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Transitional provision for the Monetary Authority (Amendment) Law, 2016 [Law 27 of SCHEDULE 1 Regulation of Banks, Trust Companies, Company Management, Insurance Companies, Mutual SCHEDULE 2 SCHEDULE 3 ENDNOTES Monetary Authority Law (2020 Revision) MONETARY AUTHORITY LAW (2020 Revision) PART I - Preliminary\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title 1. This Law may be cited as the Monetary Authority Law (2020 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Definitions 2. In this Law \u2014 \u201cadvisory functions\u201d means the functions of the Authority specified in section 6(1)(d); \u201canti-money laundering regulations\u201d means regulations made under section 145 or section 201 of the Proceeds of Crime Law (2020 Revision); \u201cAuthority\u201d means the Cayman Islands Monetary Authority referred to in section 5; \u201cbank\u201d means a person carrying on a banking business and licensed as such in the Islands or elsewhere; \u201cboard\u201d means the board of directors established under section 11; \u201cbreach\u201d includes a contravention and, in relation to a prescribed provision, includes allowing or not allowing a prescribed state of affairs to exist and engaging or not engaging in prescribed conduct; Monetary Authority Law (2020 Revision) \u201cbuilding society\u201d means a society incorporated under the Building Societies Law (2020 Revision); \u201ccivil and administrative investigations and proceedings\u201d mean proceedings in any court of law in the jurisdiction of an overseas regulatory authority and investigations undertaken by the overseas regulatory authority preliminary to bringing such proceedings; \u201cClass \u201cA\u201d bank\u201d means a bank which is the holder of a licence under section 6(5)(a) of the Banks and Trust Companies Law (2020 Revision); \u201cco-operative functions\u201d means the functions of the Authority specified in section 6(1)(c); \u201ccredit union\u201d means a cooperative society registered under the Cooperative Societies Law (2020 Revision) and having as its objects \u2014 (a) the promotion of thrift among the members of the society by the accumulation of their savings; (b) the creation of sources of credit for the benefit of the members of the society at a fair and reasonable rate of interest; (c) the use and control of the members savings for their mutual benefit; and (d) the training and education of the members in the wise use of money and in the management of their financial affairs; \u201ccross border supervision\u201d means supervision in relation to an entity located in the Islands but which is regulated by an overseas regulatory authority in another territory or country; \u201ccurrency notes\u201d and \u201ccoins\u201d mean, respectively, the currency notes and coins issued under this Law; \u201cCurrency Reserve\u201d means the reserve established under section 32; \u201cdemand liabilities\u201d means the total value of \u2014 (a) amounts standing to the credit of any accounts opened for any local banks or for the Government of the Islands; and (b) (i) currency notes in circulation; and (ii) an amount not less than ten per cent of the nominal value of coins in circulation, other than such currency notes and coins as are no longer legal tender and in respect of which a transfer to the general revenue of the Islands has been made under section 29(3); \u201cdirector\u201d means a director of the Authority appointed under section 12; \u201cexternal assets\u201d means assets denominated in a currency other than the Cayman dollar and representing a claim on a non-resident of the Islands; Monetary Authority Law (2020 Revision) \u201cfinancial services business\u201d means business regulated under any regulatory law; \u201cfinancial year\u201d means the financial year of the Authority as defined in section 39; \u201cfine\u201d, other than for a provision the breach of which is an offence, means an administrative fine under section 42A(1); \u201cGeneral Reserve\u201d means the reserve established under section 8; \u201chead office\u201d means the head office of the Authority established under section 5(4); \u201clicensee\u201d means a person holding a licence under the regulatory laws, and includes a building society and a credit union; \u201clocal bank\u201d means any bank or branch thereof authorised to transact business as such in the Islands; \u201cManagement Committee\u201d means the committee established under section 16(1); \u201cmanaging director\u201d means the managing director of the Authority appointed under section 13; \u201cmonetary functions\u201d means the functions of the Authority specified in section 6(1)(a); \u201cmoney laundering\u201d has the meaning given by section 144(10) of the Proceeds of Crime Law (2020 Revision); \u201cmoney services business\u201d means \u2014 (a) the business of providing (as a principal business) any or all of the following services \u2014 (i) money transmission; (ii) cheque cashing; (iii) currency exchange; (iv) the issuance, sale or redemption of money orders or travellers cheques; and (v) such other services as the Cabinet may specify by notice published in the Gazette; or (b) the business of operating as an agent or franchise holder of a business mentioned in paragraph (a), and any question as to whether the provision of a service is the principal business of any person shall be determined by the Authority; \u201coverseas regulatory authority\u201d means an authority which, in a country or territory outside the Islands, exercises functions corresponding to \u2014 (a) any of the regulatory functions of the Authority; or Monetary Authority Law (2020 Revision) (b) any additional functions as may be specified in regulations including the conduct of civil and administrative investigations and proceedings to enforce laws, regulations and rules administered by that authority; \u201cprescribed provision\u201d means a provision for which the Authority may impose an administrative fine under section 42A(1); \u201cprivate sector association\u201d means an association specified in Schedule 3; \u201cpublic officer\u201d has the meaning assigned to it by section 124(1) of the Cayman Islands Constitution Order 2009 [UKSI 2009\/1379]; \u201cregulatory functions\u201d means the functions of the Authority, specified in section 6(1)(b) or, in relation to an overseas regulatory authority, functions corresponding to the functions of the Authority, specified in section 6(1)(b); \u201cregulatory handbook\u201d means the handbook issued by the board under section 48; \u201cregulatory laws\u201d means any one or more of the following Laws and Regulations made under them \u2014 (a) Banks and Trust Companies Law (2020 Revision); (b) Building Societies Law (2020 Revision); (c) Companies Management Law (2018 Revision); (d) Cooperative Societies Law (2020 Revision); (da) Development Bank Law (2018 Revision); (e) Insurance Law, 2010 [Law 32 of 2010]; (f) Money Services Law (2020 Revision); (g) Mutual Funds Law (2020 Revision); (ga) Directors Registration and Licensing Law, 2014, [Law 10 of 2014]; and (h) Securities Investment Business Law (2020 Revision), and any other laws that may be prescribed by the Cabinet by regulations made under section 46; and \u201crelevant financial business\u201d has the meaning given by section 2 of the Proceeds of Crime Law (2020 Revision); and \u201crules\u201d means rules issued and gazetted under section 34 or 42G. 2A. References to Law include regulations and rules 2A. In this Law, a reference to this Law or a provision of this Law, includes, if the context permits, a reference to regulations made and rules issued under this Law or the provision. Monetary Authority Law (2020 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Determination of fitness and propriety 3. In determining for the purposes of this Law whether a person is a fit and proper person, regard shall be had to all circumstances, including that person\u2019s \u2014 (a) honesty, integrity and reputation; (b) competence and capability; and (c) financial soundness.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Private sector consultation 4. (1) When this Law requires private sector consultation in relation to a proposed measure \u2014 (a) the Authority shall give to each private sector association a draft of the proposed measure, together with \u2014 (i) an explanation of the purpose of the proposed measure; (ii) an explanation of the Authority\u2019s reasons for believing that the proposed measure is compatible with the Authority\u2019s functions and duties under section 6; (iii) an explanation of the extent to which a corresponding measure has been adopted in a country or territory outside the Islands; (iv) an estimate of any significant costs of the proposed measure, together with an analysis of the benefits that will arise if the proposed measure is adopted; and (v) notice that representations about the proposed measure may be made to the Authority within a period specified in the notice (not being less than thirty days or such shorter period as may be permitted by subsection (3)); and (b) before proceeding with the proposed measure, the Authority shall have regard to any representations made by the private sector associations, and shall give a written response, which shall be copied to all the private sector associations. (2) When this Law requires consultation with the Financial Secretary in relation to a proposed measure \u2014 (a) a copy of the representations made by the private sector associations (or, if not in writing, the Authority\u2019s account of them); and (b) a copy of the Authority\u2019s response to the representations, shall be forwarded to the Minister charged with responsibility for Financial Services together with a draft of the proposed measure. (3) If the Authority considers that a measure is urgently required for the protection of members of the public, the Authority may specify a period less than thirty Monetary Authority Law (2020 Revision) days under subsection (1)(a)(v), or postpone private sector consultation until after the measure has been adopted. (4) The Cabinet may by Order amend Schedule 3. PART II - Establishment, Capital and Administration of Authority\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Establishment of Authority 5. (1) There is established an Authority to be called the Cayman Islands Monetary Authority which shall be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in its corporate name. (2) For the purpose of carrying out its functions under this Law the Authority may buy, sell, hold, deal and otherwise acquire and dispose of land and other property of whatsoever nature and may enter into contracts whether of agency or otherwise. (3) All deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the common seal of the Authority by the authority of the Authority in the presence of the chairperson or managing director and of one other director of the Authority. (4) The Authority shall establish and maintain its head office and principal place of business within the Islands, and shall cause details thereof to be gazetted, and service of all documents on the Authority shall be deemed to be effective if delivered at the head office. (5) The Authority may, by resolution, appoint an officer of the Authority or any other agent either generally or in a particular case to execute or sign on behalf of the Authority any agreement or other instrument not under seal in relation to any matter coming within the powers of the Authority.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Principal functions of Authority 6. (1) The principal functions of the Authority are \u2014 (a) monetary functions, namely \u2014 (i) to issue and redeem currency notes and coins; and (ii) to manage the Currency Reserve, in accordance with this Law; (b) regulatory functions, namely \u2014 (i) to regulate and supervise financial services business carried on in or from within the Islands in accordance with this Law and the regulatory laws; Monetary Authority Law (2020 Revision) (ii) to monitor compliance with the anti-money laundering regulations; and (iii) to perform any other regulatory or supervisory duties that may be imposed on the Authority by any other law; (c) co-operative functions, namely, to provide assistance to overseas regulatory authorities in accordance with this Law; and (d) advisory functions, namely, to advise the Government on the matters set out in paragraphs (a) to (c) and, in particular, with regard to \u2014 (i) whether the regulatory functions and the co-operative functions are consistent with functions discharged by an overseas regulatory authority; (ii) whether the regulatory laws are consistent with the laws and regulations of countries and territories outside the Islands; and (iii) the recommendations of international organisations. (2) In performing its functions and managing its affairs, the Authority shall \u2014 (a) act in the best economic interests of the Islands; (b) promote and maintain a sound financial system in the Islands; (c) use its resources in the most efficient and economic way; (d) have regard to generally accepted principles of good corporate governance; (e) comply with this and any other law, including any regulations or directions made or given thereunder; and (f) have such ancillary powers as may be required to fulfil the functions set out in paragraphs (a) to (e). (3) In performing its regulatory functions and its co-operative functions, the Authority shall, in addition to complying with the requirements of subsection (2) \u2014 (a) endeavour to promote and enhance market confidence, consumer protection and the reputation of the Islands as a financial centre; (b) endeavour to reduce the possibility of financial services business or relevant financial business being used for the purpose of money laundering or other crime; (c) recognise the international character of financial services and markets and the necessity of maintaining the competitive position of the Islands, from the point of view of both consumers and suppliers of financial services, while conforming to internationally applied standards insofar as they are relevant and appropriate to the circumstances of the Islands; Monetary Authority Law (2020 Revision) (d) recognise the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction; (e) recognise the desirability of facilitating innovation in financial services business; and (f) recognise the need for transparency and fairness on the part of the Authority. (4) In exercising its co-operative functions, the Authority shall, in addition to complying with the requirements of subsection (2) \u2014 (a) have regard to the matters mentioned in section 50(4); and (b) comply with section 50(8).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Authorised capital 7. (1) The authorised capital of the Authority shall be one hundred million dollars and may be increased, from time to time, by regulations made by the Cabinet. (2) On the establishment of the Authority, such portion of the authorised capital, as the Cabinet may decide, shall be subscribed and paid-up by Government, and shall be held on behalf of Government by the person nominated by Order by the Cabinet. (3) The paid-up portion of the authorised capital may be varied, from time to time, by such amount as the Cabinet may approve. (4) The payment of any increase in the paid-up capital referred to in subsection (3) may be made by way of transfers from the General Reserve. (5) Where a variation of the paid-up portion of the authorised capital is approved by the Cabinet pursuant to subsection (3), and results in the paid up capital being reduced, any excess capital shall be transferred by the Authority to the general revenue of the Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"General Reserve 8. (1) There shall be a General Reserve of the Authority to which shall be allocated any amounts that may become available under section 10. (2) In the event that the General Reserve, after the allocation of amounts under section 10, amounts to less than fifteen per cent of the demand liabilities of the Authority, the Government may appropriate such funds from the general revenue of the Islands as are required to extinguish all or part of such deficiency. Monetary Authority Law (2020 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Calculated profits 9. The net profits of the Authority for any financial year shall include, but shall not be limited to, the income from the investments of the Authority, and the profits from the sales of investments belonging to the Authority; and shall be determined by the Authority after meeting or providing for all expenditure for that year and making such provisions for contingencies and the establishment of such additional reserves as it may consider desirable.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Allocation of profits 10. (1) The net profits of the Authority for each financial year shall be calculated in accordance with section 9 and shall be distributed as follows \u2014 (a) firstly, such amount from the net profits of the Authority as the board may determine to be consistent with the prudent management of the Authority, shall be allocated to the Currency Reserve so that the Currency Reserve shall, subject to section 32(7), be maintained at a level of at least one hundred per cent of the demand liabilities of the Authority; (b) secondly, so long as the General Reserve established under section 8 amounts to less than fifteen per cent of the demand liabilities of the Authority at the end of the financial year in which such profits were earned, there shall be allocated to the General Reserve all such net profits or such lesser amount as shall make the General Reserve equivalent to fifteen per cent of the said liabilities; and (c) any net profits not allocated in accordance with paragraph (a) or (b) shall be transferred to the general revenue of the Islands. (2) Where the total assets of the Authority are less than the total liabilities of the Authority such deficiency shall be a first charge on the Authority\u2019s net profits.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Board of directors 11. (1) There shall be a board of directors of the Authority which, subject to this Law, shall be responsible for the governance, policy and performance of the Authority and the general conduct of its affairs and business. (2) The board shall consist of \u2014 (a) the managing director as an ex officio director; and (b) not more than nine other directors (including the chairperson of the board and the deputy chairperson of the board), appointed in accordance with sections 12 and 13, each of whom shall be a fit and proper person and shall have demonstrated to the satisfaction of the Cabinet substantial knowledge and experience relevant to at least some of the functions of the Authority. Monetary Authority Law (2020 Revision) (3) The chairperson of the board and the deputy chairperson of the board, respectively, shall be designated by the Cabinet.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Appointment of directors 12. (1) The directors referred to in paragraph (b) of section 11(2) shall be appointed by the Cabinet. (2) The directors so appointed \u2014 (a) shall not act as delegates on the board from any commercial, financial, agricultural, industrial or other interests with which they may be connected; (b) shall hold office for a term of three years and shall be eligible for reappointment; and (c) may be paid by the Authority out of the funds of the Authority such remuneration and allowances as may be determined by the Cabinet. (3) Paragraphs (b) and (c) of subsection (2) shall not apply to a director who is appointed managing director under section 13. (4) If any director appointed under subsection (1) dies, resigns or otherwise vacates that director\u2019s office before the expiry of the term for which that director has been appointed, another person may be appointed by the Cabinet for the unexpired period of the term of office of the director in whose place that person is appointed.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Appointment of managing director 13. (1) The Cabinet, after consultation with the board, shall appoint a fit and proper person to be the managing director. (2) The managing director shall be an employee of the Authority on such terms and conditions of service as the Cabinet, after consultation with the board, may decide. (3) The managing director shall be entrusted with the day to day administration of the Authority to the extent of the authority delegated to that managing director by the board. (4) The managing director shall render that managing director\u2019s services exclusively to the Authority and shall be answerable to the board for that managing director\u2019s acts and decisions. (5) In the event of the absence, or inability to act of the managing director, the board \u2014 (a) may appoint a person to discharge the duties of the managing director during the period of the managing director\u2019s absence or inability; and (b) shall forthwith notify the Minister charged with responsibility for Financial Services of an appointment made under paragraph (a). Monetary Authority Law (2020 Revision) (6) An appointment made by the board under subsection (5) shall not exceed three months and in the event that the absence of the managing director or the inability of the managing director to act is anticipated to be for a period exceeding three months, the Cabinet may, after consultation with the board, appoint a person to discharge the duties of the managing director for the duration of the managing director\u2019s absence or inability. (7) Without prejudice to section 14(3), the Cabinet, on the recommendation of the board, shall terminate the appointment of the managing director.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Disqualification of directors 14. (1) No person may be appointed as or remain a director of the Authority who is an elected member of the Legislative Assembly or an official member of the Cabinet. (2) The Cabinet shall terminate the appointment of any director who \u2014 (a) resigns that director\u2019s office; (b) becomes of unsound mind or incapable of carrying out that director\u2019s duties; (c) becomes bankrupt, suspends payment to or compounds with that director\u2019s creditors; (d) is convicted in the Islands or in any other jurisdiction of an offence involving dishonesty, fraud or any indictable offence; (e) commits serious misconduct in relation to that director\u2019s duties; (f) is absent, without leave of the chairperson of the board, from three consecutive meetings of the board; or (g) fails to comply with that director\u2019s obligations under section 18. (3) The Cabinet, in the public interest may terminate the appointment of any director.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Meetings and decisions of board 15. (1) The chairperson of the board shall summon regular meetings of the board as often as may be required, but not less frequently than once in three months, and shall summon extraordinary meetings when required to do so in accordance with rules made under section 47. (2) At a meeting of the board, the chairperson of the board or, if that chairperson is not present, the deputy chairperson or, if that deputy chairperson is not present, a director chosen by the directors present, shall act as the chairperson of the meeting. (3) At every meeting of the board, a quorum shall consist of five directors, and decisions shall be adopted by a simple majority of the votes of the directors Monetary Authority Law (2020 Revision) present and voting except that, in the case of an equality of votes, the chairperson of the meeting shall, in addition, have a casting vote. (4) The board may act notwithstanding that a vacancy exists among the members or in the office of chairperson or deputy chairperson, and shall have power to \u2014 (a) act by sub-committee; and (b) delegate any of its duties and powers from time to time to such subcommittees and to any of their own number and to the officers, servants and agents of the Authority, (5) The board shall have power to delegate from time to time \u2014 (a) any of its duties and powers (other than a duty or power expressly imposed or conferred on the board by this Law), to the Management Committee; and (b) any of its duties and powers (other than a licensing or supervisory power or duty), to a committee appointed by the board under section 17, and a decision of the Management Committee or a committee so appointed shall be deemed to be a decision of the board. (6) A delegation under paragraph (a) or (b) of subsection (4) is revocable at will and does not prevent the exercise by the board of any duties or powers so delegated. (7) For the purposes of this Law, a director shall be deemed to be present at a meeting of the board if that director gains access to the meeting by conference telephone or by some other conference facility.