{"kind":"expression","expression":{"expr_id":"625","doc_id":"625","label":"2025 Revision","is_as_enacted":"f","commenced_on":"2025-01-28","superseded_on":null,"valid_from":"2025-01-28","valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/1989\/4\/eng@2025-01-28","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/1989\/4\", \"expression\": \"\/akn\/ky\/act\/1989\/4\/eng@2025-01-28\", \"manifestation\": \"\/akn\/ky\/act\/1989\/4\/eng@2025-01-28.pdf\"}, \"pdf\": {\"md5\": \"6233e9585a54f19e8aabc5386b06dd20\", \"path\": \"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/1989\/1989-0004\/1989-0004_2025 Revision.pdf\", \"pages\": 32, \"filename\": \"1989-0004_2025 Revision.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 10318, \"paragraph_count\": 28, \"text_char_count\": 64324}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"Banks and Trust Companies Act (2025 Revision) 23. 24. 25. 26. 27. ENDNOTES Banks and Trust Companies Act (2025 Revision) (2025 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title 1. This Act may be cited as the Banks and Trust Companies Act (2025 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Definitions 2. In this Act \u2014 \u201cauthorised agent\u201d means a person so designated by a bank or trust company under paragraph (b) of section 6(2); \u201cAuthority\u201d means the Cayman Islands Monetary Authority established under section 5(1) of the Monetary Authority Act (2020 Revision) and includes any employee of the Authority acting under the Authority\u2019s authorisation; \u201cbank\u201d means a person carrying on banking business; \u201cbanking business\u201d means the business of receiving (other than from a bank or trust company) and holding on current, savings, deposit or other similar account money which is repayable by cheque or order and may be invested by way of advances to customers or otherwise; \u201cCayman banking group\u201d includes \u2014 (a) the licensee; (b) the licensee\u2019s parent undertaking except where, in the Authority\u2019s opinion, the undertaking is subject to consolidated supervision by another banking regulator; (c) the licensee\u2019s subsidiaries; Banks and Trust Companies Act (2025 Revision) (d) any subsidiary of the licensee\u2019s parent undertaking except where, in the Authority\u2019s opinion, the undertaking is subject to consolidated supervision by another banking regulator; (e) a parent undertaking of any of the licensee\u2019s subsidiaries except where, in the Authority\u2019s opinion, the undertaking is subject to consolidated supervision by another banking regulator; and (f) an undertaking in which the licensee or an undertaking in paragraphs (b) to (e) has a participating interest; \u201ccompany\u201d means a company incorporated under the laws of the Islands or under the laws of any other country or place; \u201ccontrolled subsidiary\u201d means a trust company \u2014 (a) that is incorporated in the Islands; (b) that is a wholly owned subsidiary of a licensee under section 6(5)(c); and (c) whose directors and senior officers are directors and senior officers of the licensee or are otherwise persons approved by the Authority as fit and proper persons to be directors and senior officers of licensees holding licences for trust business under section 6(5). \u201cCourt\u201d means the Grand Court; \u201cdebt\u201d has the meaning assigned to that expression in section 2 of the Mutual Funds Act (2025 Revision); \u201ceconomic group\u201d, in relation to a licensee, includes \u2014 (a) its subsidiaries; (b) parent companies; (c) parent undertaking; (d) holding companies; (e) affiliates; (f) participating interests; (g) companies related to the licensee through common ownership; and (h) companies related to the licensee through a majority of common senior management or directorships; \u201clicence\u201d means a licence granted under section 6; \u201clicensee\u201d means a person holding a licence under this Act; \u201cnet worth\u201d means excess assets over liabilities as presented under applicable generally accepted accounting principles subject to adjustment for non-admitted assets as determined by the Authority; Banks and Trust Companies Act (2025 Revision) \u201cparent undertaking\u201d means, unless otherwise specified by the Authority, the entity that, directly or indirectly through another entity or entities, controls or exerts dominant influence over an entity; \u201cparticipating interest\u201d means an interest held by an undertaking in the shares of another entity, which the undertaking holds on a long-term basis for the purpose of securing a contribution to the undertaking\u2019s activities by the exercise of control or influence arising from or related to that interest; and a holding of twenty per cent or more of the shares of an entity shall be deemed to be a participating interest unless the contrary is shown; \u201crelevant financial activities\u201d includes \u2014 (a) financial leasing; (b) issuing credit cards; (c) portfolio management; (d) investment advisory; (e) custodial and safekeeping services; and (f) other similar activities that are ancillary to the business of banking, but does not include the activities of an insurer; \u201ctrust business\u201d means the business of acting as trustee, executor or administrator; \u201ctrust company\u201d means a company carrying on trust business; and \u201cundertaking\u201d means any business such as a body corporate, a partnership, trust, foundation or an unincorporated association carrying on a trade or business or holding an interest in an entity that carries on a trade or business, with or without a view to profit.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Determination of fitness and propriety 3. In determining for the purposes of this Act whether a person is a fit and proper person, regard shall be had to all circumstances, including that person\u2019s \u2014 (a) honesty, integrity and reputation; (b) competence and capability; and (c) financial soundness.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Extent of Act 4. (1) This Act has effect in addition to and not in derogation of any other provisions having the force of law in the Islands. (2) This Act does not apply to the Cayman Islands Civil Service Association Cooperative Credit Union Limited. Banks and Trust Companies Act (2025 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Licence or registration required to carry on banking or trust business 5. (1) No banking business may be transacted from within the Islands, whether or not such business is carried on in the Islands, except by a person who is in possession of a valid licence granted by the Authority authorising that person to carry on such business. (2) Subject to subsection (3) and to such other exemptions and conditions as may be prescribed by regulations made by the Cabinet under this subsection, no trust company may carry on trust business from within the Islands, whether or not such business is carried on in the Islands, unless it is in possession of a valid licence granted by the Authority authorising it to carry on such business. (3) A trust company that is a controlled subsidiary does not require a licence to carry on the business of issuing debt instruments or to carry on other trust business that is \u2014 (a) connected with the trust business of the licensee by which the controlled subsidiary is owned; and (b) within the scope of that licensee\u2019s Trust licence. (4) Notwithstanding subsection (3), a controlled subsidiary to which that subsection refers shall register with the Authority; and, in order to be registered, such controlled subsidiary shall \u2014 (a) at the time of registration and on or before the 31st day of January every year thereafter during the continuation of the registration, file with the Authority an annual declaration, in such form as the Authority may approve, declaring \u2014 (i) the name of the controlled subsidiary; (ii) the name of the licensee of which the controlled subsidiary is a subsidiary; (iii) the names of the directors and senior officers of the controlled subsidiary; and (iv) that the controlled subsidiary is a controlled subsidiary to which subsection (3) applies; and (b) at the time of registration and on or before the 31st day of January every year thereafter during the continuation of the registration, pay to the Government the prescribed fee. (5) A controlled subsidiary that is registered under subsection (4) may, on payment of the prescribed fee, act as a trustee of a trust that is registered as a mutual fund under the Mutual Funds Act (2025 Revision) without being licensed as a mutual fund administrator under that Act, if the licensee by which the controlled subsidiary is owned is itself licensed under that Act to administer such trust. Banks and Trust Companies Act (2025 Revision) (6) A person who contravenes this section or any regulations made under subsection (2) commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for one year, and in the case of a continuing offence to a fine of one thousand dollars for each day during which the offence continues.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Application to be made to Authority 6. (1) A person who is desirous of carrying on banking business or a company that is desirous of carrying on trust business from within the Islands shall apply to the Authority for the grant of a licence. (1A) An application under subsection (1) shall be \u2014 (a)  in writing; (b)  accompanied by any prescribed information, particulars and details; and (c)  accompanied by the prescribed non-refundable application fee. (1B) The Authority may grant a licence to an applicant under subsection (1) if satisfied that the carrying on of the business will not be against the public interest and the licence granted may be subject to any terms and conditions the Authority considers necessary. (1C) The Authority shall forward the application fee to the Financial Secretary for the benefit of the revenue. (2) A licence shall not be granted to a bank or trust company unless it has \u2014 (a) a place of business in the Islands, approved by the Authority, which will be its principal office in the Islands; and (b) two individuals or a body corporate, approved by the Authority, resident or incorporated in the Islands to be its agent in the Islands. (3) Where, in accordance with paragraph (b) of subsection (2), a licensee has appointed two individuals in the Islands to act as its agent in the Islands, the licensee may appoint them to act either separately or jointly. (4) A licensee shall not \u2014 (a) cease to have a principal office in the Islands; (b) change its principal office in the Islands without the prior approval of the Authority; (c) cease to have an authorised agent under paragraph (b) of subsection (2), or (d) change its agent (or, where the licensee has appointed two individuals to be its agent, either of them) without the prior approval of the Authority. (5) Licences granted under subsection (1B) shall be granted either for carrying on of \u2014 Banks and Trust Companies Act (2025 Revision) (a) banking business within and outside the Islands but subject to such conditions as may be imposed by the Authority, known as \u201cA\u201d licences; (b) banking business with the restrictions on that business mentioned in subsection (6), known as \u201cB\u201d licences; (c) trust business within and outside of the Islands but subject to such conditions as may be imposed by the Authority, known as Trust licences; (d) banking business with the restrictions on that business mentioned in subsection (6), and incorporating a further restriction that the licensee shall not receive or solicit funds by way of trade or business from persons other than those listed in any undertaking accompanying the application for the licence, known as Restricted \u201cB\u201d licences; (e) trust business with the restriction that the licensee shall not undertake trust business for persons other than those listed in any undertaking accompanying the application for the licence, known as Restricted Trust licences; or (f) trust business under a Trust licence to a licensee which is a wholly-owned subsidiary of another licensee and where the sole purpose of that subsidiary is to act as its nominee, known as Nominee (Trust) licences. (5A) Any conditions imposed pursuant to subsection (1B) may be varied or revoked by the Authority with notification as may be reasonable under the circumstances. (6) The holder of a \u201cB\u201d licence shall not \u2014 (a) take deposits from any person resident in the Islands, other than another licensee, or an exempted or an ordinary non-resident company which is not carrying on business in the Islands; (b) invest in any asset which represents a claim on any person resident in the Islands, except a claim resulting from \u2014 (i) a loan to an exempted or an ordinary non-resident company not carrying on business in the Islands; (ii) a loan by way of mortgage to a member of its staff or to a person possessing or being deemed to possess Caymanian status under the Immigration (Transition) Act (2022 Revision) for the purchase or construction of a residence in the Islands to be owner-occupied; (iii) a transaction with another licensee; or (iv) the purchase of bonds or other securities issued by the Government, a body incorporated by statute, or a company in which the Government is the sole or majority beneficial owner; or (c) without the written approval of the Authority, carry on any business in the Islands other than one for which the \u201cB\u201d licence has been obtained, Banks and Trust Companies Act (2025 Revision) and, without prejudice to the foregoing restrictions, a holder of a \u201cB\u201d licence which is not a subsidiary or branch of a bank licensed in a country or territory outside the Islands, shall not after the 26th April, 2003 carry on business in the Islands unless it has such resources (including staff and facilities) and such books and records as the Authority considers appropriate having regard to the nature and scale of the business. (7) Every person to whom a licence is first granted shall, at the date of such grant, pay the prescribed fee to the Financial Secretary for the benefit of the revenue. (8) Every holder of a licence shall, on or before every 15th day of January after the first grant of the licence, pay the prescribed annual fee to the Financial Secretary for the benefit of the revenue: Provided that, unless the Authority waives the same, there shall be payable to the Financial Secretary for the benefit of the revenue by a licensee who fails to pay the prescribed annual fee by that date a surcharge not exceeding one-twelfth of that fee for every month or part of a month that the fee is not paid. (9) Without prejudice to the foregoing provisions of this section, if the annual fee referred to in subsection (8) is not paid on or before every 15th day of January after the first grant of the licence, the unpaid annual fee may be sued for by the Crown by action as a civil debt and the Crown may require, and the court may order, the payment of any penalties accrued in respect of the late payment of the fee. (10) Whenever it is considered to be in the public interest, the Authority may refuse to grant a licence. (11) The Authority shall refuse to grant a licence if the Authority is of the opinion that the business to which the application relates would not be carried on by persons who are fit and proper persons to be directors or, as the case may be, managers or officers. (12) For the purposes of subsection (2)(a) \u2014 \u201cplace of business\u201d, with reference to any bank applying for the grant of a \u201cB\u201d licence (other than a subsidiary or branch of a bank licensed in a country or territory outside the Islands), means having such resources (including staff and facilities) and such books and records as the Authority considers appropriate having regard to the nature and scale of the business. (13) In subsection (9) \u2014 \u201ccourt\u201d means the Grand Court or a court of summary jurisdiction, as the case may be. Banks and Trust Companies Act (2025 Revision) 6A. Hindrance to effective supervision 6A. (1) Without prejudice to any other power that the Authority may have under this or any other law, the Authority may refuse to grant a licence or may impose conditions on a licensee where, in the Authority\u2019s opinion, either \u2014 (a) the structure of an applicant\u2019s or a licensee\u2019s economic group, if any, will hinder effective supervision; or (b) the activities of any entity in the Cayman banking group are likely to negatively impact the financial stability of the licensee or prejudice the interests of the licensee\u2019s depositors. (2) The conditions that may be imposed by the Authority under subsection (1) include the condition that the economic group or the Cayman banking group undergo a restructure.