The Cayman Islands Monetary Authority (CIMA) has signed a memorandum of understanding (MoU) with regulators in Jersey, enabling prosecution of unlicensed businesses, prevention of money laundering and terrorist financing.
The agreement, signed on 21 August by CIMA managing director Cindy Scotland, enables both local and Jersey authorities to request assistance and information, and clears the way for inspection visits by either body.
The memorandum also entitles the two regulators to enforce laws regarding banking and other financial activities, and to supervise the activities of stockbrokers, insurance companies and financial advisors.
This latest agreement takes its place beside eight other, similar documents, including one with regional authorities governing the central banks of Barbados, the Bahamas, Belize, Jamaica and the Netherlands Antilles, and the financial services commissions of the British Virgin Islands and the Turks and Caicos Islands.
Other agreements cover legal arrangements with Panama, Jamaica, Brazil, Bermuda and the Isle of Man.
The latest memorandum, according to a formal press release from both CIMA and the Jersey Financial Services Commission, "establishes a formal framework for mutual assistance and the exchange of information between the two regulators to facilitate the enforcement of, and compliance with, the laws of each jurisdiction. Such collaboration should help to protect investors and depositors and to promote the integrity of financial-services markets in Jersey and the Cayman Islands."
According to CIMA's regulatory handbook, a formal MoU with an overseas regulatory authority is a "statement of intent setting out the terms and conditions of information exchange and investigative assistance," which the Monetary Authority Law (2004 Revision) lists as one of CIMA's principal functions.
"Such international cooperation takes place through & the authority's active participation in international forums and initiatives," it says.
"The memorandum commits both CIMA and the commission to provide help within the limits of each jurisdiction's laws, and establishes procedures & so that requests for information needed for tackling financial regulatory offences can be handled rapidly and efficiently," the release says.
David Carse, former Deputy Chief Executive of the Hong Kong Monetary Authority and now Director General of the Jersey commission, said: "I am delighted that we have been able to conclude formal arrangements for sharing regulatory information with a jurisdiction with which Jersey has many business links. This is in line with the commission's commitment to developing cross-border co-operation wherever it is relevant to do so."
CIMA's Scotland said: "This is one of a number of memoranda of understanding that the Cayman Islands Monetary Authority has & negotiated as part of its objective of enhancing cooperation with regulators around the world. We are confident it will serve to further the good relations existing between CIMA and the Commission."