Cayman Islands
Flag Coat of arms
Motto: "He hath founded it upon the seas"
Anthem: God Save the Queen
Capital (and largest city)		George Town 19°20′N, 81°24′W
Official languages		English
Demonym		Caymanian
Government		British Overseas Territory
-	Queen	Queen Elizabeth II
-	Governor	Stuart Jack
-	Leader of Government Business	Kurt Tibbetts
Creation
-	Split from Jamaica	1962
Area
-	Total	260 km² (207th) 100. The Flag of the Cayman Islands was adopted in 14 May 1958 after the colony was officially granted a coat-of-arms. The Cayman Islands coat of arms consists of a shield a crested helm and the motto A motto (from the Italian word motto, meaning witticism sentence is a phrase meant to formally describe the general motivation or intention of a social group A national anthem is a generally patriotic musical composition that evokes and eulogizes the history traditions and struggles of its people recognized either by a nation's "God Save the Queen", or "God Save the King", is an anthem used in a number of Commonwealth realms It is the National The population of the Cayman Islands reflects its status as a British overseas territory, its history as a former dependency of Jamaica, and its present financial George Town, Grand Cayman, is the Capital of the Cayman Islands, in the British West Indies. An official language is a Language that is given a special legal status in a particular Country, State, or other territory English is a West Germanic language originating in England and is the First language for most people in the United Kingdom, the United States A demonym or gentilic is a word that denotes the members of a People or the inhabitants of a place For the government of parliamentary systems see Executive (government. The British Overseas Territories are fourteen territories that are under the Sovereignty of the United Kingdom, but which do not form part of the United Kingdom TalkCommonewalth realm.--> The monarchy For the ship see RMS Queen Elizabeth 2 Elizabeth II (Elizabeth Alexandra Mary Context States headed by Elizabeth II The Governor of the Cayman Islands is the representative of the British monarch in the United Kingdom 's overseas territory of the Cayman Islands Stuart Duncan Macdonald Jack, CVO, (born 8 June 1949) has been Governor of the Cayman Islands since 25 November The post of Leader of Government Business in the Cayman Islands is the equivalent to Chief Minister or Premier in most British colonies. D Kurt Tibbetts (born March 2 1954 is the Leader of Government Business in the Cayman Islands and First elected member for George Town Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. Area is a Quantity expressing the two- Dimensional size of a defined part of a Surface, typically a region bounded by a closed Curve. To help compare different Orders of magnitude and geographical regions we list here areas between 100 km² and 1000 km² This is a list of the countries of the world sorted by total area. 4 sq mi
-	Water (%)	1. The square mile is an imperial and US unit of Area equal the area of a square of one statute mile. Water is a common Chemical substance that is essential for the survival of all known forms of Life. In Mathematics, a percentage is a way of expressing a number as a Fraction of 100 ( per cent meaning "per hundred" 6
Population
-	2005 estimate	45,017 (208th)
-	1999 census	0
-	Density	139. In Biology a population is the collection of inter-breeding organisms of a particular Species; in Sociology List of countries by population in 2005|List of countries by population in 1907This is a list of countries ordered according to Population. Population density (in agriculture standing stock and Standing crop) is a measurement of Population per unit area or unit volume 5/km² (63rd) 364. List of countries and dependencies by Population density in inhabitants/km² 2/sq mi
HDI (2003)		n/a (NA) (unranked)
Currency		Cayman Islands dollar (KYD)
Time zone		(UTC-5)
-	Summer (DST)	not observed (UTC-5)
Internet TLD		.ky
Calling code		+1 345

The Cayman Islands are a British overseas territory located in the western Caribbean Sea, comprising the islands of Grand Cayman, Cayman Brac, and Little Cayman. The Human Development Index ( HDI) is an index combining normalized measures of Life expectancy, Literacy, Educational attainment, and GDP This is a list of countries by Human Development Index as included in the United Nations Development Program 's Human Development Report 2007 A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is The dollar ( Currency code KYD) is the Currency of the Cayman Islands. ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established Daylight saving time ( DST A country This is a list of country calling codes defined by ITU-T recommendation E The British Overseas Territories are fourteen territories that are under the Sovereignty of the United Kingdom, but which do not form part of the United Kingdom For the region see Caribbean. The Caribbean Sea (kəˈrɪbiən or /ˌkærɨˈbiːən/ is a tropical Sea in the Western Hemisphere Grand Cayman is the largest of the three Cayman Islands at about 196 km² and contains the capital George Town. Cayman Brac is an Island that lies about 143 km northeast of Grand Cayman in the Caribbean Sea. Little Cayman is the smallest of the three Cayman Islands, both in area and population It is an offshore financial centre and one of the leading tourist scuba diving destinations in the world. An offshore financial centre (or OFC) although not precisely defined is usually a low- Tax, lightly Regulated jurisdiction which specializes in providing Scuba diving is swimming underwater, or taking part in another activity while using a Scuba set.