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Shares not to be issued or transferred without approval of Authority 7. (1) No shares in a company which is a licensee under this Act shall be issued, and no issued shares shall be transferred or disposed of in any manner, without the prior approval of the Authority. (2) The Authority may exempt from the provisions of subsection (1) a licensee whose shares are publicly traded on a stock exchange recognised by the Authority, and any such exemption \u2014 (a) shall be subject to a condition that the licensee shall, as soon as reasonably practicable, notify the Authority of \u2014 (i) any change in control of the licensee; (ii) the acquisition by any person or group of persons of shares representing more than ten per cent of the licensee\u2019s issued share capital or total voting rights; or (iii) the acquisition by any person or group of persons of shares representing more than ten per cent of the issued share capital or total voting rights of the licensee\u2019s parent company; (b) shall be subject to a condition that the licensee shall, as soon as reasonably practicable, provide such information to the Authority, and within such period of time, as the Authority may require for the purpose of enabling an assessment as to whether persons acquiring control or ownership of the licensee in the circumstances set out in paragraph (a) are fit and proper persons to have such control or ownership; and (c) shall be subject to such terms and other conditions as the Authority may deem necessary. Banks and Trust Companies Act (2025 Revision) (3) In subsection (1) the reference to shares being transferred or disposed of includes not only the transfer or disposal of the legal interest in the shares but also the transfer or disposal of any beneficial interest in the shares.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Net worth requirements 8. (1) Except in the case of a Restricted \u201cB\u201d licence, or a Restricted Trust licence, or a Nominee (Trust) licence, a licence shall not be granted to a bank or trust company unless it has a net worth of not less than four hundred thousand dollars or its equivalent in other currencies, or such greater sum as may be determined by the Authority. (2) A Restricted \u201cB\u201d licence or a Restricted Trust licence shall not be granted to a bank or trust company unless it has a net worth of not less than twenty thousand dollars or its equivalent in other currencies, or such greater sum as may be determined by the Authority. (3) A Nominee (Trust) licence shall not be granted to a trust company unless such trust company furnishes a guarantee from the licensee of which it is a whollyowned subsidiary for liabilities of up to two hundred thousand dollars or its equivalent in other currencies, or such greater sum as may be determined by the Authority. (4) When the Authority has reasonable cause to believe that there are grounds for doing so, the Authority may require a licensee to increase its net worth by increasing its paid-up capital to such greater sum as the Authority may determine for the nature of the banking business or trust business, current or proposed. (5) A licensee shall at all times maintain the net worth required by this section unless exempted by the Authority. (6) The parent undertaking of a Cayman banking group is required to ensure that the net worth stipulated in this section, or such higher net worth as the Authority may direct, is maintained both in respect of the licensee on a solo basis and on a consolidated basis taking into account all the entities in the Cayman banking group.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Capital funds requirements 9. (1) The Authority may, by notice in writing, require a licensee to maintain such portion of its issued capital, in cash or cash equivalent instruments, in such amounts and in such manner, as the Authority considers appropriate, having regard to the risks arising from the activities of the licensee and such other factors as the Authority considers relevant. (2) In this section \u2014 \u201ccash equivalent instruments\u201d means a highly liquid security with a known market value and a maturity, when acquired, of less than three months. Banks and Trust Companies Act (2025 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Capital adequacy ratio 10. (1) A licensee holding a licence for the carrying on of banking business and incorporated under the Companies Act (2025 Revision) shall not, at any time, have a capital adequacy ratio of less than ten per cent (or such other percentage as may be determined by the Authority from time to time) as calculated in accordance with such form, content and manner as may be prescribed. (2) The Authority may, if it considers it to be appropriate in the particular circumstances of a licensee incorporated under the Companies Act (2025 Revision) having regard to the risks arising from the activities of the licensee and such other factors as the Authority considers relevant, vary the capital adequacy ratio applicable to that licensee. (2A) The parent undertaking of a Cayman banking group, which may be a licensee, is required to ensure that capital requirements and other prudential measures that may be issued by the Authority are met on a consolidated basis by the Cayman banking group. (2B) The parent undertaking of a Cayman banking group, which may be a licensee, shall be required to ensure that any prudential, supervisory or risk management measures that may be issued by the Authority from time to time are met on a consolidated basis by the Cayman banking group. (3) Where a licensee or the parent undertaking of a Cayman banking group fails to comply with a requirement of this section, the licensee may, for the purpose of section 18, be treated by the Authority as carrying on business in a manner detrimental to the public interest, the interest of its depositors or other creditors.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Use of word \u201cbank\u201d, etc. 11. (1) Except with the approval of the Authority, no person, other than a licensee, shall \u2014 (a) use or continue to use the words \u201cbank\u201d, \u201ctrust\u201d, \u201ctrust company\u201d, \u201ctrust corporation\u201d, \u201csavings\u201d or \u201csavings and loan\u201d or any of their derivatives, either in English or in any other language, in the description or title under which such person is carrying on business from within the Islands, whether or not such business is carried on in the Islands; (b) make or continue to make any representation in any billhead, letter, letterhead, circular, paper, notice, advertisement or in any other manner whatsoever that such person is carrying on banking business or trust business; or (c) in any manner whatsoever solicit or receive deposits from the public. (2) Except with the approval of the Authority, no company shall be registered, or continue to be registered, by a name which contains the words \u201cbank\u201d, \u201ctrust\u201d, \u201ctrust company\u201d, \u201ctrust corporation\u201d, \u201csavings\u201d or \u201csavings and loan\u201d or any of Banks and Trust Companies Act (2025 Revision) their derivatives, either in English or in any other language, in the description or title under which such company is carrying on business from within the Islands, whether or not such business is carried on in the Islands. (3) Before giving its approval under subsection (1) or (2), the Authority may require of any person such references and such information and particulars as may be prescribed. (4) Whenever the Authority considers it to be in the public interest, the Authority may withdraw any approval given under subsection (1). (5) The Authority may refuse to grant a licence to a bank or trust company or, if such bank or trust company is already in possession of a licence, the Authority may revoke such licence if, in the Authority\u2019s opinion, such bank or trust company is carrying on or intending to carry on banking or trust business, as the case may be, under a name which \u2014 (a) is identical with that of any company, firm or business house, whether within the Islands or not, or which so nearly resembles that name as to be calculated to deceive; (b) is calculated to suggest, falsely, the patronage of or connection with some person or authority, whether within the Islands or not; or (c) is calculated to suggest, falsely, that such bank or trust company has a special status in relation to or derived from the Government, has the official backing of or acts on behalf of the Government, of any department, branch, agency or organ of Government, or of any officer thereof, or is recognised in the Islands as a national or central bank or trust company. (6) A person who contravenes this section commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for one year and, in the case of a continuing offence, to a fine of one thousand dollars for each day during which the offence continues.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Accounts 12. (1) Every licensee incorporated under the Companies Act (2025 Revision) shall have its accounts audited annually or at such other times as the Authority may require by an auditor, who shall be a chartered accountant, certified public accountant or some other professionally qualified accountant, approved by the Authority. (2) The audited accounts shall be forwarded to the Authority within three months of the end of the financial year of the licensee, unless prior written approval for an extension has been granted by the Authority. (2A) Every licensee incorporated under the Companies Act (2025 Revision) shall forward to the Authority consolidated accounts in respect of the parent undertaking of the Cayman banking group of which the licensee is a member Banks and Trust Companies Act (2025 Revision) within three months of the end of the financial year of the parent undertaking of the Cayman banking group, unless prior written approval for an extension has been granted by the Authority. (3) Every licensee not incorporated under the Companies Act (2025 Revision) shall provide a copy of the audited annual accounts of its head office to the Authority within three months of the end of the financial year of such parent company, unless prior approval for an extension has been granted by the Authority. (4) When a licensee incorporated under the Companies Act (2025 Revision) changes its auditor, the Authority may require the former auditor to explain the circumstances responsible for such change.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Obligations of auditors 13. (1) If an auditor, in the course of carrying out an audit of the accounts of a licensee or of any entity forming part of a Cayman banking group, obtains information or suspects that the licensee is \u2014 (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or is winding up its business voluntarily in a manner that is prejudicial to its investors or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business without compliance with \u2014 (i) this Act or any regulations made hereunder; (ia) the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023], if the licensee is a \u201ccorporate services provider\u201d as defined in that Act; (ii) the Monetary Authority Act (2020 Revision); (iii) the Anti-Money Laundering Regulations (2025 Revision); or (iv) a condition of the licence, the auditor shall immediately give the Authority written notice of that auditor\u2019s information or suspicion and, in the case of suspicion, that auditor\u2019s reason for that suspicion. (2) Without prejudice to subsection (8), if it appears to the Authority that an auditor has failed to comply with subsection (1), the Authority may disqualify that auditor from being an auditor of a licensee; but the Authority may remove any disqualification imposed under this subsection if satisfied that the person in question will in future comply with subsection (1). Banks and Trust Companies Act (2025 Revision) (3) A licensee shall not appoint as an auditor a person disqualified under subsection (2). (4) Where the Authority has granted approval of an auditor under this Act, the approval may be revoked by the Authority if the Authority is of the opinion that the auditor is not sufficiently competent to carry out an audit of the accounts of a licensee or that, in all the circumstances, the auditor is incapable of carrying out the audit objectively. (5) No person carrying out or charged with the carrying out of any duty, obligation or function under this section shall incur civil liability to any other person for anything done or omitted to be done in respect of the discharge or purported discharge of that duty or function unless it is shown that the act or omission was in bad faith. (6) A reference in this section to an auditor carrying out an audit of the accounts of a licensee includes an auditor who was engaged to carry out such an audit or who was in the course of carrying out such an audit but resigned before carrying out or completing the audit or whose contract to carry out or complete the audit was otherwise terminated. (7) Nothing in subsection (1) shall impose on an auditor carrying out an audit of the accounts of a licensee an obligation to do anything that that auditor would not otherwise be required to do in accordance with generally accepted auditing standards, other than the obligation to provide notice and reasons to the Authority. (8) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Certain prohibitions on licensee 14. (1) A licensee incorporated under the Companies Act (2025 Revision) shall not, without the prior written approval of the Authority \u2014 (a) open outside the Islands a subsidiary, branch, agency or representative office; or (b) change its name. (1A) A licensee shall inform the Authority of any change in holdings that affects the composition of the licensee\u2019s economic group, including any new entities forming part of the licensee\u2019s economic group, within forty-five days of the occurrence of the change. (2) A licensee incorporated under the Companies Act (2025 Revision) holding a licence for the carrying on of banking business shall not acquire or hold a beneficial interest in an entity, whether directly or indirectly, so that the value of the interest at any time exceeds twenty per cent of the net worth of the licensee \u2014 Banks and Trust Companies Act (2025 Revision) (a) except with the prior written approval of the Authority; or (b) except insofar as may be necessary with respect to any interest acquired by the licensee in satisfaction of debts due to it, but any such interest acquired in satisfaction of debts shall be disposed of within a period not exceeding five years unless permission to extend such period has been given by the Authority. (3) Subject to subsections (4) and (5), a licensee holding a licence for the carrying on of banking business shall not purchase, acquire or lease real estate unless the Authority has given prior written approval or \u2014 (a) such real estate is necessary for the purpose of conducting its business or providing housing or amenities for its staff, having regard to any reasonable requirements for future expansion of its business or staff; and (b) the market value of the real estate does not exceed twenty per cent of the net worth of the licensee, or such other sum as to the Authority may seem appropriate to a maximum of fifty per cent of the net worth of the licensee. (4) Where the licensee exercises its legal right in respect of any property which is the security for any debt, the licensee may acquire such property, but in that case the property shall not be retained for a period in excess of five years without the permission of the Authority. (5) Nothing in this section shall require a licensee \u2014 (a) which holds a licence for the carrying on of banking business; and (b) which immediately before the 14th November, 2006 owns or leases real estate the market value of which exceeds fifty per cent of the net worth of the licensee, to comply with subsection (3)(b) before the expiry of a period of five years commencing with that date. (6) A contract, transaction, obligation or instrument entered into by any person shall not be rendered unenforceable merely because it is entered into in connection with banking business carried on by that person in contravention of this section.