Regulation 55H of the Anti-Money Laundering Regulations (2025 Revision) (“AMLRs”) requires the LSSA to conduct a fit and proper person test to assess the integrity, competence, and suitability of persons carrying on business as firms of attorneys at law conducting relevant financial business, as well as connected persons in relation to such firms.

The purpose of the test is to ensure that individuals in positions of ownership, control, or management demonstrate the necessary integrity, competence, sound judgement, and financial soundness, and do not pose a risk to the integrity of the Cayman Islands’ legal sector or financial system.

The assessment applies at the time of registration and on an ongoing basis.

Supervised Firms should review the Guidance Notes on Fit and Proper Person Requirements pursuant to the Anti-Money Laundering Regulations (2025 Revision) before submitting any documentation.

The Guidance Notes provide detailed information on:

• individuals subject to the Fit and Proper Person Test;
• documentation requirements;
• certification requirements; and
• the assessment process followed by the LSSA.

Access the Guidance Notes here: LSSA – FP Guidance Notes

Individuals associated with firms of attorneys-at-law supervised by the LSSA are subject to the Fit and Proper Person Test. For the avoidance of doubt, the test applies to:

• sole practitioners conducting relevant financial business; and
• connected persons of firms conducting relevant financial business.

In accordance with the AMLRs, a Connected Person includes:

• a manager of the body corporate, partnership, or unincorporated body;
• a director, secretary, or senior executive (regardless of job title); or
• the natural person who ultimately owns or controls the entity.

This includes, for example:

• a natural person who directly or indirectly owns or controls 10% or more of the shares or voting rights in a legal person (other than a listed company);
• a natural person who otherwise exercises ultimate effective control over management in a legal person; or
• in the case of a legal arrangement, a trustee or other person exercising ultimate effective control.

In determining whether individuals are fit and proper, the LSSA considers factors including:

• probity, competence, and soundness of judgement;
• diligence in performing their responsibilities; and
• whether the interests of the firm may be threatened by the individual holding the position.

The LSSA may also consider matters such as criminal convictions (particularly those involving financial crime, dishonesty, or violence), regulatory breaches, bankruptcy or insolvency, deceitful or improper business practices, and any conduct that may cast doubt on a person’s competence or integrity. Each case will be assessed on its own merits, and the existence of an adverse matter will not automatically result in a determination that a person is not fit and proper.

Supervised Firms must submit the prescribed documentation in respect of each individual subject to the Fit and Proper Person Test, including:

• a completed Fitness and Propriety Declaration Form;
• a Police Clearance Certificate (issued within six months prior to submission);
• certified, valid government-issued identification; and
• current proof of residential address (generally dated within the last three months).

Detailed instructions on documentation requirements and certification standards are provided in the Guidance Notes.

Failure to provide complete, accurate, and up-to-date information may result in supervisory or enforcement action.

Firms must ensure that individuals subject to the Fit and Proper Person Test continue to meet the required standards on an ongoing basis and must promptly notify the LSSA of any material changes that may affect a person’s fitness and propriety.

If you have any questions regarding the Fit and Proper Person Test, please contact our Supervision Team at: supervision@caymanlssa.ky