Contents 1 History 2 Geography 3 Districts 4 Demographics 5 Economy 5.1 Tourism 5.2 Financial services industry 6 Government 7 Taxation 8 Education 8.1 Primary and secondary schools 8.2 Colleges and universities 9 Health care 10 Work permits 11 Military 12 Foreign relations 13 See also 14 Footnotes 15 References 16 External links

History

Main article: History of the Cayman Islands

The Cayman Islands were first sighted by European eyes when Christopher Columbus, on 10 May 1503, encountered them during his disastrous fourth and final voyage to the New World. Christopher Columbus sighted the Cayman Islands on May 10, 1503 and named them Las Tortugas after the numerous Sea turtles there Christopher Columbus (1451 &ndash May 20 1506 was an Italian Navigator, colonizer Events 1291 - Scottish Nobles recognize the authority of Edward I of England. The New World is one of the names used for the non-Eurasian/non-African parts of the Earth specifically the Americas and Australia. He named them Las Tortugas after the numerous sea turtles there. Sea turtles ( Superfamily Chelonioidea) are Turtles found in all the world's oceans except the Arctic Ocean. The first recorded English visitor to the islands was Sir Francis Drake, who landed there in 1586 and named them the Cayman Islands after the Neo-Taino nations term (caiman) for crocodile (Zayas, 1914). Sir Francis Drake, Vice Admiral, (c 1540 &ndash 27 January 1595 was an English Privateer, navigator, Slaver, and politician Neo-taino nations are defined here as the assorted nations of the Caribbean islands that together with the Tainos were described on the arrival of European chroniclers or which arose after this Alligators and caimans are Archosaurs Species of Crocodilians and form the family Alligatoridae (sometimes regarded instead

The first recorded permanent inhabitant of the Cayman Islands, Isaac Bodden, was born on Grand Cayman around 1700. Grand Cayman is the largest of the three Cayman Islands at about 196 km² and contains the capital George Town. He was the grandson of the original settler named Bodden who was probably one of Oliver Cromwell's soldiers at the taking of Jamaica in 1655. Oliver Cromwell (25 April 1599 Old Style &ndash 3 September 1658 Old Style) was an English military and political leader best known Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea.

The islands, along with nearby Jamaica, were captured, then ceded to England in 1670 under the Treaty of Madrid. Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. The Kingdom of England was a State (927-1707 located in Western Europe dating from the ninth or tenth century to the early eighteenth century when it was legally The Treaty of Madrid (also known as the Godolphin Treaty) adopted in 1670 was a Treaty between England and Spain. They were governed as a single colony with Jamaica until 1962 when they became a separate British Overseas Territory and Jamaica became an independent Commonwealth realm. The British Overseas Territories are fourteen territories that are under the Sovereignty of the United Kingdom, but which do not form part of the United Kingdom A Commonwealth realm is any one of 16 sovereign states within the Commonwealth of Nations that each have Elizabeth II as their respective Monarch

The island of Grand Cayman was hit by Hurricane Ivan on 11-12 September 2004, which destroyed many buildings and damaged 70% of them. Hurricane Ivan was the strongest hurricane of the 2004 Atlantic hurricane season. Events 1213 - Albigensian Crusade: Simon de Montfort 5th Earl of Leicester, defeats Peter II of Aragon at the "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Power, water and communications were all disrupted in some areas for months as Ivan was the worst hurricane to hit the islands in 86 years. However, Grand Cayman promptly engaged in a major rebuilding process and within two years its infrastructure was nearly returned to pre-Ivan levels. Infrastructure typically refers to the technical structures that support a society such as Roads Water supply, Wastewater, Power grids The Cayman Islands have the dubious honour of having experienced the most hurricane strikes in history. Due to the proximity of the islands, more hurricane and tropical systems have affected the Cayman Islands than any other region in the Atlantic basin (brushed or hit every 2. 23 years). ^[1] The Cayman Islands currently enjoy one of the highest standards of living in the Caribbean region, aided by thriving tourism and banking industries. The Caribbean (ˌkærəˡbiən kæ'rəbiən Cariben|Caraïben or Caraïben; Caraïbe or more commonly Antilles; Caribe is a Region consisting Tourism is Travel for Recreational or Leisure purposes The World Tourism Organization defines tourists as people who "travel A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money