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"General requirements for trust companies 15. (1) A licensee holding a Trust Licence shall obtain and maintain adequate professional indemnity insurance, or have in place other appropriate arrangements to cover risks, in respect of its trust business, and such insurance or arrangements shall be subject to review by the Authority. (2) In conducting reviews under subsection (1), the Authority shall have regard to relevant factors including the nature and scope of the trust business, the financial position and reputation of the licensee and its parent company, and the existence Banks and Trust Companies Act (2025 Revision) of any group coverage or financial commitment made by the parent company or other appropriate body to cover risks in respect of the licensee\u2019s trust business. (3) Where a trust company acting in its capacity as a trustee of a trust forms a business relationship or enters into a one-off transaction with a person conducting relevant financial business as defined under section 2(1) of the Proceeds of Crime Act (2025 Revision), the trust company shall \u2014 (a) at the time or before the business relationship is formed; or (b) at the time or before the transaction is entered into, take reasonable steps to inform the person that the trust company is carrying on trust business and is acting in its capacity as a trustee of a trust. 15A. Annual fees in relation to provision of registered office services 15A. (1) A licensee holding a Trust licence shall pay the prescribed fee for each company for which the licensee provided a registered office up to the 31st day of December in the preceding year. (2) Subsection (1) shall not apply to a company over which the licensee has power by virtue of the articles of association of the company \u2014 (a) to appoint or remove unilaterally the directors of the company; or (b) through a chain of one or more companies, to procure the appointment or removal unilaterally of the directors of the company. (3) Every Trust licensee shall, on or before every 15th day of January, pay the annual fee referred to in subsection (1) for the benefit of the revenue and, unless the Authority waives the annual fee, there shall be payable by a licensee who fails to pay the annual fee by that date a surcharge not exceeding one-twelfth of that fee for every month or part of a month that the fee is not paid, such surcharge being for the benefit of the revenue. (4) Where the annual fee is not paid on or before the 15th day of January, the unpaid annual fee may be sued for by the Crown by action as a civil debt and the Crown may require, and the court may order, the payment of any penalties accrued in respect of the late payment of the fee.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Number and approval of directors 16. (1) A licensee shall at no time have less than two directors. (2) Unless exempted from such a requirement by the Authority, a licensee shall, before the appointment of a director or other senior officer, apply to the Authority for its written approval of such appointment. (3) The Authority shall refuse to grant approval under subsection (2) if the Authority is of the opinion that the director or other senior officer to whom the application relates is not a fit and proper person to be such director or, as the case may be, senior officer. Banks and Trust Companies Act (2025 Revision) (4) Approval granted under subsection (2) \u2014 (a) ipso facto lapses if the director or senior officer becomes bankrupt or is convicted of an offence involving dishonesty; and (b) may be revoked by the Authority. (5) Approval granted under paragraph (b) of section 6(2) may be revoked by the Authority.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Powers and duties of Authority 17. (1) It is the duty of the Authority \u2014 (a) to maintain a general review of banking practice in the Islands; (b) whenever it thinks fit, to examine, by way of the receipt of regular returns or in such other manner as it thinks necessary, the affairs or business of any licensee carrying on business in or from within the Islands for the purpose of satisfying itself that this Act is being complied with and that the licensee is in a sound financial position and, whenever it thinks fit, to report to the Cabinet the results of every such examination; (c) to assist in the investigation of any offence against the laws of the Islands which it has reasonable grounds to believe has or may have been committed by a licensee or by any of its directors or officers in their capacity as such; and (d) to examine accounts and audited annual accounts forwarded to it under section 12 and to report on them to the Cabinet whenever it thinks fit. (2) The Authority may \u2014 (a) examine and make decisions with respect to applications for licences; (b) examine all proposals and make decisions in respect of the exercise of its powers under sections 18, 18A, 19 and 20; and (c) take all necessary action, including originating applications to the Grand Court, to ensure the proper and just implementation of every provision of this Act. (3) In the performance of its functions under this Act, the Authority is entitled at all reasonable times \u2014 (a) to have access to such books, records, vouchers, documents, cash and securities of any licensee; (b) to request any information, matter or thing from any person whom it has reasonable grounds to believe is carrying on banking or trust business in the Islands in contravention of section 5(1) or (2); (c) to have access to information from any member of the Cayman banking group or any member of the licensee\u2019s economic group and such information includes \u2014 Banks and Trust Companies Act (2025 Revision) (i) policies; (ii) procedures; (iii) financial statements; (iv) audit reports; (v) board reports; (vi) regulatory returns; and (vii) supervisory reports from overseas regulators; (d) to examine the business or affairs including the carrying on of onsite inspections, of any member of the Cayman banking group; and (e) to conduct onsite inspections of a licensee, as the Authority may reasonably require for the purpose of enabling it to perform its functions under this Act. (4) The Authority may, in writing, authorise any other person to assist the Authority in the performance of its functions under this Act, and the Authority may make provision for the payment of such person\u2019s remuneration and expenses whether or not the performance of the function has been completed. (5) If it appears to it that there is reasonable ground for suspecting that an offence against this Act has been or is being committed by any person, the Authority may, with the approval of the Court, take such action as it considers necessary, in the interests of the depositors or of the beneficiaries of any trust, or other creditors of that person, to preserve any assets held by that person.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Additional powers of Authority 18. (1) Whenever the Authority is of the opinion that \u2014 (a) a licensee is or appears likely to become unable to meet its obligations as they fall due; (b) a licensee is carrying on business in a manner detrimental to the public interest, the interest of its depositors or of the beneficiaries of any trust, or other creditors; (c) a licensee has contravened this Act; (ca) a person holding a licence issued under section 6(5)(c), (e) or (f) who is a \u201ccorporate services provider\u201d, as defined in the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023], has contravened that Act; (d) a licensee has failed to comply with a condition of its licence; (e) the direction and management of a licensee\u2019s business has not been conducted in a fit and proper manner; (f) a person holding a position as a director, manager or officer of a licensee\u2019s business is not a fit and proper person to hold the respective position; Banks and Trust Companies Act (2025 Revision) (g) a person holding or acquiring control or ownership of a licensee is not a fit and proper person to have such control or ownership; (h) an individual, directly or indirectly, holding or acquiring control or ownership of more than 25% of the shares or voting rights in a licensee or the right to appoint or remove a majority of the board of directors of a licensee is not a fit and proper person to have such control or ownership; or (ha) the state of affairs which exists in respect of the Cayman banking group or material members of the licensee\u2019s economic group is likely to jeopardise the financial stability of the licensee or prejudice the interest of the licensee\u2019s depositors, the Authority may forthwith do any of the following \u2014 (i) revoke the licence; (ia) require the licensee immediately to take steps to rectify the matter; (ib) suspend the licence of the licensee pending a full enquiry into the licensee\u2019s affairs under section 17(1)(b); (ic) impose conditions with respect to decisions made by the licensee including the suspension of voting rights or nullification of votes cast; (id)  impose an administrative fine in accordance with section 42A of the Monetary Authority Act (2020 Revision); (ii) impose conditions, or further conditions, as the case may be, upon the licence and may amend or revoke any such condition; (iii) require the substitution or removal of any director, manager or officer of the licensee; (iv) at the expense of the licensee, appoint a person to advise the licensee on the proper conduct of its affairs and to report to the Authority thereon within three months of the date of that person\u2019s appointment; (v) at the expense of the licensee, appoint a person to assume control of the licensee\u2019s affairs who shall, mutatis mutandis, have all the powers of a person appointed as a receiver or manager of a business appointed under section 18 of the Bankruptcy Act (1997 Revision); (vi) require such action to be taken by the licensee as the Authority considers necessary; and (vii) impose any term or condition the Authority deems necessary on the activities or transactions of the members of the Cayman banking group in which the licensee is involved or that would materially affect the licensee. Banks and Trust Companies Act (2025 Revision) (2) Notwithstanding section 25(1), a licensee may, within seven days of the decision, apply to the Authority for a reconsideration of its decision to revoke a licence under paragraph (i) of subsection (1). (3) A person appointed under subparagraph (iv) or (v) of subsection (1) or whose appointment has been extended under paragraph (b) of subsection (4) shall from time to time at that person\u2019s discretion and in any case within three months of the date of that person\u2019s appointment or of the extension of that person\u2019s appointment (as the case may be), prepare and furnish a report to the Authority of the affairs of the licensee and of that person\u2019s recommendations thereon. (4) On receipt of a report under subsection (3), the Authority may \u2014 (a) revoke the appointment of the person appointed under subparagraph (iv) or (v) of subsection (1); (b) extend the period of that person\u2019s appointment; (c) subject to such conditions as the Authority may impose, allow the licensee to reorganise its affairs in a manner approved by the Authority; or (d) revoke the licence and apply to the Court for an order that the licensee be forthwith wound up by that Court in which case the provisions of the Companies Act (2025 Revision) relating to the winding up of a company by that Court shall, mutatis mutandis, apply. (5) Notwithstanding any provisions herein, the Authority may revoke a licence if the licensee \u2014 (a) has ceased to carry on banking business or trust business; or (b) goes into liquidation or is wound up or otherwise dissolved. (6) Whenever the Authority revokes a licence under subparagraph (i) of subsection (1), paragraph (d) of subsection (4) or subsection (5) the Authority shall cause notice of such revocation to be gazetted, and may also cause such notice to be published (whether within the Islands or elsewhere) in such newspaper or other publication as the Authority may consider necessary in the circumstances. 18A. Power to require public disclosures 18A. The Authority may require a licensee holding a licence to carry on banking business or a Cayman banking group to make public disclosures as may be specified by the Authority. Banks and Trust Companies Act (2025 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Authority may apply to Court 19. (1) The Authority may, in any case in which a licensee, or a person who has at any time been a licensee, is being wound up voluntarily, apply to the Court if the Authority considers that the winding up is not being conducted in the best interests of its depositors, the beneficiaries of any trust, or other creditors, and the Court shall make such order as it shall consider appropriate. (2) Where a petition for the winding up of a licensee, or a person who has at any time been a licensee, is presented by a person other than the Authority, the Authority shall be served with a copy of the petition by the petitioner and may appear at the hearing of the petition, and the provisions of subsections (3) and (4) shall apply. (3) A document which relates to a petition for winding up and which is required to be sent to a licensee or former licensee or any of their respective depositors, beneficiaries, or other creditors, shall, in addition, be sent to the Authority. (4) A person appointed for the purpose by the Authority may \u2014 (a) attend a meeting of creditors of a licensee or former licensee; (b) attend a meeting of a committee established to discuss a compromise or arrangement; and (c) make representations as to any matter for decision at any such meeting.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Surrender of licence 20. (1) A licensee which has ceased to carry on the business in respect of which the licence was granted may apply to the Authority to surrender its licence if it \u2014 (a) has ceased to carry on such business, and produces evidence that it has repaid all deposits held by it and has transferred all trust assets held or administered by it, or (b) is being wound up voluntarily and produces evidence that it is solvent and able forthwith to repay all deposits held by it and all its other creditors and has transferred all trust assets held or administered by it, and the Authority may thereupon approve the surrender. (2) In the case of an application under paragraph (b) of subsection (1) the Authority may apply to the Court for the licensee to be wound up either by that Court or subject to its supervision, and on the making of such an order the provisions of the Companies Act (2025 Revision) relating to the winding up of a company by or subject to the supervision of that Court shall, mutatis mutandis, apply. Banks and Trust Companies Act (2025 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Chief Justice may make rules 21. The Chief Justice may make rules governing the procedure in relation to applications to the Court under section 17(5), paragraph (d) of section 18(4), section 19 and section 20(2).