Compliance with International Financial Regulations in Cayman Islands Remains Unwavering
A Commitment to Transparency and Compliance
The Cayman Islands has consistently demonstrated its commitment to transparency and compliance with global financial regulations, solidifying its position as a respected international financial centre. The jurisdiction’s financial services industry strives to maintain the highest standards of professional conduct, ensuring that it operates in accordance with the expectations of local regulators, laws, and established best practices.
Implementing Legislation and Agreements
In furtherance of this objective, the Cayman Islands has implemented various legislation, entered into inter-governmental agreements, and adhered to global standards on tax transparency and information exchange. This commitment is evident through its compliance with a range of international initiatives, including:
Key International Initiatives
- Tax Information Exchange Agreement (TIEA): Providing for the exchange of information on specific criminal or civil tax investigations
- Cayman Islands Financial Institution Reporting Regime: Requiring Cayman Islands “Financial Institutions” to register, conduct due diligence, and report information on financial accounts
- OECD Standard for Automatic Exchange of Financial Account Information – Common Reporting Standard (CRS): Enabling the automatic exchange of financial account information between countries
Strengthening International Cooperation
The Cayman Islands has also signed TIEAs with 36 countries, providing for the exchange of information on specific criminal or civil tax investigations. Furthermore, it has entered into intergovernmental agreements with:
Key International Partnerships
- United States (US FATCA): Enabling the sharing of financial account information between the Cayman Islands and the US
- United Kingdom (UK FATCA): Facilitating the sharing of financial account information between the Cayman Islands and the UK
- European Union: Undergoing assessment for approval of its Alternative Investment Fund Managers Directive (AIFMD) passport
A Leader in Anti-Money Laundering and Counter-Terrorist Financing Measures
The Cayman Islands is a member of the Caribbean Financial Action Task Force, leading the implementation of anti-money laundering and counter-terrorist financing measures. It has also entered into an agreement with the UK for the enhanced sharing of beneficial ownership information, maintaining a balance between privacy and international cooperation in the fight against financial crime.
A Respected Jurisdiction
Despite being a tax-neutral jurisdiction, the Cayman Islands is not considered a “tax haven.” Rather, it has implemented numerous legislation and compliance measures to prevent the use of its structures and transactions for tax evasion purposes. In fact, British Prime Minister David Cameron recently stated that he does not consider the Cayman Islands or other overseas territories/crown dependencies as tax havens.
The Cayman Islands remains an important, credible, and respected jurisdiction for conducting legitimate financial transactions, committed to maintaining transparency and compliance with international financial regulations.