurisdictions of which it is aware or made aware by the party, when considering the criteria under paragraph (1)(m) . (3) Paragraph (2) applies even if no punishment was imposed or no other action relating to the breach was taken under those laws in other jurisdictions. Additional criteria in relation to fine amount 55Y. In deciding the amount of a fine when exercising fine discretions, the criteria also includes \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. Power to discount usual fine to reflect agreement 55Z. (1) A Supervisory Authority designated for a DNFBP may negotiate with a party to attempt to reach a discount agreement with the party, whether or not it has given a breach notice. (2) Subject to paragraph (3), the Supervisory Authority may discount the usual fine to reflect the fact of the discount agreement and the stage in the fine process under regulations 55ZA, 55ZB, 55ZC, 55ZD, 55ZE, 55ZF and 55ZG at which the agreement was reached. (3) The Supervisory Authority shall not discount any component of the usual fine that represents the application of the disgorgement principle under regulation 55V. (4) In this regulation, \u201cusual fine\u201d means the amount of the fine the Supervisory Authority decided, or would otherwise have decided \u2014 (a) before taking into account the discount agreement; and Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 22 SL 28 of 2019 (b) after considering \u2014 (i) any relevant criteria, including the criteria and principles under regulation 55V; and (ii) the criteria under regulation 55X or 55Y. General Steps required 55ZA. (1) A Supervisory Authority designated for a DNFBP may only impose a minor fine or discretionary fine by taking the following steps \u2014 (a) giving a party a breach notice; (b) where regulation 55ZD or 55ZE applies, complying with that regulation; and (c) giving a party a fine notice. (2) The following exceptions apply in relation to the steps under paragraph (1) where a Supervisory Authority designated for a DNFBP decides to impose a discretionary fine \u2014 (a) where 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 (b) where a fine is varied on appeal under regulation 55ZO(2), the steps do not apply to the fine as varied. (3) A Supervisory Authority designated for a DNFBP may only impose a minor fine (continuing) \u2014 (a) by giving the party a fine notice; and (b) if the relevant minor fine is not stayed. (4) A decision in relation to the imposition of a minor fine, a minor fine (continuing) or a discretionary fine shall be made on the balance of probabilities. Notice containing an inaccuracy 55ZB. A breach notice, rectification notice or fine notice which contains an inaccuracy is only invalid because of the inaccuracy where a party establishes that \u2014 (a) the inaccuracy was material; and (b) the inaccuracy misled the party. Regulation 22 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 Breach notice and reply Requirements for breach notice 55ZC.(1) A breach notice shall be dated and state the following \u2014 (a) the party\u2019s name; (b) that the Supervisory Authority proposes to impose a fine on the party for a specified breach that the Supervisory Authority 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 Supervisory Authority believes constituted the specified breach; (f) whether the Supervisory Authority proposes to impose \u2014 (i) a minor fine; or (ii) a discretionary fine, for the specified breach and the amount of the fine; (g) that the party may give the Supervisory Authority a reply within the reply period under paragraph (2); and (h) that, for a minor fine, the party may give the Supervisory Authority a rectification notice. (2) The reply period shall end no less than thirty days after the giving of a breach notice. Duty to consider reply 55ZD. (1) A Supervisory Authority designated for a DNFBP shall act in accordance with paragraph (2) where \u2014 (a) a breach notice is given for a minor fine, minor fine (continuing) or discretionary fine; (b) the reply period ends; and (c) a reply is given. (2) Where paragraph (1) applies, the Supervisory Authority under paragraph (1) shall \u2014 (a) reconsider whether it still holds the belief stated in the breach notice, in light of all the matters raised in the reply concerning that belief; and Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 22 SL 28 of 2019 (b) where a breach notice was for a discretionary fine, consider the matters raised in the reply to the extent that the matters raised are relevant to exercising fine discretions. Rectification of a breach subject to a minor fine 55ZE. (1) A Supervisory Authority designated for a DNFBP shall act in accordance with paragraph (2) where \u2014 (a) a breach notice is given for a minor fine; (b) the party subject to the breach notice rectifies the breach specified in the notice within thirty days of receiving the notice; (c) the reply period ends; and (d) a rectification notice is given. (2) Where paragraph (1) applies, the Supervisory Authority under paragraph (1) shall consider, in light of the matters raised in the rectification notice, whether the specified breach is rectified within thirty days of the issue of the breach notice to its satisfaction. (3) Where the Supervisory Authority is satisfied that the breach is 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 Supervisory 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 55ZF(6). Imposing a fine Decision about fine 55ZF. (1) This regulation applies at the end of the reply period in relation to a breach notice where \u2014 (a) no reply is given; (b) a reply is given and a Supervisory Authority designated for a DNFBP has complied with regulation 55ZD; or (c) a rectification notice is given and the Supervisory Authority designated for a DNFBP has complied with regulation 55ZE. (2) Where a breach notice is issued for a minor fine or minor fine (continuing) and a Supervisory Authority \u2014 Regulation 22 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 (a) continues to hold the belief stated in the notice; and (b) is not satisfied that the breach was rectified within thirty days of the issue of the notice, the Supervisory Authority shall impose a fine in accordance with regulation 55S. (3) Where a breach notice is issued for a discretionary fine, the Supervisory Authority may exercise fine discretions. (4) The amount of a discretionary fine shall not be more than the amount stated in the breach notice. (5) Where a Supervisory Authority designated for a DNFBP imposes a fine, it may decide that the fine is payable immediately on the giving of a fine notice or within a particular period stated in the fine notice. (6) Where a Supervisory Authority designated for a DNFBP decides not to impose a fine, it shall give the party notice of the decision within fifteen days after the end of the reply period. Requirements for fine notice 55ZG. (1) A fine notice shall be dated and state the following \u2014 (a) the party\u2019s name; (b) that the Supervisory Authority has imposed a specified fine on the party; (c) the amount of the fine; and (d) when the fine shall be paid. (2) Where the specified fine is a minor fine, the fine notice under paragraph (1) shall also state \u2014 (a) the prescribed provision for which the fine is imposed; (b) a description of the breach; (c) where a reply is given during the reply period, the reasons why the Supervisory Authority continues to hold the belief stated in the breach notice; (d) if a rectification notice was given within the reply period, the reasons why the Supervisory Authority is not satisfied that the breach was rectified within thirty days of the issue of the breach notice; and (e) that the party may, within thirty days after receiving the fine notice, apply to the relevant person or body within the Supervisory Authority to review the decision to impose the fine. Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 22 SL 28 of 2019 (3) Where the specified fine is a minor fine (continuing), the fine notice under paragraph (1) shall also state \u2014 (a) the date of the fine notice given for the relevant minor fine; and (b) that the party may, within thirty days after receiving the fine notice, apply to the relevant person or body within the Supervisory Authority to review the decision to impose the fine. (4) Where the specified fine is a discretionary fine, the fine notice under paragraph (1) shall also 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, the amount of the fine or both. Internal review of minor fines by a Supervisory Authority designated for a DNFBP Application to relevant person or body within the Supervisory Authority designated for a DNFBP for review 55ZH. (1) A party who has received a fine notice for a minor fine or minor fine (continuing) may apply to the Supervisory Authority designated for the DNFBP for the relevant person or body within the Supervisory Authority to review the original decision. (2) An application under paragraph (1) shall \u2014 (a)  be made within thirty days from the date of receipt of the fine notice; and (b)  shall contain \u2014 (i) in respect of the applicant \u2014 (A) the name of the applicant; (B) the physical address of the applicant; and (C) the email address of the applicant; and (ii) in respect of the particulars of the application \u2014 (A) the prescribed provision set out in the fine notice; Regulation 22 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 (B) the grounds on which the applicant relies for the review; and (C) the facts and circumstances on which the applicant relies for the review. No stay of original decision 55ZI. An application for review under regulation 55ZH does not stay the operation of the original decision. Decision by relevant person or body within the Supervisory Authority upon review 55ZJ.