Opening a Bank Account
With no direct taxation, the Cayman Islands are a thriving offshore banking and finance centre. The Cayman Islands financial services industry has developed along a path similar to that in other offshore centers, on the strength of private banking and company registration. While meeting the needs of high net worth individuals is still an important aspect of the industry, recently the focus has moved very much towards institutional business.
The Cayman Islands offer a full range of offshore financial services and products, including: asset management and protection, commercial banking, company formation, investment management, trust and fund administration, private banking, and shipping and aircraft registry. Surrounding the core financial services are a range of financing support services.
Outstanding Financial Stability
Both institutions and individual investors are assured that establishing a bank or placing assets in Cayman will afford the best opportunity to maximize the potential of their assets with the added value of confidentiality, unparalleled professionalism and efficient regulation. This assurance is as a result of the high ethical standards in government and among financial service providers in addition to clear and fair laws and regulations (applied by a competent judiciary based on the English common law system).
Advantages of a Cayman Islands Bank Account
- No capital gains tax, corporation tax, withholding tax, property tax, payroll tax, or income tax payable by employees.
- Absence of exchange control, allowing free transfer of funds in and out of the Islands, in any currency, with equal freedom to open and maintain accounts in any currency.
- No reserve asset requirements.
- Statutory confidentiality of client information.
- Competitiveness in the Euro currency markets.
Statutory confidentiality of client information is provided by the Confidential Relationships Law, though it should be noted that the Governor in Council can authorize disclosure of information where there is evidence of criminality. This can apply to transactions effected outside Cayman if, had they taken place within the Islands, they would have constituted a criminal offense. In addition, in 1990 the Mutual Legal Assistance Treaty with the United States Government came into effect. The treaty provides for the exchange of information required in the investigation of a range of criminal activity. It excludes tax matters. The “Central Authority” for the treaty in the Cayman Islands is the Chief Justice or his designate.