Requirements for Obtaining a Banking Services Licence

Licence Application Process

All licence applications under the Bank and Trust Companies Act must be submitted through the REEFS portal to the Authority. If you need access to REEFS, please reach out to the Banking Supervision Division at [email protected]. The application should comply with the guidelines outlined in the  Banks and Trust Companies (Licence Applications and Fees) Regulations.

The application review typically takes about 6-8 weeks, provided the submission is complete.  

Application Document Checklists

To assist applicants, the Banking Supervision Division has developed various checklists based on the requirements of the Banks and Trust Companies (Licence Applications and Fees) Regulations. Refer to the current Fee Schedule for details on applicable fees.

Criteria for Branch Banking Licence - Category "A" & "B" Banking Licence 

1. Certified copy of the bank's Charter.
2. Certified copy of By-Laws, notarized by the Secretary.
3. List of Directors, shareholders, and key corporate officers, including full names, addresses, occupations, and nationalities, certified by the company's secretary. Approval for shareholders, directors, and controllers must include the following:
1. Personal Questionnaire
2. Two character references
3. Financial reference from a bank or trust company
4. Police clearance certificate
5. Evidence of two active directors
6. Proof of relevant banking experience for at least one director.
4. Corporate structure chart showing relationships with affiliates and subsidiaries.
5. Name and address of the bank's auditors.
6. Most recent annual report of the bank and its holding company, including figures for the past two years.
7. A letter to the Governor, signed by the Chairman/President of the bank, containing the following details:
1. Overview of the bank's business
2. Brief information on the bank's subsidiaries and affiliates
3. Objectives for the Cayman Islands branch
4. Names of authorized agents
5. Proof of banking experience for the directors, confirming they have no criminal records.
8. Commitment to meet the liabilities of the branch.
9. References from two different international banks.
10. Commitment not to engage in business activities within the Cayman Islands.
1. Approval from the Central Banking Authority in the country of origin, if required.
2. Confirmation from the Central Banking Authority of consolidated supervision and the applicant's good standing.
11. Financial year-end date.
12. Any exemptions requested from Section 7.
13. Application fee.
14. Certificate of Registration.
15. Licence fee.

Criteria for Locally Incorporated Company Banking Licence - Category "A" & "B" Banking Licence

1. Approval of the company name.
2. Approval of shareholders, directors, and controllers, including the following:
1. Personal Questionnaire
2. Two character references
3. Financial reference from a bank or trust company
4. Police clearance certificate
5. Evidence of two active directors
6. Proof of relevant banking experience for at least one director.
3. Recommendation letter from a bank or trust company.
4. Approval from the parent supervisory authority, if applicable.
1. Confirmation from the parent supervisory authority of consolidated supervision and good standing, if applicable.
5. Company objectives.
1. Reasons for establishing the company
2. Customer base (including names for Restricted licences)
3. Asset structure
4. Management structure
5. Two-year financial projection
6. Any exemptions requested from Section 7.
7. Minimum required capital.
8. Commitment not to solicit funds within the Cayman Islands.
9. Principal office location.
10. Authorized agents.
11. Local auditors.
12. Financial year-end date.
13. Memorandum and Articles of Association.
14. Certificate of Incorporation.
15. Application fee.
16. Opening balance sheet.
17. Licence fee.

Requirements for Unrestricted Trust Licence Application - (Locally Incorporated Company)