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Establishment of Management Committee 16. (1) Without prejudice to section 17, there is established a committee to be known as the Management Committee. (2) The Management Committee shall comprise \u2014 (a) the managing director; (b) a deputy managing director; (c) the head of each regulatory and each supervisory division within the Authority, or such person as may be designated by the head to act in that head\u2019s absence; and (d) such other senior officer of the Authority as the managing director may, with the approval of the board, designate. (3) The managing director may designate an employee of the Authority to act as secretary to the Management Committee performing such duties as the Management Committee may determine. (4) The board may, subject to section 15(4), by instrument in writing, delegate to the Management Committee such licensing, supervisory and other powers and Monetary Authority Law (2020 Revision) duties as the board sees fit; and the Management Committee shall, subject to section 48, exercise and carry out the powers and duties so delegated by the board.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Additional committees 17. (1) The board may appoint committees additional to the Management Committee, to assist the board in exercising the board\u2019s management functions under this Law, and shall appoint such persons as it sees fit to be members of the committees. (2) The managing director may designate a member of any such committee to act as secretary to the committee performing such duties as the committee may determine. (3) The board may, by instrument in writing, delegate to a committee appointed by the board under subsection (1), such powers and duties (other than licensing or supervisory powers or duties) as the board sees fit; and the committee shall exercise and carry out the powers and duties so delegated by the board.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Pecuniary interest of director or committee member 18. (1) If a director, a member of the Management Committee or a member of a committee appointed under section 17, has any pecuniary interest, direct or indirect, in any contract, proposed contract, licence or other matter and is present at a meeting of the board, Management Committee or other committee, as the case may be, at which the contract, proposed contract, licence or other matter is the subject of consideration, that person shall, at the meeting and as soon as practicable after its commencement, disclose the fact and shall not take part in the consideration or discussion of the contract, proposed contract, licence or other matter or vote on any question with respect to it, and shall be excluded from the meeting for the duration of the consideration, discussion and voting procedure. (2) A person who fails to comply with subsection (1) commits an offence and is liable \u2014 (a) on summary conviction, to a fine of twenty thousand dollars and to imprisonment for two years; or (b) on conviction on indictment to, a fine of fifty thousand dollars and to imprisonment for five years, unless that person proves that that person did not know that the contract, proposed contract, licence or other matter in which that person had a pecuniary interest was the subject of consideration at that meeting. (3) A disclosure under subsection (1) shall be recorded in the minutes of the board, Management Committee or other committee, as the case may be. Monetary Authority Law (2020 Revision) (4) No act or proceeding of the board, Management Committee or other committee, shall be questioned on the ground that a director of the board or a member of the Management Committee or other committee, as the case may be, has contravened this section.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Pecuniary interests for the purposes of section 18 19. (1) For the purposes of section 18, a director, a member of the Management Committee or a member of a committee appointed under section 17, shall be treated, subject to subsections (2) and (3) and to section 20, as having indirectly a pecuniary interest in a contract, proposed contract, licence or other matter if \u2014 (a) that person, or any nominee of that person, is a member of a company or other body with which the contract was made or is proposed to be made or which has a direct pecuniary interest in the licence or other matter under consideration; (b) that person is a partner, or is in the employment of a person with whom the contract was made or is proposed to be made, or who has a direct pecuniary interest in the licence or other matter under consideration; or (c) that person or any partner of that person is a professional adviser to a person who has a direct or indirect pecuniary interest in a contract, proposed contract, licence or other matter. (2) Subsection (1) does not apply to membership of or employment under any public body. (3) In the case of married persons, the interest of one spouse shall be deemed for the purpose of this section to be also the interest of the other.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Removal or exclusion of disability, etc. 20. (1) The Cabinet may, in the public interest and subject to such conditions as it may think fit, appoint persons to act as directors for any specified period, in any case in which the number of directors disabled by section 18 at any one time would be so great a proportion of the whole as to impede the transaction of business. (2) Nothing in section 18 precludes any director from taking part in the consideration or discussion of, or voting on, any question whether an application should be made to the Cabinet for the exercise of the powers conferred by subsection (1). (3) Section 18 shall not apply to an interest in a contract, proposed contract, licence or other matter which a director has as a member of the public or to an interest in any matter relating to the terms on which the right to participate in any service is offered to the public. (4) Where a director has an indirect pecuniary interest in a contract, proposed contract, licence or other matter by reason only of a beneficial interest in securities of a company or other body, and the nominal value of those securities Monetary Authority Law (2020 Revision) does not exceed one thousand dollars or one-thousandth of the total nominal value of the issued share capital of the company or other body, whichever is the less, and, if the share capital is of more than one class, the total nominal value of shares of any one class in which that director has a beneficial interest does not exceed one-thousandth of the total issued share capital of that class, section 18 shall not prohibit that director from taking part in the consideration or discussion of the contract, proposed contract, licence or other matter or from voting on any question with respect to it, without prejudice, however, to that director\u2019s duty to disclose that director\u2019s interest.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Power to employ staff, etc. 21. (1) The Authority may employ, at such remuneration and on such terms and conditions as may be approved from time to time by the board, such persons, including one or more deputy managing directors as the board considers necessary for the performance of the functions of the Authority. (2) The Authority shall create and maintain or subscribe to a fund for the payment of pensions to employees of the Authority in accordance with a scheme, the terms of which shall be approved by the Cabinet. (3) The fund shall be vested in trustees to be appointed by the Authority for that purpose, and shall be maintained at a sufficient level according to accepted actuarial principles to enable pensions to be paid to all employees of the Authority in accordance with the approved scheme. (4) The Cabinet may, subject to such conditions as it may impose, approve of the appointment of any public officer in the service of Government by way of secondment to any office with the Authority, and any public officer so appointed shall, in relation to pension, gratuity or other allowance and to other rights and obligations as a public officer, be treated as continuing in the service of Government. PART III - Currency\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_22\", \"num\": \"22.\", \"text\": \"Unit of currency 22. (1) The unit of currency of the Islands shall continue to be the Cayman dollar divided into one hundred cents. (2) The value of the Cayman dollar shall be equivalent to such an amount of currency of the United States of America as the Cabinet may, in accordance with the advice of the Authority, by Order made under this section, prescribe. (3) An Order made under subsection (2) shall come into operation at such time and day as may be specified in such Order. Monetary Authority Law (2020 Revision) (4) An Order made under subsection (2) shall be given such publicity immediately after it is subscribed in writing by the Cabinet as, in the opinion of the Authority, is likely to bring the Order to the notice of such persons as are immediately affected thereby, and shall also be gazetted. (5) For the avoidance of doubt it is hereby declared that an Order may be made on a public holiday within the meaning of the Public Holidays Law (2007 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_23\", \"num\": \"23.\", \"text\": \"Contracts, etc., to be made in currency 23. Every contract, document, sale, payment, bill, note, transaction, instrument or security for money and every transaction, dealing, matter or thing whatsoever relating to money or involving payment of or the liability to pay in money shall, to be valid in the Islands, be made, executed, entered into, done, had or settled in the currency of the Islands unless it is expressly made, executed, entered into, done, had or settled in the currency of some other country.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_24\", \"num\": \"24.\", \"text\": \"Sole right of currency issue 24. (1) The Authority, on behalf of the Government, shall have the sole right of issuing legal tender notes and coins in the Islands, and no person other than the Authority shall, in the Islands, issue currency notes, bank notes or coins or any documents or tokens payable to bearer on demand being documents or tokens which are likely to pass as legal tender. (2) No currency notes or coins other than the currency notes and coins issued by the Authority shall be legal tender in the Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_25\", \"num\": \"25.\", \"text\": \"Obligation to deal in United States dollars 25. (1) The Authority shall, on demand at its head office, issue and redeem Cayman dollars against the currency of the United States of America provided that \u2014 (a) the Authority shall not be required to issue and redeem Cayman dollars of an amount less than such minimum sum as may, from time to time, be prescribed; and (b) the rate of exchange quoted by the Authority in respect of spot transactions shall not differ by more than such margins on either side of the value of the currency of the Islands established in terms of section 22 as may, from time to time, be prescribed by the Cabinet after consultation with the Authority. (2) The Authority shall publish or cause to be published, at its offices and at the offices of its agents and representatives, the rates referred to in paragraph (b) of subsection (1) at which it is prepared to deal against the currency of the United States of America with the public. Monetary Authority Law (2020 Revision) (3) Notwithstanding subsection (2), the Authority may, at its discretion, deal against the currency of the United States of America with local banks at rates different from its published rates.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_26\", \"num\": \"26.\", \"text\": \"Provisions relating to issue of currency 26. The Authority shall \u2014 (a) arrange for the printing of currency notes and the minting of coins and for all matters relating thereto and for the security of such notes and coins; and (b) issue, re-issue, withdraw and, at its discretion, exchange currency notes and coins at its head office and at such offices and agencies elsewhere in the Islands as it may establish.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_27\", \"num\": \"27.\", \"text\": \"Denominations and forms of currency 27. (1) Currency notes issued under this Law shall be of such denominations, of such form and design, printed from such plates, on such paper and authenticated in such manner as may, from time to time, be recommended by the Authority and approved by the Cabinet. (2) Coins issued under this Law shall be of such denominations, of such form and design, made of such metal or metals and made or issued by such mint or mints as may, from time to time, be recommended by the Authority and approved by the Cabinet. (3) When seeking approval from the Cabinet under this section, the Authority shall direct its communication in writing through the Minister charged with responsibility for Finance.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_28\", \"num\": \"28.\", \"text\": \"Legal tender 28. (1) Currency notes shall continue to be legal tender, in the Islands at their face value for the payment of any amount. (2) Coins shall, if they have not been illegally dealt with, continue to be legal tender in the Islands to an amount not exceeding two hundred and fifty dollars in the case of coins of denomination of not less than five cents, and not exceeding fifty cents in the case of lower denominations. (3) For the purposes of this Law, a coin shall be deemed to have been illegally dealt with where the coin has been impaired, diminished or lightened otherwise than by fair wear and tear, or has been defaced by having any name, word, device or number stamped or engraved thereon, whether the coin has or has not been thereby diminished or lightened. Monetary Authority Law (2020 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_29\", \"num\": \"29.\", \"text\": \"Calling-in of currency 29. (1) The Authority may, with the approval of the Cabinet, declare that any currency notes or coins shall cease to be legal tender, and may provide for any matters incidental to the calling-in of such notes or coins. (2) Any declaration authorised by subsection (1) shall have effect as from the date of gazettal or such later date as may therein be specified, and the holders of any notes or coins so called in shall be entitled, within such period as may be specified in such declaration, or in any subsequent declaration issued by the Authority with the approval of the Cabinet, to claim payment from the Authority of the face value thereof. (3) When any currency notes or coins are called in under subsection (1) the Authority may, at its discretion, transfer to the general revenue of the Islands, ten years after the date of the calling-in, an amount equivalent to the value of any such notes or coins still remaining in circulation, and the Authority shall have the right to recover from the general revenue an amount equivalent to the value of any such notes or coins presented for payment thereafter. (4) When seeking approval from the Cabinet under this section, the Authority shall direct its communication in writing through the Minister charged with responsibility for Finance.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_30\", \"num\": \"30.\", \"text\": \"Mutilated, etc., currency 30. No person shall be entitled to recover from the Authority the value of any lost, stolen, mutilated or imperfect currency note or coin, or of any coin which has been illegally dealt with. The circumstances and conditions under which such value may be refunded as an act of grace shall be within the absolute discretion of the Authority.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_31\", \"num\": \"31.\", \"text\": \"Defacing, etc., of notes or coins 31. A person who, without lawful authority or excuse (the proof whereof shall be on the person accused), defaces, mutilates or perforates any currency note or coin which, under this Law, is made legal tender in the Islands commits an offence and is liable on summary conviction to a fine of one thousand dollars and to imprisonment for three months. PART IV - Currency Reserve\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_32\", \"num\": \"32.\", \"text\": \"Currency Reserve 32. (1) The Authority shall, at all times, maintain a Currency Reserve which shall consist of external assets and local assets. (2) The external assets referred to in subsection (1) \u2014 Monetary Authority Law (2020 Revision) (a) shall be in value not less than an amount equivalent to ninety per cent of the demand liabilities of the Authority; and (b) shall consist of all or any of \u2014 (i) gold coin or bullion; (ii) notes and coins, in such currencies as may be approved by the board; (iii) money at call and deposits with such banks and in such countries as may be approved by the board; (iv) treasury bills maturing within one hundred and eighty-four days issued by such foreign governments as may be approved by the board; (v) marketable securities issued or guaranteed by such foreign governments or international financial institutions as may be approved by the board and maturing within ten years; (vi) marketable securities issued by such government agencies as may be approved by the Cabinet on the recommendation of the board; and (vii) such other securities and investments not exceeding twenty-five per cent of the value of the Currency Reserve assets as may be authorised by the Cabinet on the recommendation of the board. (3) An amount equivalent to not less than twenty per cent of the demand liabilities of the Authority shall, at all times, be held in liquid form, that is to say it shall be held in Treasury bills issued by such governments as shall be approved by the board, or may be lent out at call or for short term to such banks as may be approved by the board, or invested in such readily realisable securities as may be approved by the board. (4) The local assets referred to in subsection (1) shall be in value not less than the difference, if any, between the amount of its total demand liabilities and the value of external assets specified in subsection (2). (5) The local assets shall consist of money at call or on deposit with such Class \u201cA\u201d banks as may be approved by the board. (6) The total of the value of the local assets referred to in subsection (5) shall not, at any time, exceed ten per cent of the demand liabilities of the Authority. (7) If, at any time, the total assets of the Currency Reserve shall be less than one hundred per cent of the demand liabilities of the Authority, such deficiency shall, so far as possible, be met by transfer from the General Reserve and, to the extent that such deficiency is not thereby removed, it shall be a liability of the Government, and the Government shall appropriate such funds from the general revenue of the Islands as are required to extinguish such deficiency. (8) The Currency Reserve shall only be used for the compliance by the Authority with its obligations under section 25(1) and the assets of the Currency Reserve Monetary Authority Law (2020 Revision) shall be segregated from all other assets of the Authority and not be chargeable with any liability arising from any other business of the Authority. (9) For the avoidance of doubt, it is hereby declared that the assets of the Currency Reserve shall not be the subject of any order for injunction, attachment, execution or similar order in any proceedings before any court or tribunal. PART V - Operations\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_33\", \"num\": \"33.\", \"text\": \"Relations with Government 33. (1) The Cabinet may, from time to time, after consultation with the board, give to the Authority, in writing, such general directions as appear to the Cabinet to be necessary in the public interest, and the Authority shall act in accordance with such directions. (2) If it appears to the Authority that the regulatory laws, or any regulations or directions made or issued thereunder, are to any extent inconsistent with the Authority\u2019s regulatory functions, the Authority shall make recommendations to the Cabinet and, if so required by the Minister charged with responsibility for Financial Services, shall conduct private sector consultation with respect to such recommendations. (3) In its relations with the Cabinet, the Authority shall direct its communication in writing through the Minister charged with responsibility for Financial Services.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_34\", \"num\": \"34.