(1) The relevant person or body within a Supervisory Authority designated for a DNFBP shall, within twenty days after receiving an application for review under regulation 55ZH, reconsider the original decision and decide whether to affirm or set aside the original decision. (2) The relevant person or body within the Supervisory Authority shall, within ten days after making a decision on the application, give the party notice of its decision. (3) Where the relevant person or body within the Supervisory Authority affirms the original decision, the notice of the decision on the application for review shall state \u2014 (a) the reasons for the decision; and (b) that the party may apply to the Grand Court for judicial review of the decision. (4) Where the relevant person or body within the Supervisory Authority sets aside the original decision, the original decision is deemed to have never been made. (5) The appropriate person within the Supervisory Authority who made the original decision may make written representations to the relevant person or body within the Supervisory Authority concerning an application for review of the original decision, but shall not otherwise participate in any discussion, decision, debate or vote of the relevant person or body concerning the review. Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 22 SL 28 of 2019 Appeal against discretionary fines to Grand Court Application to the Grand Court for leave to appeal 55ZK. (1) A party who receives a fine notice for a discretionary fine may apply to the Grand Court within thirty days after receiving the fine notice for leave to appeal against the original decision. (2) The Grand Court may only grant leave to appeal under this regulation where \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 in the discount agreement. Application of Grand Court Rules and practice directions on judicial review 55ZL. (1) The Grand Court Rules, 1995 and the Court\u2019s practice directions about judicial review 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. Security for costs 55ZM. A Supervisory Authority designated for a DNFBP may apply to the Grand Court for \u2014 (a) an order that the appellant provide sufficient security for costs; and (b) a stay of the appeal proceedings until the security is provided. Stay of original decision only by application 55ZN. (1) An appeal does not stay the operation of an original decision. (2) The Grand Court may, on an appellant\u2019s application, order that the fine imposed by an original decision be stayed to secure the effectiveness of the appeal. (3) The stay ordered by the Grand Court under paragraph (2)\u2014 (a) may be given on conditions that the Grand Court considers appropriate; Regulation 22 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 (b) operates for the period fixed by the Grand Court; and (c) may be amended or revoked by the Grand Court. (4) The period of a stay shall not extend past when the Grand Court determines the appeal. Hearing and outcome 55ZO. (1) An appeal may only be determined on the evidence on which the Supervisory 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 Supervisory 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 Grand Court\u2019s decision is (other than in relation to regulations 55ZA, 55ZH and 55ZK) deemed to have been the original decision; (b) the Grand Court may, at the Supervisory 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 request of the Supervisory Authority under subparagraph (b) may be made during the appeal, when the Grand Court\u2019s decision is handed down or at any later time on the tendering of a certificate under regulation 55ZU(2)(d) about the amount owing. (4) Where the Grand Court sets aside the original decision and does not remit the matter to the Supervisory Authority for reconsideration \u2014 (a) both the fine and interest are deemed to have never been owing; and (b) any minor fine (continuing) imposed for the breach is deemed to have also been set aside and to have never been owed. Fine is a debt to the Crown Fine is a debt to the Crown 55ZP.(1) Subject to paragraph (2), where a fine is not paid by the date stated in the relevant fine notice, the fine becomes a debt owing to the Crown. Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 22 SL 28 of 2019 (2) The following factors affect whether the fine in the fine notice becomes a debt owing to the Crown under paragraph (1) \u2014 (a) whether the fine was set aside on review under regulation 55ZJ or on appeal under regulation 55ZO; and (b) whether the fine was varied on appeal under regulation 55ZO. (3) Where the fine under the fine notice was varied on appeal under regulation 55ZO, the varied fine becomes a debt owing to the Crown where the fine is not paid by the date stated in the order of the Grand Court. Interest on fines 55ZQ.(1) Interest accrues at a rate of five per cent annually 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. (2) Interest under paragraph (1) accrues daily and as compound interest. (3) Interest under paragraph (1) is 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 55ZH or an appeal. Payment of more than one fine 55ZR. Where more than one fine is imposed on a party, payments for the fines are to be applied in the order in which the fines and interest became owing. Enforcement 55ZS.(1) The Crown may recover in a civil proceeding, as a debt owing to the Crown, the unpaid amount of a fine or interest, or both. (2) 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) where the party is a body corporate, the Crown enforcing the fine by serving a winding up notice for the debt. Regulation 22 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 Miscellaneous Electronic notices by the Supervisory Authority 55ZT. (1) A Supervisory Authority designated for a DNFBP may give a party a notice for any purpose under these Regulations by sending it to \u2014 (a) the email address that the party last provided the Supervisory Authority with; (b) where the party is a body corporate (either in its own right or as a trustee of a trust), the email address that the body corporate last provided to the Supervisory Authority, of \u2014 (i) any of its directors or members; or (ii) its registered office provider; or (c) where the party is a partnership, the email address that the partnership last provided to the Supervisory Authority of \u2014 (i) any of its partners; or (ii) its registered office provider (if the party has a registered office). (2) In this regulation \u2014 \u201cpartner\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 by law. Evidentiary provisions 55ZU.(1) A signature purporting to be the signature of anyone acting on behalf of the Supervisory Authority designated for a DNFBP is evidence of the signature it purports to be, unless the contrary is proved. (2) A certificate signed, or purporting to be signed, by anyone acting on the Supervisory Authority\u2019s behalf stating a matter as follows, is evidence \u2014 (a) that a stated document is a copy of a notice given under this Part; (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 55ZT; (c) that on a stated day the recipient was given the notice in a stated way; or (d) that a fine of a stated amount is owing by a stated person.\u201d. Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 23 SL 28 of 2019 23. Schedule repealed and substituted 23. The principal Regulations are amended by repealing the Schedule and substituting the following Schedules \u2014 \u201cSCHEDULE 1 (regulation 2) CLASSES OF LONG TERM BUSINESS Number Description Nature of Business Life and annuity Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life, but excluding (in each case) contracts within Class 3 below. Marriage and birth Effecting and carrying out contracts of insurance to provide a sum on marriage or on the birth of a child, being contracts expressed to be in effect for a period of more than one year. Linked long term Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contracts) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified). Permanent health Effecting and carrying out contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident, of an accident of a specified class or of sickness or infirmity, being contracts that \u2014 Regulation 23 Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 SL 28 of 2019 (a) are expressed to be in effect for a period of not less than five years for the persons concerned, or without limit of time; and (b)either are not expressed to be terminable by the insurer, or are expressed to be so terminable only in special circumstances mentioned in the contract. Tontines Effecting and carrying out tontines. Capital redemption Effecting and carrying out capital redemption contracts. Pension fund management Effecting and carrying out \u2014 (a)contracts to manage the investments of pension funds; or (b)contracts of the kind mentioned in paragraph (a) that are combined with contracts of insurance covering either conservation of capital or payment of a minimum interest. Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 Regulation 23 SL 28 of 2019 SCHEDULE 2 (regulation 55R) PRESCRIBED PROVISIONS AND BREACH CATEGORIES Column 1 Prescribed provision Column 2 Category of breach 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 53A Minor 55F Serious 55M Minor 55O Minor Same as for the body corporate\u201d. Made in Cabinet the 16th day of July, 2019. 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\"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/act\/amending\/2019\/1028\/eng@2019-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/amending\/2019\/1028\/eng@2019-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 (SL 28 of 2019)\", \"actNumber\": \"1028 of 2019\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nProceeds of Crime Law\n(2019 Revision)\nANTI-MONEY LAUNDERING\n(AMENDMENT)(NO.2) REGULATIONS,\n2019\nSL 28 of 2019\nSupplement No. 1 published with Legislation Gazette No. 26 dated 18th July, 2019.\n\nPage 2\nSL 28 of 2019\nc\n\nPUBLISHING DETAILS\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nArrangement of Regulations\n\nc\nSL 28 of 2019\nPage 3\n\nCAYMAN ISLANDS\n\nProceeds of Crime Law\n(2019 Revision)\nANTI-MONEY LAUNDERING (AMENDMENT)\n(NO.2) REGULATIONS, 2019\nSL 28 of 2019\n\nArrangement of Regulations\nRegulation\nPage\n1.\nCitation ......................................................................................................................................5\n2.\nAmendment of regulation 2 of the Anti-Money Laundering Regulations (2018 Revision) -\ndefinitions ..................................................................................................................................5\n3.\nAmendment of regulation 5 - systems and training to prevent money laundering .......................8\n4.\nAmendment of regulation 6 - group-wide programmes ...............................................................8\n5.\nAmendment of regulation 11 - when customer due diligence is required ....................................9\n6.\nAmendment of regulation 12 - obligation to identify customer ....................................................9\n7.\nAmendment of regulation 13 - customer due diligence re-beneficiary of life insurance ...............9\n8.\nInsertion of regulation 17A - considerations for applying customer due diligence ..................... 10\n9.\nAmendment of regulation 25 - eligible introducer ..................................................................... 10\n10.\nAmendment of regulation 27 - application of enhanced customer due diligence ....................... 11\n11.\nAmendment of regulation 40 - transfers of funds with missing or incomplete information\nabout payer ............................................................................................................................. 11\n12.\nAmendment of regulation 53A - duty of a person carrying out relevant financial business\nto produce information ............................................................................................................. 11\n13.\nAmendment of regulation 53C - requirement to share information ............................................ 12\n14.\nAmendment of regulation 55A - designated non-financial business and professions ................ 12\n15.\nAmendment of regulation 55B - supervisory authorities of DNFBPs ......................................... 12\n16.\nAmendment of regulation 55E - duty to maintain DNFBP Register ........................................... 12\n\nArrangement of Regulations\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 4\nSL 28 of 2019\nc\n\n17.\nRepeal of regulation 55F and substitution - requirement for registration ................................... 12\n18.\nAmendment of regulation 55G - cancellation of registration ..................................................... 13\n19.\nAmendment of regulation 55H - fit and proper person test ....................................................... 13\n20.\nAmendment of regulation 55J - notification of cancellation of registration ................................. 13\n21.\nAmendment of regulation 55R - power to impose administrative fines ..................................... 14\n22.\nRepeal of regulations 55S through 55ZE and substitution ........................................................ 14\n23.\nSchedule repealed and substituted .......................................................................................... 29\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 1\n\nc\nSL 28 of 2019\nPage 5\n\nCAYMAN ISLANDS\n\nProceeds of Crime Law\n(2019 Revision)\nANTI-MONEY LAUNDERING (AMENDMENT)\n(NO.2) REGULATIONS, 2019\nSL 28 of 2019\nIn exercise of the powers conferred by section 145 of the Proceeds of Crime Law (2019\nRevision) the Cabinet makes the following Regulations \u2014\n1.\nCitation\n1.\nThese Regulations may be cited as the Anti-Money Laundering (Amendment)\n(No.2) Regulations, 2019.\n2.\nAmendment of regulation 2 of the Anti-Money Laundering Regulations\n(2018 Revision) - definitions\n2.\nThe Anti-Money Laundering Regulations (2018 Revision), in these Regulations\nreferred to as the \u201cprincipal Regulations\u201d, are amended in regulation 2(1) as\nfollows \u2014\n(a)\nby inserting in the appropriate alphabetical sequence, the following\ndefinitions \u2014\n\u201cappeal\u201d means an appeal for which leave is granted by the Grand\nCourt under regulation 55ZK and any further appeals relating to the\ndecision on such an appeal;\n\u201cbreach notice\u201d means a notice under regulation 55ZC, of a\nSupervisory Authority\u2019s intention to impose a fine, issued by a\n\nRegulation 2\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 6\nSL 28 of 2019\nc\n\nSupervisory Authority, to a party that a Supervisory Authority\nbelieves has breached a prescribed provision;\n\u201cdiscount agreement\u201d means an agreement in principle between a\nSupervisory Authority and a party that has breached a prescribed\nprovision about the amount of a proposed discretionary fine;\n\u201cdiscretionary fine\u201d means \u2014\n(a) a proposed fine for which a Supervisory Authority has fine\ndiscretions; or\n(b) a fine in respect of which a Supervisory Authority exercised\nfine discretions;\n\u201cfine discretion\u201d means a Supervisory Authority\u2019s discretion under\nregulation 55S(5) to decide whether to impose a fine and the\namount of the fine;\n\u201cfine notice\u201d means a notice issued by a Supervisory Authority\nunder regulation 55ZG;\n\u201cgive\u201d, in relation to a notice or information, means to deliver,\nprovide, send or transmit the notice or information;\n\u201cgovernment body\u201d means \u2014\n(a) a government company;\n(b) an entity within the public service; or\n(c) a statutory authority,\nwithin the Islands;\n\u201cgovernment company\u201d means \u2014\n(a) a company in which the Government has a controlling interest;\nand\n(b) in respect of each such company, includes all subsidiary\nentities of the company;\n \u201cinterest\u201d means interest accrued or accruing on a fine under\nregulation 55ZQ;\n\u201cminor fine\u201d means a fine under regulation 55S(1);\n\u201cminor fine (continuing)\u201d means a fine under regulation 55S(2);\n\u201cnotice\u201d means written information given, or to be given in hard\ncopy, electronically, by hand, by post or by any other mode of\ncommunication;\n\u201coriginal decision\u201d means a Supervisory Authority\u2019s decision \u2014\n(a) in relation to a minor fine or minor fine (continuing), to\nimpose the fine;\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 2\n\nc\nSL 28 of 2019\nPage 7\n\n(b) in relation to a discretionary fine, to impose a fine of a\nspecified amount; or\n(c) in relation to both (a) and (b);\n\u201cparty\u201d, in relation to a provision under these Regulations dealing\nwith a breach, fine or proposed fine, means the person on whom the\nfine has been imposed or is being proposed or considered to be\nimposed;\n\u201cpublic service\u201d includes Ministries, Portfolios, departments,\nagencies\nreporting\ndirectly\nto\nthe\nLegislative\nAssembly,\nGovernmental committees, statutory authorities and government\ncompanies;\n\u201crectification notice\u201d means a notice to a Supervisory Authority by\na party who has breached a prescribed provision stating that the\nbreach was rectified within thirty days after the party received the\nbreach notice;\n\u201creply\u201d means a notice to a Supervisory Authority by a party who\nhas received a breach notice, making representations opposing the\nSupervisory Authority\u2019s proposed action to impose a fine;\n\u201creply period\u201d means the period stated in a breach notice, within\nwhich the recipient of the breach notice may give a reply to the\nSupervisory Authority;\n\u201cstatutory authority\u201d means an entity established by a Law to\ncarry out functions which are capable under that Law, of being\nfunded, partly or entirely, by money provided by Cabinet, and for\nwhich the Governor or the Cabinet has the power to appoint or\ndismiss the majority of the Board or other governing body;\n\u201cstayed\u201d, in relation to a fine, means that the fine may not be\nimposed because of the operation of an order under regulation\n55ZN(2); and\n\u201cwinding up notice\u201d means a demand under section 93(a) of the\nCompanies Law (2018 Revision); and\u201d;\n(b) in the definition of the word \u201cfirm\u201d by deleting paragraph (b) and\nsubstituting the following paragraph \u2014\n\u201c(b) in respect of accountants, a body corporate, association,\npartnership, limited liability partnership or sole practitioner \u2014\n(i)\nengaging in public practice, as defined in the\nAccountants Law, 2016; or\n(ii) providing\nan\naccountancy\nservice\nof\nrecording,\nreviewing, analysing, calculating and reporting on\n\nRegulation 3\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 8\nSL 28 of 2019\nc\n\nfinancial information, in the course of business, which\nincludes the following \u2014\n(A) bookkeeping services;\n(B) payroll services;\n(C) accounts preparation; or\n(D) providing\ntax\nadvisory\nor\ntax\ncompliance\nservices;\u201d; and\n(c)\nin the definition of the words \u201cunique identifier\u201d by deleting the word\n\u201cand\u201d appearing at the end of the definition.