cayman islands monetary authority

During my time here at Tradeview Markets, many people ask me about the Cayman Islands Monetary Authority (CIMA) Regulatory body. I have gathered some information and facts in this article to help people understand CIMA regulation better.

Background

Logo CIMACIMA opened its doors on January 1st 1997, with a mission to protect and increase the reputation of the Cayman Islands as an international financial center. They hired a team of highly skilled professionals to create a stable currency and institute some of the best regulation practices in the industry.

Their Vision Statement as per their website is:

“Committed to continually enhancing the Cayman Islands Monetary Authority’s position as financial services regulator of EXCELLENCE, consistent with the jurisdiction’s standing as a leading International Financial Centre.”

What does CIMA do?

CIMA basically has four principal functions: Monetary, Regulatory, Cooperative, and Advisory.

Monetary: Issuance and improvement of Cayman Islands currency and managing of currency reserves.

Regulatory: CIMA regulatory practices cover the following:

  • Regulation and supervision of the financial services sector.
  • Monitoring of compliance with Anti Money Laundering regulations.
  • Issuing of a regulatory handbook on policies and procedures, as well as best practices.
  • Issuing of rules and codes of conduct on principles and guidance.

Cooperative: Cooperating with oversees regulatory bodies, in line with MOU to help with consolidated regulation. For example, the SEC or Abu Dhabi Global Markets (ADGM)

Advisory: The provision of advice to Cayman Islands government regarding monetary, regulatory and cooperative matters.

Some Interesting facts about CIMA:

  • The Cayman Islands maintained their leading position as an international banking center in 2015. They were ranked 6th and 7th in terms of liabilities and cross border assets, which were $1.4 trillion and $1.5 trillion respectively, according to a Banking Digest report released March 14th
  • As of September 2016, there are 175 licensed and registered banks under CIMA.
  • CIMA is the primary regulator of Cayman Islands financial service industry. It supervises and regulates Banks, Brokerages, Mutual Funds and Trusts.
  • As a Regulator, CIMA is responsible for maintaining and managing the Cayman Islands currency and currency reserves.

Tradeview Markets management decided to choose the Cayman Islands jurisdiction as its regulatory body for its size. reputation, and reliability. These criteria were among  major factors when it came to choosing a regulatory body. It is important to choose a regulatory body where all the stakeholders can be rest assure they are protected by the law.
Kazem Ghouchani

 

Kazem Ghouchani
Tradeview Director- Middle East and North Africa
kghouchani@tvmarkets.com