CIMA hands out $72,800 anti-money laundering fine to Star Insurance

The Cayman Islands Monetary Authority has fined another Cayman company for breaches of the Anti-Money Laundering Regulations.

The financial regulator imposed discretionary administrative fines totalling $72,800 on Star Insurance Company (Cayman) Ltd.

The fines relate to the company not applying customer due diligence and enhanced due-diligence measures. Star Insurance also failed to verify the source of funds, did not understand the nature and purpose of the business relationships of certain clients and failed to file suspicious activity reports.

The authority said in an enforcement notice that the breaches were initially identified during an on-site inspection conducted in 2019.

Two of Star Insurance’s directors, Barry Benjamin and Bohdan Petro Martiuk, are also directors of Western International Trust Company, which was fined $482,717 by CIMA in December 2020 for similar AML breaches.

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The regulator at the time found that Western International Trust had also not remediated certain AML issues uncovered in previous on-site inspections.

The authority said it is committed to enhancing Cayman’s AML regime through on-site and off-site inspections and will continue to treat breaches of the jurisdiction’s Anti-Money Laundering Regulations “with particular seriousness” and take appropriate enforcement action.

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