MAPLES GROUP SEEKS JUDICIAL REVIEW OF FINANCIAL SECTOR REGULATION
The financial services conglomerate, Maples Group, is taking the Cayman Islands Monetary Authority(CIMA) to court over how the jurisdiction’s financial services sector is regulated.
In a press release, the company says two entities within the Maples Group are seeking Judicial Review1 of CIMA’s interpretation and application of certain provisions of the Anti-Money Laundering Regulations.
The Maples Group said it fully supports CIMA's regulatory initiatives to protect and enhance the integrity of the financial services industry of the Cayman Islands, and had requested that CIMA address their concerns through its formal private complaints procedure.
Regrettably, it said, CIMA declined that request, leaving Judicial Review as the only means to obtain clarification on the relevant points of law.
The specific concerns of the company were not outlined in the press statement but it is believed that they pertain to issues of how the financial services sector is regulated and particular matters regarding compliance.
According to the Maples Group, the regulatory and oversight agency has changed its approach to the application of certain provisions of the anti-money laundering regulations (AMLRs) without providing prior notice, consulting with industry stakeholders or issuing updated guidance notes.
It argues that 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 says the Judicial Review will focus on CIMA's decision to impose obligations on two of its subsidiaries - Maples F S Limited and Maples Corporate Services Limited - which t claims are not required under the AMLRs and in any event are disproportionate in the context of the particular services that MaplesFS Limited and Maples Corporate Services Limited provide.
“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,” the company says.
It further states that it “welcomes the outcome of the Judicial Review, which will provide the necessary certainty and will benefit the regulated community within the Cayman Islands and their clients.”
The Maples Group describes its operation in the Cayman Islands as providing “comprehensive legal advice on the laws of the Cayman Islands” and that it also provides “specialised fund, fiduciary, regulatory and compliance, and entity formation and management services.”