Offshore Banking

The Cayman Islands are a popular offshore banking and finance center with no direct taxation on residents and business. The Cayman Islands does not impose capital gains tax, corporation tax, withholding tax, property tax, payroll tax, or income taxes on employee earnings. Money kept in Cayman Islands bank accounts also earns interest tax-free.

The Cayman Islands financial services industry is able to compete favorably with other established offshore finance centers, capitalizing mainly on private banking, institutional business (regardless of location or distance), and meeting the needs of high net worth individuals.

With nearly USD $2 trillion in deposits, the Cayman Islands is now the fifth leading financial hub in the world. In 2008, its assets summed up to USD $ 1.7 trillion, even after the global economic downturn.

Offshore Financial Services

Banks in the Cayman Islands are regulated by the Cayman Islands Monetary Authority (CIMA). As of October 2008, 270 banks were licensed to operate. Of these, 18 banks have a full CIMA Category A unrestricted bank license to operate both locally and internationally, usually granted only to branches and subsidiaries of a major bank not worth less than US$ 50 million.

A remaining 252 banks have a Category B offshore banking license, which allows them to operate internationally with limited domestic activities, i.e., offshore transactions with non-Cayman residents. Offshore banking services and products include asset management and protection, private and commercial banking, company formation, investment management, as well as trust and fund services and administration. About forty out of the world’s top fifty banks hold a license to operate in the Cayman Islands, considered a leading center for the global euro-currency market.

Shipping and aircraft registry and other transactions that involve financing support services are also offered.
 

Sensible monetary and financial supervision

The Cayman Islands are governed by strict anti-money laundering laws incorporating strict Know Your Customer (KYC) regulations that fulfill onshore requirements.  Strict monitoring and evaluation procedures guarantee thorough scrutiny of regular returns, new license applications, and the option to revoke licenses when there is evidence that a licensee is conducting business contrary to public and depositor interests. Professional inspectors and external auditors are appointed following established financial and ethical standards.
 
Banks within the Cayman Islands represent a total of fifty countries. Clients in these countries trust Cayman's reputation for sensible banking and monetary regulations; high level of professionalism, expertise, and customer service; strong security, privacy, and confidentiality measures; tax advantages, asset and profile protection; political stability; good infrastructure and organization; and advantageous geographical location.  
 

No Exchange Control

Cayman Islands banking regulations do not include any form of exchange control. Banks in the area allow the free transfer of funds in and out of the island boundaries regardless of currency. Thus, people of foreign citizenship are welcome to open and maintain bank accounts in any currency.
 

No Reserve Asset Requirements

Offshore banking in the Cayman Islands does not impose reserve asset requirements. Banks observe the strict statutory confidentiality of client information except when there is proof of criminality or illegal involvement.