General Overview. Being one of the world’s main international financial centers, the jurisdiction has created solid regulations to avoid money laundering, terrorism financing and other unlawful activities. Theis offshore jurisdiction is a leader in offshore banking and it follows Bermuda in providing offshore captive insurance services.  In recent years, the Cayman Islands have significantly improved and strengthened also the offshore investment fund sector.

Banking Sector. Three types of licenses may be issued: Class A license gives right to provide services to offshore and local entities, Class B and Class C license generally allow conducting business only with offshore entities. Even though the banking sector has been overcoming more stringent rules and regulations as a result of international pressure, the jurisdiction remains a leader in offshore banking services.

Investment Funds. The Cayman Islands have a number of advantages which are offered to investment fund managers, including but not limited to good reputation, flexible and at the same time well-regulated business environment; thanks to the establishment of its local Stock Exchange the jurisdiction became even more attractive to international entrepreneurs since it offers particularly good conditions for fund listings there. It is necessary to obtain a government license for managing an offshore investment fund from the Cayman Islands.

Insurance Sector. Different types of insurance business licenses are available in the Cayman Islands. A choice of the most appropriate license depends on planned services which an offshore insurance company wishes to provide.

Trusts. Offshore trust management has been primary offshore financial sector activity of the Cayman Islands and the overall amount of assets held and administered in trusts is comparable to the banks’ assets of the jurisdiction. International clients choose the Cayman Islands for an offshore trust formation there not only for efficient tax optimization purposes, but also for asset protection and wealth management.

Ship Registry.  All types of vessels may be registered in the Cayman Islands.

Aircraft Registry. The UK Civil Aviation Authority regulates the Civil Aviation Authority of the Cayman Islands, which allows only private jets to be registered in the jurisdiction. The registration procedures have been reviewed and improved in the last few years.