Geography

Main article: Geography of the Cayman Islands

The Cayman Islands are located in the western Caribbean Sea. The Cayman Islands are a British dependency and Island nation whose territory is a three-island Archipelago in the Caribbean Sea: Grand For the region see Caribbean. The Caribbean Sea (kəˈrɪbiən or /ˌkærɨˈbiːən/ is a tropical Sea in the Western Hemisphere They are the peaks of a massive underwater ridge, known as the Cayman Trench, standing 8,000 feet (2,400 m) from the sea floor, which barely exceeds the surface. The islands lie in the centre of the Caribbean south of Cuba and West of Jamaica. They are situated about 400 miles (650 km) south of Miami, 180 miles (300 km) south of Cuba, and 195 miles (315 km) northwest of Jamaica. The Republic of Cuba (ˈkjuːbə or) consists of the island of Cuba (the largest and second-most populous island of the Greater Antilles) Isla de la Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. Grand Cayman is by far the biggest, with an area of 76 square miles (197 km²). Grand Cayman is the largest of the three Cayman Islands at about 196 km² and contains the capital George Town. The two "Sister Islands" of Cayman Brac and Little Cayman are located about 80 miles (130 km) east of Grand Cayman and have areas of 14 square miles (36 km²) and 10 square miles (25. Sister or Sisters Island or Islands may refer to several individual islands or island groups Australia Sisters Islands Cayman Brac is an Island that lies about 143 km northeast of Grand Cayman in the Caribbean Sea. Little Cayman is the smallest of the three Cayman Islands, both in area and population 9 km²) respectively.

All three islands were formed by large coral heads covering submerged ice age peaks of western extensions of the Cuban Sierra Maestra range and are mostly flat. One notable exception to this is The Bluff on Cayman Brac's eastern part, which rises to 140 feet (42. 6 m) above sea level, the highest point on the island.

Cayman avian fauna includes two endemic subspecies of Amazona parrots: Amazona leucocephala hesterna, or Cayman Brac Parrot, native only to Cayman Brac, and Amazona leucocephala caymanensis or Grand Cayman Parrot, which is native only to Grand Cayman. Birds ( class Aves) are bipedal endothermic ( Warm-blooded) Vertebrate animals that lay eggs. Endemism is the Ecological state of being unique to a place Endemic species are not naturally found elsewhere Another notable fauna is the endangered Blue Iguana, which is native to Grand Cayman. The Blue Iguana or Grand Cayman Iguana ( Cyclura lewisi) is a Critically endangered species of Lizard of the genus Cyclura There is also the agouti and the Booby Birds on Cayman Brac. Agouti refers to a number of species of Rodents as well as a number of genes affecting coat coloration in several different animals

Districts

Administratively, The Cayman Islands are divided into seven districts:

1. Bodden Town (the former capital)
2. Cayman Brac
3. East End
4. George Town (the present capital)
5. Little Cayman
6. North Side
7. West Bay

Demographics

Main article: Demographics of the Cayman Islands

The Cayman Islands have more registered businesses than it has people [6]. Districts are a type of Administrative division, in some countries managed by a Local government. Bodden Town, Grand Cayman, is the former capital and largest district in the Cayman Islands, situated on a natural harbor and a coral reef Cayman Brac is an Island that lies about 143 km northeast of Grand Cayman in the Caribbean Sea. George Town, Grand Cayman, is the Capital of the Cayman Islands, in the British West Indies. Little Cayman is the smallest of the three Cayman Islands, both in area and population The population of the Cayman Islands reflects its status as a British overseas territory, its history as a former dependency of Jamaica, and its present financial The latest population estimate of the Cayman Islands is about 50,000 as of July 2006, representing a mix of more than 100 nationalities. Out of that number, about half are of Caymanian descent. About 60% of the population is of mixed race (mostly mixed African-European). Of the remaining 40%, about half are of European descent and half are of African descent. The islands are almost exclusively Christian, with large number of Presbyterians and Catholics. A Christian is a person who adheres to Christianity, a monotheistic Religion centered on the life and teachings of Jesus of Nazareth Presbyterianism is a family of Christian denominations within the Reformed branch of Protestant Western Christianity Caymanians enjoy one of the highest standards of living in the Caribbean. The vast majority of the population resides on Grand Cayman. Cayman Brac is the second most populated with about 1,200 residents, followed by Little Cayman with around 200 permanent residents.  [7]

The capital and major city of the Cayman Islands is George Town, which is located on the south west coast of Grand Cayman. George Town, Grand Cayman, is the Capital of the Cayman Islands, in the British West Indies.

Economy

Main article: Economy of the Cayman Islands

The economy of the Cayman Islands was once centred around turtling. The economy of the Cayman Islands, a British overseas territory located in the western Caribbean Sea, is mainly fueled by the tourism sector Turtling is the Hunting of Turtles a practice formerly a big part of the economy in many nations of the West Indies. However, this industry began to disappear in the twentieth century and tourism and financial services began to become the economic mainstays during the 1970s. The United States is the Cayman Islands' largest trading partner. The United States of America —commonly referred to as the

With an average income of around $42,000, Caymanians enjoy the highest standard of living in the Caribbean. According to the CIA World Factbook, the Cayman Islands GDP per capita is the 8th highest in the world. The World Factbook ( ISSN; also known as the CIA World Factbook) is an annual publication of the Central Intelligence Agency of the [8] The islands print their own currency, the Cayman Islands Dollar (KYD), which is pegged to the U.S. dollar at a fixed rate of 1 KYD = 1. The dollar ( Currency code KYD) is the Currency of the Cayman Islands. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 2 USD.

