British Overseas Territory and one of the largest offshore financial centres, best known as the leading domicile for hedge funds and private equity funds. It also hosts a large international (Class B) banking sector, captive insurance and a growing virtual asset service provider regime, all supervised by the Cayman Islands Monetary Authority (CIMA).
Risk flagStandard
FATFNot listed
EU AML high-risk listNot listed
EU tax listNot listed
Licence regimes7
CurrencyKYD
Moody's ratingAa3
Next electiondue 2029
Not on the FATF lists as of the 19 June 2026 plenary statement (removed from increased monitoring in October 2023), removed from the EU high-risk list by Delegated Regulation (EU) 2024/163, and not on Annex I of the EU tax list as updated 17 February 2026. Checked 7 October 2026.
Government and politics
Government
Parliamentary democracy; self-governing British Overseas Territory
Monarch
Charles III · since September 2022
Premier
André Ebanks (The Caymanian Community Party (TCCP))
Governing parties
National Coalition for Caymanians (Caymanian Community Party, Cayman Islands National Party and independents)
Last election
Parliamentary general election, 30 April 2025
Next election
Parliamentary general election, due 2029
Legislature
Parliament (unicameral): 19 elected members plus 2 ex officio members
Legal system
English common law and local statute
Economy and finance
Population
75.8k (2025)
GDP
USD 7.8bn (2024)
GDP per person
USD 104,293 (2024)
Currency
Cayman Islands dollar (KYD), Pegged to USD at 1 KYD = 1.20 USD
Central bank
Cayman Islands Monetary Authority
Credit rating
Moody's Aa3 (stable) (as of June 2025)
The Cayman Islands is a leading domicile for hedge funds and other investment funds, with financial services and tourism generating most economic activity and no direct taxation.
Bank
Category "A" banking licence
Minimum capitalUSD 488k
TimelineCIMA policy gives a typical processing time of 5 weeks for Category A once all documents are received; the licensing requirements page says about 6 to 8 weeks for a complete application.
AuthorityCayman Islands Monetary Authority
Minimum net worth of CI$400,000 for locally incorporated banks; CIMA also expects at least US$500,000 of issued capital held in cash at a local retail bank. Branches of foreign banks have no separate capital requirement.
Law
Banks and Trust Companies Act, s.6
Fees
Domestic Category A bank: application CI$10,000, fee on grant CI$750,000, annual fee CI$1,000,000. Category A bank and trust: application CI$13,500, grant CI$750,000, annual CI$1,000,000. Lower fees apply to restricted Category A licences (CI$160,000 to CI$350,000 grant fee). Source: CIMA fee schedule updated 1 January 2026.
Passporting
No. Cayman is not in the EU; licence is local only.
Key requirements
May conduct banking business within and outside the Islands, subject to CIMA conditions
At least two effective directors, one with relevant banking experience
Minimum capital adequacy ratio of 12% for subsidiaries and 15% for privately owned or affiliated banks
MLRO and Compliance Officer at management level, ordinarily resident in the Cayman Islands; these functions may not be outsourced
TimelineCIMA policy gives a typical processing time of 4 weeks for Category B once all documents are received.
AuthorityCayman Islands Monetary Authority
Minimum net worth of CI$400,000 for locally incorporated banks; restricted B licensees CI$20,000 (or the amount needed for a 15% risk asset ratio where third party funding is involved). Branches of foreign banks have no separate capital requirement.
Law
Banks and Trust Companies Act, s.6 and s.6(6)
Fees
Category B bank: application CI$4,000, fee on grant CI$70,000, annual fee CI$60,000 to CI$100,000 depending on total assets. Restricted B: application CI$4,000, grant CI$45,000, annual CI$37,000 to CI$40,000. Source: CIMA fee schedule updated 1 January 2026.
Passporting
No.
Key requirements
Transactions with Cayman residents are generally prohibited (s.6(6))
Restricted B licensees may only take funds from persons listed in the undertaking filed with the application
Most B licensees are branches or subsidiaries of foreign banks; home supervisor consolidated supervision is assessed
Fit and proper directors and controllers; AML/CFT officers in place
Application CI$2,500; annual fee CI$20,000 (CI$1,000 for each subsidiary, branch, agency or representative office); quarterly transaction fee of 2% of the gross amount transferred overseas, capped at CI$10 per transaction. Source: CIMA fee schedule updated 1 January 2026.
Passporting
No.
Key requirements
Business plan and details of internal controls
Information on all beneficial owners, directors and agents
Virtual asset service provider registration or licence (including sandbox licence)
Minimum capitalNot published
TimelineNot published
AuthorityCayman Islands Monetary Authority
Law
Virtual Asset (Service Providers) Act, as amended by the Virtual Asset (Service Providers) (Amendment) Act, 2024
Fees
Registration assessment fee of KYD 1,000 under phase one. Licence application and grant fees are set in Schedule 2 of the Virtual Asset (Service Providers) (Amendment) Regulations, 2025; amounts not verified from the official text.
Passporting
No.
Key requirements
Since 1 April 2025 a licence is required for virtual asset custody services and virtual asset trading platforms; other VASP activities need registration
Registered persons doing licensable activities had 90 days from 1 April 2025 to apply for a licence
Minimum of three directors for licensees
Sandbox licence available for innovative services, granted for up to one year
Mutual fund: application or registration fee CI$4,125 and annual fee CI$4,125 (master funds CI$3,075), plus CI$750 per sub-fund and CI$300 administrative filing fee. Private fund: annual fee CI$4,125 plus CI$525 per alternative investment vehicle, segregated portfolio or separate account, and CI$300 filing fee. Source: CIMA fee schedule updated 1 January 2026.
Passporting
No EU passport. CIMA issues attestations for EU connected funds under the AIFMD (fee CI$800).
Key requirements
Registered and limited investor mutual funds need a minimum initial investment of CI$80,000 (US$100,000); administered funds have no such minimum
Limited investor funds have 15 or fewer investors
Private funds (closed ended) have no minimum investment requirement
Annual audit by a CIMA approved local auditor and annual return filing
FATF removed the Cayman Islands from increased monitoring at its October 2023 plenary; the EU followed with Delegated Regulation (EU) 2024/163 (dated 12 December 2023). The VASP regime moved to phase two on 1 April 2025, when licensing became mandatory for custody and trading platform services. Fees above are in Cayman dollars (CIMA converts at US$1 = CI$0.82). Gaming: this file does not cover an online gaming licence because no Cayman online gaming licensing regime was identified in official sources. Insurance (including captives) is a major sector but is not covered here.
General information
About Cayman Islands
Natural Earth boundaries. Map is indicative.
Status
British Overseas Territory
Capital
George Town
Area
264 km²
Official languages
English
Time zone
UTC-05:00
Main exports
Financial services (investment funds, banking)
Insurance (including captive insurance)
Corporate and fiduciary services
Tourism
Main export partners
United Kingdom
Cyprus
Germany
Grenada
Italy
Sources for the country information(7)
Country information checked 9 October 2026. Licensing data updated 7 October 2026. Information only, not legal advice; requirements change. Regulatory notice.
