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Act

Banks and Trust Companies Act (2025 Revision)

Cayman Islands Monetary Authority (CIMA) · Cayman Islands

In force

Status per the Cayman Islands legislation register (legislation.gov.ky) (as at 2026-07-09)

View on CIMA's website Source document

Current version last checked: 2026-07-27

Summary

This is the consolidated Banks and Trust Companies Act (2025 Revision), the core Cayman Islands statute governing licensing and prudential regulation of banking and trust business. It is administered by the Cayman Islands Monetary Authority (CIMA) and sets out the legal framework requiring anyone carrying on banking business, and any company carrying on trust business, from within the Cayman Islands to hold a licence granted by CIMA (or, for certain trust subsidiaries, to be registered with CIMA).

Licence categories

  • A licences
  • B licences
  • Restricted B licences
  • Trust licences
  • Restricted Trust licences
  • Nominee (Trust) licences

Key requirements and powers

  • Application and fees: The Act sets out the application process and fees for each licence category.
  • Local presence: Requirements for a licensed entity to maintain a principal office and a resident/incorporated agent in the Islands.
  • B-licence restrictions: Restrictions on B-licence holders' dealings with Cayman residents.
  • Capital and net worth: Net worth and capital adequacy requirements.
  • Accounting and audit: Accounting and audit obligations.
  • Shares and governance: Restrictions on share issuance/transfer and director approval requirements.
  • CIMA powers: CIMA's supervisory, investigatory and enforcement powers, including powers to require public disclosures, apply to the Grand Court, and search premises.
  • Offences: Offences for contravention, such as unlicensed banking/trust business and providing false or misleading information.
  • Appeals and immunity: Appeal and immunity provisions.

Because the visible text is a revision consolidating many amendments (up to Act 10 of 2024, in force from 1 January 2025) rather than a new standalone instrument, most of its substantive content is long-standing law. The practical effect for a compliance officer is that it remains the primary source of licensing, capital, governance and fee obligations for Cayman banks and trust companies, including controlled subsidiaries that must register and file annually with CIMA.

Key obligations

  • No person may transact banking business from within the Cayman Islands without a valid banking licence granted by CIMA (s.5(1)).
  • No trust company may carry on trust business from within the Islands without a valid licence, subject to prescribed exemptions (s.5(2)).
  • A controlled subsidiary relying on the s.5(3) exemption must register with CIMA and, at registration and on or before 31 January every year thereafter, file an annual declaration naming the subsidiary, its parent licensee, its directors/senior officers, and confirming its controlled-subsidiary status, and pay the prescribed fee (s.5(4)).
  • An applicant for a licence must apply in writing, accompanied by prescribed information/particulars and the prescribed non-refundable application fee (s.6(1A)).
  • A licensed bank or trust company must maintain an approved principal office and an approved resident agent (individuals or a body corporate) in the Islands (s.6(2)), and must obtain the Authority's prior approval before ceasing or changing its principal office or agent (s.6(4)).
  • A person first granted a licence must pay the prescribed fee to the Financial Secretary at the date of grant (s.6(7)).
  • Every licence holder must pay the prescribed annual fee to the Financial Secretary on or before 15 January each year following the first grant of the licence (s.6(8)).
  • Holders of 'B' licences must not take deposits from, or invest in claims on, Cayman-resident persons except in specified circumstances, and must not carry on other business in the Islands without CIMA's written approval (s.6(6)).

Applies to

banks, trust companies, controlled subsidiaries of licensees, applicants for banking or trust licences

Deadlines

  • 31st day of January every year: Controlled subsidiaries registered under s.5(4) must file an annual declaration with CIMA and pay the prescribed fee.
  • 15th day of January each year (after first grant of licence): Every licence holder must pay the prescribed annual fee to the Financial Secretary.
  • at the date of grant of licence: A person first granted a licence must pay the prescribed fee to the Financial Secretary.

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Version history

2026-07-05

source file (current)