News

As the Cayman Islands continues to respond to the situation arising from sanctions on Russia, His Excellency the Governor, Mr. Martyn Roper, issued his first General Licence under the Russia Sanctions Regimes on Tuesday, 4 October 2022. The Licence took effect from 4 October 2022 and expires on 4 April 2023.
The Governor of the Cayman Islands, with the consent of the UK Minister of State for the Overseas Territories, The Rt. Hon. Mr. Jesse Norman, MP, has the power to issue General Licences for country sanctions regimes under The Russia (Sanctions) (EU Exit) Regulations 2019 (the "Russia Regulations”), as extended to the Cayman Islands (with modifications) (the “Modified Regulations”) by the Russia (Sanctions) (Overseas Territories) Order 2020.
This is the first-ever General Licence granted by the Governor. The General Licence allows multiple parties to undertake specified activities which would otherwise be prohibited by the Modified Regulations, without the need for a specific licence. Hon. Premier G. Wayne Panton JP, MP, acknowledged the significance of the General Licence in reinforcing the Cayman Islands' commitment to maintaining the highest international standards: "Whilst as a global partner it is incumbent on us to strictly uphold all imposed sanctions and prevent funds from foregoing compliance with statutory obligations, we must also ensure that as far as possible, the interests of innocent parties are protected from unfair impacts. The issue of a General Licence can mitigate impacts for example on affected indirect minority shareholders, and minimise negative consequences on our financial services industry." Premier Panton also sincerely thanked members of the Russia Sanctions Task Force and other agencies for their continued robust commitment to enforcing the Russia Sanctions: “I would also like to personally commend the Director and staff of the Financial Reporting Authority, the Attorney General’s Chambers, the Governor’s Office and the Foreign Commonwealth and Development Office (FCDO), for working diligently to issue what is now our first-ever General Licence," the Premier added. The Governor does not accept applications for general licences, but any party using this General Licence must report to the Governor as soon as practicable the first time it is relied upon, and thereafter as set out in the General Licence. The General Licence also includes other requirements, and it is the responsibility of any party using the General Licence to ensure that the activities they undertake fall within the terms of the licence, and that they comply with any conditions of the licence. Save as permitted by the General Licence, or any other applicable licence, any act carried out by a person knowing that it will result in funds or economic resources being made available in breach of the Russia Regulations (or with reasonable grounds for suspicion) is prohibited. Breach of that prohibition is a serious offence, punishable upon conviction on indictment, by a maximum of seven years’ imprisonment or a fine (or both) and, on summary conviction, a maximum of six months’ imprisonment or a fine of up to the CI equivalent of £5000. The Governor’s issuing of the General Licence is the result of collaboration between the Financial Reporting Authority, the Attorney General’s Chambers, the Governor’s Office, the Foreign Commonwealth and Development Office (FCDO), as well as members of the local legal community.