Financial Services in Cayman Islands, Secrecy & Anonymous

by Mariska Clark on May 3, 2009

The legal system of the Cayman Islands has been developed from the British model which consist today of common law and local legislation.

There is no direct taxation imposed on the offshore banking Cayman Islands provide. Instead it has adopted a system of indirect taxation by the imposition of customs duties on imported goods, stamp duties, and license fees. In addition, there is no exchange control and currency is freely convertible and may be held in various denominations. The Cayman Islands have no central bank however there is Monetary Authority which exercises its functions in the financial and offshore banking sectors. The Banking Supervision Division processes the applications for bank licenses.Offshore Banking Cayman Islands

The government, over the last decades, passed legislation for offshore banking Cayman which has served as a model for the world’s leading financial centers in the areas of banking. The laws have been carefully modeled to provide a degree of regulation which has proven to be effective by providing internationally standards. The Cayman Islands have led the world in legislation which essentially codifies the common law position in the United Kingdom as regards confidentiality to all business and professional people. The Cayman Islands also entered into treaties and passed laws to ensure that the confidentiality laws do not protect persons who may seek to use them in order to hide their criminal activity. The islands’ record in this regard is outstanding and it has again been able to balance carefully the need of confidentiality and the public interest by ensuring that the flexibility given to the financial world is not used by persons who may seek to do so in unscrupulous ways. The treaties do not apply to offences which relate to the imposition and collection of tax by other countries.

The relevant law on offshore banking provides for two categories of licenses: A and B. B license includes B restricted and B unrestricted licenses.

A category of licensed banks can carry out bank business within the Islands without any restrictions. They are usually full service banks which carry on both domestic and international services. This license is reserved to major international banking institutions.

B unrestricted category of licensed banks exercise offshore business without restriction but, in very limited and specified circumstances, are not permitted to carry on business with any person in the Cayman Islands except other licensee and exempted or ordinary non-resident companies which cannot carry on business in the islands. These licenses account for the majority of those issued today.

Restricted B category of licensed banks is subject to the same restrictions as B licensed banks with some additional restrictions. The restricted B licensed banks may not receive or solicit funds by way of trade or business from persons other that those listed in an undertaking accompanying the application for the license.

{ 2 comments… read them below or add one }

ANGELA B. NELSON June 26, 2010 at 6:30 pm

MY QUESTION IS HOW DO I ACCESS MY OFFSHORE ACCOUNTS AND TRUST FUNDS IT WAS SETUP WENT I WAS YOUNG. MY GRANDMOTHER IS PAST ON. I DO HAVE A PASSPORT AND A DRIVER LIC. AND A SOCIAL SECURITY CARD. PLEASE CONTACT AT THIS EMAIL ADDRESS IS: ababydoll43a@yahoo.com

Hermes R. Velez August 13, 2010 at 6:51 am

Dear Sir,

How long is the processing time to get a Class B unrestricted bank license in the Cayman Islands?

Thanks,

HR Velez

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