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TerraLex Guide to Anticorruption Legislation
Welcome to the Terralex cross-border guide to anticorruption legislation
This guide offers information on the current regulations related anticorruption policies in various jurisdictions around the world. Please contact the listed contributors for specific questions.
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Cayman Islands TerraLex Guide to Anticorruption Legislation Guide
- Authors:
- Alistair Abbott
- Date posted:
- 13/03/2023
- Last update:
- 05/03/2025
Guidance
What is the applicable anticorruption legislation?
Anti-Corruption Act (2024 Revision) (“Act”)
What does this legislation prohibit?
The Act aims to prevent bribery and corruption and creates the following offences, amongst others:
(i) public officials receiving bribes or persons giving bribes to such persons or their family members; (ii) persons who contract with the government providing any benefit for the purpose of promoting candidates to the Legislative Assembly or in any way influencing the result of an election; (iii) purported sales or purchases of any public office; (iv) providing or receiving benefits for the purpose of influencing any appointment to public office; (v) failure by public officials to disclose any interest they or a family member or associate has in a business which proposes to deal with the government; (vi) failure by any public official to report any offer of a bribe; (vii) bribing any agent or employee to do or forbear from doing any act in relation to the affairs or business of his principal; (viii) bribing any foreign public official in order to obtain an advantage in the course of business, but (a) this does not prohibit benefits permitted or required under the relevant foreign law or to pay reasonable expenses incurred in good faith by the foreign public official, and (b) certain low value facilitation payments are permitted.
The above summary is necessarily in broad terms and regard should be had to the full provisions of the Act.
Does it cover bribes to foreign government officials?
Yes – see above.
Does it cover business to business corruption?
Yes – see above.
Are facilitation payments allowed?
Yes, if the value of the payment is small and provided certain other conditions are complied with.
Can a corporation be prosecuted for acts of overseas agents, intermediaries, joint venture partners, and third parties?
A corporation can be prosecuted in respect of conduct taking place abroad. Whether the acts of such agents, intermediaries, etc. are to be attributed to the corporation, for the purpose of rendering it liable for offences under the Act, will depend on the general principles governing corporate liability and will fall to be considered on a case-by-case basis.
Does the legislation have extra territorial reach?
Yes, in some circumstances, including: when the conduct constituting the offence occurs at least partly within the Cayman Islands; when the conduct is by a person who is Caymanian or is a resident of the Cayman Islands; and when the person is a body corporate incorporated under the laws of the Cayman Islands.
Can Directors of a company be found personally liable?
Yes, if the offence was committed with the consent or connivance of, or is attributable to any neglect on the part of any director or similar officer of the company.
What are the sanctions for breach of the legislation for Directors and corporations?
Fines, imprisonment, or both.
Can companies be held liable for corruption offences? If so, under which conditions?
Yes, the definition of “person” includes corporations of all kinds and so companies can be liable in the same manner as natural persons.
Is there an obligation on companies to put in place preventive measures (such as a compliance program, a whistleblowing line)? If so, what are the sanctions?
There is no obligation at present under the Act to put in place preventative measures. Accordingly, no sanctions are applicable.
Can the implementation of a compliance program constitute a mitigating circumstance in case of an established offense?
Not applicable.
Is a corporate settlement procedure available for corruption offenses?
No such procedure is available under the Act.
If conditional approval is possible, what type of conditions or commitments may be imposed? Are there any consequences for failing to comply with these conditions or commitments?
Disclaimer: This guide contains summaries of general principles of law. It is not a substitute for specific legal advice and should not be relied upon in relation to the application of the law or subject matter covered.