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_22\", \"num\": \"22.\", \"text\": \"Power of search 22. (1) If a magistrate is satisfied by information on oath given by the Authority or by a person authorised under section 17(4) to assist the Authority either that \u2014 (a) there is reasonable ground for suspecting that an offence against this Act or the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023], has been or is being committed and that evidence of the commission of the offence is to be found at any premises specified in the information, or in any vehicle, vessel or aircraft so specified; or (b) any books, records, vouchers, documents, cash or securities which ought to have been produced under section 17(3) and have not been produced are to be found at any such premises or in any such vehicle, vessel or aircraft, the magistrate may grant a search warrant authorising the Authority or such person authorised under section 17(4) or any constable of the rank of Inspector or above, together with any other person named in the warrant and any other constables to enter the premises specified in the information or, as the case may be, any premises upon which the vehicle, vessel or aircraft so specified may be, at any time within one month from the date of the warrant, and to search such premises or, as the case may be, such vehicle, vessel or aircraft. (2) The person authorised by any such warrant to search any premises or any vehicle, vessel or aircraft may search every person who is found in or whom that person has reasonable grounds to believe to have recently left or to be about to enter those premises or that vehicle, vessel or aircraft, as the case may be, and may seize any books, records, vouchers, documents, cash or securities found in the possession of any such person or in such premises or in such vehicle, vessel or aircraft which that person has reasonable grounds for believing ought to have been produced under section 17(3): Provided that no female shall, in pursuance of any warrant issued under this subsection, be searched except by a female. (3) Where under this section a person has any power to enter any premises that person may use such force as is reasonably necessary for the purpose of exercising that power. (4) A person who obstructs the Authority or any other person in the exercise of any powers conferred on it or that person under this section commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for one year. Banks and Trust Companies Act (2025 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_23\", \"num\": \"23.\", \"text\": \"False or misleading information 23. Any licensee or any director or officer of a licensee who knowingly or wilfully supplies false or misleading information to the Authority commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for one year.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_24\", \"num\": \"24.\", \"text\": \"Offences 24. A person who contravenes any provision or requirement of this Act for which no offence is specifically created commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for one year.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_25\", \"num\": \"25.\", \"text\": \"Appeals 25. (1) An appeal lies to the Court from any decision of the Authority \u2014 (a) revoking a licence under section 11(5), paragraph (i) of section 18(1), or section 18(4) or (5); (b) withdrawing any approval under section 11(4); (c) requiring a licensee to take certain steps which the Authority may specify under section 18; or (d) made under regulation 4B(b) of the Private Trust Companies Regulations (2020 Revision). (2) An appeal against the decision of the Authority shall be on motion. The appellant within twenty-one days after the day on which the Authority has given its decision shall serve a notice in writing signed by the appellant or the appellant\u2019s attorney-at-law on the Authority of the appellant\u2019s intention to appeal and of the general ground of the appellant\u2019s appeal: Provided that any person aggrieved by a decision of the Authority may, upon notice to the Authority, apply to the Court for leave to extend the time within which the notice of appeal prescribed by this section may be served and the Court upon hearing of such application may extend the time prescribed by this section as it deems fit. (3) The Authority shall, upon receiving the notice of appeal, transmit to the Clerk of the Court without delay a copy of the decision and all papers relating to the appeal: Provided that the Authority is not compelled to disclose any information if it is considered that the public interest would suffer by such disclosure. (4) The Clerk of the Court shall set the appeal down for argument on such day, and shall cause notice of the same to be published in such manner, as the Court may direct. Banks and Trust Companies Act (2025 Revision) (5) At the hearing of the appeal the appellant shall, before going into the case, state all the grounds of appeal on which that appellant intends to rely and shall not, unless by leave of the Court, go into any matters not raised by such statements. (6) The Court may adjourn the hearing of an appeal and may, upon the hearing thereof confirm, reverse, vary or modify the decision of the Authority or remit the matter with the opinion of the Court thereon to the Authority. (7) An appeal against a decision of the Authority shall not have the effect of suspending the execution of such decision.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_26\", \"num\": \"26.\", \"text\": \"Immunity 26. The Authority shall not be liable in damages for anything done or omitted in the discharge or purported discharge of its respective functions under this Act, unless it is shown that the act or omission was in bad faith.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_27\", \"num\": \"27.\", \"text\": \"Regulations 27. (1) The Cabinet may make regulations prescribing all matters that are required or permitted by this Act to be prescribed, or are necessary or convenient to be prescribed for giving effect to the purposes and administration of this Act and in particular \u2014 (a) to prescribe the information, particulars and references which may be prescribed under section 6(1A)(b), 6(1A)(c) or 11(3); (b) to control the form of advertising by licensees; (c) to prescribe fees payable under this Act; and (d) to prescribe matters, information, particulars, and requirements for the registering and maintenance of private trust companies. (2) Regulations made under this Act may \u2014 (a) make different provisions in relation to different cases or circumstances; (b) apply in respect of particular persons or particular cases or particular classes of persons or particular classes of cases, and define a class by reference to any circumstances whatsoever; or (c) contain such transitional, consequential, incidental or supplementary provisions as appear to the Cabinet to be necessary for the purposes of the Regulations. Banks and Trust Companies Act (2025 Revision) Publication in consolidated and revised form authorised by the Cabinet this 21st day of January, 2025. Kim Bullings Clerk of the Cabinet Banks and Trust Companies Act (2025 Revision) ENDNOTES ENDNOTES Table of Legislation history: SL # Act\/Law # Legislation Commencement Gazette 61\/2024 Banks and Trust Companies (Amendment) Act, 2024 (Commencement) Order, 2024 19-Dec-2024 LG47\/2024\/s27 10\/2024 Banks and Trust Companies (Amendment) Act, 2024 1-Jan-2025 LG47\/2024\/s1 24\/2024 Banks and Trust Companies (Amendment) Act, 2023 (Commencement) Order, 2024 31-Jul-2024 LG26\/2024\/s9 14\/2023 Banks and Trust Companies (Amendment) Act, 2023 31-Jul-2024 LG41\/2023\/s2 Banks and Trust Companies Act (2021 Revision) 12-Jan-2021 LG4\/2021\/s3 56\/2020 Citation of Acts of Parliament Act, 2020 3-Dec-2020 LG89\/2020\/s1 21\/2020 Banks and Trust Companies (Amendment) Law, 2020 22-May-2020 LG39\/2020\/s5 Banks and Trust Companies Law (2020 Revision) 9-Jan-2020 LG4\/2020\/s5 17\/2019 Banks and Trust Companies (Amendment) Law, 2019 8-Aug-2019 LG28\/2019\/s8 39\/2018 Banks and Trust Companies (Amendment) Law, 2018 8-Mar-2019 GE18\/2019\/s1 Banks and Trust Companies Law (2018 Revision) 16-Mar-2018 GE22\/2018\/s3 46\/2017 Banks and Trust Companies (Amendment) Law, 2017 27-Nov-17 GE100\/2017\/s6 Banks and Trust Companies Law (2013 Revision) 11-Oct-2013 GE82\/2013\/s2 32\/2012 Banks and Trust Companies (Amendment) (No.2) Law, 11-Dec-2012 GE123\/2012\/s5 7\/2012 Banks and Trust Companies (Amendment) Law, 2012 10-Jan-2013 GE4\/2013\/s1 Banks and Trust Companies Law (2009 Revision) 7-Jul-2009 G14\/2009\/s3 8\/2008 Banks and Trust Companies (Amendment) Law, 2008 7-Aug-2008 GE21\/2008\/s1 Banks and Trust Companies Law (2007 Revision) 9-Jul-2007 G14\/2007\/s2 31\/2006 Banks and Trust Companies (Amendment) Law, 2006 14-Nov-2006 G23\/2006\/s4 Banks and Trust Companies Law (2003 Revision) 2-Jun-2003 G11\/2003\/s2 35\/2003 Banks and Trust Companies (Amendment) Law, 2002 (Commencement) Order, 2003 17-Mar-2003 GE10\/2003\/s1 35\/2002 Banks and Trust Companies (Amendment) Law, 2002 17-Mar-2003 GE5\/2003\/s5 Banks and Trust Companies Law (2001 Revision) 30-Apr-2001 G8\/2001\/s1 2\/2001 Banks and Trust Companies (Amendment) (Prudent Management) Law, 2001 26-Apr-2001 GE7\/2001\/s2 Banks and Trust Companies Law (2000 Second Revision) 11-Sep-2000 G19\/2000\/s6 3\/2000 Banks and Trust Companies (Amendment) (Access to Information) Law, 2000 24-Jul-2000 GE7\/2000\/s1 ENDNOTES Banks and Trust Companies Act (2025 Revision) Banks and Trust Companies Law (2000 Revision) 28-Feb-2000 G5\/2000\/s1 12\/1999 Banks and Trust Companies (Amendment) (Waiver of Penalty Fees) Law, 1999 25-Oct-99 GE22\/1999\/s1 10\/1998 Banks and Trust Companies (Amendment) (Waiver of Penalty Fees) Law, 1998 17-Aug-98 G17\/1998\/s6 16\/1996 The Monetary Authority Law, 1996 (part) 1-Jan-97 G25\/1996\/s4 Banks and Trust Companies Law (1995 Revision) 7-Aug-1995 G16\/1995\/s2 28\/1993 Banks and Trust Companies (Amendment) Law, 1993 14-Dec-1993 GE\/1993\/s5 20\/1993 Banks and Trust Companies (Amendment) Law, 1993 5-Nov-1993 GE\/1993\/s6 4\/1989 Banks and Trust Companies Law, 1989 9-Jun-1989 GE.9.Jun\/1989\/s2 Banks and Trust Companies Act (2025 Revision) ENDNOTES ENDNOTES Banks and Trust Companies Act (2025 Revision) (Price: $6.40)\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2025_01_28\", \"date\": \"2025-01-28\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_2025_01_28\", \"timeInterval\": [{\"end\": null, \"start\": \"#e_commence_2025_01_28\", \"duration\": null, \"refersTo\": \"#inForce\"}]}]}, \"classification\": null, \"identification\": {\"source\": \"#cilegis\", \"FRBRWork\": {\"FRBRuri\": \"\/akn\/ky\/act\/1989\/4\", \"FRBRdate\": [{\"date\": \"2025-01-28\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/1989\/4\/!main\", \"FRBRalias\": [{\"name\": \"cmsId\", \"value\": \"1989-0004\"}], \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRnumber\": \"4 of 1989\", \"FRBRcountry\": \"ky\", \"FRBRsubtype\": \"principal\"}, \"FRBRExpression\": {\"FRBRuri\": \"\/akn\/ky\/act\/1989\/4\/eng@2025-01-28\", \"FRBRdate\": [{\"date\": \"2025-01-28\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/1989\/4\/eng@2025-01-28\/!main\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/act\/1989\/4\/eng@2025-01-28.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/1989\/4\/eng@2025-01-28.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"Banks and Trust Companies Act\", \"actNumber\": \"4 of 1989\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nBANKS AND TRUST COMPANIES ACT\n(2025 Revision)\n\nSupplement No.2  published with Legislation Gazette No. 6 of 28th January, 2025.\n\nPage 2\nRevised as at 1st January, 2025\nc\n\nPUBLISHING DETAILS\nLaw 4 of 1989 consolidated with Laws 20 of 1993, 28 of 1993, 16 of 1996 (part), 10 of\n1998, 12 of 1999, 3 of 2000, 2 of 2001, 35 of 2002, 31 of 2006, 8 of 2008, 7 of 2012, 32\nof 2012, 46 of 2017, 39 of 2018, 17 of 2019, 21 of 2020, Acts 14 of 2023, 10 of 2024 and\nas amended by Act 56 of 2020.\n\nRevised under the authority of the Law Revision Act (2020 Revision).\n\nOriginally enacted \u2014\nLaw 4 of 1989-15th March, 1989\nLaw 20 of 1993-24th September, 1993\nLaw 28 of 1993-29th November, 1993\nLaw 16 of 1996-20th September, 1996\nLaw 10 of 1998-17th June, 1998\nLaw 12 of 1999-10th June, 1999\nLaw 3 of 2000-14th July, 2000\nLaw 2 of 2001-20th April, 2001\nLaw 35 of 2002-19th December, 2002\nLaw 31 of 2006-29th September, 2006\nLaw 8 of 2008-30th June, 2008\nLaw 7 of 2012-29th August, 2012\nLaw 32 of 2012-23rd November, 2012\nLaw 46 of 2017-16th November, 2017\nLaw 39 of 2018-22nd November, 2018\nLaw 17 of 2019-26th July, 2019\nLaw 21 of 2020-20th May, 2020\nAct 56 of 2020-7th December, 2020\nAct 14 of 2023-23rd November, 2023\nAct 10 of 2024-11th December, 2024.\n\nConsolidated and revised this 1st day of January, 2025.\n\nNote (not forming part of this Act): This revision replaces the 2021 Revision which\nshould now be discarded.\n\nBanks and Trust Companies Act (2025 Revision)\nArrangement of Sections\n\nc\nRevised as at 1st January, 2025\nPage 3\n\nCAYMAN ISLANDS\n\nBANKS AND TRUST COMPANIES ACT\n(2025 Revision)\nArrangement of Sections\nSection\nPage\n1.\nShort title ...................................................................................................................................5\n2.\nDefinitions ..................................................................................................................................5\n3.\nDetermination of fitness and propriety ........................................................................................7\n4.\nExtent of Act ..............................................................................................................................7\n5.\nLicence or registration required to carry on banking or trust business ........................................8\n6.\nApplication to be made to Authority ............................................................................................9\n6A.\nHindrance to effective supervision ........................................................................................... 12\n7.\nShares not to be issued or transferred without approval of Authority ........................................ 12\n8.\nNet worth requirements............................................................................................................ 13\n9.\nCapital funds requirements ...................................................................................................... 13\n10.\nCapital adequacy ratio ............................................................................................................. 14\n11.\nUse of word \u201cbank\u201d, etc. ........................................................................................................... 14\n12.\nAccounts .................................................................................................................................. 15\n13.\nObligations of auditors ............................................................................................................. 16\n14.\nCertain prohibitions on licensee ............................................................................................... 17\n15.\nGeneral requirements for trust companies ............................................................................... 18\n15A. Annual fees in relation to provision of registered office services ............................................... 19\n16.