\n3.\nAmendment of regulation 5 - systems and training to prevent money\nlaundering\n3.\nThe principal Regulations are amended in regulation 5 as follows \u2014\n(a)\nin paragraph (a) \u2014\n(i)\nby deleting the\nword \u201cand\u201d appearing at the\nend of\nsubparagraph (viii);\n(ii) by\ninserting\nafter\nsubparagraph (viii),\nthe\nfollowing\nsubparagraphs \u2014\n\u201c(viiia) procedures for the ongoing monitoring of business\nrelationships or one-off transactions for the purposes\nof preventing, countering and reporting money\nlaundering, terrorist financing and proliferation\nfinancing and such procedures allowing for the\nidentification of assets subject to targeted financial\nsanctions applicable in the Islands;\n(viiib) procedures to ensure compliance with targeted\nfinancial sanctions obligations applicable in the\nIslands; and\u201d; and\n(iii) in subparagraph (ix) by deleting the words \u201cand terrorist financing\u201d\nand substituting the words \u201c, terrorist financing and proliferation\nfinancing\u201d;\n(b) in paragraph (c)(ii) by inserting after the words \u201cmoney laundering\u201d the\nwords \u201c, terrorist financing, proliferation financing and targeted financial\nsanctions\u201d; and\n(c)\nin paragraph (d) by inserting after the words \u201cmoney laundering\u201d the\nwords \u201c, terrorist financing or proliferation financing, or whose assets are\nsubject to targeted financial sanctions applicable in the Islands\u201d.\n4.\nAmendment of regulation 6 - group-wide programmes\n4.\nThe principal Regulations are amended in regulation 6 as follows \u2014\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 5\n\nc\nSL 28 of 2019\nPage 9\n\n(a)\nby renumbering regulation 6 as regulation 6(1);\n(b) in regulation 6(1) as renumbered, in subparagraph (c), by inserting after\nthe words \u201cfinancing purposes\u201d the words \u201c, including information on,\nand if applicable analysis of, transactions or activities which appear\nunusual\u201d; and\n(c)\nby inserting after paragraph (1) the following paragraphs \u2014\n\u201c(2) The information required to be provided under paragraph (1)(c) may\ninclude suspicious activity reports and their underlying information\nand the fact that a suspicious activity report has been filed.\n  (3) Branches and subsidiaries of the financial group shall receive\ninformation provided under paragraph (1)(c), where relevant and\nappropriate to money laundering and terrorist financing risk\nmanagement.\u201d.\n5.\nAmendment of regulation 11 - when customer due diligence is required\n5.\nThe principal Regulations are amended in regulation 11(b) by deleting the word\n\u201cfifteen\u201d and substituting the word \u201cten\u201d.\n6.\nAmendment of regulation 12 - obligation to identify customer\n6.\nThe principal Regulations are amended in regulation 12 as follows \u2014\n(a)\nin paragraph (2)(a) by inserting after the words \u201cstructure of the\ncustomer\u201d the words \u201cand the nature of the customer\u2019s business\u201d; and\n(b) by inserting after paragraph (4) the following paragraph \u2014\n\u201c(5) Information collected and held under paragraph (4) shall be kept\naccurate and up to date and shall be updated on a timely basis.\u201d.\n7.\nAmendment of regulation 13 - customer due diligence re-beneficiary of life\ninsurance\n7.\nThe principal Regulations are amended in regulation 13 as follows \u2014\n(a)\nin paragraph (a) by deleting the words \u201clegal arrangement - taking the\nname of the person; and\u201d and substituting the words \u201clegal arrangement,\ntaking the name of the person;\u201d;\n(b) in paragraph (b) by deleting the words \u201cby other means - obtaining\nsufficient information concerning the beneficiary to satisfy the person\ncarrying out relevant financial business that it will be able to establish the\nidentity of the beneficiary at the time of the pay out.\u201d and substituting the\nwords \u201cby other means, obtaining sufficient information concerning the\nbeneficiary to satisfy the person carrying out relevant financial business\nthat it will be able to establish the identity of the beneficiary at the time\nof the pay out; and\u201d; and\n\nRegulation 8\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 10\nSL 28 of 2019\nc\n\n(c)\nby inserting after paragraph (b) the following paragraph \u2014\n\u201c(c) for a beneficiary under paragraph (a) or (b), verifying the\nidentity of the beneficiary.\u201d.\n8.\nInsertion of regulation 17A - considerations for applying customer due\ndiligence\n8.\nThe principal Regulations are amended by inserting after regulation 17, the\nfollowing regulation \u2014\n\u201cConsiderations for applying customer due diligence\n17A. A person carrying out relevant financial business shall apply customer\ndue diligence requirements to existing customers on the basis of\nmateriality and risk, and conduct due diligence on such existing\nrelationships at appropriate times, taking into account whether and when\ncustomer due diligence measures have been previously undertaken and\nthe adequacy of the data obtained.\u201d.\n9.\nAmendment of regulation 25 - eligible introducer\n9.\nThe principal Regulations are amended by repealing regulation 25 and substituting\nthe following regulation \u2014\n\u201cEligible introducer\n25. (1) A person carrying out relevant financial business is not required to\nverify the identity of an applicant for business, or the beneficial\nowner, if applicable, in accordance with Part IV where a business\nrelationship is formed or a one-off transaction is carried out with or\nfor an applicant for business pursuant to an introduction effected by\na person who falls within one of the categories under regulation\n22(d) and who, upon that introduction, provides a written assurance\nto the person carrying out relevant financial business which\nconfirms \u2014\n(a)\nthe identity of the applicant for business, and the identity of\nthe beneficial owner, if applicable, of the applicant for\nbusiness;\n(b) the nature and intended purpose of the business relationship;\n(c)\nthat the introducer has identified and verified the identity of\nthe applicant for business, and, where required, the beneficial\nowner of the applicant for business, under procedures\nmaintained by the introducer in accordance with applicable\nlaws;\n(d) that the introducer has identified the source of the funds of the\napplicant for business; and\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 10\n\nc\nSL 28 of 2019\nPage 11\n\n(e)\nthat the introducer shall make available on request and without\ndelay copies of identification and verification data and any\nother relevant documentation relating to customer due\ndiligence requirements in respect of the applicant for business\nand, where applicable, the beneficial owner of the applicant\nfor business.\n(2) A person carrying out relevant financial business who relies on an\nintroduction effected under paragraph (1) in respect of an applicant\nfor business, is liable for any failure of the introducer to obtain and\nrecord satisfactory identification and verification documentation, or\nto make the same available on request and without delay.\n(3) In this regulation, the ultimate responsibility for compliance with\nthe customer due diligence requirements set out under Part IV is\nthat of the person carrying out relevant financial business who relies\non an introduction effected under paragraph (1).\u201d.\n10.\nAmendment of regulation 27 - application of enhanced customer due\ndiligence\n10. The principal Regulations are amended in regulation 27 as follows \u2014\n(a)\nby deleting the word \u201cor\u201d appearing at the end of paragraph (e);\n(b) in paragraph (f) by deleting the words \u201cactivity.\u201d and substituting the\nwords \u201cactivity; or\u201d; and\n(c)\nby inserting after paragraph (f) the following \u2014\n\u201c(g) in relation to business relationships and transactions with\npersons, including financial institutions, from countries for\nwhich this is requested by the Financial Action Task Force,\nand in each case, the enhanced customer due diligence shall be\nproportionate to the risk.\u201d.\n11.\nAmendment of regulation 40 - transfers of funds with missing or\nincomplete information about payer\n11. The principal Regulations are amended in regulation 40(5) by inserting after the\nwords \u201cwhere the required\u201d the words \u201cpayer or\u201d.\n12.\nAmendment of regulation 53A - duty of a person carrying out relevant\nfinancial business to produce information\n12. The principal regulations are amended in regulation 53A by repealing paragraph (7)\nand substituting the following paragraph\u2013\n\u201c(7) The production of a document does not affect any lien which a\nperson has on the document.\u201d.\n\nRegulation 13\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 12\nSL 28 of 2019\nc\n\n13.