The financial services industry is regulated by the Cayman Islands Monetary Authority (CIMA) and the Cayman Islands boasts a robust regulatory regime which is globally respected for its benchmark of standards against its international counterparts. CIMA serves as an excellent resource with regard to governance and our jurisdiction is now recognized for our tax transparency regime. As the first British protectorate to sign up to the Foreign Account Tax Compliance Act (FATCA), the Tax Information Exchange Agreements (TIEA), Common Reporting Standards (CRS) and is currently participating in The Organisation for Economic Co-operation and Development’s (OECD) OECD’s latest directive on Base Erosion and Price Shifting (BEPS) inclusive framework.
The Cayman Islands has framed its regulatory system around international standards of supervision and co-operation with overseas regulatory authorities in the fight against financial crime, money laundering and combating the financing of terrorism (AML/CFT). The Cayman Islands seek to maintain their position as a premier jurisdiction, while at the same time ensuring that its institutions can operate in a competitive manner, while protecting the interests of investors.
As an active participant in the global nature of the fight against money laundering, terrorist financing and other financial crime, CIMA is cognizant of the need for all jurisdictions to operate their regulatory regimes co-operatively and compatibly with each other while still promoting business in the private sector and investment in the Cayman Islands. This is both to deter opportunities for criminals to manipulate the system and to promote an internationally level playing field for legitimate businesses. Where jurisdictions have relevant and appropriate regulatory regimes of an equivalent standard to that of the Cayman Islands, (recognised by their inclusion in Schedule 3) reliance may be placed by a Cayman Islands Financial Service Provider on application of the regulatory regime of that jurisdiction by those subject to such regulation.