The Cayman Islands Monetary Authority (“the Authority”) was established as a body corporate under The Monetary Authority Law (“the Law”), which was brought into force on 1st January, 1997. The former responsibilities, duties and activities of the Financial Services Supervision Department and the Cayman Islands Currency Board now fall to the Authority which was created from the merger of these two bodies.
The Authority, however, was not established just to continue what was already in place under a different guise but rather to enhance Cayman’s ability to maintain a well regulated financial services regime and monetary stability. The Authority has four principal functions:
- monetary – the issue and redemption of the Cayman currency and notes and the management of currency reserves;
- regulatory – the regulation and supervision of financial services, the monitoring of compliance with money laundering regulations, the issuance of a regulatory handbook on policies and procedures and the issuance of rules, and statements of principle and guidance;
- cooperative – the provision of assistance to overseas regulatory authorities, including the execution of memoranda of understanding to assist with consolidated supervision; and
- advisory – the provision of advice to the Government on monetary, regulatory and cooperative matters.