\nNumber and approval of directors ............................................................................................ 19\n17.\nPowers and duties of Authority ................................................................................................ 20\n18.\nAdditional powers of Authority .................................................................................................. 21\n18A. Power to require public disclosures .......................................................................................... 23\n19.\nAuthority may apply to Court .................................................................................................... 24\n20.\nSurrender of licence ................................................................................................................. 24\n21.\nChief Justice may make rules .................................................................................................. 25\n22.\nPower of search ....................................................................................................................... 25\n\nArrangement of Sections\nBanks and Trust Companies Act (2025 Revision)\n\nPage 4\nRevised as at 1st January, 2025\nc\n\n23.\nFalse or misleading information ............................................................................................... 26\n24.\nOffences .................................................................................................................................. 26\n25.\nAppeals ................................................................................................................................... 26\n26.\nImmunity .................................................................................................................................. 27\n27.\nRegulations ............................................................................................................................. 27\nENDNOTES\n29\nTable of Legislation history: ............................................................................................................... 29\n\nBanks and Trust Companies Act (2025 Revision)\nSection 1\n\nc\nRevised as at 1st January, 2025\nPage 5\n\nCAYMAN ISLANDS\n\nBANKS AND TRUST COMPANIES ACT\n(2025 Revision)\n\n1.\nShort title\n1.\nThis Act may be cited as the Banks and Trust Companies Act (2025 Revision).\n2.\nDefinitions\n2.\nIn this Act \u2014\n\u201cauthorised agent\u201d means a person so designated by a bank or trust company\nunder paragraph (b) of section 6(2);\n\u201cAuthority\u201d means the Cayman Islands Monetary Authority established under\nsection 5(1) of the Monetary Authority Act (2020 Revision) and includes any\nemployee of the Authority acting under the Authority\u2019s authorisation;\n\u201cbank\u201d means a person carrying on banking business;\n\u201cbanking business\u201d means the business of receiving (other than from a bank or\ntrust company) and holding on current, savings, deposit or other similar account\nmoney which is repayable by cheque or order and may be invested by way of\nadvances to customers or otherwise;\n\u201cCayman banking group\u201d includes \u2014\n(a) the licensee;\n(b) the licensee\u2019s parent undertaking except where, in the Authority\u2019s opinion,\nthe undertaking is subject to consolidated supervision by another banking\nregulator;\n(c) the licensee\u2019s subsidiaries;\n\nSection 2\nBanks and Trust Companies Act (2025 Revision)\n\nPage 6\nRevised as at 1st January, 2025\nc\n\n(d) any subsidiary of the licensee\u2019s parent undertaking except where, in the\nAuthority\u2019s opinion, the undertaking is subject to consolidated supervision\nby another banking regulator;\n(e) a parent undertaking of any of the licensee\u2019s subsidiaries except where, in\nthe Authority\u2019s opinion, the undertaking is subject to consolidated\nsupervision by another banking regulator; and\n(f) an undertaking in which the licensee or an undertaking in paragraphs (b)\nto (e) has a participating interest;\n\u201ccompany\u201d means a company incorporated under the laws of the Islands or\nunder the laws of any other country or place;\n\u201ccontrolled subsidiary\u201d means a trust company \u2014\n(a)\nthat is incorporated in the Islands;\n(b) that is a wholly owned subsidiary of a licensee under section 6(5)(c); and\n(c)\nwhose directors and senior officers are directors and senior officers of the\nlicensee or are otherwise persons approved by the Authority as fit and\nproper persons to be directors and senior officers of licensees holding\nlicences for trust business under section 6(5).\n\u201cCourt\u201d means the Grand Court;\n\u201cdebt\u201d has the meaning assigned to that expression in section 2 of the Mutual\nFunds Act (2025 Revision);\n\u201ceconomic group\u201d, in relation to a licensee, includes \u2014\n(a) its subsidiaries;\n(b) parent companies;\n(c) parent undertaking;\n(d) holding companies;\n(e) affiliates;\n(f)\nparticipating interests;\n(g) companies related to the licensee through common ownership; and\n(h) companies related to the licensee through a majority of common senior\nmanagement or directorships;\n\u201clicence\u201d means a licence granted under section 6;\n\u201clicensee\u201d means a person holding a licence under this Act;\n\u201cnet worth\u201d means excess assets over liabilities as presented under applicable\ngenerally accepted accounting principles subject to adjustment for non-admitted\nassets as determined by the Authority;\n\nBanks and Trust Companies Act (2025 Revision)\nSection 3\n\nc\nRevised as at 1st January, 2025\nPage 7\n\n\u201cparent undertaking\u201d means, unless otherwise specified by the Authority, the\nentity that, directly or indirectly through another entity or entities, controls or\nexerts dominant influence over an entity;\n\u201cparticipating interest\u201d means an interest held by an undertaking in the shares\nof another entity, which the undertaking holds on a long-term basis for the\npurpose of securing a contribution to the undertaking\u2019s activities by the exercise\nof control or influence arising from or related to that interest; and a holding of\ntwenty per cent or more of the shares of an entity shall be deemed to be a\nparticipating interest unless the contrary is shown;\n\u201crelevant financial activities\u201d includes \u2014\n(a) financial leasing;\n(b) issuing credit cards;\n(c) portfolio management;\n(d) investment advisory;\n(e) custodial and safekeeping services; and\n(f) other similar activities that are ancillary to the business of banking, but\ndoes not include the activities of an insurer;\n\u201ctrust business\u201d means the business of acting as trustee, executor or\nadministrator;\n\u201ctrust company\u201d means a company carrying on trust business; and\n\u201cundertaking\u201d means any business such as a body corporate, a partnership,\ntrust, foundation or an unincorporated association carrying on a trade or\nbusiness or holding an interest in an entity that carries on a trade or business,\nwith or without a view to profit.\n3.\nDetermination of fitness and propriety\n3.\nIn determining for the purposes of this Act whether a person is a fit and proper person,\nregard shall be had to all circumstances, including that person\u2019s \u2014\n(a)\nhonesty, integrity and reputation;\n(b) competence and capability; and\n(c)\nfinancial soundness.\n4.\nExtent of Act\n4.\n(1) This Act has effect in addition to and not in derogation of any other provisions\nhaving the force of law in the Islands.\n(2) This Act does not apply to the Cayman Islands Civil Service Association Cooperative Credit Union Limited.\n\nSection 5\nBanks and Trust Companies Act (2025 Revision)\n\nPage 8\nRevised as at 1st January, 2025\nc\n\n5.\nLicence or registration required to carry on banking or trust business\n5.\n(1) No banking business may be transacted from within the Islands, whether or not\nsuch business is carried on in the Islands, except by a person who is in\npossession of a valid licence granted by the Authority authorising that person to\ncarry on such business.\n(2) Subject to subsection (3) and to such other exemptions and conditions as may\nbe prescribed by regulations made by the Cabinet under this subsection, no trust\ncompany may carry on trust business from within the Islands, whether or not\nsuch business is carried on in the Islands, unless it is in possession of a valid\nlicence granted by the Authority authorising it to carry on such business.\n(3) A trust company that is a controlled subsidiary does not require a licence to\ncarry on the business of issuing debt instruments or to carry on other trust\nbusiness that is \u2014\n(a)\nconnected with the trust business of the licensee by which the controlled\nsubsidiary is owned; and\n(b) within the scope of that licensee\u2019s Trust licence.\n(4) Notwithstanding subsection (3), a controlled subsidiary to which that subsection\nrefers shall register with the Authority; and, in order to be registered, such\ncontrolled subsidiary shall \u2014\n(a)\nat the time of registration and on or before the 31st day of January every\nyear thereafter during the continuation of the registration, file with the\nAuthority an annual declaration, in such form as the Authority may\napprove, declaring \u2014\n(i)\nthe name of the controlled subsidiary;\n(ii) the name of the licensee of which the controlled subsidiary is a\nsubsidiary;\n(iii) the names of the directors and senior officers of the controlled\nsubsidiary; and\n(iv) that the controlled subsidiary is a controlled subsidiary to which\nsubsection (3) applies; and\n(b) at the time of registration and on or before the 31st day of January every\nyear thereafter during the continuation of the registration, pay to the\nGovernment the prescribed fee.\n(5) A controlled subsidiary that is registered under subsection (4) may, on payment\nof the prescribed fee, act as a trustee of a trust that is registered as a mutual fund\nunder the Mutual Funds Act (2025 Revision) without being licensed as a mutual\nfund administrator under that Act, if the licensee by which the controlled\nsubsidiary is owned is itself licensed under that Act to administer such trust.\n\nBanks and Trust Companies Act (2025 Revision)\nSection 6\n\nc\nRevised as at 1st January, 2025\nPage 9\n\n(6) A person who contravenes this section or any regulations made under\nsubsection (2) commits an offence and is liable on summary conviction to a fine\nof ten thousand dollars and to imprisonment for one year, and in the case of a\ncontinuing offence to a fine of one thousand dollars for each day during which\nthe offence continues.\n6.\nApplication to be made to Authority\n6.\n(1) A person who is desirous of carrying on banking business or a company that is\ndesirous of carrying on trust business from within the Islands shall apply to the\nAuthority for the grant of a licence.\n(1A) An application under subsection (1) shall be \u2014\n(a)  in writing;\n(b)  accompanied by any prescribed information, particulars and details; and\n(c)  accompanied by the prescribed non-refundable application fee.\n(1B) The Authority may grant a licence to an applicant under subsection (1) if\nsatisfied that the carrying on of the business will not be against the public\ninterest and the licence granted may be subject to any terms and conditions the\nAuthority considers necessary.\n(1C) The Authority shall forward the application fee to the Financial Secretary for the\nbenefit of the revenue.\n(2) A licence shall not be granted to a bank or trust company unless it has \u2014\n(a)\na place of business in the Islands, approved by the Authority, which will\nbe its principal office in the Islands; and\n(b) two individuals or a body corporate, approved by the Authority, resident\nor incorporated in the Islands to be its agent in the Islands.\n(3) Where, in accordance with paragraph (b) of subsection (2), a licensee has\nappointed two individuals in the Islands to act as its agent in the Islands, the\nlicensee may appoint them to act either separately or jointly.\n(4) A licensee shall not \u2014\n(a)\ncease to have a principal office in the Islands;\n(b) change its principal office in the Islands without the prior approval of the\nAuthority;\n(c)\ncease to have an authorised agent under paragraph (b) of subsection (2), or\n(d) change its agent (or, where the licensee has appointed two individuals to\nbe its agent, either of them) without the prior approval of the Authority.\n(5) Licences granted under subsection (1B) shall be granted either for carrying\non of \u2014\n\nSection 6\nBanks and Trust Companies Act (2025 Revision)\n\nPage 10\nRevised as at 1st January, 2025\nc\n\n(a)\nbanking business within and outside the Islands but subject to such\nconditions as may be imposed by the Authority, known as \u201cA\u201d licences;\n(b) banking business with the restrictions on that business mentioned in\nsubsection (6), known as \u201cB\u201d licences;\n(c)\ntrust business within and outside of the Islands but subject to such\nconditions as may be imposed by the Authority, known as Trust licences;\n(d) banking business with the restrictions on that business mentioned in\nsubsection (6), and incorporating a further restriction that the licensee shall\nnot receive or solicit funds by way of trade or business from persons other\nthan those listed in any undertaking accompanying the application for the\nlicence, known as Restricted \u201cB\u201d licences;\n(e)\ntrust business with the restriction that the licensee shall not undertake trust\nbusiness for persons other than those listed in any undertaking\naccompanying the application for the licence, known as Restricted Trust\nlicences; or\n(f)\ntrust business under a Trust licence to a licensee which is a wholly-owned\nsubsidiary of another licensee and where the sole purpose of that\nsubsidiary is to act as its nominee, known as Nominee (Trust) licences.\n(5A) Any conditions imposed pursuant to subsection (1B) may be varied or revoked\nby the Authority with notification as may be reasonable under the\ncircumstances.\n(6) The holder of a \u201cB\u201d licence shall not \u2014\n(a)\ntake deposits from any person resident in the Islands, other than another\nlicensee, or an exempted or an ordinary non-resident company which is\nnot carrying on business in the Islands;\n(b) invest in any asset which represents a claim on any person resident in the\nIslands, except a claim resulting from \u2014\n(i)\na loan to an exempted or an ordinary non-resident company not\ncarrying on business in the Islands;\n(ii) a loan by way of mortgage to a member of its staff or to a person\npossessing or being deemed to possess Caymanian status under the\nImmigration (Transition) Act (2022 Revision) for the purchase or\nconstruction of a residence in the Islands to be owner-occupied;\n(iii) a transaction with another licensee; or\n(iv) the purchase of bonds or other securities issued by the Government,\na body incorporated by statute, or a company in which the\nGovernment is the sole or majority beneficial owner; or\n(c)\nwithout the written approval of the Authority, carry on any business in the\nIslands other than one for which the \u201cB\u201d licence has been obtained,\n\nBanks and Trust Companies Act (2025 Revision)\nSection 6\n\nc\nRevised as at 1st January, 2025\nPage 11\n\nand, without prejudice to the foregoing restrictions, a holder of a \u201cB\u201d licence\nwhich is not a subsidiary or branch of a bank licensed in a country or territory\noutside the Islands, shall not after the 26th April, 2003 carry on business in the\nIslands unless it has such resources (including staff and facilities) and such\nbooks and records as the Authority considers appropriate having regard to the\nnature and scale of the business.\n(7) Every person to whom a licence is first granted shall, at the date of such grant,\npay the prescribed fee to the Financial Secretary for the benefit of the revenue.