The government's primary source of income is indirect taxation. The term indirect tax has more than one meaning In the colloquial sense an indirect tax (such as Sales tax, Value added tax (VAT or Goods and services An import duty of 5% to 20% is levied against goods imported into the islands. Few goods are exempt; notable examples include books, cameras and infant formula. Infant formula is an artificial substitute for human Breast milk, designed for Infant consumption The government charges licensing fees to financial institutions that operate in the islands as well as work permit fees for expatriate employees ranging from around US$500 for a clerk to around US$20,000 for a CEO.

Tourism

Tourism accounts for 70-75% of the annual GDP of the Cayman Islands. Of the millions of tourists that visit the islands annually, 99% visit Grand Cayman. George Town also serves as a major cruise ship port, which brings in 4,000 to 22,000 tourists a day, five days a week, depending on the number of ships in port. A cruise ship or cruise liner is a Passenger ship used for pleasure voyages where the voyage itself and the ship's amenities are part of the experience

One of Grand Cayman's (GCM) main attractions is the world-famous Seven Mile Beach on which a number of the island's hotels and resorts are located. Grand Cayman is the largest of the three Cayman Islands at about 196 km² and contains the capital George Town. Seven Mile Beach (SMB is a long crescent of Coral -sand Beach on the western shore of Grand Cayman island Seven Mile Beach is regarded by many as one of the best beaches in the world. Historical sites in GCM such as Pedro St. James Castle in BoddenTown also attract visitors. The Sister Islands - Little Cayman and Cayman Brac - also supply their own unique charm.

The Cayman Islands is regarded as one of the world's best SCUBA diving destinations because of its crystal-clear waters and pristine walls. Scuba diving is swimming underwater, or taking part in another activity while using a Scuba set. Cayman Brac and Little Cayman are also elite SCUBA dive destinations. Cayman Brac is an Island that lies about 143 km northeast of Grand Cayman in the Caribbean Sea. Little Cayman is the smallest of the three Cayman Islands, both in area and population There are several snorkelling locations where tourists can swim with stingrays including the popular Stingray City, Grand Cayman. Dasyatidae is a family of rays, cartilaginous marine Fishes related to Skates and Sharks Dasyatids are common in tropical Stingray City is a series of shallow Sand bars found in the North Sound of Grand Cayman, Cayman Islands. Divers find two shipwrecks off the shores of Cayman Brac particularly interesting including the MV Keith Tibbetts. A shipwreck can refer to a wrecked ship or to the event that caused the wreck such as the striking of something that causes the ship to sink the stranding of the ship on rocks

Other Grand Cayman tourist attractions include the ironshore landscape of Hell, the 24- acre marine theme park Boatswain's Beach, also home of the Cayman Turtle Farm, the production of gourmet sea salt, and the Mastic Trail, a hiking trail through the forests in the center of the island. Hell Grand Cayman is a group of short black Limestone formations in the northwest Grand Cayman town of West Bay A boatswain or bosun /ˈbosn̩/ is an unlicensed member of the Deck department of a Merchant ship. Sea salt, obtained by evaporating Seawater, is used in Cooking and Cosmetics. On Cayman Brac, a lighthouse and a few local museums are tourist draws. A lighthouse is a Tower, building or framework designed to emit light from a system of lamps and lenses or in older times from a fire and used as an Little Cayman's wildlife attracts nature lovers, especially bird watchers in search of the island's Red-footed Booby population. The Red-footed Booby, Sula sula, is a large Seabird of the Gannet family Sulidae.

Art and Culture are other features of the Cayman Islands that attract international attention. The National Museum and National Gallery preserve contemporary and dated art works of local and international talent. A Cultural History Exhibition is displayed within the museum, and teaches patrons about historical customs and traditions native to the Cayman Islands. The Gallery sponsors eight exhibitions every year and is located in the Harbour Place in George Town.

