The Cayman Islands, an overseas territory of the British government, is an offshore financial center that offers a variety of services to corporations and investors. This includes banking, company formation, insurance, funds and vessel and aircraft registry. The region is also home to a stock market and shares in many of its companies are listed on that market.
The offshore financial industry is the sixth largest in the world with more than $1.7 trillion in assets. The islands have more than 250 banks and financial institutions operating within them.
Banks in the Cayman Islands offer a variety of options for both local and international clients including private and corporate accounts, mutual funds, investment management, trusts and fund administration. These services are backed by a high degree of security and trustworthiness.
Cayman’s banks also offer asset protection features based on well-established trust laws, a fair window of opportunity and a strict code of ethics for professional trustees. They are a great option for those looking to protect their investments without sacrificing the convenience of access to the global market.
Several international banks are based in the Cayman Islands read more and they all operate under the jurisdiction of the Cayman Islands Monetary Authority (CMA). They offer offshore savings accounts, fixed deposits, short-term certificates of deposit (CDs) and other products.
If you are interested in opening a bank account in the Cayman Islands, it is important to understand the requirements and process involved. Fortunately, the regulations have become more transparent and streamlined in recent years. In fact, a number of international banks are now offering their products and services directly to the public through online channels.
A significant portion of the banks’ deposits are not from individuals, but rather from large corporations. These are generally sweep accounts, which allow excess funds in checking accounts to be automatically swept into instruments such as Eurodollar deposits or repurchase agreements. This is a form of asset protection that is attractive to both banks and their clients because it reduces their reserve requirements and allows them to use foreign capital markets for a fee.
However, as with all types of investments, there are certain risks associated with investing in the Cayman Islands. In addition, you may be subject to a tax on interest income or dividends earned from the investments you hold in the Cayman Islands.
It is essential to consult with a tax or legal specialist before making any decisions about your Cayman financial matters. Whether you are seeking to protect your assets or want to create a new business venture, you will need the right guidance and expertise.
Cayman’s financial industry is a powerful and important contributor to the island’s economy. In 2007 the financial services industry generated over CI$ 4 million in direct spending by employees and spent over CI$ 2 million for employee training and education, including professional certification and degree completion. They also contributed CI$ 460,000 in scholarships.
The financial services industry also provides a range of non-quantifiable or “catalytic” benefits to the Cayman economy, such as real estate investment and philanthropy. This activity encourages economic development and stimulates job creation. The industry is considered a major contributor to the islands’ tourism sector and offers an array of services such as banking, company formation, insurance and fund registration.