\", \"text\": \"Relations with banks and other financial institutions 34. (1) After private sector consultation and consultation with the Minister charged with responsibility for Financial Services, the Authority may \u2014 (a) issue or amend rules or statements of principle or guidance concerning the conduct of licensees and their officers and employees, and any other persons to whom and to the extent that the regulatory laws may apply; (b) issue or amend statements of guidance concerning the requirements of the anti-money laundering regulations or the provisions of the regulatory laws; and (c) issue or amend rules or statements of principle or guidance to reduce the risk of financial services business being used for money laundering or other criminal purposes. (2) Repealed by section 6(b) of the Monetary Authority (Amendment) Law, 2010 [Law 9 of 2010]. (3) Rules or statements of principle or guidance issued under subsection (1) shall be consistent with this Law and the regulatory laws and with any regulations or directions made or given thereunder and shall state the provision of this Law, Monetary Authority Law (2020 Revision) the regulatory Law, the regulations or the directions, as the case may be, to which they relate. (4) The guidance notes referred to as \u201cThe Guidance Notes on the Prevention and Detection of Money Laundering and Terrorist Financing in the Cayman Islands\u201d issued on the 13th December, 2017, shall be deemed to have been issued under subsection (1). (5) The Authority shall, without delay, publish in the Gazette notice of the issue or amendment of rules or statements of principle or guidance under subsection (1) and forward to the Minister charged with responsibility for Financial Services copies of the rules or statements of principle or guidance as issued or amended. (6) A breach of the rules or statements of principle or guidance issued under subsection (1) shall not constitute an offence, or of itself give rise to any right of action by persons affected, or affect the validity of any transaction. (7) Subsection (6) shall not affect the power to fine for a breach of a provision of the rules that is a prescribed provision. (8) The Authority may at all reasonable times, by notice in writing given \u2014 (a) to a person regulated under the regulatory laws; (b) to a connected person; or (c) to a person reasonably believed to have information relevant to an enquiry by the Authority, require that person \u2014 (i) to provide specified information or information of a specified description; or (ii) to produce specified documents or documents of a specified description, as it may reasonably require in connection with the exercise by the Authority of its regulatory functions. (9) Where, in accordance with section 50, the Authority is satisfied that assistance should be provided in response to a request by an overseas regulatory authority it may in writing direct \u2014 (a) a person regulated under the regulatory laws; (b) a connected person; (c) a person that is engaging in an activity that is subject to regulation under the regulatory laws; or (d) a person reasonably believed to have information relevant to enquiries to which the request relates, within a stated time, to \u2014 Monetary Authority Law (2020 Revision) (i) provide the Authority with specified information or information of a specified description with respect to any matter relevant to the inquiries to which the request relates; (ii) produce specified documents or documents of a specified description relevant to those inquiries; or (iii) give to the Authority such assistance in connection with those inquiries as the Authority may specify in writing. (10) Where a person fails to comply with a requirement under subsection (8) or a direction given under subsection (9) within three days from the date of the requirement or direction or such longer period as the Authority may permit, the Authority may apply to the court for an order requiring the person to comply with the requirement or direction. (11) Where, in connection with a requirement under subsection (8) or a direction given under subsection (9), the Authority considers it necessary to examine a person on oath, the Authority may apply to a court of summary jurisdiction to have that person examined by the court and to have the results of that examination sent to the Authority. (12) The court shall process an application under subsection (11) within seven days of its receipt and shall send the results of the examination to the Authority within fourteen days of the examination. (13) Where documents are produced pursuant to subsection (8) or (9), the Authority may take copies of them or extracts from them. (14) A person shall not be required under this section to disclose information or to produce a document which that person would be entitled to refuse to disclose or to produce on the grounds of legal professional privilege in court proceedings except that an attorney-at-law may be required to provide the name and address of that attorney-at-law\u2019s client or principal. (15) Where a person claims a lien on a document, its production under this section is without prejudice to that person\u2019s lien. (16) (a) In this section \u2014 \u201cdocument\u201d includes information recorded in any form and, in relation to information recorded otherwise than in legible form, the power to require its production includes power to require the production of a copy of it in legible and intelligible form. (b) For the purposes of this section, any information or other matter comes to a professional legal adviser in privileged circumstances if it is communicated or given to that professional legal adviser \u2014 (i) by, or by a representative of, a client of that professional legal adviser in connection with the giving by the adviser of legal advice to the client; Monetary Authority Law (2020 Revision) (ii) by, or by a representative of, a person seeking legal advice from the adviser; or (iii) by any person \u2014 (A) in contemplation of, or in connection with, legal proceedings; and (B) for the purpose of those proceedings. (c) No information or other matter shall be treated as coming to a professional legal adviser in privileged circumstances if it is communicated or given with a view to furthering any criminal purpose. (d) For the purposes of subsections (8) and (9), a person is connected with a person regulated under the regulatory laws (\u201cA\u201d) if that person is or has at any relevant time been \u2014 (i) a member of A\u2019s group; (ii) a controller of A; (iii) any other member of a partnership of which A is a member; or (iv) a member, officer, manager, employee or agent of A. (17) A person who, without reasonable cause \u2014 (a) fails to comply with a requirement of the Authority under subsection (8) or a direction of the Authority under subsection (9); (b) with intent to avoid the provisions of subsection (8) or (9) destroys, mutilates, defaces, hides or removes a document; or (c) wilfully obstructs an inquiry by the Authority, made in accordance with subsection (8) or (9), commits an offence and is liable on summary conviction to a fine of ten thousand dollars and on conviction on indictment to a fine of one hundred thousand dollars, and if the offence of which that person is convicted is continued after conviction that person commits a further offence and is liable to a fine of ten thousand dollars for every day on which the offence is so continued. (18) (a) Where an offence under this section, which has been committed by a body corporate, is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, commits that offence and is liable to be proceeded against and punished accordingly. (b) Where the affairs of a body corporate are managed by its members, paragraph (a) shall apply in relation to the acts and defaults of a member in connection with that member\u2019s functions of management as if that member were a director of the body corporate. Monetary Authority Law (2020 Revision) (19) Where a person complies with a requirement under subsection (8), a direction under subsection (9) or an order under subsection (10), or gives evidence under subsection (11), such compliance shall not be treated as a breach of any restriction upon disclosure of information by or under any law and shall not give rise to any civil liability.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_35\", \"num\": \"35.\", \"text\": \"Assistance in obtaining information 35. (1) Where, in accordance with section 50, the Authority is satisfied that assistance should be provided in response to a request by an overseas regulatory authority, and that such assistance cannot be provided satisfactorily by means of its powers in section 34(9), the Authority may \u2014 (a) authorise a competent person to exercise any of its co-operative functions; and (b) seek the assistance of the Commissioner of Police in the exercise of those functions. (2) No such assistance shall be sought or authority granted under subsection (1) except for the purpose of investigating \u2014 (a) the affairs, or any aspect of the affairs, of a person specified by the Authority; or (b) a subject matter specified by the Authority, being a person who, or a subject matter which, is the subject of the inquiries being carried out by or on behalf of an overseas regulatory authority. (3) No person shall be bound to comply with a requirement imposed by a person exercising powers by virtue of an authority granted under this section unless that person has, if required, produced evidence of that person\u2019s authority. (4) Where the Authority seeks assistance or grants an authority under subsection (1), the assistance or authority shall be provided or executed in such manner as the Authority may determine; and where the Authority grants such an authority to a person, that person shall make a report to the Authority in such manner as the Authority may require on the exercise of that authority and the results of exercising it. (5) The Authority, any person authorised under subsection (1) or the commissioner of Police may apply to a Justice of the Peace, a Magistrate or a Judge of the Grand Court for a search warrant in pursuance of an investigation under subsection (2).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_36\", \"num\": \"36.\", \"text\": \"General powers 36. The Authority may \u2014 (a) purchase and sell gold coin and bullion; (b) open and maintain accounts with local banks; Monetary Authority Law (2020 Revision) (c) open and maintain accounts with banks and other depositories outside the Islands and appoint correspondents or agents outside the Islands; (d) purchase and sell foreign currencies and purchase, sell, discount and rediscount bills of exchange and treasury bills drawn in or on places outside the Islands and maturing within one hundred and eighty-four days; (e) purchase and sell securities, maturing within ten years of, or guaranteed by, such foreign governments as may be approved by the board; (f) purchase and sell such other securities and investments as may be authorised by the board; (g) borrow money, on such terms and conditions, as may be authorised by the board, except that such loan shall not exceed two hundred and fifty thousand dollars or one per cent of the paid-up capital of the Authority, whichever shall be the greater; (h) undertake the administration and management of securities issued by Government; and (i) without prejudice to section 37, do any thing which is calculated to facilitate, is incidental to or consequential upon the exercise of the powers of the Authority or the discharge of its duties under this Law.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_37\", \"num\": \"37.\", \"text\": \"Prohibited activities 37. Except as expressly authorised by this Law, the Authority may not \u2014 (a) engage in trade or otherwise have a direct interest in any commercial, agricultural, industrial or other undertaking except such interest as the Authority may acquire in the course of the satisfaction of debts due to it, so, however, that it shall be the duty of the Authority to dispose of any such interest so acquired at the earliest suitable opportunity; (b) purchase shares of any company including the shares of any banking company or public corporation; (c) make loans to any person; or (d) purchase, acquire or lease real property except so far as the board considers necessary or expedient for the provision or future provision of business premises for the Authority or of any other requirement incidental to the performance of its functions under this Law. PART VI - Accounts and Statements\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_38\", \"num\": \"38.\", \"text\": \"Funds and resources of the Authority 38. The funds and resources of the Authority shall comprise \u2014 Monetary Authority Law (2020 Revision) (a) such monies as may be appropriated by law for the purposes of the Authority; (b) monies paid and property provided to the Authority by way of grants, rent, interest and other income derived from the investment of the Authority\u2019s funds; (c) monies derived from the disposal of or dealing with real or personal property held by the Authority; (d) monies borrowed by the Authority in accordance with this Law; and (e) any property lawfully received or made available to the Authority.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_39\", \"num\": \"39.\", \"text\": \"Financial year 39. The financial year of the Authority shall be the date set out in paragraph (a) of the definition of \u201cfinancial year\u201d in section 2 of the Public Management and Finance Law (2020 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_40\", \"num\": \"40.\", \"text\": \"Application of the Public Management and Finance Law 40. The Authority is a statutory authority as defined in section 2 of the Public Management and Finance Law (2020 Revision) and accordingly that law applies, among other things, to \u2014 (a) the Authority\u2019s expenditure budget for each financial year; and (b) the preparation, maintenance, auditing and publication of the Authority\u2019s accounts.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_41\", \"num\": \"41.\", \"text\": \"Independent review of Authority\u2019s performance 41. (1) The Cabinet may, at any time, appoint an independent person to \u2014 (a) review the Authority\u2019s performance of any of its functions, including its observance of its general duties under section 6 and the regulatory handbook established under section 48; or (b) enquire into any action or inaction of the Authority which appears to raise questions of importance to the public interest, and such appointment may include directions concerning the scope and conduct of the review or enquiry and the making of interim reports. (2) The person appointed under subsection (1) (\u201cthe appointed person\u201d) may, subject to any directions given in that person\u2019s appointment \u2014 (a) obtain such information from such persons and in such manner as that person thinks fit; (b) review or enquire into such matters as that person thinks fit; and (c) determine the procedure to be followed in connection with the review or the enquiry. Monetary Authority Law (2020 Revision) (3) The appointed person may require any person who, in that person\u2019s opinion, is able to provide any information or produce any document which is relevant to the review or enquiry to provide any such information or produce any such document, and for this purpose the appointed person shall have the same powers as the Grand Court in respect of the attendance and examination of witnesses (including the examination of witnesses abroad) and in respect of the production of documents. (4) Where a person fails to comply with a requirement imposed on that person under subsection (3), the appointed person may refer the matter to the Grand Court which may enquire into the matter and, if satisfied after hearing \u2014 (a) any witness who may be produced against or on behalf of the person who fails to comply; and (b) any statement made by or on behalf of such person, that such person would have been in contempt of court if the review or enquiry had been proceedings before the court, such person may be dealt with by the court in the same manner as if that person were in contempt of court. (5) The appointed person shall, upon the completion of the review or enquiry, make a written report to the Minister charged with responsibility for Financial Services setting out the result of the review or enquiry and making such recommendations (if any) as that person considers appropriate. (6) The report under subsection (5) shall be laid before the Legislative Assembly, subject to the removal of any material \u2014 (a) which the Minister charged with responsibility for Financial Services considers to relate to the affairs of a particular person whose interests would be seriously and unfairly prejudiced by the publication; or (b) whose disclosure, in the opinion of the Minister charged with responsibility for Financial Services, would be incompatible with the public interest or an international obligation of the Islands. (7) Expenses reasonably incurred in conducting a review or enquiry shall be paid out of the revenue of the Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_42\", \"num\": \"42.\", \"text\": \"Surplus 42. Where there is a surplus on the budget approved for the Authority\u2019s expenditure for any financial year, such surplus shall be paid into the General Reserve unless otherwise agreed upon with the Cabinet. Monetary Authority Law (2020 Revision) PART VIA - Administrative Fines 42A. Authority\u2019s power to fine 42A. (1) The Authority has the power to impose an administrative fine on a person who breaches a provision prescribed in this Law, a regulatory law or the anti-money laundering regulations. (2) Regulations prescribing the provisions shall also prescribe the category of the breach as minor, serious or very serious. 42B. Fine amounts 42B. (1) For a breach prescribed as minor the fine shall be $5,000. (2) For a breach prescribed as minor the Authority also has the power to impose one or more continuing fines of $5,000 each for a fine already imposed for the breach (the \u201cinitial fine\u201d) at intervals it decides, until the earliest of the following to happen \u2014 (a) the breach stops or is remedied; (b) payment of the initial fine and all continuing fines imposed for the breach; or (c) the total of the initial fine and all continuing fines for the breach reaches $20,000. (3) For a breach prescribed as serious, the fine is a single fine not exceeding \u2014 (a) $50,000 for an individual; or (b) $100,000 for a body corporate. (4) For a breach prescribed as very serious, the fine is a single fine not exceeding \u2014 (a) $100,000 for an individual; or (b) $1,000,000 for a body corporate. (5) For breaches prescribed as serious or very serious the Authority has a discretion in deciding whether or not to impose any fine and the amount of the fine. 42C. Declaratory provisions for power to fine 42C. To avoid doubt \u2014 (a) a fine may be imposed for a breach even if the breach itself is not an offence; (b) if a breach of a prescribed provision is an offence, a fine for the breach is not limited by the penalty under the provision or by sections 6(2) and 8 of the Criminal Procedure Code (2019 Revision); and (c) this Part is in addition to, and does not limit or otherwise affect, the Authority\u2019s powers under a law mentioned in section 42A(1). Monetary Authority Law (2020 Revision) 42D. Limitation period 42D. (1) The Authority shall not impose a fine after the expiration of the following period from the date on which the Authority became aware of the commission of the breach \u2014 (a) 6 months for a breach prescribed as minor; or (b) 2 years for a breach prescribed as serious or very serious. (2) For subsection (1), the Authority shall be deemed to have become aware of the breach when it first received information from which the breach can reasonably be inferred. 42E. Relationship with penalties 42E. (1) If a breach of a prescribed provision is an offence, a fine for the breach shall not preclude a prosecution for the breach or liability for an additional fee, late filing fee or a surcharge under a regulatory law for the breach, and vice versa. (2) The Authority shall, if the breach is prescribed as serious or very serious, have regard to the amount of the following in fixing the amount of the fine for the breach \u2014 (a) any penalty imposed on conviction for the offence; or (b) the fee or surcharge. 42F. Criteria for making fine decision 42F. (1) In making a decision mentioned in section 42B(5), the Authority shall consider all relevant factors including the following criteria \u2014 (a) the prescribed criteria, after applying any prescribed relative weight that must be given to them; and (b) the following principles, in the following order of importance \u2014 (i) firstly, the need to promote and maintain a sound financial system in the Islands; (ii) secondly, the disgorgement principle; (iii) thirdly, the disciplinary principle; and (iv) fourthly, the deterrence principle. (2) The principles prevail over the factors and the other criteria. (3) Subsection (2) shall not prevent the Authority from considering prescribed criteria to reduce the amount of a fine. (4) Notwithstanding subsection (1), the Authority need only consider a particular criteria to the extent it considers the criteria is relevant to making the decision. (5) In this section \u2014 Monetary Authority Law (2020 Revision) \u201cdeterrence principle\u201d means the need to deter financial services businesses and others from breaching prescribed provisions; \u201cdisciplinary principle\u201d means the need to punish intentional, reckless or inappropriately negligent breaches of prescribed provisions; and \u201cdisgorgement principle\u201d means the principle of ensuring \u2014 (a) licensees under regulatory laws and those connected with them as defined in section 34(16)(d) do not gain (including by avoiding losses) from breaching prescribed provisions; and (b) persons mentioned in paragraph (a) disgorge all such gains. 42G. Authority\u2019s rule-making power for Part 42G. (1) The Authority may issue rules consistent with this Part about \u2014 (a) factors that supplement or tend to show or not to show the extent of a matter the subject of the criteria under section 42F(1); (b) aggravating and mitigating factors for fines; and (c) other matters, consistent with this Part for administering this Part, including, for example, publishing fines imposed. (2) The rules have no effect until they are gazetted. 42H. Other Regulation-making powers for Part 42H. Regulations made by Cabinet may provide for \u2014 (a) forms and procedures for imposing fines; (b) appeals against decisions under this Part; (c) how fines shall be paid and may be enforced; (d) interest on outstanding fines; (e) evidentiary provisions for proceedings relating to this Part; and (f) other matters required or permitted to be prescribed under this Part or that are necessary or convenient to give effect to the purposes or provisions of this Part. PART VII - General\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_43\", \"num\": \"43.\", \"text\": \"Immunity 43. Neither the Authority, nor any director or employee of the Authority, shall be liable in damages for anything done or omitted in the discharge or purported discharge of their respective functions under this Law and the regulatory laws unless it is shown that the act or omission was in bad faith. Monetary Authority Law (2020 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_44\", \"num\": \"44.\", \"text\": \"Indemnity 44. The Authority shall indemnify a director against all claims, damages, costs, charges or expenses incurred by that director in the discharge or purported discharge of that director\u2019s functions or duties under this Law and the regulatory laws, except claims, damages, costs, charges or expenses caused by the bad faith of that director.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_45\", \"num\": \"45.\", \"text\": \"Exemption 45. The functions of the Authority shall be deemed not to be banking business for the purposes of the Banks and Trust Companies Law (2020 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_46\", \"num\": \"46.\", \"text\": \"Regulations 46. (1) The Cabinet may make regulations providing for such matters as may be contemplated by, or necessary for giving full effect to, this Law and for its administration including the charging of fees for any administrative service provided by the Authority to a licensee or to members of the public upon request. (2) Without prejudice to subsection (1), the fees prescribed in Schedule 2 shall be charged for the administrative services specified in relation thereto, and the Cabinet may, by regulations, amend that Schedule. (3) Regulations made under subsection (1) and providing for the charging of fees for administrative services, are subject to affirmative resolution of the Legislative Assembly. (4) Without prejudice to the generality of subsection (1), the Cabinet may, for the purpose of facilitating business continuity and disaster recovery, make regulations that authorise the Authority to exempt from any provision of this Law or the regulatory laws any person or class of persons that is affected by a disaster for such period of time as the Cabinet may stipulate. (5) Without prejudice to section 32 of the Interpretation Law (1995 Revision) or to any other provision of this Law, regulations under subsection (4) may provide for \u2014 (a) a financial service business that would otherwise be subject to regulatory laws to which the exemption relates and the conditions to which the exemption shall be subject; (b) circumstances under which the Authority may withdraw the exemption from a person or class of persons; (c) limitation of the exemption to some or all financial service businesses that would otherwise be subject to regulatory laws; or (d) a stipulation that the exemption operates in respect of some or all regulated activities. Monetary Authority Law (2020 Revision) (6) For the purposes of this section, \u201cdisaster\u201d shall have the same meaning as in the Disaster Preparedness and Hazard Management Law (2019 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_47\", \"num\": \"47.\", \"text\": \"Rules 47. (1) The Authority may, subject to this Law, make such rules as it thinks fit to regulate its own internal management. (2) A copy of rules made under subsection (1) shall be forwarded to the Minister charged with responsibility for Financial Services.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_48\", \"num\": \"48.