See also: Scuba diving in the Cayman Islands

Financial services industry

The Cayman Islands are widely recognised to be one of the world's leading offshore financial centres. three islands of the Cayman Islands are the exposed top of an underwater mountain An offshore financial centre (or OFC) although not precisely defined is usually a low- Tax, lightly Regulated jurisdiction which specializes in providing

The Cayman Islands financial services industry encompasses banking, mutual funds, captive insurance, reinsurance, vessel registration, companies and partnerships, trusts, structured finance and the Cayman Islands Stock Exchange. A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money A mutual fund is a professionally managed type of collective investments that pools money from many investors and Invests it in Stocks bonds, Captive insurance companies are Insurance companies established with the specific objective of financing risks emanating from their parent group or groups but they sometimes Generally a company is a form of Business organization. The precise definition varies For partnership in cricket terminology see List of cricket terms A partnership is a type of Business entity in which partners A trust company is a Corporation, especially a Commercial bank, organized to perform the Fiduciary functions of trusts and agencies The Cayman Islands Stock Exchange ( CSX) is a Stock exchange based in Grand Cayman on the Cayman Islands. As of December 2005, just over 70,000 companies were incorporated on the Cayman Islands including 430 banking and trust companies, 720 captive insurance firms and more than 7,000 funds. Incorporation (abbreviated Inc in US and Canadian business names is the forming of a new Corporation (a corporation being a legal entity A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money Captive insurance companies are Insurance companies established with the specific objective of financing risks emanating from their parent group or groups but they sometimes The government distinguishes between local (or "ordinary" companies), doing business primarily with the local population, and "exempted" companies conducting business primarily with overseas entities.

A recent report released by the International Monetary Fund (IMF) assessing supervision and regulation in the Cayman Islands' banking, insurance and securities industries, as well as its anti-money laundering regime, recognized the jurisdiction's comprehensive regulatory and compliance frameworks. The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic A security is a Fungible, Negotiable instrument representing financial value Money laundering is the practice of engaging in financial Transactions in order to conceal the Identity, source and/or destination of Money, "An extensive program of legislative, rule and guideline development has introduced an increasingly effective system of regulation, both formalising earlier practices and introducing enhanced procedures," noted IMF assessors. The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic The report further stated that "the supervisory system benefits from a well-developed banking infrastructure with an internationally experienced and qualified workforce as well as experienced lawyers, accountants and auditors," adding that, "the overall compliance culture within Cayman is very strong, including the compliance culture related to AML (anti-money laundering) obligations. A lawyer, according to Black's Law Dictionary, is "a person learned in the law as an attorney, Counsel or Solicitor; a person An accountant is a practitioner of Accountancy, which is the measurement disclosure or provision of assurance about financial information that helps managers investors The most general definition of an audit is an evaluation of a person organization system process project or product Anti-money laundering (AML is a term mainly used in the Financial and Legal industries to describe the legal controls that require Financial institutions . . ". The Cayman Islands had previously (briefly) appeared on the FATF Blacklist in 2000, although its listing was thought to be harsh, and was criticised at the time. The FATF Blacklist is the common shorthand description for the Financial Action Task Force list of "Non-Cooperative Countries or Territories" (NCCTs that is countries ^[2]

From http://www.pbs.org/wgbh/pages/frontline/shows/tax/schemes/cayman.html:

"In May 2000, the Cayman Islands avoided the OECD's infamous blacklist by "committing" itself to a string of reforms to improve transparency, remove discriminatory practices, and begin to exchange information with OECD member states about their citizens.

However, with the election of George W. Bush to the U. S. presidency, cooperation between Cayman and the OECD lost momentum. In May 2001, after the U. S. Treasury Department announced that it would not support the OECD initiative, other than pursuing tax exchange agreements, the OECD turned its attention to another initiative, the EU Tax Savings Directive. "

"While the. . . (tax information exchange agreements (TIEA)). . . somewhat bolster the U. S. government's ability to prosecute corporations and individuals engaging in tax evasion, the agreements are limited, and in most cases do not allow the IRS to investigate suspected corporations or individuals unless there is a court order or strong evidence of criminal activity. " As one Cayman official stated, "Despite excellent fishing in the Cayman waters, no fishing expeditions are allowed. "

Another obstacle hampering the IRS investigations of tax fraud by U. S. citizens in the Cayman Islands is Cayman's Confidential Relationships Preservations Law (CRPL), which requires banking confidentiality unless there is evidence of criminal activity. While the Cayman government has gone a long way towards enforcing due diligence and the sharing of information with the U. S. government, Cayman's banking privacy laws remain intact. David McConney, CEO of Cayman National Bank, says, "Financial privacy is fundamental to traditional banker/customer relationships. If you have not committed a criminal act, no Cayman financial institution may release any information to any third party without your express approval. "

If the IRS wants to investigate potential wrongdoing by a U. S. corporation or individual, it must request information from Cayman's chief justice on a case-by-case basis. Unfortunately, this painstaking process is inadequate to deal with the numerous cases of tax fraud perpetrated by U. S. citizens and corporations. Furthermore, the IRS does not have sufficient resources to pursue investigations of wrongdoing on a case-by-case basis. "

From http://www.radiocayman.gov.ky/pls/portal30/docs/FOLDER/MARKETINGANDPROMOTIONS/PRESSRELEASES/2002PRESSRELEASES/ENRON.PDF :

