CAYMAN ISLANDS Law and Practice Contributed by: Jason Ta, Ben Magahy, Paul Walters and Gemma Walters, Travers Thorp Alberga
Additionally, CIMA works closely with industry participants to stay informed about emerging fraud trends and adapt their regulatory approach accordingly, and they actively engage in public education initiatives to raise awareness about common financial scams and empower individ - uals to protect themselves. In addition, CIMA collaborates with international counterparts to share information and best practices in combat - ing financial crime. 12.3 Responsibility for Losses The extent to which a fintech service provider would be responsible for losses suffered by a customer would depend on a mix of applicable regulation, contractual provisions, and the cir - cumstances in which the customer’s loss was suffered. The legal position for damages closely follows that of English law.
Service providers typically seek to place con - tractual limits on their liability in agreements with customers, often excluding any losses caused by the customer themselves or by third parties, and imposing a financial cap. Losses caused by the fraud of a third party will usually (whether expressly or implicitly) be caught within the exclusion of losses caused by third parties. A service provider typically will not seek to exclude liability arising from its own fraud (or those acting on its behalf), but depending on the service may well seek to exclude all other types of liability.
165 CHAMBERS.COM
Powered by FlippingBook