CLASS A FULL BANKING
Class A Banking License
Full banking license: operations within the Cayman Islands and abroad. Only large international banks or their subsidiaries. The most stringent supervisory burden.
Tier-1 banks04 Regulator: CIMA
Banking, insurance
and investment
CIMA licenses.
The Cayman Islands is No. 2 in the world for captive insurance and No. 1 for healthcare captives. Full set of licensing modes: Banking Class A/B, Insurance Class A/B/C/D, SIBA, Trust full/restricted, Money Services Business, Fund Administrator.
Banking Licenses
Banking regime
under Banks & Trust Companies Act
CIMA issues three categories of banking licenses - from a fully functional A-license for retail banks to Restricted B for niche, corporate and family-banking structures.
CLASS B OFFSHORE
Class B Banking License
Offshore banking only - does not accept deposits from Cayman Islands residents. Suitable for private banking, corporate banks, treasury group operations.
Offshore bankingRESTRICTED CLASS B
Restricted Class B
Banking for a strictly limited list of clients approved by CIMA. Family banks, in-house treasury holdings. The minimum capital is only CI$ 20,000.
Family/TreasuryBanking · key requirements
- Class A Min. paid-up capital
- CI$ 400,000 (~US$ 480,000)
- Class B Min. paid-up capital
- CI$ 400,000 (~US$ 480,000)
- Restricted B Min. capital
- CI$ 20,000 (~US$ 24,000)
- Capital adequacy ratio
- 12% (subsidiaries) 15% (private)
- Minimum of directors
- 2 (CIMA fit & proper)
- Directors' experience
- 5+ years senior banking
- Local office and persistent staff
- Required
- Annual fees
- from CI$ 35,000 to CI$ 120,000
Insurance Licenses
Insurance regime -
No. 2 in the world by captives
Under the Insurance Act, CIMA issues four classes of insurance licenses. The Cayman Islands is the second domicile in the world for captive insurance and the first for healthcare captives.
CLASS A DOMESTIC
Class A Domestic Insurer
Insurance within the Cayman Islands or limited reinsurance approved by CIMA. Local insurance companies.
CLASS B CAPTIVE
Class B Captive Insurance
Main category: 95%/50%/<50% net premiums from related business. Pure captive (95%+) - for one maternal group. Industry / group captive - for the industry.
CLASS C ILS
Class C Insurance-Linked Securities
Cat bonds, ILS structures, fully collateralised reinsurance. Obligations are limited by funding sources (bonds, contracts for differences). Growing segment.
CLASS D REINSURER
Class D Reinsurer
Full reinsurance license. For large international reinsurers. Separate capital limit and solvency requirements according to CIMA Capital & Solvency Regulations.
AGENT/BROKER
Insurance Agent/Broker
License for intermediaries: Insurance Agent (one general + one long term insurer), Insurance Broker (any contracts). They do not bear the insurance risk themselves.
INSURANCE MANAGER
Insurance Manager
Mandatory local manager for all Class B/C/D captives. Manages capital, compliance, reporting. Link to CIMA.
Captive insurance statistics
Caymans - main
domicile healthcare captives
Healthcare is the largest class among Cayman captives, the second is workers' compensation. The majority of companies are from the US (60%+), followed by Latin America and the Caribbean. The average premium savings when creating a captive is 20–35%.
Insurance capital requirements
- Class A MCR
- CI$ 100,000 – 200,000
- Class B (i) pure captive
- CI$100,000
- Class B (ii) group captive
- CI$150,000
- Class B (iii) open market
- CI$200,000
- Class C ILS
- CI$500 (collateralized)
- Class D reinsurer
- CI$50 million+
- Application processing
- 3–6 months
- Annual filing
- January 15 (renewal)
SIBA Securities Investment Business
Securities Investment
Business Act
A SIBA license is needed for those who provide services for securities (including security tokens) as a broker, dealer, manager or advisor. The regulator is CIMA, a separate mode from VASP.
Securities Broker
Mediation in transactions with securities. Acceptance and transmission of client orders. No principal and no position risk.
Securities Dealer
Trade on your own behalf and at your own expense. Principal transactions, market-making, prop trading. Capital adequacy is stricter than that of a broker.
Investment Manager
Client portfolio management on a discretionary basis. The most common SIBA category. Hedge fund managers, asset managers.
Investment Advisor
Paid consulting on securities. Non-discretionary. For wealth management, family offices, robo-advisors.
Excluded Persons
SIBA-exempt categories: management for one related person, advisor for affiliated clients. Registration without a full license.
Registered Person Filing
A simplified mode for managers whose clients are sophisticated investors or high net worth individuals. Notification instead of a license.
Trust Licenses
Trust licenses
CIMA
Under the Banks & Trust Companies Act, any company acting as a trustee, executor or administrator must have a Trust License. CIMA distinguishes between Full and Restricted modes plus PTC registration.
FULL TRUST
Full Trust License
The right to act as a trustee for any clients. Trust companies. Minimum capital CI$ 400,000. Full CIMA supervision.
RESTRICTED TRUST
Restricted Trust License
Trust services are for a pre-approved list of clients only. Minimum capital CI$ 20,000. Family trustees, in-house structures.
PTC REGISTRATION
Private Trust Company
Registration with CIMA without a full license for PTCs conducting only “connected trust business” (single family trusts). More accessible and faster.
Other licenses
Money Services
and Fund Administrator
Money Services Business
Money transfer, currency exchange, prepaid cards. Under the Money Services Act. For payment companies, remittance providers, EMI analogues. Min capital CI$ 100,000.
Fund Administrator
NAV calculations, investor register, AML/KYC support of funds. Full and Restricted licenses. One of the few licensed fintech segments.
Corporate Services Provider
Companies Management Act. Registration and support of companies (CSP), nominee services, registered office. Any company providing incorporation services.
Director Registration
Directors Registration & Licensing Act. All directors of regulated entities (funds, banks, insurance companies) must be registered or licensed by CIMA.
Forex Business
Comes under SIBA or Money Services. FX brokers, dealers - under SIBA with capital requirements. FX-money transfer - under MSB.
Virtual Asset Service Provider
Separate mode under VASP Act. Phase 1 (registration) or Phase 2 (License). Details - on the page VASP/Crypto.
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