Cayman Islands · CIMA · Regulated offshore
Cayman Islands forex licence (CIMA SIBL)
A strong institutional reputation and zero tax, with higher costs and longer approvals. Best suited to well-capitalised firms. Available on request.
Updated
Cayman forex brokers obtain a Securities Investment Business Licence from the Cayman Islands Monetary Authority under the Securities Investment Business Act, covering broker-dealer and market-maker activity. Expect fit-and-proper management, a compliance officer, MLRO and deputy MLRO, local audit and typically 6–12 months.
Key facts
| Regulator | Cayman Islands Monetary Authority (CIMA) |
|---|---|
| Licence | Securities Investment Business Licence (broker-dealer / market maker) |
| Legal basis | Securities Investment Business Act (2020 Revision), as amended |
| Entity | Cayman Islands exempted company |
| Typical timeline | Typically 6–12 months |
| Capital | Yes, set by the regulator by licence category |
| Tax | 0% corporate income tax |
| Recognition | Strong: IOSCO member with an institutional reputation |
| Client markets | International and institutional clients; no passporting; restricted markets excluded |
| EU passport | No |
| Our service | On request via partners |
Indicative information for comparison only, reviewed on the date shown. Requirements change and depend on your structure; confirm with the regulator and local counsel before deciding.
Overview
The Cayman Islands Monetary Authority (CIMA) licenses broker-dealers and market makers under the Securities Investment Business Act. A lighter "registered person" regime exists mainly for firms regulated elsewhere or serving sophisticated clients.
Cayman is a strong choice for institutional and well-capitalised brokers who value reputation over speed.
Substance and people
- At least two registered or licensed directors
- Fit-and-proper senior management
- Compliance officer, MLRO and deputy MLRO
- Appropriate local facilities and records
- Economic substance rules apply
Ongoing obligations
- Annual audited financial statements by a CIMA-approved local auditor
- Regulatory returns
- AML/CFT inspections
- Annual fees
Advantages
- Strong reputation with banks and institutions
- 0% tax
- Mature legal system
Drawbacks
- High set-up and running costs
- Slower approvals
- Less suited to small retail start-ups
Recent changes
The Cayman Islands were removed from the FATF grey list in October 2023 and have been off the EU tax list since 2020. Regulatory fees have continued to rise.
Frequently asked questions
Is Cayman good for retail forex brokers?
It can be, but costs and timelines are higher than most offshore options; it suits well-capitalised firms.
Is Cayman on the FATF grey list?
No. It was removed in October 2023.
Official sources
Primary sources we rely on. Rules change; always confirm current requirements with the authority.
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