\nAmendment of regulation 53C - requirement to share information\n13. The principal Regulations are amended in regulation 53C by repealing paragraph\n(4).\n14.\nAmendment of regulation 55A - designated non-financial business and\nprofessions\n14. The principal Regulations are amended in regulation 55A as follows \u2014\n(a)\nin paragraph (d) by deleting the word \u201cand\u201d appearing at the end of the\nparagraph;\n(b) in paragraph (e) by deleting the words \u201claw.\u201d and substituting the words\n\u201claw; and\u201d; and\n(c)\nby inserting after paragraph (e) the following paragraph \u2014\n\u201c(f) any other business or profession for which a Supervisory\nAuthority under regulation 55B is assigned, by Cabinet, under\nsection 4(9) of the Law.\u201d.\n15.\nAmendment of regulation 55B - supervisory authorities of DNFBPs\n15. The principal Regulations are amended in regulation 55B as follows \u2014\n(a)\nin paragraph (a) by deleting the words \u201cand dealers in precious stones\u201d\nand substituting the words \u201c, dealers in precious stones and any other\nbusiness or profession for which it has been designated the Supervisory\nAuthority, by Cabinet, under section 4(9) of the Law\u201d; and\n(b) in paragraph (b) by deleting the words \u201cthat engage in or assist other\npersons in the planning or execution of relevant financial business, or\notherwise act for or on behalf of such persons in relevant financial\nbusiness\u201d.\n16.\nAmendment of regulation 55E - duty to maintain DNFBP Register\n16. The principal Regulations are amended in regulation 55E by inserting after\nparagraph (1) the following paragraphs \u2014\n\u201c(1A) A Supervisory Authority may impose registration fees for the\npurpose of defraying the cost of establishing and maintaining the\nDNFBP Register and discharging its responsibilities under these\nRegulations.\n(1B) The fees imposed under paragraph (1A) shall be subject to the\napproval of Cabinet and published in the Gazette.\u201d.\n17.\nRepeal of regulation 55F and substitution - requirement for registration\n17. The principal Regulations are amended by repealing regulation 55F and substituting\nthe following regulation \u2014\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 18\n\nc\nSL 28 of 2019\nPage 13\n\n\u201cRequirement for registration\n55F. (1) A person who carries on or intends to carry on business as a DNFBP\nin or from within the Islands shall \u2014\n(a)\nsubmit to the Supervisory Authority designated for that\nDNFBP \u2014\n(i)\na written declaration that the person carries on or intends\nto carry on business as a DNFBP; and\n(ii) subject to paragraph (2), the registration information\nrequired under regulation 55E(2); and\n(b) where applicable, pay the registration fee imposed by the\nSupervisory Authority under regulation 55E(1A).\n(2) A person is not required to submit the registration information\nunder paragraph (1)(a)(ii) if the person who carries on or intends to\ncarry on business as a DNFBP provides written consent to the\nrelevant government body or any other competent authority which\nholds such information, to provide the information to the\nSupervisory Authority designated for that DNFBP.\u201d.\n18.\nAmendment of regulation 55G - cancellation of registration\n18. The principal Regulations are amended in regulation 55G(2)(a) by deleting the\nwords \u201cunder regulation 55U\u201d.\n19.\nAmendment of regulation 55H - fit and proper person test\n19. The principal Regulations are amended in regulation 55H by deleting paragraph (1)\nand substituting the following paragraph \u2014\n\u201c(1) In determining whether a person who carries on business as a\nDNFBP or a connected person is a fit and proper person, the\nSupervisory Authority designated for that DNFBP shall have regard\nto \u2014\n(a)\nthe person\u2019s probity, competence and soundness of judgement\nfor fulfilling the responsibilities of the position;\n(b) the diligence with which the person is fulfilling or likely to\nfulfil the responsibilities; and\n(c)\nwhether the interests of the DNFBP are, or are likely to be, in\nany way threatened by the person holding the position.\u201d.\n20.\nAmendment of regulation 55J - notification of cancellation of registration\n20. The principal Regulations are amended in regulation 55J(1)(b) by deleting the\nwords \u201cProfessional Institute of Public Accountants\u201d and substituting the words\n\u201cCayman Islands Institute of Professional Accountants\u201d.\n\nRegulation 21\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 14\nSL 28 of 2019\nc\n\n21.\nAmendment of regulation 55R - power to impose administrative fines\n21. The principal Regulations are amended in regulation 55R as follows \u2014\n(a)\nin paragraph (1) by inserting after the words \u201cadministrative fine\u201d the\nwords \u201c, under regulation 55S,\u201d; and\n(b) by repealing paragraph (2) and substituting the following paragraphs \u2014\n\u201c(2) Where a DNFBP contravenes a prescribed provision in Column 1 of\nthe Table in Schedule 2, the categories of breach in Column 2 of the\nTable in Schedule 2, shall be prescribed as minor, serious or very\nserious and the breach may be proceeded with under regulation 55S.\n(3) A Supervisory Authority may issue guidance on the enforcement of\nadministrative fines for a breach prescribed as minor under these\nregulations.\u201d.\n22.\nRepeal of regulations 55S through 55ZE and substitution\n22. The principal Regulations are amended by repealing regulations 55S through 55ZE\nand substituting the following regulations \u2014\n\n\u201cFine amounts\n55S. (1) For a breach prescribed as minor the fine is five thousand dollars.\n(2) For a breach prescribed as minor, a Supervisory Authority\ndesignated for a DNFBP may impose one or more continuing fines\nof five thousand dollars each, in addition to the fine already\nimposed for the breach (the \u201cinitial fine\u201d), at intervals it decides,\nuntil the earliest of the following occurs \u2014\n(a)\nthe breach stops or is remedied;\n(b) payment of the initial fine and continuing fines imposed for\nthe breach; or\n(c)\nthe total of the initial fine and continuing fines for the breach\nreaches twenty thousand dollars.\n(3) For a breach prescribed as serious, the fine is a single fine of \u2014\n(a)\nfifty thousand dollars for an individual; or\n(b) one hundred thousand dollars for a body corporate.\n(4) For a breach prescribed as very serious, the fine is a single fine\nof \u2014\n(a)\none hundred thousand dollars for an individual; or\n(b) two hundred and fifty thousand dollars for a body corporate.\n(5) For breaches prescribed as serious or very serious the Supervisory\nAuthority designated for a DNFBP has a discretion to decide\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 22\n\nc\nSL 28 of 2019\nPage 15\n\nwhether to impose a fine and the amount of the fine, taking into\nconsideration the criteria under regulations 55V, 55X and 55Y.\n\nLimitation period\n55T. (1) A Supervisory Authority designated for a DNFBP shall not impose\nan administrative fine after the expiration of the following period\nfrom the date on which it became aware of the breach \u2014\n(a)\nsix months for a breach prescribed as minor; or\n(b) two years for a breach prescribed as serious or very serious.\n(2) For the purposes of paragraph (1), a Supervisory Authority is\ndeemed to have become aware of the breach when the Supervisory\nAuthority first received information from which the breach could\nhave reasonably been inferred.\n\nRelationship with penalties\n55U. (1) Where a breach of a prescribed provision is an offence, a\nSupervisory Authority designated for a DNFBP may, subject to\nparagraphs (2) and (3) \u2014\n(a)\nimpose an administrative fine in accordance with these\nRegulations; or\n(b) recommend to the Director of Public Prosecutions that the\ncontravention be prosecuted as an offence.\n(2) Where a breach of a prescribed provision is an offence, the\nimposition of an administrative fine for the breach shall not\npreclude a prosecution for the breach where the administrative fine\nremains unpaid after twenty-eight days of the issue of a fine notice.\n(3) Where a breach of a prescribed provision is prosecuted as an\noffence, the prosecution of the breach as an offence shall preclude a\nSupervisory Authority designated for a DNFBP from imposing an\nadministrative fine in accordance with these Regulations.\n(4) Where a Supervisory Authority designated for a DNFBP\ncommences proceedings for a breach of a prescribed provision by\nimposing an administrative fine, the payment of the administrative\nfine within twenty-eight days of the issue of a fine notice constitutes\na discharge from liability for conviction for a breach of a prescribed\nprovision that is an offence.\n\nPrinciples for making fine decision\n55V. (1) In making a decision under regulation 55S(5), a Supervisory\nAuthority designated for a DNFBP shall consider any relevant\nfactors including the following criteria \u2014\n\nRegulation 22\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 16\nSL 28 of 2019\nc\n\n(a)\nthe criteria under regulations 55X and 55Y, after applying any\nprescribed relative weight that must be given to the criteria;\nand\n(b) the following principles, in the following order of\nimportance \u2014\n(i)\nfirstly, the disgorgement principle;\n(ii) secondly, the disciplinary principle; and\n(iii) thirdly, the deterrence principle.\n(2) In exercising a fine discretion under regulation 55S(5), the\nprinciples under paragraph (1)(b) shall prevail over the criteria\nprescribed under regulations 55X and 55Y.