"On 27 November 2001, the Cayman Islands, concluded a tax information exchange agreement with the U. S. The agreement provides for exchange of information, upon request, for criminal tax evasion, civil and administrative tax matters relating to U. S. federal income tax. It provides for confidential treatment of information exchanged, and, in accordance with U. S. law, any such information may not be disclosed to any third party. It applies to criminal tax evasion for taxable periods commencing 1 January 2004, and to all other tax matters for taxable periods commencing 1 January 2006. "

From http://www.mondaq.com/article.asp?articleid=21025 :

"OECD commitment

In May 2000 the Cayman Islands gave a letter of commitment to the OECD relating to alleged harmful tax competition. Under the letter of commitment, the Cayman Islands Government will implement a plan to share bank account information with foreign Governments that are conducting criminal tax evasion investigations for the first tax year after 31 December 2003, and on civil and administrative tax matters for the first tax year after 31 December 2005.

Tax information exchange agreement

On 27 November 2001 the Cayman Islands entered into a tax information exchange agreement with the US. The agreement is structured to conform with the Cayman Islands’ OECD commitment of May 2000. The implementation procedure will require that information be provided only in response to a specific request which is relevant to a tax examination or investigation conducted in accordance with the laws of the requesting state. Requests will be submitted by foreign tax authorities to a competent authority in the Cayman Islands who will act in a capacity similar to that in which the Cayman Islands Chief Justice has acted pursuant to other international information exchange agreements. Confidentiality provisions will ensure that information that has been exchanged is adequately protected from unauthorised disclosure.

It is likely that there will be further bilateral tax information exchange agreements. However, the Cayman Islands Government has made it clear that it will not enter into any agreements with countries that have legislation discriminating against the Cayman Islands.

EU Savings Directive

What has become known as the Savings Directive is part of a package of measures by the European Commission to tackle "harmful tax competition" in the European Union. It is designed to address the ability of "residents of Member States …. to avoid any form of taxation in their Member State of residence on interest they receive in another Member State".

The current form of the Savings Directive is a compromise solution following the failure of Member States to agree on the original proposal for the imposition of withholding tax on interest payments (which would have had a serious effect on the Eurobond market in London). In implementation of the requirement that Member States "promote the adoption of the same measures" in their dependent or associated territories, the UK Government has committed its Caribbean dependent territories, including the Cayman Islands, to their adoption and has threatened to "legislate" for them.

The Savings Directive requires the reporting of certain information relating to interest payments (including dividend payments by certain investment vehicles whose investments in debt instruments exceeds a certain percentage) to individuals resident in Member States. That information is to be provided by the paying agent (essentially, the last intermediary in a chain of intermediaries), who is also responsible for determining the residence of the payee.

The Cayman Islands Government is concerned that any application of the Savings Directive to the Islands, without equivalent application to their competitors, will result in little benefit to the European Union at a disproportionate cost to the Islands. The UK Government is aware from its own regulatory impact assessment that implementation of the Savings Directive will result in significant additional costs to both the public and private sectors in the UK, and the same will undoubtedly be true in the Cayman Islands.

The Cayman Islands has declined to commit to the implementation of the measures in the Savings Directive, and is now bringing legal proceedings to challenge the legality of certain aspects of the Savings Directive. "

From: http://www.escapeartist.com/OREQ21/Asset_Protection.html

"If you read the press releases from the offshore jurisdictions that signed TIEAs, you’ll come away believing that they may be invoked only in the event of probable cause of tax fraud by a particular taxpayer. But that’s not what most of the treaties actually say. Instead, most TIEAs state that any information “foreseeably relevant or material to United States federal tax administration and enforcement with respect to the person identified” for investigation must be turned over to the IRS.

Not “probable cause” of a criminal or even civil tax offense. Not even “reasonable suspicion. ” Merely “foreseeably relevant. ” U. S. courts have interpreted this authority as permitting TIEA information requests “even if the United States has no tax interest and no claim for U. S. taxes are potentially due and owing. ” In other words, fishing expeditions into offshore accounts are explicitly permitted. The potential for abuse is obvious. "

From: http://www.investorsoffshore.com/html/faq/faq_expat_tabletemp.html

"The Cayman Islands are one of the premier offshore financial centres, but have something of a reputation as a stereotypical 'tax haven' in Europe, although they have been attempting to guard against money laundering practices. It has to be said, however, that in the absence of proven wrongdoing, the emphasis is still firmly on preserving confidentiality. (Although this was dealt a blow by the judgement awarded in 2002 to the US Internal revenue Service in Miami, allowing them access to American Express and MasterCard records covering US citizens with offshore assets in the Caymans. )"

From: http://cayman.com.ky/banking.htm

"Advantages of a Cayman Islands Bank Account: No capital gains tax, Corporation Tax, withholding tax. . . "

