The IMF has warned the Cayman Islands Monetary Authority (CIMA) that it needs to improve its autonom...
The IMF has warned the Cayman Islands Monetary Authority (CIMA) that it needs to improve its autonomy as a regulator as well as its enforcement ability, in its latest report on international standards.
Although the report said the Cayman Islands complied with international standards with regard to its banking, insurance and securities industries, it highlighted the need for improvement within the CIMA.
The main warning to the CIMA by the IMF was the need to increase its operational autonomy. Currently, the CIMA cannot issue or amend rules without the approval of the governor in cabinet.
In addition, the IMF felt the CIMA's enforcement ability could be improved if the fine for breaches of regulations and rules is increased from its current maximum of C$1,000 to provide a credible deterrent.
The report also recommended staff shortages need to be addressed within the CIMA. This would improve the mechanisms for more efficient co-operation with other international regulators.
The assessment carried out by the IMF team included an evaluation of the Cayman Islands regulatory and supervisory framework against Basel Committee, International Association of Insurance Supervisors, International Organisation of Securities Commissions and the Financial Action Task Force standards. The IMF team comprised a cross-section of experts from both the IMF and the global financial services industry.
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