As a global centre of excellence for trusts, the Cayman Islands financial sector has serviced international clients for decades providing modern, flexible and robust structures for wealth structuring, estate planning and commercial applications.
As a global centre of excellence for trusts, the Cayman Islands financial sector has serviced international clients for decades, providing modern, flexible and robust structures for wealth structuring, estate planning and commercial applications. Cayman offers a well-regulated, politically-stable and tax-neutral environment in which to form and administer a trust. While deriving originally from English law, Cayman’s local Trusts Act has been reviewed and updated regularly over the past 30 years to ensure that it remains cutting-edge, competitive and appropriate to meet the evolving needs of a global client base. Cayman boasts a deep bench of specialist and experienced trustees, legal advisors, accountants, administrators, regulatory professionals and other service providers, and a highly regarded, reliable and independent judiciary and courts system. The Island’s trust industry is overseen by the Cayman Islands Monetary Authority (CIMA), which is responsible for the licensing and supervision of regulated financial businesses, ensuring compliance with anti-money laundering and other regulatory laws, and liaising with its counterparts in other countries.
An important part of the jurisdiction’s trust framework is the Banks and Trust Companies Act (2021 Revision). This Act was amended in 2019 to give CIMA more responsibility and control in the regulation of the trust industry. The amendment requires more frequent reporting by licensees to CIMA and gives CIMA the power to reject licence applications that do not fulfil requirements. The amendment also requires the regulation of the licensee’s minimum net worth to ensure that it is maintained on both a solo and consolidated basis and that the capital and other prudential requirements are met. Other provisions to modernise and strengthen Cayman’s position as a leading trust jurisdiction were made in the context of a continued focus on compliance in the world of finance.
With steady and dependable growth, trusts remain an important component of the financial services industry in Cayman. According to CIMA, as of 30th September 2023, there were 135 trust companies registered in the Cayman Islands. Of these, there were 57 Full Unrestricted Trust Licences, 56 Restricted Trust Licences and 22 Nominee (Trust) Licences. There were also 151 registered private trust companies.