\n(8) Every holder of a licence shall, on or before every 15th day of January after the\nfirst grant of the licence, pay the prescribed annual fee to the Financial Secretary\nfor the benefit of the revenue:\nProvided that, unless the Authority waives the same, there shall be payable to\nthe Financial Secretary for the benefit of the revenue by a licensee who fails to\npay the prescribed annual fee by that date a surcharge not exceeding one-twelfth\nof that fee for every month or part of a month that the fee is not paid.\n(9) Without prejudice to the foregoing provisions of this section, if the annual fee\nreferred to in subsection (8) is not paid on or before every 15th day of January\nafter the first grant of the licence, the unpaid annual fee may be sued for by the\nCrown by action as a civil debt and the Crown may require, and the court may\norder, the payment of any penalties accrued in respect of the late payment of the\nfee.\n(10) Whenever it is considered to be in the public interest, the Authority may refuse\nto grant a licence.\n(11) The Authority shall refuse to grant a licence if the Authority is of the opinion\nthat the business to which the application relates would not be carried on by\npersons who are fit and proper persons to be directors or, as the case may be,\nmanagers or officers.\n(12) For the purposes of subsection (2)(a) \u2014\n\u201cplace of business\u201d, with reference to any bank applying for the grant of a \u201cB\u201d\nlicence (other than a subsidiary or branch of a bank licensed in a country or\nterritory outside the Islands), means having such resources (including staff and\nfacilities) and such books and records as the Authority considers appropriate\nhaving regard to the nature and scale of the business.\n(13) In subsection (9) \u2014\n\u201ccourt\u201d means the Grand Court or a court of summary jurisdiction, as the case\nmay be.\n\nSection 6A\nBanks and Trust Companies Act (2025 Revision)\n\nPage 12\nRevised as at 1st January, 2025\nc\n\n6A.\nHindrance to effective supervision\n6A. (1) Without prejudice to any other power that the Authority may have under this or\nany other law, the Authority may refuse to grant a licence or may impose\nconditions on a licensee where, in the Authority\u2019s opinion, either \u2014\n(a)\nthe structure of an applicant\u2019s or a licensee\u2019s economic group, if any, will\nhinder effective supervision; or\n(b) the activities of any entity in the Cayman banking group are likely to\nnegatively impact the financial stability of the licensee or prejudice the\ninterests of the licensee\u2019s depositors.\n(2) The conditions that may be imposed by the Authority under subsection (1)\ninclude the condition that the economic group or the Cayman banking group\nundergo a restructure.\n7.\nShares not to be issued or transferred without approval of Authority\n7.\n(1) No shares in a company which is a licensee under this Act shall be issued, and\nno issued shares shall be transferred or disposed of in any manner, without the\nprior approval of the Authority.\n(2) The Authority may exempt from the provisions of subsection (1) a licensee\nwhose shares are publicly traded on a stock exchange recognised by the\nAuthority, and any such exemption \u2014\n(a)\nshall be subject to a condition that the licensee shall, as soon as reasonably\npracticable, notify the Authority of \u2014\n(i)\nany change in control of the licensee;\n(ii) the acquisition by any person or group of persons of shares\nrepresenting more than ten per cent of the licensee\u2019s issued share\ncapital or total voting rights; or\n(iii) the acquisition by any person or group of persons of shares\nrepresenting more than ten per cent of the issued share capital or total\nvoting rights of the licensee\u2019s parent company;\n(b) shall be subject to a condition that the licensee shall, as soon as reasonably\npracticable, provide such information to the Authority, and within such\nperiod of time, as the Authority may require for the purpose of enabling an\nassessment as to whether persons acquiring control or ownership of the\nlicensee in the circumstances set out in paragraph (a) are fit and proper\npersons to have such control or ownership; and\n(c)\nshall be subject to such terms and other conditions as the Authority may\ndeem necessary.\n\nBanks and Trust Companies Act (2025 Revision)\nSection 8\n\nc\nRevised as at 1st January, 2025\nPage 13\n\n(3) In subsection (1) the reference to shares being transferred or disposed of\nincludes not only the transfer or disposal of the legal interest in the shares but\nalso the transfer or disposal of any beneficial interest in the shares.\n8.\nNet worth requirements\n8.\n(1) Except in the case of a Restricted \u201cB\u201d licence, or a Restricted Trust licence, or\na Nominee (Trust) licence, a licence shall not be granted to a bank or trust\ncompany unless it has a net worth of not less than four hundred thousand dollars\nor its equivalent in other currencies, or such greater sum as may be determined\nby the Authority.\n(2) A Restricted \u201cB\u201d licence or a Restricted Trust licence shall not be granted to a\nbank or trust company unless it has a net worth of not less than twenty thousand\ndollars or its equivalent in other currencies, or such greater sum as may be\ndetermined by the Authority.\n(3) A Nominee (Trust) licence shall not be granted to a trust company unless such\ntrust company furnishes a guarantee from the licensee of which it is a whollyowned subsidiary for liabilities of up to two hundred thousand dollars or its\nequivalent in other currencies, or such greater sum as may be determined by the\nAuthority.\n(4) When the Authority has reasonable cause to believe that there are grounds for\ndoing so, the Authority may require a licensee to increase its net worth by\nincreasing its paid-up capital to such greater sum as the Authority may\ndetermine for the nature of the banking business or trust business, current or\nproposed.\n(5) A licensee shall at all times maintain the net worth required by this section\nunless exempted by the Authority.\n(6) The parent undertaking of a Cayman banking group is required to ensure that\nthe net worth stipulated in this section, or such higher net worth as the Authority\nmay direct, is maintained both in respect of the licensee on a solo basis and on\na consolidated basis taking into account all the entities in the Cayman banking\ngroup.\n9.\nCapital funds requirements\n9.\n(1) The Authority may, by notice in writing, require a licensee to maintain such\nportion of its issued capital, in cash or cash equivalent instruments, in such\namounts and in such manner, as the Authority considers appropriate, having\nregard to the risks arising from the activities of the licensee and such other\nfactors as the Authority considers relevant.\n(2) In this section \u2014\n\u201ccash equivalent instruments\u201d means a highly liquid security with a known\nmarket value and a maturity, when acquired, of less than three months.\n\nSection 10\nBanks and Trust Companies Act (2025 Revision)\n\nPage 14\nRevised as at 1st January, 2025\nc\n\n10.\nCapital adequacy ratio\n10. (1) A licensee holding a licence for the carrying on of banking business and\nincorporated under the Companies Act (2025 Revision) shall not, at any time,\nhave a capital adequacy ratio of less than ten per cent (or such other percentage\nas may be determined by the Authority from time to time) as calculated in\naccordance with such form, content and manner as may be prescribed.\n(2) The Authority may, if it considers it to be appropriate in the particular\ncircumstances of a licensee incorporated under the Companies Act (2025\nRevision) having regard to the risks arising from the activities of the licensee\nand such other factors as the Authority considers relevant, vary the capital\nadequacy ratio applicable to that licensee.\n(2A) The parent undertaking of a Cayman banking group, which may be a licensee,\nis required to ensure that capital requirements and other prudential measures that\nmay be issued by the Authority are met on a consolidated basis by the Cayman\nbanking group.\n(2B) The parent undertaking of a Cayman banking group, which may be a licensee,\nshall be required to ensure that any prudential, supervisory or risk management\nmeasures that may be issued by the Authority from time to time are met on a\nconsolidated basis by the Cayman banking group.\n(3) Where a licensee or the parent undertaking of a Cayman banking group fails to\ncomply with a requirement of this section, the licensee may, for the purpose of\nsection 18, be treated by the Authority as carrying on business in a manner\ndetrimental to the public interest, the interest of its depositors or other creditors.\n11.\nUse of word \u201cbank\u201d, etc.\n11. (1) Except with the approval of the Authority, no person, other than a licensee,\nshall \u2014\n(a)\nuse or continue to use the words \u201cbank\u201d, \u201ctrust\u201d, \u201ctrust company\u201d, \u201ctrust\ncorporation\u201d, \u201csavings\u201d or \u201csavings and loan\u201d or any of their derivatives,\neither in English or in any other language, in the description or title under\nwhich such person is carrying on business from within the Islands, whether\nor not such business is carried on in the Islands;\n(b) make or continue to make any representation in any billhead, letter,\nletterhead, circular, paper, notice, advertisement or in any other manner\nwhatsoever that such person is carrying on banking business or trust\nbusiness; or\n(c)\nin any manner whatsoever solicit or receive deposits from the public.\n(2) Except with the approval of the Authority, no company shall be registered, or\ncontinue to be registered, by a name which contains the words \u201cbank\u201d, \u201ctrust\u201d,\n\u201ctrust company\u201d, \u201ctrust corporation\u201d, \u201csavings\u201d or \u201csavings and loan\u201d or any of\n\nBanks and Trust Companies Act (2025 Revision)\nSection 12\n\nc\nRevised as at 1st January, 2025\nPage 15\n\ntheir derivatives, either in English or in any other language, in the description\nor title under which such company is carrying on business from within the\nIslands, whether or not such business is carried on in the Islands.\n(3) Before giving its approval under subsection (1) or (2), the Authority may require\nof any person such references and such information and particulars as may be\nprescribed.\n(4) Whenever the Authority considers it to be in the public interest, the Authority\nmay withdraw any approval given under subsection (1).\n(5) The Authority may refuse to grant a licence to a bank or trust company or, if\nsuch bank or trust company is already in possession of a licence, the Authority\nmay revoke such licence if, in the Authority\u2019s opinion, such bank or trust\ncompany is carrying on or intending to carry on banking or trust business, as the\ncase may be, under a name which \u2014\n(a)\nis identical with that of any company, firm or business house, whether\nwithin the Islands or not, or which so nearly resembles that name as to be\ncalculated to deceive;\n(b) is calculated to suggest, falsely, the patronage of or connection with some\nperson or authority, whether within the Islands or not; or\n(c)\nis calculated to suggest, falsely, that such bank or trust company has a\nspecial status in relation to or derived from the Government, has the\nofficial backing of or acts on behalf of the Government, of any department,\nbranch, agency or organ of Government, or of any officer thereof, or is\nrecognised in the Islands as a national or central bank or trust company.\n(6) A person who contravenes this section commits an offence and is liable on\nsummary conviction to a fine of ten thousand dollars and to imprisonment for\none year and, in the case of a continuing offence, to a fine of one thousand\ndollars for each day during which the offence continues.\n12.\nAccounts\n12. (1) Every licensee incorporated under the Companies Act (2025 Revision) shall\nhave its accounts audited annually or at such other times as the Authority may\nrequire by an auditor, who shall be a chartered accountant, certified public\naccountant or some other professionally qualified accountant, approved by the\nAuthority.\n(2) The audited accounts shall be forwarded to the Authority within three months\nof the end of the financial year of the licensee, unless prior written approval for\nan extension has been granted by the Authority.\n(2A) Every licensee incorporated under the Companies Act (2025 Revision) shall\nforward to the Authority consolidated accounts in respect of the parent\nundertaking of the Cayman banking group of which the licensee is a member\n\nSection 13\nBanks and Trust Companies Act (2025 Revision)\n\nPage 16\nRevised as at 1st January, 2025\nc\n\nwithin three months of the end of the financial year of the parent undertaking of\nthe Cayman banking group, unless prior written approval for an extension has\nbeen granted by the Authority.\n(3) Every licensee not incorporated under the Companies Act (2025 Revision) shall\nprovide a copy of the audited annual accounts of its head office to the Authority\nwithin three months of the end of the financial year of such parent company,\nunless prior approval for an extension has been granted by the Authority.\n(4) When a licensee incorporated under the Companies Act (2025 Revision) changes\nits auditor, the Authority may require the former auditor to explain the\ncircumstances responsible for such change.\n13.\nObligations of auditors\n13. (1) If an auditor, in the course of carrying out an audit of the accounts of a licensee\nor of any entity forming part of a Cayman banking group, obtains information\nor suspects that the licensee is \u2014\n(a)\nunable or likely to become unable to meet its obligations as they fall due;\n(b) carrying on or attempting to carry on business or is winding up its business\nvoluntarily in a manner that is prejudicial to its investors or creditors;\n(c)\ncarrying on or attempting to carry on business without keeping any or\nsufficient accounting records to allow its accounts to be properly audited;\n(d) carrying on or attempting to carry on business in a fraudulent or criminal\nmanner; or\n(e)\ncarrying on or attempting to carry on business without compliance with \u2014\n(i)\nthis Act or any regulations made hereunder;\n(ia) the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023],\nif the licensee is a \u201ccorporate services provider\u201d as defined in that\nAct;\n(ii) the Monetary Authority Act (2020 Revision);\n(iii) the Anti-Money Laundering Regulations (2025 Revision); or\n(iv) a condition of the licence,\nthe auditor shall immediately give the Authority written notice of that auditor\u2019s\ninformation or suspicion and, in the case of suspicion, that auditor\u2019s reason for\nthat suspicion.\n(2) Without prejudice to subsection (8), if it appears to the Authority that an auditor\nhas failed to comply with subsection (1), the Authority may disqualify that\nauditor from being an auditor of a licensee; but the Authority may remove any\ndisqualification imposed under this subsection if satisfied that the person in\nquestion will in future comply with subsection (1).\n\nBanks and Trust Companies Act (2025 Revision)\nSection 14\n\nc\nRevised as at 1st January, 2025\nPage 17\n\n(3) A licensee shall not appoint as an auditor a person disqualified under\nsubsection (2).\n(4) Where the Authority has granted approval of an auditor under this Act, the\napproval may be revoked by the Authority if the Authority is of the opinion that\nthe auditor is not sufficiently competent to carry out an audit of the accounts of\na licensee or that, in all the circumstances, the auditor is incapable of carrying\nout the audit objectively.\n(5) No person carrying out or charged with the carrying out of any duty, obligation\nor function under this section shall incur civil liability to any other person for\nanything done or omitted to be done in respect of the discharge or purported\ndischarge of that duty or function unless it is shown that the act or omission was\nin bad faith.