1. Address of the principal office.
2. Consent letter from the applicant's agent.
3. Recommendation letter from a bank or trust company.
4. Please provide the following for all proposed shareholders, managers, controllers, and directors:
• Personal Questionnaire
• Two character references
• Police clearance certificates
• Financial reference from a bank or trust company
• Evidence of two directors actively engaged in the business
• Proof of relevant experience of the directors.
5. Business Plan / Company Objectives.
• Reasons for applying for an Unrestricted Trust Licence.
• If not a newly formed company, details of current business activities along with audited statements for the past two years.
• Customer base - proposed number and origin of client companies, etc.
• Current or proposed range of services.
• Detailed financial plan for the next two years, including:
• Asset structure (type of assets)
• Proposed initial assets
• Expected liabilities
• Expected income
• Details of management structure, personnel, and responsibilities.
• Details of expected fee earnings.
• Procedures for maintaining custody of bearer shares.
6. Any exemptions requested under Section 7 of the Bank and Trust Companies Act.
7. Confirmation from parent Supervisory Authorities of no objection to the applicant being licensed as a Trust Company in the Cayman Islands.
8. Confirmation of consolidated supervision from parent Supervisory Authorities.
9. Names and addresses of all subsidiaries, along with a statement of how much of each subsidiary's capital constitutes an asset of the applicant.
10. Names, addresses/country of incorporation, and nationality of ultimate beneficial shareholders, as well as any shareholder holding more than 5% of the voting rights or issued share capital.
11. Audited statements for the past two years for shareholders that are companies.
12. Proof of paid-up capital (minimum of CI$400,000 for Unrestricted Trust Companies).
13. Confirmation from the applicant's bank or auditors of the paid-in capital (including a copy of the applicant's balance sheet).
14. A letter of consent from an Auditor, approved by the Authority, stating that they are aware of their obligations under the Bank and Trust Companies Act.
15. Financial year-end date of the applicant.
16. Certified copy of the Memorandum and Articles of Association.
17. Original certified copy of the Certificate of Incorporation.
18. Application fee.
19. Annual fee (due upon receipt of approval for the issue of an Unrestricted Trust Licence).
20. An undertaking signed by the applicant that the information provided in the application is true and accurate.
21. An undertaking signed by directors to inform the Authority of any changes to the information provided in this application, should a Licence be granted.

NOTE:

If the applicant is engaged in business activities regulated in another jurisdiction, please attach a confirmation of good standing and a letter of no objection from the relevant regulatory authority, as well as a copy of the most recent audited financial statements. 

For expedited processing of an application, please submit only complete applications. Incomplete applications will be returned by mail to the sender. 

Applications for an Unrestricted Trust Licence under the Banks and Trust Companies Act (as revised) should meet all the criteria listed above.

Criteria for Restricted Category "B" Banking Licence (Branch)

1. Certified copy of the bank's Charter.
2. Certified copy of By-Laws, notarized by the Secretary.
3. List of Directors and key corporate officers, including full names, addresses, occupations, and nationalities, certified by the company's secretary.
4. Corporate structure chart showing relationships with affiliates and subsidiaries.
5. Name and address of the bank's auditors.
6. Most recent annual report of the bank and its holding company, including figures for the past two years.
7. A letter to the Governor, signed by the Chairman/President of the bank, containing the following details:
• Overview of the bank's business
• Brief information on the bank's subsidiaries and affiliates
• Objectives for the Cayman Islands branch
• Names of authorized agents
• Proof of banking experience for the directors, confirming they have no criminal records.
8. Commitment to meet the liabilities of the branch.
9. References from two different international banks.
10. Commitment not to engage in business activities within the Cayman Islands.
• Approval from the Central Banking Authority in the country of origin, if required.
• Confirmation from the Central Banking Authority of consolidated supervision and the applicant's good standing.
11. Financial year-end date.
12. Any exemptions requested from Section 7.
13. Application fee.
14. Certificate of Registration.
15. Licence fee.

Criteria for Restricted Category "B" Banking Licence (Locally Incorporated Company)

