The Monetary Authority Law and the Banks and Trust Companies Law give the Cayman Islands Monetary Authority (“CIMA” or “Authority”) the responsibility for licensing and regulating banking and trust business in the Cayman Islands. In addition, the Banks and Trust Companies Law provides the legal framework for the operation of banks and trust companies in the Cayman Islands.

Key Features

Banking business is defined under The Banks & Trust Companies Law (1995 Revision) as the business of receiving and holding on current, savings, deposit or other similar account money which is repayable by cheque or order and may be invested by way of advances to customers or otherwise.

Under the Banks and Trust Companies Law, CIMA may issue the following categories of licences:

  • Category A Banking Licence – these licenses allow banks to carry on the business of banking within and outside the Islands. This license is the most difficult to obtain and is subject to stringent regulations.
  • Category B Banking Licence – These licenses allow banks to carry on offshore banking business and prohibit the bank from:-
  1. taking deposits from any person resident in the Islands, other than another licensee, or an exempted or an ordinary non-resident company which is not carrying on business in the Islands;
  2. investing in any asset which represents a claim on any person resident in the Islands, except a claim resulting from:
  3. a loan to an exempted or an ordinary non-resident company not carrying on business in the Islands; or
  4. a loan by way of mortgage to a member of its staff or to a person possessing or being deemed to possess Caymanian status under the Immigration Law, 1992, for the purchase or construction of a residence in the Islands to be owner occupied; or
  5. a transaction with another licensee; or
  6. the purchase of bonds or other securities issued by the Government, a body incorporated by statute or a company in which the Government is the sole or majority beneficial owner;
  7. Restricted Category B Banking Licence – This license permits banks to carry on the business of offshore banking, subject to the same prohibitions as unrestricted “B” licensed banks with a further restriction that they may not receive or solicit funds from persons other than those listed in an undertaking which must accompany the license application. These are true private banks.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Cayman Company or Trust

  • Application fee

USD 92,000 (Class A)

USD 12,800 (Class B)

USD 6,000 (Class C)

USD 102,500 (Class D)

  • Annual license fee

USD 92,000 (Class A)

USD 12,800 (Class B)

USD 6,000 (Class C)

USD 102,500 (Class D)

  • Local physical office required

Yes

Share capital or equivalent

  • Minimum paid up capital

USD 1,000,000 (Class A)

USD 200,000 (Class B)

USD 500 (Class C)

USD 50,000,000 (Class D)

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

No

Tax Treatment

Tax neutrality: no capital gains, income, profits, corporation or withholding taxes

Duration to Set Up

About 3 months

Distinctive Benefits of Licence

  • Tax neutrality: no capital gains, income, profits, corporation or withholding taxes.
  • Ease and speed of set up
  • Credible global reputation of license

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers