Section 13Part 1 — Banks and Trust Companies Act
Obligations of auditors
←→ Navigate · Click subsection badges to collapse · Press ? for help
If an auditor, in the course of carrying out an audit of the accounts of a licensee or of any entity formi ng part of a Cayman banking group , obtains information or suspects that the licensee is —
unable or likely to become unable to meet its obligations as they fall due;
carrying on or attempting to carry on business or is winding up its business volun tarily in a manner that is prejudicial to its investors or creditors;
carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited;
carrying on or attempting to car ry on business in a fraudulent or criminal manner; or
carrying on or attempting to carry on business without compliance with —
this Act or any regulations made hereunder; ( ia ) the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023] , if the licensee is a “corporate services provider” as defined in that Act;
the Monetary Authority Act (2020 Revision) ;
the Anti - Money Laundering Regulations (2025 Revision) ; or
a condition of the licence, the auditor shall immediately give the Authority written notice of that auditor’s information or suspicion and, in the case of suspicion, that auditor’s reason for that suspicion.
Without prejudice to subsection (8), if it appears to the Authority that an auditor has failed to comply with subsection (1), the Authority may disqualify that auditor from being an auditor of a licensee; but the Authority may remove any disqualification imposed under this subsection if satisfied that the person in question wi ll in future comply with subsection (1).
A licensee shall not appoint as an auditor a person disqualified under subsection (2).
Where the Authority has granted approval of an auditor under this Act , the approval may be revoked by the Authority if t he Authority is of the opinion that the auditor is not sufficiently competent to carry out an audit of the accounts of a licensee or that, in all the circumstances, the auditor is incapable of carrying out the audit objectively.
No person carrying out or charged with the carrying out of any duty, obligation or function under this section shall incur civil liability to any other person for anything done or omitted to be done in respect of the discharge or purported discharge of that duty or function unle ss it is shown that the act or omission was in bad faith.
A reference in this section to an auditor carrying out an audit of the accounts of a licensee includes an auditor who was engaged to carry out such an audit or who was in the course of carrying out such an audit but resigned before carrying out or completing the audit or whose contract to carry out or complete the audit was otherwise terminated.
Nothing in subsection (1) shall impose on an auditor carrying out an audit of the accounts of a li censee an o bligation to do anything that that auditor would not otherwise be required to do in accordance with generally accepted auditing standards, other than the obligation to provide notice and reasons to the Authority.
A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars.