CIMA Releases Look Forward Report 2007/8

Mary Swire, Tax-News.com, Hong Kong

23 August 2007

The Cayman Islands Monetary Authority (CIMA) has released its 'Look Forward Report: 2007-08'. The report details CIMA's mission, goals and objectives, and outlines the strategies, tactics and specific non-routine work projects that CIMA will undertake during this fiscal year to meet the objectives.

CIMA's Chairman, Mr Timothy Ridley, commented: "The Look Forward Report is now in its third year and is an important part of the Authority's governance. It demonstrates our continued commitment to transparency in our operations and planning and to the most effective use of our resources."

Several new initiatives were outlined in the report. The infrastructure for the staged implementation of the Basel II regulatory framework for banks will begin to be put in place over the period under examination. In addition, new rules, statements of guidance and/or procedures for the banking, fiduciary services, insurance and mutual funds sectors will be developed, to ensure the continued sound regulation and proper functioning of these sectors.

The Authority will increase its efforts to engage constructively with international standard setters and overseas regulators, and will continue to be involved in relevant international forums. It will coordinate with local government agencies and private sector interests to address the regulatory aspects of international initiatives. The current regime governing CIMA's cross-border cooperation will be reviewed, and will include a comparison of the regime in other jurisdictions.

The Authority also revealed that it will undertake a redesign of the jurisdiction's banknotes, implement a new vault management system for currency, and review the level of currency reserves required to ensure ongoing statutory compliance. As part of its goal of improving operational efficiency, CIMA plans to put in place a new governance framework for information technology, and to upgrade its database management system.

Several projects are ongoing from last year, including the review of the Guidance Notes for the Prevention and Detection of Money Laundering.

Cindy Scotland, the Managing Director of the Authority, said that both the routine and non-routine projects for 2007-08 were in keeping with CIMA's mission of fostering a competitive financial services industry. "We take seriously the need to ensure that our regulation of the industry adheres to appropriate international standards while not becoming overly burdensome for members of industry," she explained, adding: "We put a great deal of emphasis on ensuring that measures we introduce are relevant and necessary and that there is appropriate protection for the public."

Recommended