\n(3) Notwithstanding paragraph (2), a Supervisory Authority designated\nfor a DNFBP may consider the criteria under regulation 55X or 55Y\nand reduce the amount of a fine.\n(4) Notwithstanding\nparagraph (1)(a),\na\nSupervisory\nAuthority\ndesignated for a DNFBP may consider a particular criteria to the\nextent it considers the criteria relevant to making the decision.\n(5) In this regulation \u2014\n\u201cdeterrence principle\u201d means the principle applied to deter\nDNFBPs which carry out relevant financial business and connected\npersons from breaching prescribed provisions;\n\u201cdisciplinary principle\u201d means the principle applied to punish\nintentional, reckless or negligent breaches of prescribed provisions;\nand\n\u201cdisgorgement principle\u201d means the principle applied to ensure\nthat \u2014\n(a)\nDNFBPs which carry out relevant financial business and\nconnected persons do not gain (including by avoiding\nlosses) from breaching prescribed provisions; and\n(b) persons mentioned in paragraph (a) disgorge all such\ngains.\nDiscretionary fine criteria\n\nApplication of discretionary fine criteria\n55W.\nFor the purposes of regulation 55S(5) and 55V(1)(a), the criteria for\nexercising fine discretions shall apply when \u2014\n(a)\nissuing breach notices;\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 22\n\nc\nSL 28 of 2019\nPage 17\n\n(b) considering or reconsidering matters under regulation\n55ZD(2) or 55ZO(2)(b); and\n(c)\nimposing discretionary fines.\n\nCriteria in relation to both fine and amount\n55X. (1) The following are the criteria for exercising fine discretions under\nregulation 55W \u2014\n(a)\nthe nature and seriousness of the breach;\n(b) the degree of the party\u2019s inadvertence, intent or negligence in\ncommitting the breach;\n(c)\nwhere the breach is a continuing one, its duration;\n(d) the measures or precautions the party took to prevent the\nbreach;\n(e)\nthe measures or precautions that a reasonable person in the\nparty\u2019s position, acting prudently and exercising due diligence,\nwould have taken to prevent the breach;\n(f)\nwhether 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\nexample, someone else\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\nmislead the Supervisory Authority;\n(i)\nthe party\u2019s conduct after becoming aware of the breach,\nincluding \u2014\n(i)\nwhether and how quickly the party brought the breach to\nthe attention of the Supervisory Authority; and\n(ii) the party\u2019s efforts to remedy the breach or prevent its\nreoccurrence;\n(j)\nany financial or other damage or loss or other harm done or\ncaused by the breach, including, for example, to \u2014\n(i)\nthe party\u2019s creditors, customers, investors, policyholders\nor shareholders; or\n(ii) the performance of the functions of the Supervisory\nAuthority;\n(k) whether, before or after the breach, there was a change to the\nparty\u2019s business or affairs that affects or may affect the\nconsequences of the breach for the party, including, for\nexample, the party\u2019s ability to pay a fine;\n\nRegulation 22\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 18\nSL 28 of 2019\nc\n\n(l)\nwhere the Supervisory Authority previously imposed a fine on\nthe party for a similar breach, the amount of that fine; and\n(m) the party\u2019s history of compliance with these Regulations and\nsimilar laws in other jurisdictions in the five years before the\nbreach.\n(2) A Supervisory Authority designated for a DNFBP shall only take\ninto account the party\u2019s compliance with and breaches of those laws\nin other jurisdictions of which it is aware or made aware by the\nparty, when considering the criteria under paragraph (1)(m) .\n(3) Paragraph (2) applies even if no punishment was imposed or no\nother action relating to the breach was taken under those laws in\nother jurisdictions.\n\nAdditional criteria in relation to fine amount\n55Y.\nIn deciding the amount of a fine when exercising fine discretions,\nthe criteria also includes \u2014\n(a) the 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\nimposing a fine in the amount proposed; and\n(c)\na circumstance that aggravates, or may tend to aggravate, the\nbreach or its effects.\n\nPower to discount usual fine to reflect agreement\n55Z. (1) A Supervisory Authority designated for a DNFBP may negotiate\nwith a party to attempt to reach a discount agreement with the party,\nwhether or not it has given a breach notice.\n(2) Subject to paragraph (3), the Supervisory Authority may discount\nthe usual fine to reflect the fact of the discount agreement and the\nstage in the fine process under regulations 55ZA, 55ZB, 55ZC,\n55ZD, 55ZE, 55ZF and 55ZG at which the agreement was reached.\n(3) The Supervisory Authority shall not discount any component of the\nusual fine that represents the application of the disgorgement\nprinciple under regulation 55V.\n(4) In this regulation, \u201cusual fine\u201d means the amount of the fine the\nSupervisory Authority decided, or would otherwise have decided \u2014\n(a)\nbefore taking into account the discount agreement; and\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 22\n\nc\nSL 28 of 2019\nPage 19\n\n(b) after considering \u2014\n(i)\nany relevant criteria, including the criteria and principles\nunder regulation 55V; and\n(ii) the criteria under regulation 55X or 55Y.\nGeneral\n\nSteps required\n55ZA. (1) A Supervisory Authority designated for a DNFBP may only impose\na minor fine or discretionary fine by taking the following steps \u2014\n(a)\ngiving a party a breach notice;\n(b) where regulation 55ZD or 55ZE applies, complying with that\nregulation; and\n(c)\ngiving a party a fine notice.\n(2) The following exceptions apply in relation to the steps under\nparagraph (1) where a Supervisory Authority designated for a\nDNFBP decides to impose a discretionary fine \u2014\n(a)\nwhere the party entered into a discount agreement for the\nbreach and the fine is no more than the amount agreed under\nthe agreement, a fine notice may be given without first giving\na breach notice; and\n(b) where a fine is varied on appeal under regulation 55ZO(2), the\nsteps do not apply to the fine as varied.\n(3) A Supervisory Authority designated for a DNFBP may only impose\na minor fine (continuing) \u2014\n(a)\nby giving the party a fine notice; and\n(b) if the relevant minor fine is not stayed.\n(4) A decision in relation to the imposition of a minor fine, a minor fine\n(continuing) or a discretionary fine shall be made on the balance of\nprobabilities.\n\nNotice containing an inaccuracy\n55ZB. A breach notice, rectification notice or fine notice which contains an\ninaccuracy is only invalid because of the inaccuracy where a party\nestablishes that \u2014\n(a) the inaccuracy was material; and\n(b) the inaccuracy misled the party.\n\nRegulation 22\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 20\nSL 28 of 2019\nc\n\nBreach notice and reply\n\nRequirements for breach notice\n55ZC.(1) A breach notice shall be dated and state the following \u2014\n(a)\nthe party\u2019s name;\n(b) that the Supervisory Authority proposes to impose a fine on\nthe party for a specified breach that the Supervisory Authority\nbelieves the party committed;\n(c)\nthe prescribed provision for which the fine is proposed to be\nimposed;\n(d) the nature of the specified breach;\n(e)\na summary of the facts and circumstances that the Supervisory\nAuthority believes constituted the specified breach;\n(f)\nwhether the Supervisory Authority proposes to impose \u2014\n(i)\na minor fine; or\n(ii) a discretionary fine,\nfor the specified breach and the amount of the fine;\n(g) that the party may give the Supervisory Authority a reply\nwithin the reply period under paragraph (2); and\n(h) that, for a minor fine, the party may give the Supervisory\nAuthority a rectification notice.\n(2) The reply period shall end no less than thirty days after the giving\nof a breach notice.\n\nDuty to consider reply\n55ZD. (1) A Supervisory Authority designated for a DNFBP shall act in\naccordance with paragraph (2) where \u2014\n(a)\na breach notice is given for a minor fine, minor fine\n(continuing) or discretionary fine;\n(b) the reply period ends; and\n(c)\na reply is given.\n(2) Where paragraph (1) applies, the Supervisory Authority under\nparagraph (1) shall \u2014\n(a)\nreconsider whether it still holds the belief stated in the breach\nnotice, in light of all the matters raised in the reply concerning\nthat belief; and\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 22\n\nc\nSL 28 of 2019\nPage 21\n\n(b) where a breach notice was for a discretionary fine, consider\nthe matters raised in the reply to the extent that the matters\nraised are relevant to exercising fine discretions.\n\nRectification of a breach subject to a minor fine\n55ZE. (1) A Supervisory Authority designated for a DNFBP shall act in\naccordance with paragraph (2) where \u2014\n(a)\na breach notice is given for a minor fine;\n(b) the party subject to the breach notice rectifies the breach\nspecified in the notice within thirty days of receiving the\nnotice;\n(c)\nthe reply period ends; and\n(d) a rectification notice is given.\n(2) Where paragraph (1) applies, the Supervisory Authority under\nparagraph (1) shall consider, in light of the matters raised in the\nrectification notice, whether the specified breach is rectified within\nthirty days of the issue of the breach notice to its satisfaction.