\n(6) A reference in this section to an auditor carrying out an audit of the accounts of\na licensee includes an auditor who was engaged to carry out such an audit or\nwho was in the course of carrying out such an audit but resigned before carrying\nout or completing the audit or whose contract to carry out or complete the audit\nwas otherwise terminated.\n(7) Nothing in subsection (1) shall impose on an auditor carrying out an audit of the\naccounts of a licensee an obligation to do anything that that auditor would not\notherwise be required to do in accordance with generally accepted auditing\nstandards, other than the obligation to provide notice and reasons to the\nAuthority.\n(8) A person who contravenes subsection (1) commits an offence and is liable on\nsummary conviction to a fine of twenty thousand dollars.\n14.\nCertain prohibitions on licensee\n14. (1) A licensee incorporated under the Companies Act (2025 Revision) shall not,\nwithout the prior written approval of the Authority \u2014\n(a)\nopen outside the Islands a subsidiary, branch, agency or representative\noffice; or\n(b) change its name.\n(1A) A licensee shall inform the Authority of any change in holdings that affects the\ncomposition of the licensee\u2019s economic group, including any new entities\nforming part of the licensee\u2019s economic group, within forty-five days of the\noccurrence of the change.\n(2) A licensee incorporated under the Companies Act (2025 Revision) holding a\nlicence for the carrying on of banking business shall not acquire or hold a\nbeneficial interest in an entity, whether directly or indirectly, so that the value\nof the interest at any time exceeds twenty per cent of the net worth of the\nlicensee \u2014\n\nSection 15\nBanks and Trust Companies Act (2025 Revision)\n\nPage 18\nRevised as at 1st January, 2025\nc\n\n(a)\nexcept with the prior written approval of the Authority; or\n(b) except insofar as may be necessary with respect to any interest acquired\nby the licensee in satisfaction of debts due to it, but any such interest\nacquired in satisfaction of debts shall be disposed of within a period not\nexceeding five years unless permission to extend such period has been\ngiven by the Authority.\n(3) Subject to subsections (4) and (5), a licensee holding a licence for the carrying\non of banking business shall not purchase, acquire or lease real estate unless the\nAuthority has given prior written approval or \u2014\n(a)\nsuch real estate is necessary for the purpose of conducting its business or\nproviding housing or amenities for its staff, having regard to any\nreasonable requirements for future expansion of its business or staff; and\n(b) the market value of the real estate does not exceed twenty per cent of the\nnet worth of the licensee, or such other sum as to the Authority may seem\nappropriate to a maximum of fifty per cent of the net worth of the licensee.\n(4) Where the licensee exercises its legal right in respect of any property which is\nthe security for any debt, the licensee may acquire such property, but in that case\nthe property shall not be retained for a period in excess of five years without the\npermission of the Authority.\n(5) Nothing in this section shall require a licensee \u2014\n(a)\nwhich holds a licence for the carrying on of banking business; and\n(b) which immediately before the 14th November, 2006 owns or leases real\nestate the market value of which exceeds fifty per cent of the net worth of\nthe licensee,\nto comply with subsection (3)(b) before the expiry of a period of five years\ncommencing with that date.\n(6) A contract, transaction, obligation or instrument entered into by any person shall\nnot be rendered unenforceable merely because it is entered into in connection\nwith banking business carried on by that person in contravention of this section.\n15.\nGeneral requirements for trust companies\n15. (1) A licensee holding a Trust Licence shall obtain and maintain adequate\nprofessional indemnity insurance, or have in place other appropriate\narrangements to cover risks, in respect of its trust business, and such insurance\nor arrangements shall be subject to review by the Authority.\n(2) In conducting reviews under subsection (1), the Authority shall have regard to\nrelevant factors including the nature and scope of the trust business, the financial\nposition and reputation of the licensee and its parent company, and the existence\n\nBanks and Trust Companies Act (2025 Revision)\nSection 15A\n\nc\nRevised as at 1st January, 2025\nPage 19\n\nof any group coverage or financial commitment made by the parent company or\nother appropriate body to cover risks in respect of the licensee\u2019s trust business.\n(3) Where a trust company acting in its capacity as a trustee of a trust forms a\nbusiness relationship or enters into a one-off transaction with a person\nconducting relevant financial business as defined under section 2(1) of the\nProceeds of Crime Act (2025 Revision), the trust company shall \u2014\n (a) at the time or before the business relationship is formed; or\n(b) at the time or before the transaction is entered into,\ntake reasonable steps to inform the person that the trust company is carrying on\ntrust business and is acting in its capacity as a trustee of a trust.\n15A. Annual fees in relation to provision of registered office services\n15A. (1) A licensee holding a Trust licence shall pay the prescribed fee for each company\nfor which the licensee provided a registered office up to the 31st day of\nDecember in the preceding year.\n (2) Subsection (1) shall not apply to a company over which the licensee has power\nby virtue of the articles of association of the company \u2014\n(a)\nto appoint or remove unilaterally the directors of the company; or\n(b) through a chain of one or more companies, to procure the appointment or\nremoval unilaterally of the directors of the company.\n(3) Every Trust licensee shall, on or before every 15th day of January, pay the\nannual fee referred to in subsection (1) for the benefit of the revenue and, unless\nthe Authority waives the annual fee, there shall be payable by a licensee who\nfails to pay the annual fee by that date a surcharge not exceeding one-twelfth of\nthat fee for every month or part of a month that the fee is not paid, such surcharge\nbeing for the benefit of the revenue.\n(4) Where the annual fee is not paid on or before the 15th day of January, the unpaid\nannual fee may be sued for by the Crown by action as a civil debt and the Crown\nmay require, and the court may order, the payment of any penalties accrued in\nrespect of the late payment of the fee.\n16.\nNumber and approval of directors\n16. (1) A licensee shall at no time have less than two directors.\n(2) Unless exempted from such a requirement by the Authority, a licensee shall,\nbefore the appointment of a director or other senior officer, apply to the\nAuthority for its written approval of such appointment.\n(3) The Authority shall refuse to grant approval under subsection (2) if the\nAuthority is of the opinion that the director or other senior officer to whom the\napplication relates is not a fit and proper person to be such director or, as the\ncase may be, senior officer.\n\nSection 17\nBanks and Trust Companies Act (2025 Revision)\n\nPage 20\nRevised as at 1st January, 2025\nc\n\n(4) Approval granted under subsection (2) \u2014\n(a)\nipso facto lapses if the director or senior officer becomes bankrupt or is\nconvicted of an offence involving dishonesty; and\n(b) may be revoked by the Authority.\n(5) Approval granted under paragraph (b) of section 6(2) may be revoked by the\nAuthority.\n17.\nPowers and duties of Authority\n17. (1) It is the duty of the Authority \u2014\n(a)\nto maintain a general review of banking practice in the Islands;\n(b) whenever it thinks fit, to examine, by way of the receipt of regular returns\nor in such other manner as it thinks necessary, the affairs or business of\nany licensee carrying on business in or from within the Islands for the\npurpose of satisfying itself that this Act is being complied with and that\nthe licensee is in a sound financial position and, whenever it thinks fit, to\nreport to the Cabinet the results of every such examination;\n(c)\nto assist in the investigation of any offence against the laws of the Islands\nwhich it has reasonable grounds to believe has or may have been\ncommitted by a licensee or by any of its directors or officers in their\ncapacity as such; and\n(d) to examine accounts and audited annual accounts forwarded to it under\nsection 12 and to report on them to the Cabinet whenever it thinks fit.\n(2) The Authority may \u2014\n(a)\nexamine and make decisions with respect to applications for licences;\n(b) examine all proposals and make decisions in respect of the exercise of its\npowers under sections 18, 18A, 19 and 20; and\n(c)\ntake all necessary action, including originating applications to the Grand\nCourt, to ensure the proper and just implementation of every provision of\nthis Act.\n(3) In the performance of its functions under this Act, the Authority is entitled at all\nreasonable times \u2014\n(a)\nto have access to such books, records, vouchers, documents, cash and\nsecurities of any licensee;\n(b) to request any information, matter or thing from any person whom it has\nreasonable grounds to believe is carrying on banking or trust business in\nthe Islands in contravention of section 5(1) or (2);\n(c)\nto have access to information from any member of the Cayman banking\ngroup or any member of the licensee\u2019s economic group and such\ninformation includes \u2014\n\nBanks and Trust Companies Act (2025 Revision)\nSection 18\n\nc\nRevised as at 1st January, 2025\nPage 21\n\n(i)\npolicies;\n(ii) procedures;\n(iii) financial statements;\n(iv) audit reports;\n(v) board reports;\n(vi) regulatory returns; and\n(vii) supervisory reports from overseas regulators;\n(d) to examine the business or affairs including the carrying on of onsite\ninspections, of any member of the Cayman banking group; and\n(e)\nto conduct onsite inspections of a licensee,\nas the Authority may reasonably require for the purpose of enabling it to perform\nits functions under this Act.\n(4) The Authority may, in writing, authorise any other person to assist the Authority\nin the performance of its functions under this Act, and the Authority may make\nprovision for the payment of such person\u2019s remuneration and expenses whether\nor not the performance of the function has been completed.\n(5) If it appears to it that there is reasonable ground for suspecting that an offence\nagainst this Act has been or is being committed by any person, the Authority\nmay, with the approval of the Court, take such action as it considers necessary,\nin the interests of the depositors or of the beneficiaries of any trust, or other\ncreditors of that person, to preserve any assets held by that person.\n18.\nAdditional powers of Authority\n18. (1) Whenever the Authority is of the opinion that \u2014\n(a)\na licensee is or appears likely to become unable to meet its obligations as\nthey fall due;\n(b) a licensee is carrying on business in a manner detrimental to the public\ninterest, the interest of its depositors or of the beneficiaries of any trust, or\nother creditors;\n(c)\na licensee has contravened this Act;\n(ca) a person holding a licence issued under section 6(5)(c), (e) or (f) who is a\n\u201ccorporate services provider\u201d, as defined in the Beneficial Ownership\nTransparency Act, 2023 [Act 13 of 2023], has contravened that Act;\n(d) a licensee has failed to comply with a condition of its licence;\n(e)\nthe direction and management of a licensee\u2019s business has not been\nconducted in a fit and proper manner;\n(f)\na person holding a position as a director, manager or officer of a licensee\u2019s\nbusiness is not a fit and proper person to hold the respective position;\n\nSection 18\nBanks and Trust Companies Act (2025 Revision)\n\nPage 22\nRevised as at 1st January, 2025\nc\n\n(g) a person holding or acquiring control or ownership of a licensee is not a fit\nand proper person to have such control or ownership;\n(h) an individual, directly or indirectly, holding or acquiring control or\nownership of more than 25% of the shares or voting rights in a licensee or\nthe right to appoint or remove a majority of the board of directors of a\nlicensee is not a fit and proper person to have such control or ownership;\nor\n(ha) the state of affairs which exists in respect of the Cayman banking group or\nmaterial members of the licensee\u2019s economic group is likely to jeopardise\nthe financial stability of the licensee or prejudice the interest of the\nlicensee\u2019s depositors,\nthe Authority may forthwith do any of the following \u2014\n(i)\nrevoke the licence;\n(ia) require the licensee immediately to take steps to rectify the matter;\n(ib) suspend the licence of the licensee pending a full enquiry into the\nlicensee\u2019s affairs under section 17(1)(b);\n(ic) impose conditions with respect to decisions made by the licensee\nincluding the suspension of voting rights or nullification of votes\ncast;\n(id)  impose an administrative fine in accordance with section 42A of the\nMonetary Authority Act (2020 Revision);\n(ii) impose conditions, or further conditions, as the case may be, upon\nthe licence and may amend or revoke any such condition;\n(iii) require the substitution or removal of any director, manager or officer\nof the licensee;\n(iv) at the expense of the licensee, appoint a person to advise the licensee\non the proper conduct of its affairs and to report to the Authority\nthereon within three months of the date of that person\u2019s appointment;\n(v) at the expense of the licensee, appoint a person to assume control of\nthe licensee\u2019s affairs who shall, mutatis mutandis, have all the powers\nof a person appointed as a receiver or manager of a business\nappointed under section 18 of the Bankruptcy Act (1997 Revision);\n(vi) require such action to be taken by the licensee as the Authority\nconsiders necessary; and\n(vii) impose any term or condition the Authority deems necessary on the\nactivities or transactions of the members of the Cayman banking\ngroup in which the licensee is involved or that would materially\naffect the licensee.\n\nBanks and Trust Companies Act (2025 Revision)\nSection 18A\n\nc\nRevised as at 1st January, 2025\nPage 23\n\n(2) Notwithstanding section 25(1), a licensee may, within seven days of the\ndecision, apply to the Authority for a reconsideration of its decision to revoke a\nlicence under paragraph (i) of subsection (1).\n(3) A person appointed under subparagraph (iv) or (v) of subsection (1) or whose\nappointment has been extended under paragraph (b) of subsection (4) shall from\ntime to time at that person\u2019s discretion and in any case within three months of\nthe date of that person\u2019s appointment or of the extension of that person\u2019s\nappointment (as the case may be), prepare and furnish a report to the Authority\nof the affairs of the licensee and of that person\u2019s recommendations thereon.\n(4) On receipt of a report under subsection (3), the Authority may \u2014\n(a)\nrevoke the appointment of the person appointed under subparagraph (iv)\nor (v) of subsection (1);\n(b) extend the period of that person\u2019s appointment;\n(c)\nsubject to such conditions as the Authority may impose, allow the licensee\nto reorganise its affairs in a manner approved by the Authority; or\n(d) revoke the licence and apply to the Court for an order that the licensee be\nforthwith wound up by that Court in which case the provisions of the\nCompanies Act (2025 Revision) relating to the winding up of a company\nby that Court shall, mutatis mutandis, apply.\n(5) Notwithstanding any provisions herein, the Authority may revoke a licence if\nthe licensee \u2014\n(a)\nhas ceased to carry on banking business or trust business; or\n(b) goes into liquidation or is wound up or otherwise dissolved.