Yet withholding tax is specifically stated in the "Official Guide To Investing In The Cayman Islands" http://www.investcayman.ky/forms/ci-investment-guide2005.pdf :

"Banks adhere to the ‘know your client’ rule. These rules have been approved by the U. S. Internal Revenue Service, enabling institutions in the Cayman Islands to become qualified intermediaries under the U. S. Withholding Tax Rules introduced on 1 January 2001. "

From: http://www.alsea.org/forum/forum_posts.asp?TID=52

"Cayman Islands Bank Fails to Block IRS Discovery of Documents (Posted: 09 Nov 2006 at 7:23am) Cayman National Bank fails to quash an IRS summons seeking documents relating to a judgment obtained by the bank against a U. S. citizen. The court, in Cayman National Bank Ltd. v. United States [9], rejects arguments that discovery is barred by the attorney-client privilege, that IRS should have obtained discovery under the Tax Information Exchange Agreement between the United States and the United Kingdom, and that production would violate Cayman Islands law. Greg Cook, EA, CPA www. cookco. us"

On the phone with Cayman National Bank officer: "We will disclose your information if there is any court order to do so in the U. S. "

Press release for TIEA between U. S. and Cayman Islands, except document is missing:
http://www.cimoney.com.ky/section/mediacentre/default.aspx?id=493
One location of same TIEA:
http://www.oecd.org/dataoecd/20/17/35514531.pdf

Government

Main article: Politics of the Cayman Islands

  The Cayman Islands are a British overseas territory, listed by the UN Special Committee of twenty-four as one of the last non-self governing territories. Politics of the Cayman Islands takes place in a framework of a parliamentary representative democratic Overseas territory, whereby the Leader of Government The United Nations list of Non-Self-Governing Territories documents countries that according to the United Nations, are non- decolonized. A fifteen-seat Legislative Assembly is elected by the people every four years to handle domestic affairs. Legislative Assembly is the name given in some countries to either a Legislature, or to one of its chambers. Of the elected Members of the Legislative Assembly (MLAs), five are chosen to serve as government ministers in a cabinet headed by the governor. The head of government is the Leader of Government Business, which is currently The Honourable Kurt Tibbetts. The post of Leader of Government Business in the Cayman Islands is the equivalent to Chief Minister or Premier in most British colonies. D Kurt Tibbetts (born March 2 1954 is the Leader of Government Business in the Cayman Islands and First elected member for George Town

A Governor is appointed by the British government to represent the monarch. The Governor of the Cayman Islands is the representative of the British monarch in the United Kingdom 's overseas territory of the Cayman Islands The governor can exercise complete executive authority if they wish through blanket powers reserved to them in the constitution. They must give royal assent to all legislation, which allows them the power to strike down any law the legislature may see fit for the country. In modern times, the governor usually allows the country to be run by the cabinet, and the civil service to be run by the Chief Secretary, who is the Acting Governor when the Governor is not able to discharge his usual duties for one reason or another. The current governor of the Cayman Islands is Stuart Jack and the current Chief Secretary is The Honourable George McCarthy, OBE, JP. Stuart Duncan Macdonald Jack, CVO, (born 8 June 1949) has been Governor of the Cayman Islands since 25 November George McCarthy may refer to George A McCarthy, Chief Secretary of the Cayman Islands George E The Most Excellent Order of the British Empire is a British Order of chivalry established on 4 June 1917 by King George V. ^

Taxation

Caymanians and Caymanian companies are not subject to any form of direct taxation. However, an import tax of between 5% and 20% is levied on most imported goods. Import taxes on automobiles ranges from 27. 5% to 40% for most vehicles while Hummers are taxed at 100% of their value.

Education

Primary and secondary schools

The Cayman Islands Education Department operates state schools. Cayman Islands Education Department is a department of the Ministry of Education of the Cayman Islands, a territory of the United Kingdom. Caymanian children are entitled to free primary and secondary education. Various churches and private foundations operate several private schools that offer American and British based studies starting in nursery to Year 13.

Colleges and universities

Grand Cayman is home to University College of the Cayman Islands, the only government run University on the island. The University College is located at 168 Olympic Way in Georgetown, Grand Cayman. The International College of the Cayman Islands which is located in Newlands about seven miles (11 km) east of George Town. The college was established in 1970 and offers Associate's, Bachelor's and Post Graduate degree programmes. Grand Cayman is also home to St. Matthew's University, which includes a medical school and a school of veterinary medicine.