\n(3) Where the Supervisory Authority is satisfied that the breach is\nrectified as described in paragraph (2) and, in the case of the breach\nof a filing requirement that the party has requested a filing\nextension and paid any applicable filing extension fees, the\nSupervisory Authority shall \u2014\n(a)\nrefrain from issuing a fine notice or imposing a fine on the\nparty for the breach; and\n(b) give the party notice of its decision in accordance with\nregulation 55ZF(6).\nImposing a fine\n\nDecision about fine\n55ZF. (1) This regulation applies at the end of the reply period in relation to a\nbreach notice where \u2014\n(a)\nno reply is given;\n(b) a reply is given and a Supervisory Authority designated for a\nDNFBP has complied with regulation 55ZD; or\n(c)\na rectification notice is given and the Supervisory Authority\ndesignated for a DNFBP has complied with regulation 55ZE.\n(2) Where a breach notice is issued for a minor fine or minor fine\n(continuing) and a Supervisory Authority \u2014\n\nRegulation 22\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 22\nSL 28 of 2019\nc\n\n(a)\ncontinues to hold the belief stated in the notice; and\n(b) is not satisfied that the breach was rectified within thirty days\nof the issue of the notice,\nthe Supervisory Authority shall impose a fine in accordance with\nregulation 55S.\n(3) Where a breach notice is issued for a discretionary fine, the\nSupervisory Authority may exercise fine discretions.\n(4) The amount of a discretionary fine shall not be more than the\namount stated in the breach notice.\n(5) Where a Supervisory Authority designated for a DNFBP imposes a\nfine, it may decide that the fine is payable immediately on the\ngiving of a fine notice or within a particular period stated in the fine\nnotice.\n(6) Where a Supervisory Authority designated for a DNFBP decides\nnot to impose a fine, it shall give the party notice of the decision\nwithin fifteen days after the end of the reply period.\n\nRequirements for fine notice\n55ZG. (1) A fine notice shall be dated and state the following \u2014\n(a)\nthe party\u2019s name;\n(b) that the Supervisory Authority has imposed a specified fine on\nthe party;\n(c)\nthe amount of the fine; and\n(d) when the fine shall be paid.\n(2) Where the specified fine is a minor fine, the fine notice under\nparagraph (1) shall also state \u2014\n(a)\nthe prescribed provision for which the fine is imposed;\n(b) a description of the breach;\n(c)\nwhere a reply is given during the reply period, the reasons\nwhy the Supervisory Authority continues to hold the belief\nstated in the breach notice;\n(d) if a rectification notice was given within the reply period, the\nreasons why the Supervisory Authority is not satisfied that the\nbreach was rectified within thirty days of the issue of the\nbreach notice; and\n(e)\nthat the party may, within thirty days after receiving the fine\nnotice, apply to the relevant person or body within the\nSupervisory Authority to review the decision to impose the\nfine.\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 22\n\nc\nSL 28 of 2019\nPage 23\n\n(3) Where the specified fine is a minor fine (continuing), the fine notice\nunder paragraph (1) shall also state \u2014\n(a) the date of the fine notice given for the relevant minor fine;\nand\n(b) that the party may, within thirty days after receiving the fine\nnotice, apply to the relevant person or body within the\nSupervisory Authority to review the decision to impose the\nfine.\n(4) Where the specified fine is a discretionary fine, the fine notice\nunder paragraph (1) shall also 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\nexercised; and\n(d) that the party may, within thirty days after receiving the fine\nnotice, apply to the Grand Court for leave to appeal against the\ndecision to impose the fine, the amount of the fine or both.\nInternal review of minor fines by a Supervisory Authority\ndesignated for a DNFBP\n\nApplication to relevant person or body within the Supervisory\nAuthority designated for a DNFBP for review\n55ZH. (1) A party who has received a fine notice for a minor fine or minor\nfine (continuing) may apply to the Supervisory Authority\ndesignated for the DNFBP for the relevant person or body within\nthe Supervisory Authority to review the original decision.\n  (2) An application under paragraph (1) shall \u2014\n(a)  be made within thirty days from the date of receipt of the fine\nnotice; and\n(b)  shall contain \u2014\n(i)\nin respect of the applicant \u2014\n(A) the name of the applicant;\n(B) the physical address of the applicant; and\n(C) the email address of the applicant; and\n(ii) in respect of the particulars of the application \u2014\n(A) the prescribed provision set out in the fine notice;\n\nRegulation 22\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 24\nSL 28 of 2019\nc\n\n(B) the grounds on which the applicant relies for the\nreview; and\n(C) the facts and circumstances on which the applicant\nrelies for the review.\n\nNo stay of original decision\n55ZI.\nAn application for review under regulation 55ZH does not stay the\noperation of the original decision.\n\nDecision by relevant person or body within the Supervisory\nAuthority upon review\n55ZJ.(1) The relevant person or body within a Supervisory Authority\ndesignated for a DNFBP shall, within twenty days after receiving an\napplication for review under regulation 55ZH, reconsider the\noriginal decision and decide whether to affirm or set aside the\noriginal decision.\n(2) The relevant person or body within the Supervisory Authority shall,\nwithin ten days after making a decision on the application, give the\nparty notice of its decision.\n(3) Where the relevant person or body within the Supervisory Authority\naffirms the original decision, the notice of the decision on the\napplication for review shall state \u2014\n(a) the reasons for the decision; and\n(b) that the party may apply to the Grand Court for judicial review\nof the decision.\n(4) Where the relevant person or body within the Supervisory Authority\nsets aside the original decision, the original decision is deemed to\nhave never been made.\n(5) The appropriate person within the Supervisory Authority who made\nthe original decision may make written representations to the\nrelevant person or body within the Supervisory Authority\nconcerning an application for review of the original decision, but\nshall not otherwise participate in any discussion, decision, debate or\nvote of the relevant person or body concerning the review.\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 22\n\nc\nSL 28 of 2019\nPage 25\n\nAppeal against discretionary fines to Grand Court\n              Application to the Grand Court for leave to appeal\n55ZK. (1) A party who receives a fine notice for a discretionary fine may\napply to the Grand Court within thirty days after receiving the fine\nnotice for leave to appeal against the original decision.\n(2) The Grand Court may only grant leave to appeal under this\nregulation where \u2014\n(a)\nthe party has grounds for seeking judicial review of the\ndecision; or\n(b) the decision was made with a lack of proportionality or was\nnot rational.\n(3) Notwithstanding paragraph (1), a party may not apply for leave to\nappeal against the original decision if the party entered into a\ndiscount agreement for the breach and the fine is no more than the\namount agreed to in the discount agreement.\n\nApplication of Grand Court Rules and practice directions on\njudicial review\n55ZL. (1) The Grand Court Rules, 1995 and the Court\u2019s practice directions\nabout judicial review apply to an appeal, with necessary changes, as\nif the appeal were an application for judicial review.\n(2) Notwithstanding paragraph (1), the Court\u2019s rules about alternative\ndispute resolution do not apply to the appeal.\n\nSecurity for costs\n55ZM.\nA Supervisory Authority designated for a DNFBP may apply to the\nGrand Court for \u2014\n(a)\nan order that the appellant provide sufficient security for costs;\nand\n(b) a stay of the appeal proceedings until the security is provided.\n\nStay of original decision only by application\n55ZN. (1) An appeal does not stay the operation of an original decision.\n(2) The Grand Court may, on an appellant\u2019s application, order that the\nfine imposed by an original decision be stayed to secure the\neffectiveness of the appeal.\n(3) The stay ordered by the Grand Court under paragraph (2)\u2014\n(a)\nmay be given on conditions that the Grand Court considers\nappropriate;\n\nRegulation 22\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 26\nSL 28 of 2019\nc\n\n(b) operates for the period fixed by the Grand Court; and\n(c)\nmay be amended or revoked by the Grand Court.\n(4) The period of a stay shall not extend past when the Grand Court\ndetermines the appeal.\n\nHearing and outcome\n55ZO. (1) An appeal may only be determined on the evidence on which the\nSupervisory Authority exercised 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\nSupervisory Authority for it to reconsider subject to such\ndirections as the Court considers fit.\n(3) The following apply if the Grand Court\u2019s decision is to affirm the\noriginal decision or to vary it in a way that a fine is still imposed \u2014\n(a)\nthe Grand Court\u2019s decision is (other than in relation to\nregulations 55ZA, 55ZH and 55ZK) deemed to have been the\noriginal decision;\n(b) the Grand Court may, at the Supervisory Authority\u2019s request,\ngive judgment against the party for all or any part of the fine\nthat continues to be owing, and for interest; and\n(c)\nthe request of the Supervisory Authority under subparagraph\n(b) may be made during the appeal, when the Grand Court\u2019s\ndecision is handed down or at any later time on the tendering\nof a certificate under regulation 55ZU(2)(d) about the amount\nowing.