Investment and Securities Division of CIMA
International Organization of Securities Commissions
Know Your Customer
IMF Legal Department
Offshore Financial Center
Monetary Authority Law (2008 Revision)
IMF Monetary and Capital Markets Department
Mutual Funds Law (2007 revision)
Proceeds of Criminal Conduct Money Laundering Regulations, 2003
Net Asset Value
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.
This paper highlights key findings of the assessment of financial sector regulation and supervision in the Cayman Islands. The assessment reveals that in the last two years, an extensive program of legislative, rule, and guideline development in the Cayman Islands has introduced an increasingly effective system of regulation, both formalizing earlier practices and introducing enhanced procedures. The implementation of financial regulation and supervision complies broadly with standards in all the areas assessed. However, issues related to resources and potential breaches of operational autonomy affect the regulator and, hence, supervision in all sectors.
, or other more substantive functions require a companies management license. Trust companies are, however, licensed under the Banks and Trust Companies Law (2003 Revision), while insurance and fund managers are licensed under the insurance and securitiesinvestmentbusiness laws.
Cayman Islands: Company and Trust Service Providers
Number of company service providers (by type of license)
Company Service Providers
Criminal Conduct Money Laundering Regulations, 2003
money laundering reporting officer
net asset values
U.K. Proceeds of Crime Act
The Proceeds of Criminal Conduct Law (2001 revision)
Royal Cayman Islands Police
suspicious activity report
SecuritiesInvestmentBusiness Law (2003 Revision)
Self regulatory organizations
International Convention for the Suppression of the Financing of Terrorism
. The recent SecuritiesInvestmentBusiness Act, for example, expands the scope for services, but there is little preparation to implement these opportunities.
The banking system has been insulated from global financial shocks to date and has remained stable. The system is focused on domestic activity and was not directly exposed to volatile asset markets. Only one bank is locally owned and the remainder of the system is comprised of branches and subsidiaries of foreign banks. Distress experienced by the parent banking institutions is a potential source of
This paper reviews key findings of the detailed assessment of the Observance of Standards and Codes in the Financial Sector of the Cayman Islands. Banks in the Cayman Islands operate within a well-defined prudential regulatory framework, generally in accordance with Basel standards, that is, largely modeled after the framework currently in use in the United Kingdom. The two-tiered required minimum risk capital standards are significantly above those required by the Basel Capital Accord and are applied in practice based primarily on the perceived differences in risk related to bank ownership.
—the Mutual Funds Law (2003 Revision) and the SecuritiesInvestmentBusiness Law (2003 Revision). The Mutual Funds Law provides for the licensing/registering of mutual funds as well as the licensing and supervision of mutual fund administrators. The SecuritiesInvestmentBusiness Law provides for the licensing and supervision of investment business firms (e.g., asset managers, investment advisors, brokers, etc). The financial sector is serviced by a sophisticated and well-developed legal and accounting sector.
35. The Stock Exchange has a listing function only i.e., it