Definition of Credit Union Business

Secton 2 of the Cooperative Societies Act defines “credit union business”, in relation to a registered society (i.e., a society that, among other criteria, has as its object is the promotion of the economic interest of its members in accordance with cooperative principles), as:

"the business of –

1. promoting thrift among the members of the society by the accumulation of their savings;
2. creating sources of credit for the benefit of the members of the society at a fair and reasonable rate of interest;
3. using and controlling the members’ savings for their mutual benefit; and
4. training and educating the members in the wise use of money and in the management of their financial affairs".

Regulation of Credit Unions - CIMA Oversight

Credit Unions are subject to CIMA's regulatory oversight in accordance with the Cooperative Societies Act.  Part V of this act outlines the powers and duties in respect of credit unions. Although credit unions are not required to be licensed by CIMA, they have to be registered with the Registrar of Cooperative Societies (General Registry Department of the Cayman Islands Government). They are required to submit the documentation listed on our Cooperative and Building Societies Regulatory Requirements  page in order for CIMA to issue a non-objection letter to the General Registry when the credit union is applying for registration.

The regulatory oversight of credit unions is the responsibility of CIMA's Banking Supervision Division.

Building Societies - CIMA Oversight

There are no legal requirements for building societies to be licensed by CIMA. However they are subject to CIMA's regulatory oversight in accordance with sections 33-37 of the Building Societies Act (2010 Revision), which outline the Authority's powers and duties in respect of building societies.

Building societies must be incorporated by the Registrar of Companies (General Registry Department of the Cayman Islands Government) and pay an annual fee to the Registrar upon each anniversary of the society's incorporation.