\", \"text\": \"Regulatory handbook 48. (1) The board shall issue, and may amend, a regulatory handbook setting out, as far as is practicable, the policies and procedures to be followed by the Authority, its committees and its officers in performing the Authority\u2019s regulatory functions and co-operative functions. (2) The regulatory handbook shall be consistent with any law or any regulations or policy directions given or made thereunder. (3) The regulatory handbook shall include policies and procedures for \u2014 (a) giving warning notices to persons affected adversely by proposed actions of the Authority; (b) giving reasons for the Authority\u2019s decisions; and (c) receiving and dealing with complaints against the Authority\u2019s actions and decisions. (4) In cases where the regulatory handbook would have the effect of creating, directly or indirectly, rules or statements of principle or guidance, the Authority shall consult with the private sector associations and the Minister charged with responsibility for Financial Services. (5) The regulatory handbook may provide for exceptions from its own requirements to be made by the board or a specified committee or officer of the Authority. (6) The Authority shall publish the regulatory handbook and any amendments to it in the Gazette, and the regulatory handbook and any such amendments shall take effect and come into operation on the date of such publication. (7) It shall be a duty of the board to ensure that the regulatory handbook is observed by the committees and officers of the Authority, to keep the regulatory handbook under continuing review, and to consult the Financial Secretary and the private sector associations on the extent to which the regulatory handbook could be made more consistent with section 6.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_49\", \"num\": \"49.\", \"text\": \"Additional powers 49. The Cabinet may, by regulation subject to affirmative resolution, provide for the administration of any statutory function of government by the Authority. Monetary Authority Law (2020 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_50\", \"num\": \"50.\", \"text\": \"Confidentiality 50. (1) Subject to subsections (2) and (3), a person who is a director, officer, employee, agent or adviser of the Authority and who discloses any information \u2014 (a) relating to the affairs of the Authority; (b) relating to any application made to the Authority or the Government under the regulatory laws; (c) relating to the affairs of a licensee; (d) relating to the affairs of a customer, member, client or policyholder of, or a company or mutual fund managed by, a licensee; or (e) shared by or with an overseas regulatory authority or any communication related thereto, that that person has acquired in the course of that person\u2019s duties or in the exercise of the Authority\u2019s functions under this or any other law, commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for one year, and on conviction on indictment to a fine of fifty thousand dollars and to imprisonment for three years. (2) Subsection (1) shall not apply to a disclosure \u2014 (a) lawfully required or permitted by any court of competent jurisdiction within the Islands; (b) for the purpose of assisting the Authority to exercise any functions conferred on it by this Law, by any other law or by regulations made thereunder; (c) in respect of the affairs of a licensee or of a customer, member, client or policyholder of, or a company or mutual fund managed by, a licensee, with the authority of the licensee, customer, member, client, policyholder, company or mutual fund, as the case may be, which consent has been voluntarily given; (d) for the purpose of enabling or assisting the Cabinet to exercise any functions conferred on it under this Law or regulations made thereunder or in connection with the dealings between the Cabinet and the Authority when the Authority exercises its functions under this or any other law; (e) if the information disclosed is or has been available to the public from any other source; (f) where the information disclosed is in a summary or in statistics expressed in a manner that does not enable the identity of any licensee, or of any customer, member, client or policyholder of, or company or mutual fund managed by, a licensee to which the information relates to be ascertained; (g) lawfully made \u2014 Monetary Authority Law (2020 Revision) (i) to the Director of Public Prosecutions or a law enforcement agency in the Islands, with a view to the institution of, or for the purpose of, criminal proceedings; (ii) to a person pursuant to the anti-money laundering regulations; or (iii) under subsection (3); or (h) for the purposes of any legal proceedings in connection with \u2014 (i) the winding-up or dissolution of a licensee; or (ii) the appointment or duties of a receiver of a licensee. (3) Subject to subsection (8), where the Authority is satisfied that a request for assistance from an overseas regulatory authority should be granted, the Authority \u2014 (a) may disclose information necessary to enable the overseas regulatory authority to exercise regulatory functions, including the conduct of civil and administrative proceedings to enforce laws, regulations and rules administered by the overseas regulatory authority; (b) shall keep a record of all such requests and disclosures and an inventory of the information disclosed; (c) may, either at the time of request or at any time thereafter, consent to the use of the information for the purpose of \u2014 (i) the conduct of civil and administrative enforcement proceedings; (ii) assisting a self-regulatory organisation with surveillance or enforcement activities (insofar as the Authority is satisfied that the organisation is involved in the supervision of conduct that is the subject of the request); or (iii) assisting a criminal investigation or prosecution of any charge applicable to the contravention of the provision specified in the request, where such charge pertains to a contravention of the laws and regulations administered by the requesting authority; and (d) may, in accordance with rules of court, apply to a Judge of the Grand Court in Chambers for an order to protect the interest of investors, depositors, policy holders or beneficiaries of trusts, including an order \u2014 (i) to freeze relevant assets or accounts; (ii) to suspend the issue, repurchase or redemption of units or shares of regulated funds; or (iii) to authorise any other action in accordance with any request made to the Authority by the overseas regulatory authority pursuant to, and in accordance with, the terms of a memorandum of understanding entered into between the Authority and the overseas regulatory authority; and Monetary Authority Law (2020 Revision) (e) may permit the overseas regulatory authority to carry out, in relation to an entity in the Islands that is subject to its supervision or regulation, an onsite inspection or visit in a manner agreed in writing by the Authority and the overseas regulatory authority. (3A) Upon application made to the Grand Court pursuant to subsection (3)(d), the Court shall make such orders as it considers appropriate in the circumstances. (4) In deciding whether or not to assist an overseas regulatory authority (whether by use of the Authority\u2019s powers under subsection (3), section 34, section 35 or otherwise), the Authority shall take into account \u2014 (a) whether corresponding assistance would be given in the relevant country or territory to the Authority; (b) whether the inquiries relate to the possible breach of a law or other requirement which has no close parallel in the Islands or involve the assertion of a jurisdiction not recognised by the Islands; and (c) whether it is in the public interest to give the assistance sought. (5) For the purposes of subsection (4)(a), the Authority may require an overseas regulatory authority which requests assistance to give a written undertaking, in such form as the Authority may require, to provide corresponding assistance to the Authority. (6) Where an overseas regulatory authority fails to comply with a requirement of the Authority under subsection (5), the Authority may refuse to provide the assistance sought. (7) The Authority may decline to exercise its power under subsection (3) unless the overseas regulatory authority undertakes to make such contribution towards the costs of the exercise as the Authority considers appropriate. (8) The Authority shall not give to an overseas regulatory authority any assistance involving the disclosure or gathering of, or the giving of access to, information or documents unless \u2014 (a) the Authority has satisfied itself that the intended recipient authority is subject to adequate legal restrictions on further disclosures; or (b) the Authority has been given an undertaking by the recipient authority not to disclose the information provided without the consent of the Authority; and (c) the Authority is satisfied that the assistance requested by the overseas regulatory authority is required for the purposes of the overseas regulatory authority\u2019s regulatory functions including the conduct of civil and administrative investigations or proceedings to enforce laws corresponding to the regulatory laws and administered by that authority; and Monetary Authority Law (2020 Revision) (d) the Authority is satisfied that information provided following the exercise of its powers, will not be used in criminal proceedings against the person providing the information, other than proceedings for an offence of perjury.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_51\", \"num\": \"51.\", \"text\": \"Memoranda of understanding 51. (1) The Authority may, in the exercise of its co-operative functions, after consultation with the Minister charged with responsibility for Financial Services, enter into memoranda of understanding with overseas regulatory authorities for the purpose of assisting cross border supervision with such authorities or for such other regulatory or supervisory purposes as the Authority may deem fit. (2) No memorandum of understanding may call for assistance beyond that which is provided for by this Law, or relieve the Authority of any of its functions or duties under this Law. (3) The Authority shall notify the Minister charged with responsibility for Financial Services of each memorandum of understanding entered into and promptly publish the memorandum of understanding in the Gazette.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_52\", \"num\": \"52.\", \"text\": \"Disclosure to regulators 52. Where a person regulated under the regulatory laws provides information to the Authority or, in the case of a foreign branch or subsidiary, to an overseas regulatory authority that regulates its parent company, for the purpose of cross border supervision, the provision of the information shall not be treated as a breach of any restriction upon the disclosure of information by or under any Law and the fact of such provision of information shall not give rise to any criminal or civil liability. PART VIII \u2013 Savings and Transitional\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_53\", \"num\": \"53.\", \"text\": \"Savings of the Cayman Islands Currency Order, 1974 53. The Cayman Islands Currency Order, 1974 shall, insofar as it is not inconsistent with the provisions of this Law, continue in force as if made under this Law.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_54\", \"num\": \"54.\", \"text\": \"Transitional provision for the Monetary Authority (Amendment) Law, 2016 [Law 27 of 2016] 54. The Authority shall not impose a fine for a breach that happened before 15th December, 2017, the date of commencement of Part VIA. Monetary Authority Law (2020 Revision) SCHEDULE 1 SCHEDULE 1 (section 34(1)) Regulation of Banks, Trust Companies, Company Management, Insurance Companies, Mutual Funds, Money Services Businesses, Credit Unions and Building Societies From the 1st January, 1997, the powers, functions and duties of Government and of the Authority shall be such as are provided in the regulatory laws as replaced or amended from time to time and in any subordinate legislation made thereunder. Any reference in any law other than the regulatory laws, or in any other subordinate legislation, to the Inspector of Financial Services appointed under section 12(1) of the Banks and Trust Companies Law (1995 Revision) is to be read as a reference to the Authority. SCHEDULE 2 Monetary Authority Law (2020 Revision) SCHEDULE 2 (section 46) Fees Column 1 Item Column 2 Description of Fee Column 3 Fee 1. Letter confirming registration or licensed status of Authority regulated entity and status of regulatory filings $800 2. Approval by the Authority of the appointment of a new Director of a licensee $1,000 3. Voluntary surrender of a licence or registration certificate to the Authority $600 4. Application for a change in shareholding of a licensee $1,000 5. Application for the appointment of a Senior Officer or Manager to a licensee $1,000 6. Application for the variation of the terms of a licence $1,000 7. Application for change of business plan of a licensee $1,000 8. Application for a certified copy of a licence or certificate $300 9. Application for an extension to the filing of audited financial statements $500 10. Application for an exemption or waiver $500 11. Application for the use of a restricted word $600 12. Application for a change of an appointed service provider to a licensee $500 13. Application for a change of name $500 14. Filing for amendments or supplements of offering documents $100 15. Photocopying of \u2014 (a) applications for registering or  licensing mutual funds; (b) reporting forms; (c) offering documents; or (d) other constitutive documents $25 16. Auditor\u2019s application for approval for local audit sign-off $15,000 Monetary Authority Law (2020 Revision) SCHEDULE 3 SCHEDULE 3 (sections 2 and 4(4)) Private Sector Associations Alternative Investment Management Association (Cayman Islands) Cayman Islands Association of Insurance and Financial Advisors Cayman Islands Bankers Association Cayman Islands Company Managers Association Cayman Islands Directors Association Cayman Islands Financial Services Association Cayman Islands Fund Administrators Association Cayman Islands Insurance Association Cayman Islands Legal Practitioners Association Cayman Islands Society of Professional Accountants Chartered Financial Analysts Society of the Cayman Islands Cayman Islands Compliance Association Insurance Managers Association of Cayman Society of Trust and Estate Practitioners (Cayman Islands). Publication in consolidated and revised form authorised by the Cabinet this 7th day of January, 2020. Kim Bullings Clerk of the Cabinet Monetary Authority Law (2020 Revision) ENDNOTES ENDNOTES Table of Legislation History: SL# Law # Legislation Commencement Gazette 20\/\/2019 Monetary Authority (Amendment) (No. 2)  Law, 2019 8-Aug-2019 LG28\/2019\/s11 6\/\/2019 Monetary Authority (Amendment) Law, 2019 15-May-2019 LG16\/2019\/s6 9\/2019 Legal Associations (Miscellaneous Amendments) Law, 2018 (Commencement) Order, 2019 19-Feb-2019 LG2\/2019\/s13 29\/2018 Legal Associations (Miscellaneous Amendments) Law, 2018 (part) 21-Feb-19 GE97\/2018\/s4 Monetary Authority Law (2018 Revision) 23-Mar-2018 GE24\/2018\/s3 97\/2017 Monetary Authority (Amendment) Law, 2016 (Commencement) Order, 2016 15-Dec-2017 GE106\/2017\/s1 27\/2016 Monetary Authority (Amendment) Law, 2016 15-Dec-2017 GE93\/2016\/s5 Monetary Authority Law (2016 Revision) 2-Sep-2016 GE69\/2016\/s16 11\/2015 Monetary Authority (Amendment) Law, 2015 12-Oct-2015 G21\/2015\/s1 Monetary Authority Law (2013 Revision) 1-Nov-2013 GE87\/2013\/s1 5\/2013 Monetary Authority (Amendment) Law, 2013 6-May-2013 G9\/2013\/s1 79\/2012 Monetary Authority (Fees) Regulations, 2012 13-Dec-2012 GE125\/2012\/s19 Monetary Authority Law (2011 Revision) 7-Nov-2011 G23\/2011\/s7 9\/2010 Monetary Authority (Amendment) Law, 2010 26-Apr-2010 G9\/2010\/s13 Monetary Authority Law (2010 Revision) 8-Nov-2010 G23\/2010\/s11 32\/2009 Monetary Authority (Amendment) Law, 2009 29-Dec-2009 GE91\/2009\/s2 Monetary Authority Law (2008 Revision) 21-Jul-2008 G15\/2008\/s1 20\/2007 Monetary Authority (Amendment) Law, 2007 4-Feb-2008 G3\/2008\/s2 Monetary Authority Law (2004 Revision) 23-Aug-2004 G17\/2004\/s1 35\/2003 Monetary Authority (Amendment) Law, 2003 27-Jan-2004 G2\/2004\/s4 Monetary Authority Law (2003 Revision) 28-Jul-2003 G15\/2003\/s5 34\/2003 Monetary Authority (Amendment) Law, 2002 (Commencement) Order, 2003 12-Mar-2003 GE10\/2003\/s4 34\/2002 Monetary Authority (Amendment) Law, 2002 1-Aug-2003 GE5\/2003\/s4 Monetary Authority Law (2002 Revision) 2-Jul-2002 G13\/2002\/s7 22\/2001 Monetary Authority (Amendment) (Fees) Law, 2001 24-Sep-2001 G20\/2001\/s3 Monetary Authority Law (2001 Revision) 23-Apr-01 G9\/2001\/s5 12\/2000 Monetary Authority (Amendment) (Regulation of NonBank Financial Institutions) Law, 2000 20-Nov-2000 G24\/2000\/s1 ENDNOTES Monetary Authority Law (2020 Revision) SL# Law # Legislation Commencement Gazette Monetary Authority Law (2000 Revision) 11-Sep-2000 G19\/2000\/s8 6\/2000 Monetary Authority (Amendment) (International Cooperation) Law, 2000 24-Jul-2000 GE7\/2000\/s4 Monetary Authority Law (1998 Revision) 31-Aug-1998 G18\/1998\/s4 7\/1998 Monetary Authority (Amendment) (Reserves) Law, 1998 11-May-1998 G10\/1998\/s2 14\/1997 Monetary Authority (Amendment) (Membership) Law, 15-Sep-1997 G19\/1997\/s12 11\/1996 Monetary Authority (Amendment) Law, 1996 (Commencement) Order, 1996 9-Dec-1996 G25\/1996\/s5 16\/1996 Monetary Authority Law, 1996 1-Jan-1997 G25\/1996\/s4 (Price: $9.60)\", \"element\": \"section\", 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\"duration\": null, \"refersTo\": \"#inForce\"}]}]}, \"classification\": null, \"identification\": {\"source\": \"#cilegis\", \"FRBRWork\": {\"FRBRuri\": \"\/akn\/ky\/act\/1996\/16\", \"FRBRdate\": [{\"date\": \"2020-01-14\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/1996\/16\/!main\", \"FRBRalias\": [{\"name\": \"cmsId\", \"value\": \"1996-0016\"}], \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRnumber\": \"16 of 1996\", \"FRBRcountry\": \"ky\", \"FRBRsubtype\": \"principal\"}, \"FRBRExpression\": {\"FRBRuri\": \"\/akn\/ky\/act\/1996\/16\/eng@2020-01-14\", \"FRBRdate\": [{\"date\": \"2020-01-14\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/1996\/16\/eng@2020-01-14\/!main\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": 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the\nMonetary Authority (Fees) Regulations, 2012.\n\nRevised under the authority of the Law Revision Law (1999 Revision).\n\nOriginally enacted \u2014\nLaw 16 of 1996-20th September, 1996\nLaw 14 of 1997-10th June, 1997\nLaw 7 of 1998-16th March, 1998\nLaw 6 of 2000-14th July, 2000\nLaw 12 of 2000-18th September, 2000\nLaw 22 of 2001-26th July, 2001\nLaw 34 of 2002-19th December, 2002\nLaw 35 of 2003-16th December, 2003\nLaw 20 of 2007-10th December, 2007\nLaw 32 of 2009-2nd December, 2009\nLaw 9 of 2010-1st March, 2010\nLaw 5 of 2013-15th March, 2013\nLaw 11 of 2015-12th August, 2015\nLaw 27 of 2016-24th October, 2016\nLaw 29 of 2018-16th November, 2018 (part)\nLaw 6 of 2019-10th April, 2019\nLaw 20 of 2019-26th July, 2019.\n\nand consolidated with \u2014\nMonetary Authority (Fees) Regulations, 2012 made the 13th November, 2012.\n\nConsolidated and revised this 31st day of December, 2019.\n\nNote (not forming part of the Law): This revision replaces the 2018 Revision which\nshould now be discarded.\n\nMonetary Authority Law (2020 Revision)\nArrangement of Sections\n\nc\nRevised as at 31st December, 2019\nPage 3\n\nCAYMAN ISLANDS\n\nMONETARY AUTHORITY LAW\n(2020 Revision)\nArrangement of Sections\nSection\nPage\nPART I - Preliminary\n1.\nShort title ...................................................................................................................................7\n2.\nDefinitions ..................................................................................................................................7\n2A.\nReferences to Law include regulations and rules ..................................................................... 10\n3.\nDetermination of fitness and propriety ...................................................................................... 11\n4.\nPrivate sector consultation ....................................................................................................... 11\nPART II - Establishment, Capital and Administration of\nAuthority\n5.\nEstablishment of Authority ....................................................................................................... 12\n6.\nPrincipal functions of Authority ................................................................................................. 12\n7.\nAuthorised capital .................................................................................................................... 14\n8.\nGeneral Reserve ..................................................................................................................... 14\n9.\nCalculated profits ..................................................................................................................... 15\n10.\nAllocation of profits .................................................................................................................. 15\n11.\nBoard of directors .................................................................................................................... 15\n12.\nAppointment of directors .......................................................................................................... 16\n13.\nAppointment of managing director ........................................................................................... 16\n14.\nDisqualification of directors ...................................................................................................... 17\n15.\nMeetings and decisions of board ............................................................................................. 17\n16.\nEstablishment of Management Committee ............................................................................... 18\n17.\nAdditional committees .............................................................................................................. 19\n18.\nPecuniary interest of director or committee member ................................................................ 19\n\nArrangement of Sections\nMonetary Authority Law (2020 Revision)\n\nPage 4\nRevised as at 31st December, 2019\nc\n\n19.\nPecuniary interests for the purposes of section 18 ................................................................... 20\n20.\nRemoval or exclusion of disability, etc. .................................................................................... 20\n21.\nPower to employ staff, etc. ....................................................................................................... 21\nPART III - Currency\n22.\nUnit of currency ....................................................................................................................... 21\n23.\nContracts, etc., to be made in currency .................................................................................... 22\n24.\nSole right of currency issue ...................................................................................................... 22\n25.\nObligation to deal in United States dollars ................................................................................ 22\n26.\nProvisions relating to issue of currency .................................................................................... 23\n27.\nDenominations and forms of currency ...................................................................................... 23\n28.\nLegal tender ............................................................................................................................ 23\n29.\nCalling-in of currency ............................................................................................................... 24\n30.\nMutilated, etc., currency ........................................................................................................... 24\n31.\nDefacing, etc., of notes or coins ............................................................................................... 24\nPART IV - Currency Reserve\n32.\nCurrency Reserve .................................................................................................................... 24\nPART V - Operations\n33.\nRelations with Government ...................................................................................................... 