The Cayman Islands have had an administrative fines regime (Regime) since December 2017, following the introduction of the Monetary Authority (Administrative Fines), Regulations 2017 (as amended, the Regulations). Initially, the scope of the Regulations was limited to breaches of certain provisions of the Cayman Anti-Money Laundering Regulations (Revised), which, as Cayman Islands fund vehicles are subject to the Cayman anti-money laundering regime, potentially had application to Cayman funds. The Regulations, however, were extensively amended in June 2020, providing the Cayman Islands Monetary Authority with the power to impose administrative fines for breaches of a wide range of laws, regulations and rules. As a result, the Regime is of greater relevance to Cayman funds, whether open- or closed-end; fund managers that are established or registered in the Cayman Islands; and, in certain cases, even their individual directors. In a guest article, the first in a two-part series, Mourant partner Sara Galletly and associate Alastair Lagrange review the current scope of the Regime, looking briefly at the nature of the Regime and the procedures for imposing and appealing fines. The second article will outline the key considerations relevant to open-end Cayman funds and their managers, identifying some of the more common breaches that can result in fines, so that those breaches can be avoided. For additional commentary from Mourant partners, see “Cayman Islands Hedge Fund Industry Touted Amid Local and Foreign Developments” (Apr. 20, 2017).