1. Approval of the company name.
2. Approval of shareholders, directors, and controllers, including the following:
• Personal Questionnaire
• Two character references
• Financial reference from a bank or trust company
• Police clearance certificate
• Evidence of two active directors
• Proof of relevant banking experience for at least one Director.
3. Recommendation letter from a bank or trust company.
4. Approval from the parent supervisory authority, if applicable.
5. Confirmation from the parent supervisory authority of consolidated supervision and good standing, if applicable.
6. Company objectives.
• Reasons for establishing the company
• Customer base (including names for Restricted licences)
• Asset structure
• Management structure
• Two-year financial projection
7. Any exemptions requested from Section 7.
8. Minimum required capital.
• If third-party funding or liabilities are involved - CI$20,000 or the amount necessary to meet a RAR of 15% (for non-bank or unconsolidated bank subsidiaries) or 12% (for bank subsidiaries).
• For entirely related operations or 100% related funding - the RAR-based capital requirement (and large exposures guidelines) may be waived if the following is provided: confirmation from all depositors/creditors that they are aware that normal capital adequacy (and lending guidelines) will not be applied to the bank's operations.
9. Commitment not to solicit funds within the Cayman Islands.
10. Principal office location.
11. Authorized agents.
12. Local auditors.
13. Financial year-end date.
14. Memorandum and Articles of Association.
15. Certificate of Incorporation.
16. Application fee.
17. Opening balance sheet.
18. Licence fee.

Requirements for Restricted Trust Licence Application

 

1. Address of the principal office.
2. Consent letter from the applicant's agent.
3. Please provide the following for all proposed shareholders, managers, controllers, and directors:
• Personal Questionnaire
• Two character references
• Police clearance certificates
• Financial reference from a bank or trust company
• Evidence of two directors actively engaged in the business
• Proof of relevant experience of the directors.
4. Business Plan / Company Objectives.
• Reasons for applying for a Restricted Trust Licence.
• If not a newly formed company, details of current business activities along with audited statements for the past two years.
• Customer base - proposed name, number, and origin of trusts to be managed by the applicant.
• Completed copy of page one of the personal questionnaire for each person who is a settlor of a managed trust.
• Source of trust assets for each managed trust.
• Police clearance certificate for each settlor.
• One character reference for each settlor.
• Range of services proposed by the applicant.
• Detailed financial plan for the next two years, including:
• Asset structure (type of assets)
• Proposed initial assets
• Expected liabilities
• Expected income.
• Details of management structure, personnel, and responsibilities.
• Details of expected fee earnings.
• Procedures for maintaining custody of bearer shares.
5. Confirmation from parent Supervisory Authorities of no objection to the applicant being licensed as a Trust Company in the Cayman Islands.
6. Confirmation of consolidated supervision from parent Supervisory Authorities.
7. Names and addresses of all subsidiaries, along with a statement of how much of each subsidiary's capital constitutes an asset of the applicant.
8. Names, addresses/country of incorporation, and nationality of ultimate beneficial shareholders, as well as any shareholder holding more than 5% of the voting rights or issued share capital.
9. Audited statements for the past two years for shareholders that are companies.
10. Proof of paid-up capital (minimum of CI$20,000 for Restricted Trust Companies).
11. Confirmation from the applicant's bank or auditors of the paid-in capital (including a copy of the applicant's balance sheet).
12. A letter of consent from an Auditor, approved by the Authority, stating that they are aware of their obligations under the Bank and Trust Companies Act.
13. Financial year-end date of the applicant.
14. Certified copy of the Memorandum and Articles of Association.
15. Original certified copy of the Certificate of Incorporation.
16. Application fee.
17. Annual fee (due upon receipt of approval for the issue of a Restricted Trust Licence).
18. An undertaking signed by the applicant that the information provided in the application is true and accurate.
19. An undertaking signed by directors to inform the Authority of any changes to the information provided in this application, should a Licence be granted.

Requirements for Licence Cancellation

The criteria for surrendering licences granted under the Bank and Trust Companies Act are outlined in Section 20 of the Act. A licensee that has ceased to conduct the business for which the licence was granted may apply to the Governor to surrender its licence if it:

1. Has ceased such business and provides evidence that it has repaid all deposits held and transferred all trust assets managed by it; or
2. Is being voluntarily wound up and provides evidence that it is solvent, capable of repaying all deposits held, and has transferred all trust assets managed by it.

Confirmation from external auditors is typically required by the Authority for the surrendering of licences.

NOTE:
To expedite the processing of an application, please submit only complete applications. Incomplete applications will be returned by mail to the sender. 

Applications for a Nominee Trust Licence under the Banks and Trust Companies Act (as revised) should meet all the criteria listed above.