This paper discusses findings of the assessment of Financial Sector Supervision and Regulation on the Cayman Islands. The assessment reveals that substantial progress has been made in the implementation of the 2003 Offshore Financial Center assessment recommendations, including, importantly, regarding Cayman Islands Monetary Authority’s independence and resources. There is scope for enhancing regulatory reporting and disclosure requirements by financial entities, such as shortening the period for filing required documents and requiring all insurers to disclose their use of derivatives and similar commitments regularly.
all sectors. 5 The main recommendations related to increasing the independence and resourcesoftheCaymanIslandsMonetaryAuthority (CIMA); strengthening AML/CFT framework; formalizing appropriate supervision and discipline enhancing transparency; modernizing the Mutual Funds Law; and introducing appropriate solvency requirements for insurers (see Appendix I ).
III. CIMA P owers , R esources, and R isk -M anagement F ramework
5. The 2009 OFC assessment update found that CIMA has the necessary authority and resources to supervise and enforce the regime