Explanation of Credit Union Operations

According to Section 2 of the Cooperative Societies Act, “credit union business” for a registered society (which must adhere to cooperative principles and aim to promote its members' economic interests) is defined as:

"The activities of –

1. Encouraging members of the society to save by pooling their savings;
2. Providing affordable credit sources for members of the society at reasonable interest rates;
3. Utilizing and managing members' savings for their collective benefit; and
4. Educating and training members on the prudent use of money and effective financial management."

Regulation of Credit Unions - Cmrai Supervision

Credit Unions fall under the regulatory purview of Cmrai as per the Cooperative Societies Act. Part V of this act details the Authority's responsibilities and powers regarding credit unions. While credit unions are not required to obtain a license from Cmrai, they must be registered with the Registrar of Cooperative Societies (part of the General Registry Department of the Cayman Islands Government). To facilitate this registration, credit unions must provide the necessary documentation listed on our Cooperative and Building Societies Regulatory Requirements page, allowing Cmrai to issue a non-objection letter to the General Registry.

The regulatory oversight of credit unions is managed by the Banking Supervision Division of Cmrai.

Building Societies - Cmrai Supervision

Building societies are not legally required to be licensed by Cmrai. However, they are subject to regulatory oversight by Cmrai as per Sections 33-37 of the Building Societies Act (2010 Revision), which detail the Authority's duties and powers concerning building societies.

Building societies must be incorporated through the Registrar of Companies (part of the General Registry Department of the Cayman Islands Government) and are required to pay an annual fee to the Registrar on each anniversary of their incorporation.