Maples seeking judicial review of AML regulations

Group disagrees with CIMA’s interpretation

Two entities of the Maples Group have been granted a judicial review of how the Cayman Islands Monetary Authority interprets and applies certain provisions of the Anti-Money Laundering Regulations in practice.

In a press release, Maples said it had no other option but to clarify the points of law through the court, after CIMA declined its request to address the group’s concerns in a formal, but private, complaints procedure.

Maples said the regulator had changed – without prior notice – the way it applies certain provisions of the AML regulations. The authority had neither consulted with industry stakeholders, nor issued updated guidance notices.

“Obtaining the court’s ruling is therefore crucial to ensure that all financial service providers in the jurisdiction understand the standards to comply with the AMLRs, and that these standards are uniformly adhered to by all industry stakeholders,” Maples said.

The group said the judicial review will focus on CIMA’s decision to impose obligations on MaplesFS Limited and Maples Corporate Services Limited that are not required under the regulations and, in any event, were disproportionate in the context of the services provided.

“Should CIMA’s interpretation of the AMLRs be permitted to prevail, this would be contrary to the risk-based approach to client due diligence set out clearly in the AMLRs, and the internationally recognised standards upon which the AMLRs are based,” Maples said.

The judicial review would provide the necessary certainty and will benefit the regulated community within the Cayman Islands and their clients, the group added.

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