26\n34.\nRelations with banks and other financial institutions................................................................. 26\n35.\nAssistance in obtaining information .......................................................................................... 30\n36.\nGeneral powers ....................................................................................................................... 30\n37.\nProhibited activities .................................................................................................................. 31\nPART VI - Accounts and Statements\n38.\nFunds and resources of the Authority ...................................................................................... 31\n39.\nFinancial year .......................................................................................................................... 32\n40.\nApplication of the Public Management and Finance Law ......................................................... 32\n41.\nIndependent review of Authority\u2019s performance ....................................................................... 32\n42.\nSurplus .................................................................................................................................... 33\nPART VIA - Administrative Fines\n42A. Authority\u2019s power to fine .......................................................................................................... 34\n42B. Fine amounts ........................................................................................................................... 34\n42C. Declaratory provisions for power to fine ................................................................................... 34\n42D. Limitation period ...................................................................................................................... 35\n42E. Relationship with penalties ...................................................................................................... 35\n42F. Criteria for making fine decision ............................................................................................... 35\n42G. Authority\u2019s rule-making power for Part ..................................................................................... 36\n42H. Other Regulation-making powers for Part ................................................................................ 36\n\nMonetary Authority Law (2020 Revision)\nArrangement of Sections\n\nc\nRevised as at 31st December, 2019\nPage 5\n\nPART VII - General\n43.\nImmunity .................................................................................................................................. 36\n44.\nIndemnity ................................................................................................................................. 37\n45.\nExemption ............................................................................................................................... 37\n46.\nRegulations ............................................................................................................................. 37\n47.\nRules ....................................................................................................................................... 38\n48.\nRegulatory handbook ............................................................................................................... 38\n49.\nAdditional powers .................................................................................................................... 38\n50.\nConfidentiality .......................................................................................................................... 39\n51.\nMemoranda of understanding .................................................................................................. 42\n52.\nDisclosure to regulators ........................................................................................................... 42\nPART VIII \u2013 Savings and Transitional\n53.\nSavings of the Cayman Islands Currency Order, 1974 ............................................................. 42\n54.\nTransitional provision for the Monetary Authority (Amendment) Law, 2016 [Law 27 of\n2016] ....................................................................................................................................... 42\nSCHEDULE 1\n43\nRegulation of Banks, Trust Companies, Company Management, Insurance Companies, Mutual\nFunds, Money Services Businesses, Credit Unions and Building Societies .............................. 43\nSCHEDULE 2\n44\nFees \u2026 ............................................................................................................................................. 44\nSCHEDULE 3\n45\nPrivate Sector Associations ............................................................................................................... 45\nENDNOTES\n47\nTable of Legislation History: .............................................................................................................. 47\n\nMonetary Authority Law (2020 Revision)\nSection 1\n\nc\nRevised as at 31st December, 2019\nPage 7\n\nCAYMAN ISLANDS\n\nMONETARY AUTHORITY LAW\n(2020 Revision)\n\nPART I - Preliminary\n1.\nShort title\n1.\nThis Law may be cited as the Monetary Authority Law (2020 Revision).\n2.\nDefinitions\n2.\nIn this Law \u2014\n\u201cadvisory functions\u201d means the functions of the Authority specified in\nsection 6(1)(d);\n\u201canti-money laundering regulations\u201d means regulations made under\nsection 145 or section 201 of the Proceeds of Crime Law (2020 Revision);\n\u201cAuthority\u201d means the Cayman Islands Monetary Authority referred to in\nsection 5;\n\u201cbank\u201d means a person carrying on a banking business and licensed as such in\nthe Islands or elsewhere;\n\u201cboard\u201d means the board of directors established under section 11;\n\u201cbreach\u201d includes a contravention and, in relation to a prescribed provision,\nincludes allowing or not allowing a prescribed state of affairs to exist and\nengaging or not engaging in prescribed conduct;\n\nSection 2\nMonetary Authority Law (2020 Revision)\n\nPage 8\nRevised as at 31st December, 2019\nc\n\n\u201cbuilding society\u201d means a society incorporated under the Building Societies\nLaw (2020 Revision);\n\u201ccivil and administrative investigations and proceedings\u201d mean proceedings\nin any court of law in the jurisdiction of an overseas regulatory authority and\ninvestigations undertaken by the overseas regulatory authority preliminary to\nbringing such proceedings;\n\u201cClass \u201cA\u201d bank\u201d means a bank which is the holder of a licence under\nsection 6(5)(a) of the Banks and Trust Companies Law (2020 Revision);\n\u201cco-operative functions\u201d means the functions of the Authority specified in\nsection 6(1)(c);\n\u201ccredit union\u201d means a cooperative society registered under the Cooperative\nSocieties Law (2020 Revision) and having as its objects \u2014\n(a)\nthe promotion of thrift among the members of the society by the\naccumulation of their savings;\n(b) the creation of sources of credit for the benefit of the members of the\nsociety at a fair and reasonable rate of interest;\n(c)\nthe use and control of the members savings for their mutual benefit; and\n(d) the training and education of the members in the wise use of money and in\nthe management of their financial affairs;\n\u201ccross border supervision\u201d means supervision in relation to an entity located\nin the Islands but which is regulated by an overseas regulatory authority in\nanother territory or country;\n\u201ccurrency notes\u201d and \u201ccoins\u201d mean, respectively, the currency notes and coins\nissued under this Law;\n\u201cCurrency Reserve\u201d means the reserve established under section 32;\n\u201cdemand liabilities\u201d means the total value of \u2014\n(a)\namounts standing to the credit of any accounts opened for any local banks\nor for the Government of the Islands; and\n(b) (i)\ncurrency notes in circulation; and\n(ii) an amount not less than ten per cent of the nominal value of coins in\ncirculation,\nother than such currency notes and coins as are no longer legal tender and in\nrespect of which a transfer to the general revenue of the Islands has been made\nunder section 29(3);\n\u201cdirector\u201d means a director of the Authority appointed under section 12;\n\u201cexternal assets\u201d means assets denominated in a currency other than the\nCayman dollar and representing a claim on a non-resident of the Islands;\n\nMonetary Authority Law (2020 Revision)\nSection 2\n\nc\nRevised as at 31st December, 2019\nPage 9\n\n\u201cfinancial services business\u201d means business regulated under any\nregulatory law;\n\u201cfinancial year\u201d means the financial year of the Authority as defined in\nsection 39;\n\u201cfine\u201d, other than for a provision the breach of which is an offence, means an\nadministrative fine under section 42A(1);\n\u201cGeneral Reserve\u201d means the reserve established under section 8;\n\u201chead office\u201d means the head office of the Authority established under\nsection 5(4);\n\u201clicensee\u201d means a person holding a licence under the regulatory laws, and\nincludes a building society and a credit union;\n\u201clocal bank\u201d means any bank or branch thereof authorised to transact business\nas such in the Islands;\n\u201cManagement Committee\u201d means the committee established under\nsection 16(1);\n\u201cmanaging director\u201d means the managing director of the Authority appointed\nunder section 13;\n\u201cmonetary functions\u201d means the functions of the Authority specified in\nsection 6(1)(a);\n\u201cmoney laundering\u201d has the meaning given by section 144(10) of the Proceeds\nof Crime Law (2020 Revision);\n\u201cmoney services business\u201d means \u2014\n(a)\nthe business of providing (as a principal business) any or all of the\nfollowing services \u2014\n(i)\nmoney transmission;\n(ii) cheque cashing;\n(iii) currency exchange;\n(iv) the issuance, sale or redemption of money orders or travellers\ncheques; and\n(v) such other services as the Cabinet may specify by notice published\nin the Gazette; or\n(b) the business of operating as an agent or franchise holder of a business\nmentioned in paragraph (a),\nand any question as to whether the provision of a service is the principal business\nof any person shall be determined by the Authority;\n\u201coverseas regulatory authority\u201d means an authority which, in a country or\nterritory outside the Islands, exercises functions corresponding to \u2014\n(a)\nany of the regulatory functions of the Authority; or\n\nSection 2A\nMonetary Authority Law (2020 Revision)\n\nPage 10\nRevised as at 31st December, 2019\nc\n\n(b) any additional functions as may be specified in regulations including the\nconduct of civil and administrative investigations and proceedings to\nenforce laws, regulations and rules administered by that authority;\n\u201cprescribed provision\u201d means a provision for which the Authority may impose\nan administrative fine under section 42A(1);\n\u201cprivate sector association\u201d means an association specified in Schedule 3;\n\u201cpublic officer\u201d has the meaning assigned to it by section 124(1) of the Cayman\nIslands Constitution Order 2009 [UKSI 2009\/1379];\n\u201cregulatory functions\u201d means the functions of the Authority, specified in\nsection 6(1)(b) or, in relation to an overseas regulatory authority, functions\ncorresponding to the functions of the Authority, specified in section 6(1)(b);\n\u201cregulatory handbook\u201d means the handbook issued by the board under\nsection 48;\n\u201cregulatory laws\u201d means any one or more of the following Laws and\nRegulations made under them \u2014\n(a)\nBanks and Trust Companies Law (2020 Revision);\n(b) Building Societies Law (2020 Revision);\n(c)\nCompanies Management Law (2018 Revision);\n(d) Cooperative Societies Law (2020 Revision);\n(da) Development Bank Law (2018 Revision);\n(e)\nInsurance Law, 2010 [Law 32 of 2010];\n(f)\nMoney Services Law (2020 Revision);\n(g) Mutual Funds Law (2020 Revision);\n(ga) Directors Registration and Licensing Law, 2014, [Law 10 of 2014]; and\n(h) Securities Investment Business Law (2020 Revision),\nand any other laws that may be prescribed by the Cabinet by regulations made\nunder section 46; and\n\u201crelevant financial business\u201d has the meaning given by section 2 of the\nProceeds of Crime Law (2020 Revision); and\n\u201crules\u201d means rules issued and gazetted under section 34 or 42G.\n2A.\nReferences to Law include regulations and rules\n2A. In this Law, a reference to this Law or a provision of this Law, includes, if the context\npermits, a reference to regulations made and rules issued under this Law or the\nprovision.\n\nMonetary Authority Law (2020 Revision)\nSection 3\n\nc\nRevised as at 31st December, 2019\nPage 11\n\n3.\nDetermination of fitness and propriety\n3.\nIn determining for the purposes of this Law whether a person is a fit and proper\nperson, regard shall be had to all circumstances, including that person\u2019s \u2014\n(a)\nhonesty, integrity and reputation;\n(b) competence and capability; and\n(c)\nfinancial soundness.\n4.\nPrivate sector consultation\n4.\n(1) When this Law requires private sector consultation in relation to a proposed\nmeasure \u2014\n(a)\nthe Authority shall give to each private sector association a draft of the\nproposed measure, together with \u2014\n(i)\nan explanation of the purpose of the proposed measure;\n(ii) an explanation of the Authority\u2019s reasons for believing that the\nproposed measure is compatible with the Authority\u2019s functions and\nduties under section 6;\n(iii) an explanation of the extent to which a corresponding measure has\nbeen adopted in a country or territory outside the Islands;\n(iv) an estimate of any significant costs of the proposed measure, together\nwith an analysis of the benefits that will arise if the proposed measure\nis adopted; and\n(v) notice that representations about the proposed measure may be made\nto the Authority within a period specified in the notice (not being less\nthan thirty days or such shorter period as may be permitted by\nsubsection (3)); and\n(b) before proceeding with the proposed measure, the Authority shall have\nregard to any representations made by the private sector associations, and\nshall give a written response, which shall be copied to all the private sector\nassociations.\n(2) When this Law requires consultation with the Financial Secretary in relation to\na proposed measure \u2014\n(a)\na copy of the representations made by the private sector associations (or,\nif not in writing, the Authority\u2019s account of them); and\n(b) a copy of the Authority\u2019s response to the representations,\nshall be forwarded to the Minister charged with responsibility for Financial\nServices together with a draft of the proposed measure.\n(3) If the Authority considers that a measure is urgently required for the protection\nof members of the public, the Authority may specify a period less than thirty\n\nSection 5\nMonetary Authority Law (2020 Revision)\n\nPage 12\nRevised as at 31st December, 2019\nc\n\ndays under subsection (1)(a)(v), or postpone private sector consultation until\nafter the measure has been adopted.\n(4) The Cabinet may by Order amend Schedule 3.\nPART II - Establishment, Capital and Administration of\nAuthority\n5.\nEstablishment of Authority\n5.\n(1) There is established an Authority to be called the Cayman Islands Monetary\nAuthority which shall be a body corporate and shall have perpetual succession\nand a common seal and may sue and be sued in its corporate name.\n(2) For the purpose of carrying out its functions under this Law the Authority may\nbuy, sell, hold, deal and otherwise acquire and dispose of land and other property\nof whatsoever nature and may enter into contracts whether of agency or\notherwise.\n(3) All deeds, documents and other instruments requiring the seal of the Authority\nshall be sealed with the common seal of the Authority by the authority of the\nAuthority in the presence of the chairperson or managing director and of one\nother director of the Authority.\n(4) The Authority shall establish and maintain its head office and principal place of\nbusiness within the Islands, and shall cause details thereof to be gazetted, and\nservice of all documents on the Authority shall be deemed to be effective if\ndelivered at the head office.\n(5) The Authority may, by resolution, appoint an officer of the Authority or any\nother agent either generally or in a particular case to execute or sign on behalf\nof the Authority any agreement or other instrument not under seal in relation to\nany matter coming within the powers of the Authority.\n6.\nPrincipal functions of Authority\n6.\n(1) The principal functions of the Authority are \u2014\n(a)\nmonetary functions, namely \u2014\n(i)\nto issue and redeem currency notes and coins; and\n(ii) to manage the Currency Reserve,\nin accordance with this Law;\n(b) regulatory functions, namely \u2014\n(i)\nto regulate and supervise financial services business carried on in or\nfrom within the Islands in accordance with this Law and the\nregulatory laws;\n\nMonetary Authority Law (2020 Revision)\nSection 6\n\nc\nRevised as at 31st December, 2019\nPage 13\n\n(ii) to monitor compliance with the anti-money laundering regulations;\nand\n(iii) to perform any other regulatory or supervisory duties that may be\nimposed on the Authority by any other law;\n(c)\nco-operative functions, namely, to provide assistance to overseas\nregulatory authorities in accordance with this Law; and\n(d) advisory functions, namely, to advise the Government on the matters set\nout in paragraphs (a) to (c) and, in particular, with regard to \u2014\n(i)\nwhether the regulatory functions and the co-operative functions are\nconsistent with functions discharged by an overseas regulatory\nauthority;\n(ii) whether the regulatory laws are consistent with the laws and\nregulations of countries and territories outside the Islands; and\n(iii) the recommendations of international organisations.\n(2) In performing its functions and managing its affairs, the Authority shall \u2014\n(a)\nact in the best economic interests of the Islands;\n(b) promote and maintain a sound financial system in the Islands;\n(c)\nuse its resources in the most efficient and economic way;\n(d) have regard to generally accepted principles of good corporate\ngovernance;\n(e)\ncomply with this and any other law, including any regulations or directions\nmade or given thereunder; and\n(f)\nhave such ancillary powers as may be required to fulfil the functions set\nout in paragraphs (a) to (e).\n(3) In performing its regulatory functions and its co-operative functions, the\nAuthority shall, in addition to complying with the requirements of\nsubsection (2) \u2014\n(a)\nendeavour to promote and enhance market confidence, consumer\nprotection and the reputation of the Islands as a financial centre;\n(b) endeavour to reduce the possibility of financial services business or\nrelevant financial business being used for the purpose of money laundering\nor other crime;\n(c)\nrecognise the international character of financial services and markets and\nthe necessity of maintaining the competitive position of the Islands, from\nthe point of view of both consumers and suppliers of financial services,\nwhile conforming to internationally applied standards insofar as they are\nrelevant and appropriate to the circumstances of the Islands;\n\nSection 7\nMonetary Authority Law (2020 Revision)\n\nPage 14\nRevised as at 31st December, 2019\nc\n\n(d) recognise the principle that a burden or restriction which is imposed on a\nperson, or on the carrying on of an activity, should be proportionate to the\nbenefits, considered in general terms, which are expected to result from\nthe imposition of that burden or restriction;\n(e)\nrecognise the desirability of facilitating innovation in financial services\nbusiness; and\n(f)\nrecognise the need for transparency and fairness on the part of the\nAuthority.\n(4) In exercising its co-operative functions, the Authority shall, in addition to\ncomplying with the requirements of subsection (2) \u2014\n(a)\nhave regard to the matters mentioned in section 50(4); and\n(b) comply with section 50(8).\n7.\nAuthorised capital\n7.\n(1) The authorised capital of the Authority shall be one hundred million dollars and\nmay be increased, from time to time, by regulations made by the Cabinet.\n(2) On the establishment of the Authority, such portion of the authorised capital, as\nthe Cabinet may decide, shall be subscribed and paid-up by Government, and\nshall be held on behalf of Government by the person nominated by Order by the\nCabinet.\n(3) The paid-up portion of the authorised capital may be varied, from time to time,\nby such amount as the Cabinet may approve.\n(4) The payment of any increase in the paid-up capital referred to in subsection (3)\nmay be made by way of transfers from the General Reserve.\n(5) Where a variation of the paid-up portion of the authorised capital is approved\nby the Cabinet pursuant to subsection (3), and results in the paid up capital being\nreduced, any excess capital shall be transferred by the Authority to the general\nrevenue of the Islands.\n8.\nGeneral Reserve\n8.\n(1) There shall be a General Reserve of the Authority to which shall be allocated\nany amounts that may become available under section 10.\n(2) In the event that the General Reserve, after the allocation of amounts under\nsection 10, amounts to less than fifteen per cent of the demand liabilities of the\nAuthority, the Government may appropriate such funds from the general\nrevenue of the Islands as are required to extinguish all or part of such deficiency.\n\nMonetary Authority Law (2020 Revision)\nSection 9\n\nc\nRevised as at 31st December, 2019\nPage 15\n\n9.\nCalculated profits\n9.\nThe net profits of the Authority for any financial year shall include, but shall not be\nlimited to, the income from the investments of the Authority, and the profits from the\nsales of investments belonging to the Authority; and shall be determined by the\nAuthority after meeting or providing for all expenditure for that year and making such\nprovisions for contingencies and the establishment of such additional reserves as it\nmay consider desirable.\n10.\nAllocation of profits\n10. (1) The net profits of the Authority for each financial year shall be calculated in\naccordance with section 9 and shall be distributed as follows \u2014\n(a)\nfirstly, such amount from the net profits of the Authority as the board may\ndetermine to be consistent with the prudent management of the Authority,\nshall be allocated to the Currency Reserve so that the Currency Reserve\nshall, subject to section 32(7), be maintained at a level of at least one\nhundred per cent of the demand liabilities of the Authority;\n(b) secondly, so long as the General Reserve established under section 8\namounts to less than fifteen per cent of the demand liabilities of the\nAuthority at the end of the financial year in which such profits were earned,\nthere shall be allocated to the General Reserve all such net profits or such\nlesser amount as shall make the General Reserve equivalent to fifteen per\ncent of the said liabilities; and\n(c)\nany net profits not allocated in accordance with paragraph (a) or (b) shall\nbe transferred to the general revenue of the Islands.\n(2) Where the total assets of the Authority are less than the total liabilities of the\nAuthority such deficiency shall be a first charge on the Authority\u2019s net profits.\n11.\nBoard of directors\n11. (1) There shall be a board of directors of the Authority which, subject to this Law,\nshall be responsible for the governance, policy and performance of the Authority\nand the general conduct of its affairs and business.\n(2) The board shall consist of \u2014\n(a)\nthe managing director as an ex officio director; and\n(b) not more than nine other directors (including the chairperson of the board\nand the deputy chairperson of the board),\nappointed in accordance with sections 12 and 13, each of whom shall be a fit\nand proper person and shall have demonstrated to the satisfaction of the Cabinet\nsubstantial knowledge and experience relevant to at least some of the functions\nof the Authority.