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Monetary Authority Law (2020 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: 2026-07-05

Summary

This is the Monetary Authority Law (2020 Revision), the core statute that establishes and governs the Cayman Islands Monetary Authority (CIMA) itself.

  • Establishment and governance: CIMA's legal establishment, capital and governance structure (board of directors, managing director, Management Committee).
  • Currency functions: Issuing Cayman Islands currency, managing the Currency Reserve, and legal tender rules.
  • Regulatory and supervisory functions: Oversight of financial services businesses.
  • General powers: Information-gathering, rule-making, confidentiality, immunity/indemnity for the Authority and its officers, and administrative fines for breaches of 'prescribed provisions.'
  • Schedule 1 remit: Confirms CIMA's regulatory remit covers banks, trust companies, company management businesses, insurance companies, mutual funds, money services businesses, credit unions and building societies.

The law applies primarily to CIMA as an institution (its board, directors, staff and committees) but also creates the statutory framework under which all CIMA-regulated licensees operate, since it defines terms like 'licensee,' 'regulatory laws,' and 'financial services business' that are used across the sector-specific regulatory laws (Banks and Trust Companies Law, Insurance Law, Mutual Funds Law, Money Services Law, etc.).

  • Empowers CIMA to require private sector consultation before certain measures.
  • Empowers CIMA to issue rules and a regulatory handbook.
  • Empowers CIMA to enter into memoranda of understanding and disclose information to overseas regulators.
  • Empowers CIMA to impose administrative fines under Part VIA.

Because this is largely constitutional/organisational legislation for the regulator rather than a day-to-day compliance rulebook, most of its direct, actionable obligations fall on CIMA itself (e.g., consultation duties, confidentiality safeguards, fine-imposition criteria) rather than creating new filing or reporting duties for licensees. Substantive compliance obligations for banks, trust companies, insurers, fund administrators and other regulated entities are mainly found in the sector-specific 'regulatory laws' referenced in this Law's definitions, not in this Law's operative text itself.

Key obligations

  • CIMA must undertake private sector consultation with the relevant private sector association(s), providing a draft of any proposed measure and an explanation of its purpose and reasons, before certain measures under the Law are adopted
  • Persons obtaining confidential information under the Law (including CIMA officers, employees and committee members) are subject to confidentiality restrictions under section 50 governing disclosure of that information
  • Contracts and similar instruments must be made in the prescribed unit of currency per section 23
  • CIMA may impose administrative fines on licensees or persons for breach of a 'prescribed provision' under Part VIA, subject to limitation periods and statutory criteria
  • Directors and Management Committee members must disclose pecuniary interests as required under sections 18-19 and are subject to removal for disqualifying circumstances

Applies to

banks, trust companies, company management businesses, insurance companies, mutual funds, money services businesses, credit unions, building societies, licensees under the regulatory laws

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Version history

2026-07-05

source file (current)