\n(4) Where the Grand Court sets aside the original decision and does not\nremit the matter to the Supervisory Authority for reconsideration \u2014\n(a)\nboth the fine and interest are deemed to have never been\nowing; and\n(b) any minor fine (continuing) imposed for the breach is deemed\nto have also been set aside and to have never been owed.\nFine is a debt to the Crown\n\nFine is a debt to the Crown\n55ZP.(1) Subject to paragraph (2), where a fine is not paid by the date stated\nin the relevant fine notice, the fine becomes a debt owing to the\nCrown.\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 22\n\nc\nSL 28 of 2019\nPage 27\n\n(2) The following factors affect whether the fine in the fine notice\nbecomes a debt owing to the Crown under paragraph (1) \u2014\n(a)\nwhether the fine was set aside on review under regulation\n55ZJ or on appeal under regulation 55ZO; and\n(b) whether the fine was varied on appeal under regulation 55ZO.\n(3) Where the fine under the fine notice was varied on appeal under\nregulation 55ZO, the varied fine becomes a debt owing to the\nCrown where the fine is not paid by the date stated in the order of\nthe Grand Court.\n\nInterest on fines\n55ZQ.(1) Interest accrues at a rate of five per cent annually while all or any\npart of a fine continues to be owing, starting on the day immediately\nafter the fine becomes a debt to the Crown and ending on the day\nthe fine is paid in full.\n(2) Interest under paragraph (1) accrues daily and as compound\ninterest.\n(3) Interest under paragraph (1) is 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\nin a review applied for under regulation 55ZH or an appeal.\n\nPayment of more than one fine\n55ZR.\nWhere more than one fine is imposed on a party, payments for the\nfines are to be applied in the order in which the fines and interest\nbecame owing.\n\nEnforcement\n55ZS.(1) The Crown may recover in a civil proceeding, as a debt owing to\nthe Crown, the unpaid amount of a fine or interest, or both.\n(2) Paragraph (1) does not apply while the fine is stayed.\n(3) A proceeding to recover a debt under this regulation does not\nprevent \u2014\n(a)\ninterest continuing to accrue on the total owing; or\n(b) where the party is a body corporate, the Crown enforcing the\nfine by serving a winding up notice for the debt.\n\nRegulation 22\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 28\nSL 28 of 2019\nc\n\nMiscellaneous\n\nElectronic notices by the Supervisory Authority\n55ZT. (1) A Supervisory Authority designated for a DNFBP may give a party\na notice for any purpose under these Regulations by sending it to \u2014\n(a)\nthe email address that the party last provided the Supervisory\nAuthority with;\n(b) where the party is a body corporate (either in its own right or\nas a trustee of a trust), the email address that the body\ncorporate last provided to the Supervisory Authority, of \u2014\n(i)\nany of its directors or members; or\n(ii) its registered office provider; or\n(c)\nwhere the party is a partnership, the email address that the\npartnership last provided to the Supervisory Authority of \u2014\n(i)\nany of its partners; or\n(ii) its registered office provider (if the party has a registered\noffice).\n(2) In this regulation \u2014\n\u201cpartner\u201d does not include a limited partner of a limited\npartnership; and\n\u201cregistered office provider\u201d means the person who provides or\nmaintains the party\u2019s registered office as required by law.\n\nEvidentiary provisions\n55ZU.(1) A signature purporting to be the signature of anyone acting on\nbehalf of the Supervisory Authority designated for a DNFBP is\nevidence of the signature it purports to be, unless the contrary is\nproved.\n(2) A certificate signed, or purporting to be signed, by anyone acting on\nthe Supervisory Authority\u2019s behalf stating a matter as follows, is\nevidence \u2014\n(a)\nthat a stated document is a copy of a notice given under this\nPart;\n(b) that an email address stated in the copy was, when the notice\nwas given to its stated recipient, the recipient\u2019s email address\nunder regulation 55ZT;\n(c)\nthat on a stated day the recipient was given the notice in a\nstated way; or\n(d) that a fine of a stated amount is owing by a stated person.\u201d.\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 23\n\nc\nSL 28 of 2019\nPage 29\n\n23.\nSchedule repealed and substituted\n23. The principal Regulations are amended by repealing the Schedule and substituting\nthe following Schedules \u2014\n\u201cSCHEDULE 1\n(regulation 2)\nCLASSES OF LONG TERM BUSINESS\n\nNumber\nDescription\nNature of Business\n1\nLife and annuity\nEffecting and carrying out contracts of\ninsurance on human life or contracts to\npay annuities on human life, but\nexcluding (in each case) contracts\nwithin Class 3 below.\n\n2\nMarriage and birth\nEffecting and carrying out contracts of\ninsurance to provide a sum on marriage\nor on the birth of a child, being contracts\nexpressed to be in effect for a period of\nmore than one year.\n\n3\nLinked long term\nEffecting and carrying out contracts of\ninsurance on human life or contracts to\npay annuities on human life where the\nbenefits are wholly or partly to be\ndetermined by reference to the value of,\nor the income from, property of any\ndescription (whether or not specified in\nthe contracts) or by reference to\nfluctuations in, or in an index of, the\nvalue of property of any description\n(whether or not so specified).\n\n4\nPermanent health\nEffecting and carrying out contracts of\ninsurance providing specified benefits\nagainst risks of persons becoming\nincapacitated\nin\nconsequence\nof\nsustaining injury as a result of an\naccident, of an accident of a specified\nclass or of sickness or infirmity, being\ncontracts that \u2014\n\nRegulation 23\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\n\nPage 30\nSL 28 of 2019\nc\n\n(a) are expressed to be in effect for a\nperiod of not less than five years for\nthe persons concerned, or without\nlimit of time; and\n(b)either are not expressed to be\nterminable by the insurer, or are\nexpressed to be so terminable only\nin special circumstances mentioned\nin the contract.\n\n5\nTontines\nEffecting and carrying out tontines.\n\n6\nCapital redemption\nEffecting\nand\ncarrying\nout\ncapital\nredemption contracts.\n\n7\nPension fund\nmanagement\nEffecting and carrying out \u2014\n(a)contracts to manage the investments\nof pension funds; or\n(b)contracts of the kind mentioned in\nparagraph (a) that are combined with\ncontracts\nof\ninsurance\ncovering\neither conservation of capital or\npayment of a minimum interest.\n\nAnti-Money Laundering (Amendment)(No.2) Regulations, 2019\nRegulation 23\n\nc\nSL 28 of 2019\nPage 31\n\nSCHEDULE 2\n(regulation 55R)\nPRESCRIBED PROVISIONS AND BREACH CATEGORIES\n\nColumn 1\nPrescribed\nprovision\nColumn 2\nCategory of\nbreach\n5(a), (c) , (d)\nor (e)\nSerious\n5(b)\nVery serious\n10\nVery serious\n36\nSerious\n37\nSerious\n39\nSerious\n40(1) to (5)\nSerious\n40(6)\nVery serious\n42\nSerious\n43\nSerious\n44\nSerious\n47(3) to (5)\nSerious\n48\nVery serious\n50 and 51\nVery serious\n52 and 53\nSerious\n53A\nMinor\n55F\nSerious\n55M\nMinor\n55O\nMinor\n57\nSame as for the body corporate\u201d.\n\nMade in Cabinet the 16th day of July, 2019.\n\nKim Bullings\nClerk of the Cabinet","akn_extracted_at":"2026-06-22 15:41:16.704722+00","cms_id":"2019-1028","law_type":"amending","year":"2019","number":"1028","title":"Anti-Money Laundering (Amendment)(No.2) Regulations, 2019 (SL 28 of 2019)","status":"spent"},"provenance":{"files":[{"file_id":"6738","expr_id":"1947","kind":"akn_xml","filename":"2019-1028.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2019\/2019-1028\/2019-1028.akn.xml","content_md5":"7e440bb0a5763dec3f140a4c27003fdd","byte_size":"56189","http_last_modified":null,"fetched_at":"2026-06-22 15:41:16.923677+00"},{"file_id":"3893","expr_id":"1947","kind":"pristine_pdf","filename":"2019-1028.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2019\/2019-1028\/2019-1028.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/AMENDING\/2019\/2019-1028\/2019-1028.pdf","content_md5":"f5fffd595b83cb8b6881dc67cd25d5ec","byte_size":"676234","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.11579+00"},{"file_id":"3894","expr_id":"1947","kind":"working_pdf","filename":"2019-1028.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2019\/2019-1028\/2019-1028.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2019\/2019-1028\/2019-1028.pdf","content_md5":"f5fffd595b83cb8b6881dc67cd25d5ec","byte_size":"676234","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.11579+00"}],"paragraph_count":16,"latest_history":null},"quality":{"expr_id":"1947","doc_id":"1947","quality_state":"needs_review","quality_score":"84","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise}","llm_categories":"{}","repair_actions":"{collapse_duplicate_text,strip_page_furniture}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"repeated line furniture detected: cayman islands x3; proceeds of crime law x3; 2019 revision x3; duplicate-line ratio is 11.49%","assessed_at":"2026-06-22 15:29:46.242434+00","updated_at":"2026-06-22 15:29:46.242434+00"}}