s.2Definitions
2
Section 2Part 1 — Banks and Trust Companies ActAmendedNot Yet In Force

Definitions

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This section has not been brought into force.

It was enacted by Parliament but awaits a commencement order before it becomes operative law.

Amendment: LG9/S1

Pending changes

Inserted definitions for “ceased operations”, “natural person”, and “principal”.

In this Act — “ authorised agent ” means a person so designated by a bank or trust company under paragraph (b) of section 6(2); “ Authority ” means the Cayman Islands Monetary Authority established under section 5
of the Monetary Authority Act (2020 Revision) and i ncludes any employee of the Authority acting under the Authority ’ s authorisation; “ bank ” means a person carrying on banking business; “ banking business ” means the business of receiving (other than from a bank or trust company) and holding on current, savin gs, 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; “ Cayman banking group ” includes —
the licensee;
the licensee ’ s parent undertaking except where, in the Authority ’ s opinion, the undertaking is subject to consolidated supervision by another banking regulator;
the licensee ’ s subsidiaries;
any subsidiary of the licensee ’ s parent undertaking except where, in the Authority ’ s opinion, the undertaking is subject to consolidated supervision by another banking regulator;
a parent undertaking of any of the licensee ’ s subsidiaries except where, in the Authority ’ s opinion, the undertaking is subject to consolidated supervision by another banking regulato r; and
an undertaking in which the licensee or an undertaking in paragraphs (b) to (e) has a participating interest; “ company ” means a company incorporated under the laws of the Islands or under the laws of any other country or place; “ controlled subsi diary ” means a trust company — ( 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 otherwis e 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). “ Court ” means the Grand Court; “ debt ” has the meaning assigned to that expression in sect ion 2 of the Mutual Funds Act (2025 Revision) ; “ economic group ”, in relation to a licensee, includes — (a) its subsidiaries; (b) parent companies; (c) parent undertaking; (d) holding companies; (e) affiliates; (f) participating interests;
companies related to the licensee through common ownership; and
companies related to the licensee through a majority of common senior management or directorships; “ licence ” means a licence granted under section 6 ; “ licensee ” means a person holding a licence under this Act ; “ net worth ” 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; “ parent undertaking ” means, unless otherwise specified by the Authority, the entity that, directly or indirectly through another entity or entitie s, controls or exerts dominant influence over an entity; “ participating interest ” 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 u ndertaking ’ s 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; “ rele vant financial activities ” includes — (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; “ trust business ” means the business of acting as trustee, executor or administrator; “ trust company ” means a com pany carrying on trust business; and “ undertaking ” 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.

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