\n\nSection 12\nMonetary Authority Law (2020 Revision)\n\nPage 16\nRevised as at 31st December, 2019\nc\n\n(3) The chairperson of the board and the deputy chairperson of the board,\nrespectively, shall be designated by the Cabinet.\n12.\nAppointment of directors\n12. (1) The directors referred to in paragraph (b) of section 11(2) shall be appointed by\nthe Cabinet.\n(2) The directors so appointed \u2014\n(a)\nshall not act as delegates on the board from any commercial, financial,\nagricultural, industrial or other interests with which they may be\nconnected;\n(b) shall hold office for a term of three years and shall be eligible for reappointment; and\n(c)\nmay be paid by the Authority out of the funds of the Authority such\nremuneration and allowances as may be determined by the Cabinet.\n(3) Paragraphs (b) and (c) of subsection (2) shall not apply to a director who is\nappointed managing director under section 13.\n(4) If any director appointed under subsection (1) dies, resigns or otherwise vacates\nthat director\u2019s office before the expiry of the term for which that director has\nbeen appointed, another person may be appointed by the Cabinet for the\nunexpired period of the term of office of the director in whose place that person\nis appointed.\n13.\nAppointment of managing director\n13. (1) The Cabinet, after consultation with the board, shall appoint a fit and proper\nperson to be the managing director.\n(2) The managing director shall be an employee of the Authority on such terms and\nconditions of service as the Cabinet, after consultation with the board, may\ndecide.\n(3) The managing director shall be entrusted with the day to day administration of\nthe Authority to the extent of the authority delegated to that managing director\nby the board.\n(4) The managing director shall render that managing director\u2019s services\nexclusively to the Authority and shall be answerable to the board for that\nmanaging director\u2019s acts and decisions.\n(5) In the event of the absence, or inability to act of the managing director, the\nboard \u2014\n(a)\nmay appoint a person to discharge the duties of the managing director\nduring the period of the managing director\u2019s absence or inability; and\n(b) shall forthwith notify the Minister charged with responsibility for\nFinancial Services of an appointment made under paragraph (a).\n\nMonetary Authority Law (2020 Revision)\nSection 14\n\nc\nRevised as at 31st December, 2019\nPage 17\n\n(6) An appointment made by the board under subsection (5) shall not exceed three\nmonths and in the event that the absence of the managing director or the inability\nof the managing director to act is anticipated to be for a period exceeding three\nmonths, the Cabinet may, after consultation with the board, appoint a person to\ndischarge the duties of the managing director for the duration of the managing\ndirector\u2019s absence or inability.\n(7) Without prejudice to section 14(3), the Cabinet, on the recommendation of the\nboard, shall terminate the appointment of the managing director.\n14.\nDisqualification of directors\n14. (1) No person may be appointed as or remain a director of the Authority who is an\nelected member of the Legislative Assembly or an official member of the\nCabinet.\n(2) The Cabinet shall terminate the appointment of any director who \u2014\n(a)\nresigns that director\u2019s office;\n(b) becomes of unsound mind or incapable of carrying out that director\u2019s\nduties;\n(c)\nbecomes bankrupt, suspends payment to or compounds with that director\u2019s\ncreditors;\n(d) is convicted in the Islands or in any other jurisdiction of an offence\ninvolving dishonesty, fraud or any indictable offence;\n(e)\ncommits serious misconduct in relation to that director\u2019s duties;\n(f)\nis absent, without leave of the chairperson of the board, from three\nconsecutive meetings of the board; or\n(g) fails to comply with that director\u2019s obligations under section 18.\n(3) The Cabinet, in the public interest may terminate the appointment of any\ndirector.\n15.\nMeetings and decisions of board\n15. (1) The chairperson of the board shall summon regular meetings of the board as\noften as may be required, but not less frequently than once in three months, and\nshall summon extraordinary meetings when required to do so in accordance with\nrules made under section 47.\n(2) At a meeting of the board, the chairperson of the board or, if that chairperson is\nnot present, the deputy chairperson or, if that deputy chairperson is not present,\na director chosen by the directors present, shall act as the chairperson of the\nmeeting.\n(3) At every meeting of the board, a quorum shall consist of five directors, and\ndecisions shall be adopted by a simple majority of the votes of the directors\n\nSection 16\nMonetary Authority Law (2020 Revision)\n\nPage 18\nRevised as at 31st December, 2019\nc\n\npresent and voting except that, in the case of an equality of votes, the chairperson\nof the meeting shall, in addition, have a casting vote.\n(4) The board may act notwithstanding that a vacancy exists among the members\nor in the office of chairperson or deputy chairperson, and shall have power to \u2014\n(a)\nact by sub-committee; and\n(b) delegate any of its duties and powers from time to time to such subcommittees and to any of their own number and to the officers, servants\nand agents of the Authority,\n(5) The board shall have power to delegate from time to time \u2014\n(a)\nany of its duties and powers (other than a duty or power expressly imposed\nor conferred on the board by this Law), to the Management Committee;\nand\n(b) any of its duties and powers (other than a licensing or supervisory power\nor duty), to a committee appointed by the board under section 17,\nand a decision of the Management Committee or a committee so appointed shall\nbe deemed to be a decision of the board.\n(6) A delegation under paragraph (a) or (b) of subsection (4) is revocable at will and\ndoes not prevent the exercise by the board of any duties or powers so delegated.\n(7) For the purposes of this Law, a director shall be deemed to be present at a\nmeeting of the board if that director gains access to the meeting by conference\ntelephone or by some other conference facility.\n16.\nEstablishment of Management Committee\n16. (1) Without prejudice to section 17, there is established a committee to be known\nas the Management Committee.\n(2) The Management Committee shall comprise \u2014\n(a)\nthe managing director;\n(b) a deputy managing director;\n(c)\nthe head of each regulatory and each supervisory division within the\nAuthority, or such person as may be designated by the head to act in that\nhead\u2019s absence; and\n(d) such other senior officer of the Authority as the managing director may,\nwith the approval of the board, designate.\n(3) The managing director may designate an employee of the Authority to act as\nsecretary to the Management Committee performing such duties as the\nManagement Committee may determine.\n(4) The board may, subject to section 15(4), by instrument in writing, delegate to\nthe Management Committee such licensing, supervisory and other powers and\n\nMonetary Authority Law (2020 Revision)\nSection 17\n\nc\nRevised as at 31st December, 2019\nPage 19\n\nduties as the board sees fit; and the Management Committee shall, subject to\nsection 48, exercise and carry out the powers and duties so delegated by the\nboard.\n17.\nAdditional committees\n17. (1) The board may appoint committees additional to the Management Committee,\nto assist the board in exercising the board\u2019s management functions under this\nLaw, and shall appoint such persons as it sees fit to be members of the\ncommittees.\n(2) The managing director may designate a member of any such committee to act\nas secretary to the committee performing such duties as the committee may\ndetermine.\n(3) The board may, by instrument in writing, delegate to a committee appointed by\nthe board under subsection (1), such powers and duties (other than licensing or\nsupervisory powers or duties) as the board sees fit; and the committee shall\nexercise and carry out the powers and duties so delegated by the board.\n18.\nPecuniary interest of director or committee member\n18. (1) If a director, a member of the Management Committee or a member of a\ncommittee appointed under section 17, has any pecuniary interest, direct or\nindirect, in any contract, proposed contract, licence or other matter and is present\nat a meeting of the board, Management Committee or other committee, as the\ncase may be, at which the contract, proposed contract, licence or other matter is\nthe subject of consideration, that person shall, at the meeting and as soon as\npracticable after its commencement, disclose the fact and shall not take part in\nthe consideration or discussion of the contract, proposed contract, licence or\nother matter or vote on any question with respect to it, and shall be excluded\nfrom the meeting for the duration of the consideration, discussion and voting\nprocedure.\n(2) A person who fails to comply with subsection (1) commits an offence and is\nliable \u2014\n(a)\non summary conviction, to a fine of twenty thousand dollars and to\nimprisonment for two years; or\n(b) on conviction on indictment to, a fine of fifty thousand dollars and to\nimprisonment for five years,\nunless that person proves that that person did not know that the contract,\nproposed contract, licence or other matter in which that person had a pecuniary\ninterest was the subject of consideration at that meeting.\n(3) A disclosure under subsection (1) shall be recorded in the minutes of the board,\nManagement Committee or other committee, as the case may be.\n\nSection 19\nMonetary Authority Law (2020 Revision)\n\nPage 20\nRevised as at 31st December, 2019\nc\n\n(4) No act or proceeding of the board, Management Committee or other committee,\nshall be questioned on the ground that a director of the board or a member of\nthe Management Committee or other committee, as the case may be, has\ncontravened this section.\n19.\nPecuniary interests for the purposes of section 18\n19. (1) For the purposes of section 18, a director, a member of the Management\nCommittee or a member of a committee appointed under section 17, shall be\ntreated, subject to subsections (2) and (3) and to section 20, as having indirectly\na pecuniary interest in a contract, proposed contract, licence or other matter if \u2014\n(a)\nthat person, or any nominee of that person, is a member of a company or\nother body with which the contract was made or is proposed to be made or\nwhich has a direct pecuniary interest in the licence or other matter under\nconsideration;\n(b) that person is a partner, or is in the employment of a person with whom\nthe contract was made or is proposed to be made, or who has a direct\npecuniary interest in the licence or other matter under consideration; or\n(c)\nthat person or any partner of that person is a professional adviser to a\nperson who has a direct or indirect pecuniary interest in a contract,\nproposed contract, licence or other matter.\n(2) Subsection (1) does not apply to membership of or employment under any\npublic body.\n(3) In the case of married persons, the interest of one spouse shall be deemed for\nthe purpose of this section to be also the interest of the other.\n20.\nRemoval or exclusion of disability, etc.\n20. (1) The Cabinet may, in the public interest and subject to such conditions as it may\nthink fit, appoint persons to act as directors for any specified period, in any case\nin which the number of directors disabled by section 18 at any one time would\nbe so great a proportion of the whole as to impede the transaction of business.\n(2) Nothing in section 18 precludes any director from taking part in the\nconsideration or discussion of, or voting on, any question whether an application\nshould be made to the Cabinet for the exercise of the powers conferred by\nsubsection (1).\n(3) Section 18 shall not apply to an interest in a contract, proposed contract, licence\nor other matter which a director has as a member of the public or to an interest\nin any matter relating to the terms on which the right to participate in any service\nis offered to the public.\n(4) Where a director has an indirect pecuniary interest in a contract, proposed\ncontract, licence or other matter by reason only of a beneficial interest in\nsecurities of a company or other body, and the nominal value of those securities\n\nMonetary Authority Law (2020 Revision)\nSection 21\n\nc\nRevised as at 31st December, 2019\nPage 21\n\ndoes not exceed one thousand dollars or one-thousandth of the total nominal\nvalue of the issued share capital of the company or other body, whichever is the\nless, and, if the share capital is of more than one class, the total nominal value\nof shares of any one class in which that director has a beneficial interest does\nnot exceed one-thousandth of the total issued share capital of that class,\nsection 18 shall not prohibit that director from taking part in the consideration\nor discussion of the contract, proposed contract, licence or other matter or from\nvoting on any question with respect to it, without prejudice, however, to that\ndirector\u2019s duty to disclose that director\u2019s interest.\n21.\nPower to employ staff, etc.\n21. (1) The Authority may employ, at such remuneration and on such terms and\nconditions as may be approved from time to time by the board, such persons,\nincluding one or more deputy managing directors as the board considers\nnecessary for the performance of the functions of the Authority.\n(2) The Authority shall create and maintain or subscribe to a fund for the payment\nof pensions to employees of the Authority in accordance with a scheme, the\nterms of which shall be approved by the Cabinet.\n(3) The fund shall be vested in trustees to be appointed by the Authority for that\npurpose, and shall be maintained at a sufficient level according to accepted\nactuarial principles to enable pensions to be paid to all employees of the\nAuthority in accordance with the approved scheme.\n(4) The Cabinet may, subject to such conditions as it may impose, approve of the\nappointment of any public officer in the service of Government by way of\nsecondment to any office with the Authority, and any public officer so appointed\nshall, in relation to pension, gratuity or other allowance and to other rights and\nobligations as a public officer, be treated as continuing in the service of\nGovernment.\nPART III - Currency\n22.\nUnit of currency\n22. (1) The unit of currency of the Islands shall continue to be the Cayman dollar\ndivided into one hundred cents.\n(2) The value of the Cayman dollar shall be equivalent to such an amount of\ncurrency of the United States of America as the Cabinet may, in accordance with\nthe advice of the Authority, by Order made under this section, prescribe.\n(3) An Order made under subsection (2) shall come into operation at such time and\nday as may be specified in such Order.\n\nSection 23\nMonetary Authority Law (2020 Revision)\n\nPage 22\nRevised as at 31st December, 2019\nc\n\n(4) An Order made under subsection (2) shall be given such publicity immediately\nafter it is subscribed in writing by the Cabinet as, in the opinion of the Authority,\nis likely to bring the Order to the notice of such persons as are immediately\naffected thereby, and shall also be gazetted.\n(5) For the avoidance of doubt it is hereby declared that an Order may be made on\na public holiday within the meaning of the Public Holidays Law (2007\nRevision).\n23.\nContracts, etc., to be made in currency\n23. Every contract, document, sale, payment, bill, note, transaction, instrument or\nsecurity for money and every transaction, dealing, matter or thing whatsoever relating\nto money or involving payment of or the liability to pay in money shall, to be valid\nin the Islands, be made, executed, entered into, done, had or settled in the currency of\nthe Islands unless it is expressly made, executed, entered into, done, had or settled in\nthe currency of some other country.\n24.\nSole right of currency issue\n24. (1) The Authority, on behalf of the Government, shall have the sole right of issuing\nlegal tender notes and coins in the Islands, and no person other than the\nAuthority shall, in the Islands, issue currency notes, bank notes or coins or any\ndocuments or tokens payable to bearer on demand being documents or tokens\nwhich are likely to pass as legal tender.\n(2) No currency notes or coins other than the currency notes and coins issued by the\nAuthority shall be legal tender in the Islands.\n25.\nObligation to deal in United States dollars\n25. (1) The Authority shall, on demand at its head office, issue and redeem Cayman\ndollars against the currency of the United States of America provided that \u2014\n(a)\nthe Authority shall not be required to issue and redeem Cayman dollars of\nan amount less than such minimum sum as may, from time to time, be\nprescribed; and\n(b) the rate of exchange quoted by the Authority in respect of spot transactions\nshall not differ by more than such margins on either side of the value of\nthe currency of the Islands established in terms of section 22 as may, from\ntime to time, be prescribed by the Cabinet after consultation with the\nAuthority.\n(2) The Authority shall publish or cause to be published, at its offices and at the\noffices of its agents and representatives, the rates referred to in paragraph (b) of\nsubsection (1) at which it is prepared to deal against the currency of the United\nStates of America with the public.\n\nMonetary Authority Law (2020 Revision)\nSection 26\n\nc\nRevised as at 31st December, 2019\nPage 23\n\n(3) Notwithstanding subsection (2), the Authority may, at its discretion, deal\nagainst the currency of the United States of America with local banks at rates\ndifferent from its published rates.\n26.\nProvisions relating to issue of currency\n26. The Authority shall \u2014\n(a)\narrange for the printing of currency notes and the minting of coins and for\nall matters relating thereto and for the security of such notes and coins; and\n(b) issue, re-issue, withdraw and, at its discretion, exchange currency notes\nand coins at its head office and at such offices and agencies elsewhere in\nthe Islands as it may establish.\n27.\nDenominations and forms of currency\n27. (1) Currency notes issued under this Law shall be of such denominations, of such\nform and design, printed from such plates, on such paper and authenticated in\nsuch manner as may, from time to time, be recommended by the Authority and\napproved by the Cabinet.\n(2) Coins issued under this Law shall be of such denominations, of such form and\ndesign, made of such metal or metals and made or issued by such mint or mints\nas may, from time to time, be recommended by the Authority and approved by\nthe Cabinet.\n(3) When seeking approval from the Cabinet under this section, the Authority shall\ndirect its communication in writing through the Minister charged with\nresponsibility for Finance.\n28.\nLegal tender\n28. (1) Currency notes shall continue to be legal tender, in the Islands at their face value\nfor the payment of any amount.\n(2) Coins shall, if they have not been illegally dealt with, continue to be legal tender\nin the Islands to an amount not exceeding two hundred and fifty dollars in the\ncase of coins of denomination of not less than five cents, and not exceeding fifty\ncents in the case of lower denominations.\n(3) For the purposes of this Law, a coin shall be deemed to have been illegally dealt\nwith where the coin has been impaired, diminished or lightened otherwise than\nby fair wear and tear, or has been defaced by having any name, word, device or\nnumber stamped or engraved thereon, whether the coin has or has not been\nthereby diminished or lightened.\n\nSection 29\nMonetary Authority Law (2020 Revision)\n\nPage 24\nRevised as at 31st December, 2019\nc\n\n29.\nCalling-in of currency\n29. (1) The Authority may, with the approval of the Cabinet, declare that any currency\nnotes or coins shall cease to be legal tender, and may provide for any matters\nincidental to the calling-in of such notes or coins.\n(2) Any declaration authorised by subsection (1) shall have effect as from the date\nof gazettal or such later date as may therein be specified, and the holders of any\nnotes or coins so called in shall be entitled, within such period as may be\nspecified in such declaration, or in any subsequent declaration issued by the\nAuthority with the approval of the Cabinet, to claim payment from the Authority\nof the face value thereof.\n(3) When any currency notes or coins are called in under subsection (1) the\nAuthority may, at its discretion, transfer to the general revenue of the Islands,\nten years after the date of the calling-in, an amount equivalent to the value of\nany such notes or coins still remaining in circulation, and the Authority shall\nhave the right to recover from the general revenue an amount equivalent to the\nvalue of any such notes or coins presented for payment thereafter.\n(4) When seeking approval from the Cabinet under this section, the Authority shall\ndirect its communication in writing through the Minister charged with\nresponsibility for Finance.\n30.\nMutilated, etc., currency\n30. No person shall be entitled to recover from the Authority the value of any lost, stolen,\nmutilated or imperfect currency note or coin, or of any coin which has been illegally\ndealt with. The circumstances and conditions under which such value may be\nrefunded as an act of grace shall be within the absolute discretion of the Authority.\n31.\nDefacing, etc., of notes or coins\n31. A person who, without lawful authority or excuse (the proof whereof shall be on the\nperson accused), defaces, mutilates or perforates any currency note or coin which,\nunder this Law, is made legal tender in the Islands commits an offence and is liable\non summary conviction to a fine of one thousand dollars and to imprisonment for\nthree months.\nPART IV - Currency Reserve\n32.\nCurrency Reserve\n32. (1) The Authority shall, at all times, maintain a Currency Reserve which shall\nconsist of external assets and local assets.\n(2) The external assets referred to in subsection (1) \u2014\n\nMonetary Authority Law (2020 Revision)\nSection 32\n\nc\nRevised as at 31st December, 2019\nPage 25\n\n(a)\nshall be in value not less than an amount equivalent to ninety per cent of\nthe demand liabilities of the Authority; and\n(b) shall consist of all or any of \u2014\n(i)\ngold coin or bullion;\n(ii) notes and coins, in such currencies as may be approved by the board;\n(iii) money at call and deposits with such banks and in such countries as\nmay be approved by the board;\n(iv) treasury bills maturing within one hundred and eighty-four days\nissued by such foreign governments as may be approved by the\nboard;\n(v) marketable securities issued or guaranteed by such foreign\ngovernments or international financial institutions as may be\napproved by the board and maturing within ten years;\n(vi) marketable securities issued by such government agencies as may be\napproved by the Cabinet on the recommendation of the board; and\n(vii) such other securities and investments not exceeding twenty-five per\ncent of the value of the Currency Reserve assets as may be authorised\nby the Cabinet on the recommendation of the board.\n(3) An amount equivalent to not less than twenty per cent of the demand liabilities\nof the Authority shall, at all times, be held in liquid form, that is to say it shall\nbe held in Treasury bills issued by such governments as shall be approved by\nthe board, or may be lent out at call or for short term to such banks as may be\napproved by the board, or invested in such readily realisable securities as may\nbe approved by the board.\n(4) The local assets referred to in subsection (1) shall be in value not less than the\ndifference, if any, between the amount of its total demand liabilities and the\nvalue of external assets specified in subsection (2).