On 5 June 2025, the Cayman Islands Monetary Authority (CIMA) issued a notice and thereby cancelled the Virtual Asset Service Provider registration of AC Holding Limited (In Official Liquidation), pursuant to section 25(3)(a) of the Virtual Asset (Service Providers) Act (2024 Revision) (VASP Act). CIMA cancelled the registration after issuing a Warning Notice issued on 28 March 2025, highlighting multiple breaches of the Cayman Islands VASP Act and the Anti-Money Laundering Regulations (2025 Revision) (AMLRs).
CIMA identified several violations by AC Holding Limited, including failure to provide required documents and information under sections 9(4)(b) and (d), and inadequate anti-money laundering systems under section 9(3)(e) of the VASP Act. Additionally, the company breached AMLRs by neglecting enhanced due diligence for suspicious activities, failing to verify the source of funds for politically exposed persons, and lacking a risk-based independent audit function. The Authority cited fraudulent business practices, non-compliance with regulations, unfit management, and concerns over the majority shareholder, Mr. Christopher Flinos, as reasons for the cancellation under sections 25(2)(b), (c), (e), and (f) of the VASP Act.
AC Holding Limited has the right to appeal this decision to the Cayman Islands court, as outlined in section 30 of the VASP Act.
