The Cayman Islands Monetary Authority began operations on 1 January 1997. It was established as a body corporate under the Monetary Authority Law, which was brought into force on that date.
To protect and enhance the reputation of the Cayman Islands as an International Financial Centre by fully utilising a team of highly skilled professionals and current technology, to carry out appropriate, effective and efficient supervision and regulation in accordance with relevant international standards and by maintaining a stable currency, including the prudent management of the currency reserve.
Committed to continually enhancing the Cayman Islands Monetary Authority’s position as a financial services regulator of EXCELLENCE, consistent with the jurisdiction’s standing as a leading International Financial Centre.
The Authority was created from the merger of the Financial Services Supervision Department of the Cayman Islands Government and the Cayman Islands Currency Board. The former responsibilities, duties and activities of these two bodies now fall to CIMA. The Authority, however, was not established just to continue what was already in place under a different guise but rather to enhance Cayman's ability to maintain a well regulated financial services regime and monetary stability.
In March 2003, the Authority became operationally independent under the Monetary Authority Law. Independence significantly enhanced CIMA's ability to meet international standards of supervision, accountability and transparency, and has more clearly defined its functions, duties, powers and obligations.
The key change resulting from the granting of operational independence was that powers previously vested in the Cabinet of the Cayman Islands Government to issue and revoke licences and registration and to exercise enforcement powers now vest in CIMA, through The Board of Directors.