\n(5) The local assets shall consist of money at call or on deposit with such Class \u201cA\u201d\nbanks as may be approved by the board.\n(6) The total of the value of the local assets referred to in subsection (5) shall not,\nat any time, exceed ten per cent of the demand liabilities of the Authority.\n(7) If, at any time, the total assets of the Currency Reserve shall be less than one\nhundred per cent of the demand liabilities of the Authority, such deficiency\nshall, so far as possible, be met by transfer from the General Reserve and, to the\nextent that such deficiency is not thereby removed, it shall be a liability of the\nGovernment, and the Government shall appropriate such funds from the general\nrevenue of the Islands as are required to extinguish such deficiency.\n(8) The Currency Reserve shall only be used for the compliance by the Authority\nwith its obligations under section 25(1) and the assets of the Currency Reserve\n\nSection 33\nMonetary Authority Law (2020 Revision)\n\nPage 26\nRevised as at 31st December, 2019\nc\n\nshall be segregated from all other assets of the Authority and not be chargeable\nwith any liability arising from any other business of the Authority.\n(9) For the avoidance of doubt, it is hereby declared that the assets of the Currency\nReserve shall not be the subject of any order for injunction, attachment,\nexecution or similar order in any proceedings before any court or tribunal.\nPART V - Operations\n33.\nRelations with Government\n33. (1) The Cabinet may, from time to time, after consultation with the board, give to\nthe Authority, in writing, such general directions as appear to the Cabinet to be\nnecessary in the public interest, and the Authority shall act in accordance with\nsuch directions.\n(2) If it appears to the Authority that the regulatory laws, or any regulations or\ndirections made or issued thereunder, are to any extent inconsistent with the\nAuthority\u2019s regulatory functions, the Authority shall make recommendations to\nthe Cabinet and, if so required by the Minister charged with responsibility for\nFinancial Services, shall conduct private sector consultation with respect to such\nrecommendations.\n(3) In its relations with the Cabinet, the Authority shall direct its communication in\nwriting through the Minister charged with responsibility for Financial Services.\n34.\nRelations with banks and other financial institutions\n34. (1) After private sector consultation and consultation with the Minister charged\nwith responsibility for Financial Services, the Authority may \u2014\n(a)\nissue or amend rules or statements of principle or guidance concerning the\nconduct of licensees and their officers and employees, and any other\npersons to whom and to the extent that the regulatory laws may apply;\n(b) issue or amend statements of guidance concerning the requirements of the\nanti-money laundering regulations or the provisions of the regulatory laws;\nand\n(c)\nissue or amend rules or statements of principle or guidance to reduce the\nrisk of financial services business being used for money laundering or\nother criminal purposes.\n(2) Repealed by section 6(b) of the Monetary Authority (Amendment) Law, 2010\n[Law 9 of 2010].\n(3) Rules or statements of principle or guidance issued under subsection (1) shall\nbe consistent with this Law and the regulatory laws and with any regulations or\ndirections made or given thereunder and shall state the provision of this Law,\n\nMonetary Authority Law (2020 Revision)\nSection 34\n\nc\nRevised as at 31st December, 2019\nPage 27\n\nthe regulatory Law, the regulations or the directions, as the case may be, to\nwhich they relate.\n(4) The guidance notes referred to as \u201cThe Guidance Notes on the Prevention and\nDetection of Money Laundering and Terrorist Financing in the Cayman\nIslands\u201d issued on the 13th December, 2017, shall be deemed to have been\nissued under subsection (1).\n(5) The Authority shall, without delay, publish in the Gazette notice of the issue\nor amendment of rules or statements of principle or guidance under\nsubsection (1) and forward to the Minister charged with responsibility for\nFinancial Services copies of the rules or statements of principle or guidance as\nissued or amended.\n(6) A breach of the rules or statements of principle or guidance issued under\nsubsection (1) shall not constitute an offence, or of itself give rise to any right\nof action by persons affected, or affect the validity of any transaction.\n(7) Subsection (6) shall not affect the power to fine for a breach of a provision of\nthe rules that is a prescribed provision.\n(8) The Authority may at all reasonable times, by notice in writing given \u2014\n(a)\nto a person regulated under the regulatory laws;\n(b) to a connected person; or\n(c)\nto a person reasonably believed to have information relevant to an enquiry\nby the Authority,\nrequire that person \u2014\n(i)\nto provide specified information or information of a specified\ndescription; or\n(ii) to produce specified documents or documents of a specified\ndescription,\nas it may reasonably require in connection with the exercise by the Authority of\nits regulatory functions.\n(9) Where, in accordance with section 50, the Authority is satisfied that assistance\nshould be provided in response to a request by an overseas regulatory authority\nit may in writing direct \u2014\n(a)\na person regulated under the regulatory laws;\n(b) a connected person;\n(c)\na person that is engaging in an activity that is subject to regulation under\nthe regulatory laws; or\n(d) a person reasonably believed to have information relevant to enquiries to\nwhich the request relates,\nwithin a stated time, to \u2014\n\nSection 34\nMonetary Authority Law (2020 Revision)\n\nPage 28\nRevised as at 31st December, 2019\nc\n\n(i)\nprovide the Authority with specified information or information of a\nspecified description with respect to any matter relevant to the\ninquiries to which the request relates;\n(ii) produce specified documents or documents of a specified description\nrelevant to those inquiries; or\n(iii) give to the Authority such assistance in connection with those\ninquiries as the Authority may specify in writing.\n(10) Where a person fails to comply with a requirement under subsection (8) or a\ndirection given under subsection (9) within three days from the date of the\nrequirement or direction or such longer period as the Authority may permit, the\nAuthority may apply to the court for an order requiring the person to comply\nwith the requirement or direction.\n(11) Where, in connection with a requirement under subsection (8) or a direction\ngiven under subsection (9), the Authority considers it necessary to examine a\nperson on oath, the Authority may apply to a court of summary jurisdiction to\nhave that person examined by the court and to have the results of that\nexamination sent to the Authority.\n(12) The court shall process an application under subsection (11) within seven days\nof its receipt and shall send the results of the examination to the Authority within\nfourteen days of the examination.\n(13) Where documents are produced pursuant to subsection (8) or (9), the Authority\nmay take copies of them or extracts from them.\n(14) A person shall not be required under this section to disclose information or to\nproduce a document which that person would be entitled to refuse to disclose or\nto produce on the grounds of legal professional privilege in court proceedings\nexcept that an attorney-at-law may be required to provide the name and address\nof that attorney-at-law\u2019s client or principal.\n(15) Where a person claims a lien on a document, its production under this section is\nwithout prejudice to that person\u2019s lien.\n(16) (a) In this section \u2014\n\u201cdocument\u201d includes information recorded in any form and, in relation to\ninformation recorded otherwise than in legible form, the power to require its\nproduction includes power to require the production of a copy of it in legible\nand intelligible form.\n(b) For the purposes of this section, any information or other matter comes to\na professional legal adviser in privileged circumstances if it is\ncommunicated or given to that professional legal adviser \u2014\n(i)\nby, or by a representative of, a client of that professional legal adviser\nin connection with the giving by the adviser of legal advice to the\nclient;\n\nMonetary Authority Law (2020 Revision)\nSection 34\n\nc\nRevised as at 31st December, 2019\nPage 29\n\n(ii) by, or by a representative of, a person seeking legal advice from the\nadviser; or\n(iii) by any person \u2014\n(A) in\ncontemplation\nof,\nor\nin\nconnection\nwith,\nlegal\nproceedings; and\n(B) for the purpose of those proceedings.\n(c)\nNo information or other matter shall be treated as coming to a professional\nlegal adviser in privileged circumstances if it is communicated or given\nwith a view to furthering any criminal purpose.\n(d) For the purposes of subsections (8) and (9), a person is connected with a\nperson regulated under the regulatory laws (\u201cA\u201d) if that person is or has at\nany relevant time been \u2014\n(i)\na member of A\u2019s group;\n(ii) a controller of A;\n(iii) any other member of a partnership of which A is a member; or\n(iv) a member, officer, manager, employee or agent of A.\n(17) A person who, without reasonable cause \u2014\n(a)\nfails to comply with a requirement of the Authority under subsection (8)\nor a direction of the Authority under subsection (9);\n(b) with intent to avoid the provisions of subsection (8) or (9) destroys,\nmutilates, defaces, hides or removes a document; or\n(c)\nwilfully obstructs an inquiry by the Authority, made in accordance with\nsubsection (8) or (9),\ncommits an offence and is liable on summary conviction to a fine of ten\nthousand dollars and on conviction on indictment to a fine of one hundred\nthousand dollars, and if the offence of which that person is convicted is\ncontinued after conviction that person commits a further offence and is liable to\na fine of ten thousand dollars for every day on which the offence is so continued.\n (18) (a) Where an offence under this section, which has been committed by a body\ncorporate, is proved to have been committed with the consent or\nconnivance of, or to be attributable to any neglect on the part of, any\ndirector, manager, secretary or other similar officer of the body corporate,\nor any person who was purporting to act in any such capacity, he, as well\nas the body corporate, commits that offence and is liable to be proceeded\nagainst and punished accordingly.\n(b) Where the affairs of a body corporate are managed by its members,\nparagraph (a) shall apply in relation to the acts and defaults of a member\nin connection with that member\u2019s functions of management as if that\nmember were a director of the body corporate.\n\nSection 35\nMonetary Authority Law (2020 Revision)\n\nPage 30\nRevised as at 31st December, 2019\nc\n\n(19) Where a person complies with a requirement under subsection (8), a direction\nunder subsection (9) or an order under subsection (10), or gives evidence under\nsubsection (11), such compliance shall not be treated as a breach of any\nrestriction upon disclosure of information by or under any law and shall not give\nrise to any civil liability.\n35.\nAssistance in obtaining information\n35. (1) Where, in accordance with section 50, the Authority is satisfied that assistance\nshould be provided in response to a request by an overseas regulatory authority,\nand that such assistance cannot be provided satisfactorily by means of its powers\nin section 34(9), the Authority may \u2014\n(a)\nauthorise a competent person to exercise any of its co-operative functions;\nand\n(b) seek the assistance of the Commissioner of Police in the exercise of those\nfunctions.\n(2) No such assistance shall be sought or authority granted under subsection (1)\nexcept for the purpose of investigating \u2014\n(a)\nthe affairs, or any aspect of the affairs, of a person specified by the\nAuthority; or\n(b) a subject matter specified by the Authority,\nbeing a person who, or a subject matter which, is the subject of the inquiries\nbeing carried out by or on behalf of an overseas regulatory authority.\n(3) No person shall be bound to comply with a requirement imposed by a person\nexercising powers by virtue of an authority granted under this section unless that\nperson has, if required, produced evidence of that person\u2019s authority.\n(4) Where the Authority seeks assistance or grants an authority under\nsubsection (1), the assistance or authority shall be provided or executed in such\nmanner as the Authority may determine; and where the Authority grants such\nan authority to a person, that person shall make a report to the Authority in such\nmanner as the Authority may require on the exercise of that authority and the\nresults of exercising it.\n(5) The Authority, any person authorised under subsection (1) or the commissioner\nof Police may apply to a Justice of the Peace, a Magistrate or a Judge of the\nGrand Court for a search warrant in pursuance of an investigation under\nsubsection (2).\n36.\nGeneral powers\n36. The Authority may \u2014\n(a)\npurchase and sell gold coin and bullion;\n(b) open and maintain accounts with local banks;\n\nMonetary Authority Law (2020 Revision)\nSection 37\n\nc\nRevised as at 31st December, 2019\nPage 31\n\n(c)\nopen and maintain accounts with banks and other depositories outside the\nIslands and appoint correspondents or agents outside the Islands;\n(d) purchase and sell foreign currencies and purchase, sell, discount and\nrediscount bills of exchange and treasury bills drawn in or on places\noutside the Islands and maturing within one hundred and eighty-four days;\n(e)\npurchase and sell securities, maturing within ten years of, or guaranteed\nby, such foreign governments as may be approved by the board;\n(f)\npurchase and sell such other securities and investments as may be\nauthorised by the board;\n(g) borrow money, on such terms and conditions, as may be authorised by the\nboard, except that such loan shall not exceed two hundred and fifty\nthousand dollars or one per cent of the paid-up capital of the Authority,\nwhichever shall be the greater;\n(h) undertake the administration and management of securities issued by\nGovernment; and\n(i)\nwithout prejudice to section 37, do any thing which is calculated to\nfacilitate, is incidental to or consequential upon the exercise of the powers\nof the Authority or the discharge of its duties under this Law.\n37.\nProhibited activities\n37. Except as expressly authorised by this Law, the Authority may not \u2014\n(a)\nengage in trade or otherwise have a direct interest in any commercial,\nagricultural, industrial or other undertaking except such interest as the\nAuthority may acquire in the course of the satisfaction of debts due to it,\nso, however, that it shall be the duty of the Authority to dispose of any\nsuch interest so acquired at the earliest suitable opportunity;\n(b) purchase shares of any company including the shares of any banking\ncompany or public corporation;\n(c)\nmake loans to any person; or\n(d) purchase, acquire or lease real property except so far as the board considers\nnecessary or expedient for the provision or future provision of business\npremises for the Authority or of any other requirement incidental to the\nperformance of its functions under this Law.\nPART VI - Accounts and Statements\n38.\nFunds and resources of the Authority\n38. The funds and resources of the Authority shall comprise \u2014\n\nSection 39\nMonetary Authority Law (2020 Revision)\n\nPage 32\nRevised as at 31st December, 2019\nc\n\n(a)\nsuch monies as may be appropriated by law for the purposes of the\nAuthority;\n(b) monies paid and property provided to the Authority by way of grants, rent,\ninterest and other income derived from the investment of the Authority\u2019s\nfunds;\n(c)\nmonies derived from the disposal of or dealing with real or personal\nproperty held by the Authority;\n(d) monies borrowed by the Authority in accordance with this Law; and\n(e)\nany property lawfully received or made available to the Authority.\n39.\nFinancial year\n39. The financial year of the Authority shall be the date set out in paragraph (a) of the\ndefinition of \u201cfinancial year\u201d in section 2 of the Public Management and Finance\nLaw (2020 Revision).\n40.\nApplication of the Public Management and Finance Law\n40. The Authority is a statutory authority as defined in section 2 of the Public\nManagement and Finance Law (2020 Revision) and accordingly that law applies,\namong other things, to \u2014\n(a)\nthe Authority\u2019s expenditure budget for each financial year; and\n(b) the preparation, maintenance, auditing and publication of the Authority\u2019s\naccounts.\n41.\nIndependent review of Authority\u2019s performance\n41. (1) The Cabinet may, at any time, appoint an independent person to \u2014\n(a)\nreview the Authority\u2019s performance of any of its functions, including its\nobservance of its general duties under section 6 and the regulatory\nhandbook established under section 48; or\n(b) enquire into any action or inaction of the Authority which appears to raise\nquestions of importance to the public interest,\nand such appointment may include directions concerning the scope and conduct\nof the review or enquiry and the making of interim reports.\n(2) The person appointed under subsection (1) (\u201cthe appointed person\u201d) may,\nsubject to any directions given in that person\u2019s appointment \u2014\n(a)\nobtain such information from such persons and in such manner as that\nperson thinks fit;\n(b) review or enquire into such matters as that person thinks fit; and\n(c)\ndetermine the procedure to be followed in connection with the review or\nthe enquiry.\n\nMonetary Authority Law (2020 Revision)\nSection 42\n\nc\nRevised as at 31st December, 2019\nPage 33\n\n(3) The appointed person may require any person who, in that person\u2019s opinion, is\nable to provide any information or produce any document which is relevant to\nthe review or enquiry to provide any such information or produce any such\ndocument, and for this purpose the appointed person shall have the same powers\nas the Grand Court in respect of the attendance and examination of witnesses\n(including the examination of witnesses abroad) and in respect of the production\nof documents.\n(4) Where a person fails to comply with a requirement imposed on that person under\nsubsection (3), the appointed person may refer the matter to the Grand Court\nwhich may enquire into the matter and, if satisfied after hearing \u2014\n(a)\nany witness who may be produced against or on behalf of the person who\nfails to comply; and\n(b) any statement made by or on behalf of such person,\nthat such person would have been in contempt of court if the review or enquiry\nhad been proceedings before the court, such person may be dealt with by the\ncourt in the same manner as if that person were in contempt of court.\n(5) The appointed person shall, upon the completion of the review or enquiry, make\na written report to the Minister charged with responsibility for Financial\nServices setting out the result of the review or enquiry and making such\nrecommendations (if any) as that person considers appropriate.\n(6) The report under subsection (5) shall be laid before the Legislative Assembly,\nsubject to the removal of any material \u2014\n(a)\nwhich the Minister charged with responsibility for Financial Services\nconsiders to relate to the affairs of a particular person whose interests\nwould be seriously and unfairly prejudiced by the publication; or\n(b) whose disclosure, in the opinion of the Minister charged with\nresponsibility for Financial Services, would be incompatible with the\npublic interest or an international obligation of the Islands.\n(7) Expenses reasonably incurred in conducting a review or enquiry shall be paid\nout of the revenue of the Islands.\n42.\nSurplus\n42. Where there is a surplus on the budget approved for the Authority\u2019s expenditure for\nany financial year, such surplus shall be paid into the General Reserve unless\notherwise agreed upon with the Cabinet.\n\nSection 42A\nMonetary Authority Law (2020 Revision)\n\nPage 34\nRevised as at 31st December, 2019\nc\n\nPART VIA - Administrative Fines\n42A. Authority\u2019s power to fine\n42A. (1) The Authority has the power to impose an administrative fine on a person who\nbreaches a provision prescribed in this Law, a regulatory law or the anti-money\nlaundering regulations.\n(2) Regulations prescribing the provisions shall also prescribe the category of the\nbreach as minor, serious or very serious.\n42B. Fine amounts\n42B. (1) For a breach prescribed as minor the fine shall be $5,000.\n(2) For a breach prescribed as minor the Authority also has the power to impose one\nor more continuing fines of $5,000 each for a fine already imposed for the\nbreach (the \u201cinitial fine\u201d) at intervals it decides, until the earliest of the following\nto happen \u2014\n(a)\nthe breach stops or is remedied;\n(b) payment of the initial fine and all continuing fines imposed for the breach;\nor\n(c)\nthe total of the initial fine and all continuing fines for the breach reaches\n$20,000.\n(3) For a breach prescribed as serious, the fine is a single fine not exceeding \u2014\n(a)\n$50,000 for an individual; or\n(b) $100,000 for a body corporate.\n(4) For a breach prescribed as very serious, the fine is a single fine not exceeding \u2014\n(a)\n$100,000 for an individual; or\n(b) $1,000,000 for a body corporate.\n(5) For breaches prescribed as serious or very serious the Authority has a discretion\nin deciding whether or not to impose any fine and the amount of the fine.\n42C. Declaratory provisions for power to fine\n42C. To avoid doubt \u2014\n(a)\na fine may be imposed for a breach even if the breach itself is not an\noffence;\n(b) if a breach of a prescribed provision is an offence, a fine for the breach is\nnot limited by the penalty under the provision or by sections 6(2) and 8 of\nthe Criminal Procedure Code (2019 Revision); and\n(c)\nthis Part is in addition to, and does not limit or otherwise affect, the\nAuthority\u2019s powers under a law mentioned in section 42A(1).\n\nMonetary Authority Law (2020 Revision)\nSection 42D\n\nc\nRevised as at 31st December, 2019\nPage 35\n\n42D. Limitation period\n42D. (1) The Authority shall not impose a fine after the expiration of the following period\nfrom the date on which the Authority became aware of the commission of the\nbreach \u2014\n(a)\n6 months for a breach prescribed as minor; or\n(b) 2 years for a breach prescribed as serious or very serious.\n(2) For subsection (1), the Authority shall be deemed to have become aware of the\nbreach when it first received information from which the breach can reasonably\nbe inferred.\n42E. Relationship with penalties\n42E. (1) If a breach of a prescribed provision is an offence, a fine for the breach shall not\npreclude a prosecution for the breach or liability for an additional fee, late filing\nfee or a surcharge under a regulatory law for the breach, and vice versa.\n(2) The Authority shall, if the breach is prescribed as serious or very serious, have\nregard to the amount of the following in fixing the amount of the fine for the\nbreach \u2014\n(a)\nany penalty imposed on conviction for the offence; or\n(b) the fee or surcharge.\n42F. Criteria for making fine decision\n42F. (1) In making a decision mentioned in section 42B(5), the Authority shall consider\nall relevant factors including the following criteria \u2014\n (a) the prescribed criteria, after applying any prescribed relative weight that\nmust be given to them; and\n(b) the following principles, in the following order of importance \u2014\n(i)\nfirstly, the need to promote and maintain a sound financial system in\nthe Islands;\n(ii) secondly, the disgorgement principle;\n(iii) thirdly, the disciplinary principle; and\n(iv) fourthly, the deterrence principle.\n(2) The principles prevail over the factors and the other criteria.\n(3) Subsection (2) shall not prevent the Authority from considering prescribed\ncriteria to reduce the amount of a fine.\n(4) Notwithstanding subsection (1), the Authority need only consider a particular\ncriteria to the extent it considers the criteria is relevant to making the decision.