\n(6) Whenever the Authority revokes a licence under subparagraph (i) of\nsubsection (1), paragraph (d) of subsection (4) or subsection (5) the Authority\nshall cause notice of such revocation to be gazetted, and may also cause such\nnotice to be published (whether within the Islands or elsewhere) in such\nnewspaper or other publication as the Authority may consider necessary in the\ncircumstances.\n18A. Power to require public disclosures\n18A. The Authority may require a licensee holding a licence to carry on banking business\nor a Cayman banking group to make public disclosures as may be specified by the\nAuthority.\n\nSection 19\nBanks and Trust Companies Act (2025 Revision)\n\nPage 24\nRevised as at 1st January, 2025\nc\n\n19.\nAuthority may apply to Court\n19. (1) The Authority may, in any case in which a licensee, or a person who has at any\ntime been a licensee, is being wound up voluntarily, apply to the Court if the\nAuthority considers that the winding up is not being conducted in the best\ninterests of its depositors, the beneficiaries of any trust, or other creditors, and\nthe Court shall make such order as it shall consider appropriate.\n(2) Where a petition for the winding up of a licensee, or a person who has at any\ntime been a licensee, is presented by a person other than the Authority, the\nAuthority shall be served with a copy of the petition by the petitioner and may\nappear at the hearing of the petition, and the provisions of subsections (3)\nand (4) shall apply.\n(3) A document which relates to a petition for winding up and which is required to\nbe sent to a licensee or former licensee or any of their respective depositors,\nbeneficiaries, or other creditors, shall, in addition, be sent to the Authority.\n(4) A person appointed for the purpose by the Authority may \u2014\n(a)\nattend a meeting of creditors of a licensee or former licensee;\n(b) attend a meeting of a committee established to discuss a compromise or\narrangement; and\n(c)\nmake representations as to any matter for decision at any such meeting.\n20.\nSurrender of licence\n20. (1) A licensee which has ceased to carry on the business in respect of which the\nlicence was granted may apply to the Authority to surrender its licence if it \u2014\n(a)\nhas ceased to carry on such business, and produces evidence that it has\nrepaid all deposits held by it and has transferred all trust assets held or\nadministered by it, or\n(b) is being wound up voluntarily and produces evidence that it is solvent and\nable forthwith to repay all deposits held by it and all its other creditors and\nhas transferred all trust assets held or administered by it,\nand the Authority may thereupon approve the surrender.\n(2) In the case of an application under paragraph (b) of subsection (1) the Authority\nmay apply to the Court for the licensee to be wound up either by that Court or\nsubject to its supervision, and on the making of such an order the provisions of\nthe Companies Act (2025 Revision) relating to the winding up of a company by\nor subject to the supervision of that Court shall, mutatis mutandis, apply.\n\nBanks and Trust Companies Act (2025 Revision)\nSection 21\n\nc\nRevised as at 1st January, 2025\nPage 25\n\n21.\nChief Justice may make rules\n21. The Chief Justice may make rules governing the procedure in relation to applications\nto the Court under section 17(5), paragraph (d) of section 18(4), section 19 and\nsection 20(2).\n22.\nPower of search\n22. (1) If a magistrate is satisfied by information on oath given by the Authority or by\na person authorised under section 17(4) to assist the Authority either that \u2014\n(a)\nthere is reasonable ground for suspecting that an offence against this Act\nor the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023], has\nbeen or is being committed and that evidence of the commission of the\noffence is to be found at any premises specified in the information, or in\nany vehicle, vessel or aircraft so specified; or\n(b) any books, records, vouchers, documents, cash or securities which ought\nto have been produced under section 17(3) and have not been produced are\nto be found at any such premises or in any such vehicle, vessel or aircraft,\nthe magistrate may grant a search warrant authorising the Authority or such\nperson authorised under section 17(4) or any constable of the rank of Inspector\nor above, together with any other person named in the warrant and any other\nconstables to enter the premises specified in the information or, as the case may\nbe, any premises upon which the vehicle, vessel or aircraft so specified may be,\nat any time within one month from the date of the warrant, and to search such\npremises or, as the case may be, such vehicle, vessel or aircraft.\n(2) The person authorised by any such warrant to search any premises or any\nvehicle, vessel or aircraft may search every person who is found in or whom\nthat person has reasonable grounds to believe to have recently left or to be about\nto enter those premises or that vehicle, vessel or aircraft, as the case may be, and\nmay seize any books, records, vouchers, documents, cash or securities found in\nthe possession of any such person or in such premises or in such vehicle, vessel\nor aircraft which that person has reasonable grounds for believing ought to have\nbeen produced under section 17(3):\nProvided that no female shall, in pursuance of any warrant issued under this\nsubsection, be searched except by a female.\n(3) Where under this section a person has any power to enter any premises that\nperson may use such force as is reasonably necessary for the purpose of\nexercising that power.\n(4) A person who obstructs the Authority or any other person in the exercise of any\npowers conferred on it or that person under this section commits an offence and\nis liable on summary conviction to a fine of ten thousand dollars and to\nimprisonment for one year.\n\nSection 23\nBanks and Trust Companies Act (2025 Revision)\n\nPage 26\nRevised as at 1st January, 2025\nc\n\n23.\nFalse or misleading information\n23. Any licensee or any director or officer of a licensee who knowingly or wilfully\nsupplies false or misleading information to the Authority commits an offence and is\nliable on summary conviction to a fine of ten thousand dollars and to imprisonment\nfor one year.\n24.\nOffences\n24. A person who contravenes any provision or requirement of this Act for which no\noffence is specifically created commits an offence and is liable on summary\nconviction to a fine of ten thousand dollars and to imprisonment for one year.\n25.\nAppeals\n25. (1) An appeal lies to the Court from any decision of the Authority \u2014\n(a)\nrevoking a licence under section 11(5), paragraph (i) of section 18(1), or\nsection 18(4) or (5);\n(b) withdrawing any approval under section 11(4);\n(c)\nrequiring a licensee to take certain steps which the Authority may specify\nunder section 18; or\n(d) made under regulation 4B(b) of the Private Trust Companies Regulations\n(2020 Revision).\n(2) An appeal against the decision of the Authority shall be on motion. The\nappellant within twenty-one days after the day on which the Authority has given\nits decision shall serve a notice in writing signed by the appellant or the\nappellant\u2019s attorney-at-law on the Authority of the appellant\u2019s intention to\nappeal and of the general ground of the appellant\u2019s appeal:\nProvided that any person aggrieved by a decision of the Authority may, upon\nnotice to the Authority, apply to the Court for leave to extend the time within\nwhich the notice of appeal prescribed by this section may be served and the\nCourt upon hearing of such application may extend the time prescribed by this\nsection as it deems fit.\n(3) The Authority shall, upon receiving the notice of appeal, transmit to the Clerk\nof the Court without delay a copy of the decision and all papers relating to the\nappeal:\nProvided that the Authority is not compelled to disclose any information if it is\nconsidered that the public interest would suffer by such disclosure.\n(4) The Clerk of the Court shall set the appeal down for argument on such day, and\nshall cause notice of the same to be published in such manner, as the Court may\ndirect.\n\nBanks and Trust Companies Act (2025 Revision)\nSection 26\n\nc\nRevised as at 1st January, 2025\nPage 27\n\n(5) At the hearing of the appeal the appellant shall, before going into the case, state\nall the grounds of appeal on which that appellant intends to rely and shall not,\nunless by leave of the Court, go into any matters not raised by such statements.\n(6) The Court may adjourn the hearing of an appeal and may, upon the hearing\nthereof confirm, reverse, vary or modify the decision of the Authority or remit\nthe matter with the opinion of the Court thereon to the Authority.\n(7) An appeal against a decision of the Authority shall not have the effect of\nsuspending the execution of such decision.\n26.\nImmunity\n26. The Authority shall not be liable in damages for anything done or omitted in the\ndischarge or purported discharge of its respective functions under this Act, unless it\nis shown that the act or omission was in bad faith.\n27.\nRegulations\n27. (1) The Cabinet may make regulations prescribing all matters that are required or\npermitted by this Act to be prescribed, or are necessary or convenient to be\nprescribed for giving effect to the purposes and administration of this Act and\nin particular \u2014\n(a)\nto prescribe the information, particulars and references which may be\nprescribed under section 6(1A)(b), 6(1A)(c) or 11(3);\n(b) to control the form of advertising by licensees;\n(c)\nto prescribe fees payable under this Act; and\n(d) to prescribe matters, information, particulars, and requirements for the\nregistering and maintenance of private trust companies.\n(2) Regulations made under this Act may \u2014\n(a)\nmake different provisions in relation to different cases or circumstances;\n(b) apply in respect of particular persons or particular cases or particular\nclasses of persons or particular classes of cases, and define a class by\nreference to any circumstances whatsoever; or\n(c)\ncontain such transitional, consequential, incidental or supplementary\nprovisions as appear to the Cabinet to be necessary for the purposes of the\nRegulations.\n\nSection 27\nBanks and Trust Companies Act (2025 Revision)\n\nPage 28\nRevised as at 1st January, 2025\nc\n\nPublication in consolidated and revised form authorised by the Cabinet this 21st\nday of January, 2025.\nKim Bullings\nClerk of the Cabinet\n\nBanks and Trust Companies Act (2025 Revision)\n\nENDNOTES\n\nc\nRevised as at 1st January, 2025\nPage 29\n\nENDNOTES\nTable of Legislation history:\nSL #\nAct\/Law #\nLegislation\nCommencement\nGazette\n61\/2024\n\nBanks and Trust Companies (Amendment) Act, 2024\n(Commencement) Order, 2024\n19-Dec-2024\nLG47\/2024\/s27\n\n10\/2024\nBanks and Trust Companies (Amendment) Act, 2024\n1-Jan-2025\nLG47\/2024\/s1\n24\/2024\n\nBanks and Trust Companies (Amendment) Act, 2023\n(Commencement) Order, 2024\n31-Jul-2024\nLG26\/2024\/s9\n\n14\/2023\nBanks and Trust Companies (Amendment) Act, 2023\n31-Jul-2024\nLG41\/2023\/s2\n\nBanks and Trust Companies Act (2021 Revision)\n12-Jan-2021\nLG4\/2021\/s3\n\n56\/2020\nCitation of Acts of Parliament Act, 2020\n3-Dec-2020\nLG89\/2020\/s1\n\n21\/2020\nBanks and Trust Companies (Amendment) Law, 2020\n22-May-2020\nLG39\/2020\/s5\n\nBanks and Trust Companies Law (2020 Revision)\n9-Jan-2020\nLG4\/2020\/s5\n\n17\/2019\nBanks and Trust Companies (Amendment) Law, 2019\n8-Aug-2019\nLG28\/2019\/s8\n\n39\/2018\nBanks and Trust Companies (Amendment) Law, 2018\n8-Mar-2019\nGE18\/2019\/s1\n\nBanks and Trust Companies Law (2018 Revision)\n16-Mar-2018\nGE22\/2018\/s3\n\n46\/2017\nBanks and Trust Companies (Amendment) Law, 2017\n27-Nov-17\nGE100\/2017\/s6\n\nBanks and Trust Companies Law (2013 Revision)\n11-Oct-2013\nGE82\/2013\/s2\n\n32\/2012\nBanks and Trust Companies (Amendment) (No.2) Law,\n2012\n11-Dec-2012\nGE123\/2012\/s5\n\n7\/2012\nBanks and Trust Companies (Amendment) Law, 2012\n10-Jan-2013\nGE4\/2013\/s1\n\nBanks and Trust Companies Law (2009 Revision)\n7-Jul-2009\nG14\/2009\/s3\n\n8\/2008\nBanks and Trust Companies (Amendment) Law, 2008\n7-Aug-2008\nGE21\/2008\/s1\n\nBanks and Trust Companies Law (2007 Revision)\n9-Jul-2007\nG14\/2007\/s2\n\n31\/2006\nBanks and Trust Companies (Amendment) Law, 2006\n14-Nov-2006\nG23\/2006\/s4\n\nBanks and Trust Companies Law (2003 Revision)\n2-Jun-2003\nG11\/2003\/s2\n35\/2003\n\nBanks and Trust Companies (Amendment) Law, 2002\n(Commencement) Order, 2003\n17-Mar-2003\nGE10\/2003\/s1\n\n35\/2002\nBanks and Trust Companies (Amendment) Law, 2002\n17-Mar-2003\nGE5\/2003\/s5\n\nBanks and Trust Companies Law (2001 Revision)\n30-Apr-2001\nG8\/2001\/s1\n\n2\/2001\nBanks and Trust Companies (Amendment) (Prudent\nManagement) Law, 2001\n26-Apr-2001\nGE7\/2001\/s2\n\nBanks and Trust Companies Law (2000 Second\nRevision)\n11-Sep-2000\nG19\/2000\/s6\n\n3\/2000\nBanks and Trust Companies (Amendment) (Access to\nInformation) Law, 2000\n24-Jul-2000\nGE7\/2000\/s1\n\nENDNOTES\nBanks and Trust Companies Act (2025 Revision)\n\nPage 30\nRevised as at 1st January, 2025\nc\n\nBanks and Trust Companies Law (2000 Revision)\n28-Feb-2000\nG5\/2000\/s1\n\n12\/1999\nBanks and Trust Companies (Amendment) (Waiver of\nPenalty Fees) Law, 1999\n25-Oct-99\nGE22\/1999\/s1\n\n10\/1998\nBanks and Trust Companies (Amendment) (Waiver of\nPenalty Fees) Law, 1998\n17-Aug-98\nG17\/1998\/s6\n\n16\/1996\nThe Monetary Authority Law, 1996 (part)\n1-Jan-97\nG25\/1996\/s4\n\nBanks and Trust Companies Law (1995 Revision)\n7-Aug-1995\nG16\/1995\/s2\n\n28\/1993\nBanks and Trust Companies (Amendment) Law, 1993\n14-Dec-1993\nGE\/1993\/s5\n\n20\/1993\nBanks and Trust Companies (Amendment) Law, 1993\n5-Nov-1993\nGE\/1993\/s6\n\n4\/1989\nBanks and Trust Companies Law, 1989\n9-Jun-1989\nGE.9.Jun\/1989\/s2\n\nBanks and Trust Companies Act (2025 Revision)\n\nENDNOTES\n\nc\nRevised as at 1st January, 2025\nPage 31\n\nENDNOTES\nBanks and Trust Companies Act (2025 Revision)\n\nPage 32\nRevised as at 1st January, 2025\nc\n\n(Price: $6.40)","akn_extracted_at":"2026-06-22 15:30:40.32517+00","cms_id":"1989-0004","law_type":"principal","year":"1989","number":"4","title":"Banks and Trust Companies Act","status":"in_force"},"provenance":{"files":[{"file_id":"5696","expr_id":"625","kind":"akn_xml","filename":"1989-0004_2025 Revision.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/1989\/1989-0004\/1989-0004_2025 Revision.akn.xml","content_md5":"2e8b8a14ffdd6a04c4d3dffbdc4d6f28","byte_size":"62876","http_last_modified":null,"fetched_at":"2026-06-22 15:30:40.993857+00"},{"file_id":"1249","expr_id":"625","kind":"pristine_pdf","filename":"1989-0004_2025 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/PRINCIPAL\/1989\/1989-0004\/1989-0004_2025 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/PRINCIPAL\/1989\/1989-0004\/1989-0004_2025 Revision.pdf","content_md5":"6233e9585a54f19e8aabc5386b06dd20","byte_size":"555920","http_last_modified":null,"fetched_at":"2026-06-21 23:09:33.920251+00"},{"file_id":"1250","expr_id":"625","kind":"working_pdf","filename":"1989-0004_2025 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/PRINCIPAL\/1989\/1989-0004\/1989-0004_2025 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/1989\/1989-0004\/1989-0004_2025 Revision.pdf","content_md5":"6233e9585a54f19e8aabc5386b06dd20","byte_size":"555920","http_last_modified":null,"fetched_at":"2026-06-21 23:09:33.920251+00"}],"paragraph_count":19,"latest_history":null},"quality":{"expr_id":"625","doc_id":"625","quality_state":"needs_review","quality_score":"85","needs_human_review":"t","deterministic_categories":"{page_header_footer_noise}","llm_categories":"{truncated_text,other}","repair_actions":"{manual_review,reextract_full_text,strip_page_furniture}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"Sample appears truncated mid\u2011section; extraneous formatting\/pricing text detected \u2013 requires verification of full content completeness.","assessed_at":"2026-06-22 15:29:44.883376+00","updated_at":"2026-06-22 15:29:44.883376+00"}}