CIMA outlines new Regulatory Regime. Part 2
As previously described, recently CIMA representative spoke at an Ernst and Young Symposium at the Ritz Carlton Hotel on Grand Cayman.
In her speech, Managing Director of the Cayman Islands Monetary Authority Cindy Scotland addressed changed regulatory policy on licensing banks. She said that the policy that was issued in October 2008 replaces the former Statement of Guidance on Licensing Banks as well as clarifies the criteria used by CIMA (http://cayman-islands-financial-services.offshore-journals.com/?p=16) to assess applications for the grant of licenses to conduct banking business in and from Cayman.
The following criteria apply to all categories of bank licenses:
- the fitness and propriety of the persons who will control and manage the bank;
- the bank’s ownership and control of the proposed licensee;
- the bank’s track record and business plan;
- the bank’s financial resources;
- the bank’s internal systems, controls and risk management;
- the bank’s know-your-customer policy; and
- the bank’s record-keeping.
According to Scotland, “The policy is in accordance with the Banks and Trust Companies Law and its regulations, as well as the Core Principles for Effective Banking Supervision (BCP’s) issued by the Basel Committee on Banking Supervision.”
To conclude her address, she stated that the Cayman Islands Monetary Authority continues to review its regulatory standards with respect to many factors contributing to the functioning of the financial industry.