\n(5) In this section \u2014\n\nSection 42G\nMonetary Authority Law (2020 Revision)\n\nPage 36\nRevised as at 31st December, 2019\nc\n\n\u201cdeterrence principle\u201d means the need to deter financial services businesses\nand others from breaching prescribed provisions;\n\u201cdisciplinary principle\u201d means the need to punish intentional, reckless or\ninappropriately negligent breaches of prescribed provisions; and\n\u201cdisgorgement principle\u201d means the principle of ensuring \u2014\n(a)\nlicensees under regulatory laws and those connected with them as defined\nin section 34(16)(d) do not gain (including by avoiding losses) from\nbreaching prescribed provisions; and\n(b) persons mentioned in paragraph (a) disgorge all such gains.\n\n42G. Authority\u2019s rule-making power for Part\n42G. (1) The Authority may issue rules consistent with this Part about \u2014\n(a)\nfactors that supplement or tend to show or not to show the extent of a\nmatter the subject of the criteria under section 42F(1);\n(b) aggravating and mitigating factors for fines; and\n(c)\nother matters, consistent with this Part for administering this Part,\nincluding, for example, publishing fines imposed.\n(2) The rules have no effect until they are gazetted.\n42H. Other Regulation-making powers for Part\n42H. Regulations made by Cabinet may provide for \u2014\n(a)\nforms and procedures for imposing fines;\n(b) appeals against decisions under this Part;\n(c)\nhow fines shall be paid and may be enforced;\n(d) interest on outstanding fines;\n(e)\nevidentiary provisions for proceedings relating to this Part; and\n(f)\nother matters required or permitted to be prescribed under this Part or that\nare necessary or convenient to give effect to the purposes or provisions of\nthis Part.\nPART VII - General\n43.\nImmunity\n43. Neither the Authority, nor any director or employee of the Authority, shall be liable\nin damages for anything done or omitted in the discharge or purported discharge of\ntheir respective functions under this Law and the regulatory laws unless it is shown\nthat the act or omission was in bad faith.\n\nMonetary Authority Law (2020 Revision)\nSection 44\n\nc\nRevised as at 31st December, 2019\nPage 37\n\n44.\nIndemnity\n44. The Authority shall indemnify a director against all claims, damages, costs, charges\nor expenses incurred by that director in the discharge or purported discharge of that\ndirector\u2019s functions or duties under this Law and the regulatory laws, except claims,\ndamages, costs, charges or expenses caused by the bad faith of that director.\n45.\nExemption\n45. The functions of the Authority shall be deemed not to be banking business for the\npurposes of the Banks and Trust Companies Law (2020 Revision).\n46.\nRegulations\n46. (1) The Cabinet may make regulations providing for such matters as may be\ncontemplated by, or necessary for giving full effect to, this Law and for its\nadministration including the charging of fees for any administrative service\nprovided by the Authority to a licensee or to members of the public upon\nrequest.\n(2) Without prejudice to subsection (1), the fees prescribed in Schedule 2 shall be\ncharged for the administrative services specified in relation thereto, and the\nCabinet may, by regulations, amend that Schedule.\n(3) Regulations made under subsection (1) and providing for the charging of fees\nfor administrative services, are subject to affirmative resolution of the\nLegislative Assembly.\n(4) Without prejudice to the generality of subsection (1), the Cabinet may, for the\npurpose of facilitating business continuity and disaster recovery, make\nregulations that authorise the Authority to exempt from any provision of this\nLaw or the regulatory laws any person or class of persons that is affected by a\ndisaster for such period of time as the Cabinet may stipulate.\n(5) Without prejudice to section 32 of the Interpretation Law (1995 Revision) or to\nany other provision of this Law, regulations under subsection (4) may provide\nfor \u2014\n(a)\na financial service business that would otherwise be subject to regulatory\nlaws to which the exemption relates and the conditions to which the\nexemption shall be subject;\n(b) circumstances under which the Authority may withdraw the exemption\nfrom a person or class of persons;\n(c)\nlimitation of the exemption to some or all financial service businesses that\nwould otherwise be subject to regulatory laws; or\n(d) a stipulation that the exemption operates in respect of some or all regulated\nactivities.\n\nSection 47\nMonetary Authority Law (2020 Revision)\n\nPage 38\nRevised as at 31st December, 2019\nc\n\n(6) For the purposes of this section, \u201cdisaster\u201d shall have the same meaning as in\nthe Disaster Preparedness and Hazard Management Law (2019 Revision).\n47.\nRules\n47. (1) The Authority may, subject to this Law, make such rules as it thinks fit to\nregulate its own internal management.\n(2) A copy of rules made under subsection (1) shall be forwarded to the Minister\ncharged with responsibility for Financial Services.\n48.\nRegulatory handbook\n48. (1) The board shall issue, and may amend, a regulatory handbook setting out, as far\nas is practicable, the policies and procedures to be followed by the Authority,\nits committees and its officers in performing the Authority\u2019s regulatory\nfunctions and co-operative functions.\n(2) The regulatory handbook shall be consistent with any law or any regulations or\npolicy directions given or made thereunder.\n(3) The regulatory handbook shall include policies and procedures for \u2014\n(a)\ngiving warning notices to persons affected adversely by proposed actions\nof the Authority;\n(b) giving reasons for the Authority\u2019s decisions; and\n(c)\nreceiving and dealing with complaints against the Authority\u2019s actions and\ndecisions.\n(4) In cases where the regulatory handbook would have the effect of creating,\ndirectly or indirectly, rules or statements of principle or guidance, the Authority\nshall consult with the private sector associations and the Minister charged with\nresponsibility for Financial Services.\n(5) The regulatory handbook may provide for exceptions from its own requirements\nto be made by the board or a specified committee or officer of the Authority.\n(6) The Authority shall publish the regulatory handbook and any amendments to it\nin the Gazette, and the regulatory handbook and any such amendments shall take\neffect and come into operation on the date of such publication.\n(7) It shall be a duty of the board to ensure that the regulatory handbook is observed\nby the committees and officers of the Authority, to keep the regulatory\nhandbook under continuing review, and to consult the Financial Secretary and\nthe private sector associations on the extent to which the regulatory handbook\ncould be made more consistent with section 6.\n49.\nAdditional powers\n49. The Cabinet may, by regulation subject to affirmative resolution, provide for the\nadministration of any statutory function of government by the Authority.\n\nMonetary Authority Law (2020 Revision)\nSection 50\n\nc\nRevised as at 31st December, 2019\nPage 39\n\n50.\nConfidentiality\n50. (1) Subject to subsections (2) and (3), a person who is a director, officer, employee,\nagent or adviser of the Authority and who discloses any information \u2014\n(a)\nrelating to the affairs of the Authority;\n(b) relating to any application made to the Authority or the Government under\nthe regulatory laws;\n(c)\nrelating to the affairs of a licensee;\n(d) relating to the affairs of a customer, member, client or policyholder of, or\na company or mutual fund managed by, a licensee; or\n(e)\nshared by or with an overseas regulatory authority or any communication\nrelated thereto,\nthat that person has acquired in the course of that person\u2019s duties or in the\nexercise of the Authority\u2019s functions under this or any other law, commits an\noffence and is liable on summary conviction to a fine of ten thousand dollars\nand to imprisonment for one year, and on conviction on indictment to a fine of\nfifty thousand dollars and to imprisonment for three years.\n(2) Subsection (1) shall not apply to a disclosure \u2014\n(a)\nlawfully required or permitted by any court of competent jurisdiction\nwithin the Islands;\n(b) for the purpose of assisting the Authority to exercise any functions\nconferred on it by this Law, by any other law or by regulations made\nthereunder;\n(c)\nin respect of the affairs of a licensee or of a customer, member, client or\npolicyholder of, or a company or mutual fund managed by, a licensee, with\nthe authority of the licensee, customer, member, client, policyholder,\ncompany or mutual fund, as the case may be, which consent has been\nvoluntarily given;\n(d) for the purpose of enabling or assisting the Cabinet to exercise any\nfunctions conferred on it under this Law or regulations made thereunder\nor in connection with the dealings between the Cabinet and the Authority\nwhen the Authority exercises its functions under this or any other law;\n(e)\nif the information disclosed is or has been available to the public from any\nother source;\n(f)\nwhere the information disclosed is in a summary or in statistics expressed\nin a manner that does not enable the identity of any licensee, or of any\ncustomer, member, client or policyholder of, or company or mutual fund\nmanaged by, a licensee to which the information relates to be ascertained;\n(g) lawfully made \u2014\n\nSection 50\nMonetary Authority Law (2020 Revision)\n\nPage 40\nRevised as at 31st December, 2019\nc\n\n(i)\nto the Director of Public Prosecutions or a law enforcement agency\nin the Islands, with a view to the institution of, or for the purpose of,\ncriminal proceedings;\n(ii) to a person pursuant to the anti-money laundering regulations; or\n(iii) under subsection (3); or\n(h) for the purposes of any legal proceedings in connection with \u2014\n(i)\nthe winding-up or dissolution of a licensee; or\n(ii) the appointment or duties of a receiver of a licensee.\n(3) Subject to subsection (8), where the Authority is satisfied that a request for\nassistance from an overseas regulatory authority should be granted, the\nAuthority \u2014\n(a)\nmay disclose information necessary to enable the overseas regulatory\nauthority to exercise regulatory functions, including the conduct of civil\nand administrative proceedings to enforce laws, regulations and rules\nadministered by the overseas regulatory authority;\n(b) shall keep a record of all such requests and disclosures and an inventory\nof the information disclosed;\n(c)\nmay, either at the time of request or at any time thereafter, consent to the\nuse of the information for the purpose of \u2014\n(i)\nthe conduct of civil and administrative enforcement proceedings;\n(ii) assisting a self-regulatory organisation with surveillance or\nenforcement activities (insofar as the Authority is satisfied that the\norganisation is involved in the supervision of conduct that is the\nsubject of the request); or\n(iii) assisting a criminal investigation or prosecution of any charge\napplicable to the contravention of the provision specified in the\nrequest, where such charge pertains to a contravention of the laws\nand regulations administered by the requesting authority; and\n(d) may, in accordance with rules of court, apply to a Judge of the Grand Court\nin Chambers for an order to protect the interest of investors, depositors,\npolicy holders or beneficiaries of trusts, including an order \u2014\n(i)\nto freeze relevant assets or accounts;\n(ii) to suspend the issue, repurchase or redemption of units or shares of\nregulated funds; or\n(iii) to authorise any other action in accordance with any request made to\nthe Authority by the overseas regulatory authority pursuant to, and in\naccordance with, the terms of a memorandum of understanding\nentered into between the Authority and the overseas regulatory\nauthority; and\n\nMonetary Authority Law (2020 Revision)\nSection 50\n\nc\nRevised as at 31st December, 2019\nPage 41\n\n(e)\nmay permit the overseas regulatory authority to carry out, in relation to an\nentity in the Islands that is subject to its supervision or regulation, an onsite inspection or visit in a manner agreed in writing by the Authority and\nthe overseas regulatory authority.\n(3A) Upon application made to the Grand Court pursuant to subsection (3)(d), the\nCourt shall make such orders as it considers appropriate in the circumstances.\n(4) In deciding whether or not to assist an overseas regulatory authority (whether\nby use of the Authority\u2019s powers under subsection (3), section 34, section 35 or\notherwise), the Authority shall take into account \u2014\n(a)\nwhether corresponding assistance would be given in the relevant country\nor territory to the Authority;\n(b) whether the inquiries relate to the possible breach of a law or other\nrequirement which has no close parallel in the Islands or involve the\nassertion of a jurisdiction not recognised by the Islands; and\n(c)\nwhether it is in the public interest to give the assistance sought.\n(5) For the purposes of subsection (4)(a), the Authority may require an overseas\nregulatory authority which requests assistance to give a written undertaking, in\nsuch form as the Authority may require, to provide corresponding assistance to\nthe Authority.\n(6) Where an overseas regulatory authority fails to comply with a requirement of\nthe Authority under subsection (5), the Authority may refuse to provide the\nassistance sought.\n(7) The Authority may decline to exercise its power under subsection (3) unless the\noverseas regulatory authority undertakes to make such contribution towards the\ncosts of the exercise as the Authority considers appropriate.\n(8) The Authority shall not give to an overseas regulatory authority any assistance\ninvolving the disclosure or gathering of, or the giving of access to, information\nor documents unless \u2014\n(a)\nthe Authority has satisfied itself that the intended recipient authority is\nsubject to adequate legal restrictions on further disclosures; or\n(b) the Authority has been given an undertaking by the recipient authority not\nto disclose the information provided without the consent of the Authority;\nand\n(c)\nthe Authority is satisfied that the assistance requested by the overseas\nregulatory authority is required for the purposes of the overseas regulatory\nauthority\u2019s regulatory functions including the conduct of civil and\nadministrative\ninvestigations\nor\nproceedings\nto\nenforce\nlaws\ncorresponding to the regulatory laws and administered by that\nauthority; and\n\nSection 51\nMonetary Authority Law (2020 Revision)\n\nPage 42\nRevised as at 31st December, 2019\nc\n\n(d) the Authority is satisfied that information provided following the exercise\nof its powers, will not be used in criminal proceedings against the person\nproviding the information, other than proceedings for an offence of\nperjury.\n51.\nMemoranda of understanding\n51. (1) The Authority may, in the exercise of its co-operative functions, after\nconsultation with the Minister charged with responsibility for Financial\nServices, enter into memoranda of understanding with overseas regulatory\nauthorities for the purpose of assisting cross border supervision with such\nauthorities or for such other regulatory or supervisory purposes as the Authority\nmay deem fit.\n(2) No memorandum of understanding may call for assistance beyond that which is\nprovided for by this Law, or relieve the Authority of any of its functions or\nduties under this Law.\n(3) The Authority shall notify the Minister charged with responsibility for Financial\nServices of each memorandum of understanding entered into and promptly\npublish the memorandum of understanding in the Gazette.\n52.\nDisclosure to regulators\n52. Where a person regulated under the regulatory laws provides information to the\nAuthority or, in the case of a foreign branch or subsidiary, to an overseas regulatory\nauthority that regulates its parent company, for the purpose of cross border\nsupervision, the provision of the information shall not be treated as a breach of any\nrestriction upon the disclosure of information by or under any Law and the fact of\nsuch provision of information shall not give rise to any criminal or civil liability.\nPART VIII \u2013 Savings and Transitional\n\n53.\nSavings of the Cayman Islands Currency Order, 1974\n53. The Cayman Islands Currency Order, 1974 shall, insofar as it is not inconsistent with\nthe provisions of this Law, continue in force as if made under this Law.\n54.\nTransitional provision for the Monetary Authority (Amendment) Law, 2016\n[Law 27 of 2016]\n54. The Authority shall not impose a fine for a breach that happened before 15th\nDecember, 2017, the date of commencement of Part VIA.\n\nMonetary Authority Law (2020 Revision)\nSCHEDULE 1\n\nc\nRevised as at 31st December, 2019\nPage 43\n\n SCHEDULE 1\n(section 34(1))\nRegulation of Banks, Trust Companies, Company Management, Insurance\nCompanies, Mutual Funds, Money Services Businesses, Credit Unions and\nBuilding Societies\n\nFrom the 1st January, 1997, the powers, functions and duties of Government and of the\nAuthority shall be such as are provided in the regulatory laws as replaced or amended from\ntime to time and in any subordinate legislation made thereunder. Any reference in any law\nother than the regulatory laws, or in any other subordinate legislation, to the Inspector of\nFinancial Services appointed under section 12(1) of the Banks and Trust Companies Law\n(1995 Revision) is to be read as a reference to the Authority.\n\nSCHEDULE 2\nMonetary Authority Law (2020 Revision)\n\nPage 44\nRevised as at 31st December, 2019\nc\n\nSCHEDULE 2\n(section 46)\nFees\n\nColumn 1\nItem\nColumn 2\nDescription of Fee\nColumn 3\nFee\n1.\nLetter confirming registration or licensed status of Authority\nregulated entity and status of regulatory filings\n$800\n2.\nApproval by the Authority of the appointment of a new\nDirector of a licensee\n$1,000\n3.\nVoluntary surrender of a licence or registration certificate to\nthe Authority\n$600\n4.\nApplication for a change in shareholding of a licensee\n$1,000\n5.\nApplication for the appointment of a Senior Officer or\nManager to a licensee\n$1,000\n6.\nApplication for the variation of the terms of a licence\n$1,000\n7.\nApplication for change of business plan of a licensee\n$1,000\n8.\nApplication for a certified copy of a licence or certificate\n$300\n9.\nApplication for an extension to the filing of audited financial\nstatements\n$500\n10.\nApplication for an exemption or waiver\n$500\n11.\nApplication for the use of a restricted word\n$600\n12.\nApplication for a change of an appointed service provider to\na licensee\n$500\n13.\nApplication for a change of name\n$500\n14.\nFiling for amendments or supplements of offering\ndocuments\n$100\n15.\nPhotocopying of \u2014\n(a)\napplications for registering or  licensing mutual funds;\n(b)\nreporting forms;\n(c)\noffering documents; or\n(d)\nother constitutive documents\n$25\n16.\nAuditor\u2019s application for approval for local audit sign-off\n$15,000\n\nMonetary Authority Law (2020 Revision)\nSCHEDULE 3\n\nc\nRevised as at 31st December, 2019\nPage 45\n\nSCHEDULE 3\n(sections 2 and 4(4))\nPrivate Sector Associations\nAlternative Investment Management Association (Cayman Islands)\nCayman Islands Association of Insurance and Financial Advisors\nCayman Islands Bankers Association\nCayman Islands Company Managers Association\nCayman Islands Directors Association\nCayman Islands Financial Services Association\nCayman Islands Fund Administrators Association\nCayman Islands Insurance Association\nCayman Islands Legal Practitioners Association\nCayman Islands Society of Professional Accountants\nChartered Financial Analysts Society of the Cayman Islands\nCayman Islands Compliance Association\nInsurance Managers Association of Cayman\nSociety of Trust and Estate Practitioners (Cayman Islands).\n\nPublication in consolidated and revised form authorised by the Cabinet this 7th day\nof January, 2020.\nKim Bullings\nClerk of the Cabinet\n\nMonetary Authority Law (2020 Revision)\nENDNOTES\n\nc\nRevised as at 31st December, 2019\nPage 47\n\nENDNOTES\nTable of Legislation History:\n\nSL#\nLaw #\nLegislation\nCommencement\nGazette\n\n20\/\/2019\nMonetary Authority (Amendment) (No. 2)  Law, 2019\n8-Aug-2019\nLG28\/2019\/s11\n\n6\/\/2019\nMonetary Authority (Amendment) Law, 2019\n15-May-2019\nLG16\/2019\/s6\n9\/2019\n\nLegal Associations (Miscellaneous Amendments) Law,\n2018 (Commencement) Order, 2019\n19-Feb-2019\nLG2\/2019\/s13\n\n29\/2018\nLegal Associations (Miscellaneous Amendments) Law,\n2018 (part)\n21-Feb-19\nGE97\/2018\/s4\n\nMonetary Authority Law (2018 Revision)\n23-Mar-2018\nGE24\/2018\/s3\n97\/2017\n\nMonetary Authority (Amendment) Law, 2016\n(Commencement) Order, 2016\n15-Dec-2017\nGE106\/2017\/s1\n\n27\/2016\nMonetary Authority (Amendment) Law, 2016\n15-Dec-2017\nGE93\/2016\/s5\n\nMonetary Authority Law (2016 Revision)\n2-Sep-2016\nGE69\/2016\/s16\n\n11\/2015\nMonetary Authority (Amendment) Law, 2015\n12-Oct-2015\nG21\/2015\/s1\n\nMonetary Authority Law (2013 Revision)\n1-Nov-2013\nGE87\/2013\/s1\n\n5\/2013\nMonetary Authority (Amendment) Law, 2013\n6-May-2013\nG9\/2013\/s1\n79\/2012\n\nMonetary Authority (Fees) Regulations, 2012\n13-Dec-2012 GE125\/2012\/s19\n\nMonetary Authority Law (2011 Revision)\n7-Nov-2011\nG23\/2011\/s7\n\n9\/2010\nMonetary Authority (Amendment) Law, 2010\n26-Apr-2010\nG9\/2010\/s13\n\nMonetary Authority Law (2010 Revision)\n8-Nov-2010\nG23\/2010\/s11\n\n32\/2009\nMonetary Authority (Amendment) Law, 2009\n29-Dec-2009\nGE91\/2009\/s2\n\nMonetary Authority Law (2008 Revision)\n21-Jul-2008\nG15\/2008\/s1\n\n20\/2007\nMonetary Authority (Amendment) Law, 2007\n4-Feb-2008\nG3\/2008\/s2\n\nMonetary Authority Law (2004 Revision)\n23-Aug-2004\nG17\/2004\/s1\n\n35\/2003\nMonetary Authority (Amendment) Law, 2003\n27-Jan-2004\nG2\/2004\/s4\n\nMonetary Authority Law (2003 Revision)\n28-Jul-2003\nG15\/2003\/s5\n34\/2003\n\nMonetary Authority (Amendment) Law, 2002\n(Commencement) Order, 2003\n12-Mar-2003\nGE10\/2003\/s4\n\n34\/2002\nMonetary Authority (Amendment) Law, 2002\n1-Aug-2003\nGE5\/2003\/s4\n\nMonetary Authority Law (2002 Revision)\n2-Jul-2002\nG13\/2002\/s7\n\n22\/2001\nMonetary Authority (Amendment) (Fees) Law, 2001\n24-Sep-2001\nG20\/2001\/s3\n\nMonetary Authority Law (2001 Revision)\n23-Apr-01\nG9\/2001\/s5\n\n12\/2000\nMonetary Authority (Amendment) (Regulation of NonBank Financial Institutions) Law, 2000\n20-Nov-2000\nG24\/2000\/s1\n\nENDNOTES\nMonetary Authority Law (2020 Revision)\n\nPage 48\nRevised as at 31st December, 2019\nc\n\nSL#\nLaw #\nLegislation\nCommencement\nGazette\n\nMonetary Authority Law (2000 Revision)\n11-Sep-2000\nG19\/2000\/s8\n\n6\/2000\nMonetary Authority (Amendment) (International Cooperation) Law, 2000\n24-Jul-2000\nGE7\/2000\/s4\n\nMonetary Authority Law (1998 Revision)\n31-Aug-1998\nG18\/1998\/s4\n\n7\/1998\nMonetary Authority (Amendment) (Reserves) Law, 1998\n11-May-1998\nG10\/1998\/s2\n\n14\/1997\nMonetary Authority (Amendment) (Membership) Law,\n1997\n15-Sep-1997\nG19\/1997\/s12\n11\/1996\n\nMonetary Authority (Amendment) Law, 1996\n(Commencement) Order, 1996\n9-Dec-1996\nG25\/1996\/s5\n\n16\/1996\nMonetary Authority Law, 1996\n1-Jan-1997\nG25\/1996\/s4\n\n(Price: $9.60)","akn_extracted_at":"2026-06-22 15:35:30.301488+00","cms_id":"1996-0016","law_type":"principal","year":"1996","number":"16","title":"Monetary Authority Act","status":"in_force"},"provenance":{"files":[{"file_id":"5152","expr_id":"269","kind":"akn_xml","filename":"1996-0016_2020 Revision.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/1996\/1996-0016\/1996-0016_2020 Revision.akn.xml","content_md5":"075313e9e5c7ca78ea96b167e1a80714","byte_size":"96055","http_last_modified":null,"fetched_at":"2026-06-22 15:35:31.167776+00"},{"file_id":"537","expr_id":"269","kind":"pristine_pdf","filename":"1996-0016_2020 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/PRINCIPAL\/1996\/1996-0016\/1996-0016_2020 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/PRINCIPAL\/1996\/1996-0016\/1996-0016_2020 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