Cayman: A Global Financial Centre
If you heard Cayman is a "tax haven" you've heard wrong! The Cayman Islands is a well-regulated, tax neutral financial centre. In fact, it is one of the top ten financial centres in the world, with over 40 of the top 50 banks holding licences in the country.
The Cayman Islands continues to maintain its dominant position as a premier global financial hub, efficiently connecting law-abiding users with providers of investment capital and financing around the world, benefitting both developed and developing countries. The country’s commitment to excellence and modern legislation are a few key parts to its performance, particularly in capital markets and investments. Cayman has also remained the leading jurisdiction for international hedge funds and represents almost half of all captives globally. It is the number one domicile for healthcare and group captives, and continues to excel globally in banking, capital markets, trusts and fiduciary services.
As one of the top ten financial centres in the world, with over 40 of the top 50 banks holding licences in the country, it is not surprising that Cayman’s financial services industry was the recipient of one of the more prestigious international awards in 2017. The Banker magazine ranked the Cayman Islands The Top Specialised Financial Centre, for the ninth consecutive year. Industry awards such as these highlight the jurisdiction’s success in striking the right legislative and regulatory balance with the creation of innovative financial solutions for its global clients.
On the dark and moonless night of the 8th of February 1794, a navigational error resulted in ten British ships, including a Royal Navy vessel (HMS Convert), being wrecked on the treacherous coral reefs off East End, Grand Cayman. This event, or so many believe, may have led to Cayman’s current tax neutrality. Read on for more!
With a winning regulatory framework that is continuously enhanced to ensure it meets the needs of licensees and their clients, coupled with new legislation, Cayman’s financial sector is poised for growth. Read about how Cayman’s unparalleled market leadership across key sectors and new financial products such as the LLC that is aligned with the onshore corporate framework of the Delaware LLC, will help secure more business for the country.
While there is no widely accepted definition, it has been suggested unofficially, that a tax haven is somewhere that has little or no taxation, protects personal financial information through laws blocking the sharing of information and exhibits an obvious lack of transparency. Cayman does not meet this definition, as not only do we have strong tax reporting protocols with many leading jurisdictions, the country’s financial industry is also well regulated and the government has adopted several transparent mechanisms that meet international standards.
Click here to learn about how many licensed banks and trusts operate in the Cayman Islands. We also give a brief overview of financial statistics, from the captive insurance industry to CLOs, and the number of companies registered in the Cayman Islands.
Find out what agencies to contact for investment opportunities, which independent directors to contact plus the top business conferences to attend in the Cayman Islands.
The Cayman Islands is recognized internationally for both it’s well regulated ship and aircraft registries. The shipping and aircraft registries are maintained by the Maritime and Authority of the Cayman Islands and the Civil Aviation Authority of the Cayman Islands respectively. Both organisations adhere to international standards and provide a range of world class services to their clientele.