The Cayman Islands Law School (CILS), a branch of the University of Liverpool in the UK, is also based on Grand Cayman. Situated in George Town, the law school has been in operation since 1982. As taken from the student handbook, "The Law School provides tuition for both full and part-time programmes leading to the Bachelor of Law (Honours) Degree of the University of Liverpool and the qualification of Attorney-at-Law of the Cayman Islands, following successful completion of the postgraduate Professional Practicum Course (PPC)

The Cayman Islands Civil Service College, a unit of Cayman Islands government organized under the Portfolio of the Civil Service, is also located in Grand Cayman. The Cayman Islands Civil Service College (CICSC is a school of higher education in the Cayman Islands. Co-situated with University College of the Cayman Islands in a building on the south side of the campus, the intent of the CICSC is offer both degree programs and continuing education units of various sorts. Further, the College is planned to develop as a government research centre. It opened in autumn 2007.

Health care

The Cayman Islands have a modern health care system. There are two hospitals in George Town, the government run George Town Hospital and the smaller, private Chrissie Tomlinson Memorial Hospital. Additionally, Faith Hospital is an eighteen-bed facility on Cayman Brac. The Government maintains a satellite clinic on Little Cayman.

Health insurance is handled by private insurers and a government-run company (CINICO). There is no universal health coverage as in the UK. All employers are required under Law to provide Health Insurance for their employees (although the employee may be required to contribute 50% of the premium). Full time employees also contribute USD 10 every month to the "Indigent Fund" which helps cover care for the unemployed, elderly etc.

Currently the islands lack facilities for cardiac catheterisation, though many feel the population is large enough to support the procedure. Cardiac catheterization ( heart cath) is the insertion of a Catheter into a chamber or vessel of the Heart. Various attempts to establish a cath lab in George Town Hospital have stalled. The Cayman Islands lacked an MRI after one was destroyed during Hurricane Ivan, but in July 2007 a new unit was installed at the Chrissie Tomlinson Memorial Hospital.

For divers and others in need of hyperbaric oxygen therapy, there is a two-person recompression chamber at George Town Hospital on Grand Cayman, run by Cayman Hyperbaric Services. Hyperbaric medicine, also known as hyperbaric oxygen therapy (HBOT is the medical use of Oxygen at a higher than Atmospheric pressure. A recompression chamber is a Pressure vessel used to treat divers suffering from certain Diving disorders such as Decompression sickness. The same organisation has built a hyperbaric unit at Faith Hospital in Cayman Brac, expected to be operational in January 2008.

Work permits

In order to work in the Cayman Islands as a non-citizen, a work permit is required. This involves passing a police background check and a health check. A prospective worker will not be granted a permit if certain medical conditions are present. Work permits are not issued after age 60.

The Cayman Islands presently imposes a controversial ["rollover"] policy in relation to expatriate workers who require a work permit. An expatriate (in abbreviated form expat) is a person temporarily or permanently residing in a country and culture other than that of the person's upbringing Non-Caymanians are only permitted to reside and work within the Territory for a maximum of seven years (non-renewable) unless they satisfy the criteria of key employees. The policy has been the subject of some controversy within the press,^[3] and concerns have been expressed that in the long term, the policy may damage the pre-eminence of the Cayman Islands as an offshore financial centre by making it difficult to recruit and retain experienced staff from onshore financial centres. An offshore financial centre (or OFC) although not precisely defined is usually a low- Tax, lightly Regulated jurisdiction which specializes in providing Government employees are no longer exempt from this "rollover" policy according to this report in a local newspaper [10]. The Governor has decided to use his constitutional powers, which give him absolute control for the disposition of civil service employees, to determine which expatriate civil servants are dismissed after seven years service and which are not. An expatriate (in abbreviated form expat) is a person temporarily or permanently residing in a country and culture other than that of the person's upbringing

This policy is enshrined in the Immigration Law (2003 revision), written by the UDP government, and subsequently enforced by the PPM government. Both governments agree to the term limits on foreign workers, and the majority of Caymanians also agree it is necessary to protect local culture, and heritage from being eroded by a large number of foreigners gaining residency/citizenship.  [11]

Military

Main article: Military of the Cayman Islands

The defence of the Cayman Islands is the responsibility of the United Kingdom. The defence of the Cayman Islands is the responsibility of the United Kingdom. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located The Islands have their own police force, the Royal Cayman Islands Police Service. Police are agents or agencies usually of the executive, empowered to enforce the law and to effect public and social order through the legitimatized use of force The Royal Cayman Islands Police Service is the standing police force of the British Overseas territory of the Cayman Islands. Regular off-shore marine patrols are conducted by the RCIP and Grand Cayman is a port of call for the United States Coast Guard. Marine is an Umbrella term. As an adjective it is usually applicable to things relating to the Sea or Ocean, such as Marine biology, Marine ||-||-|-||-||-||-||-||-||-|} A port is a facility for receiving Ships and transferring cargo

Foreign relations

Main article: Foreign relations of the Cayman Islands

The foreign relations of the Cayman Islands are largely managed from the United Kingdom, as the islands remain an overseas territory of the UK. The foreign relations of the Cayman Islands are largely managed from the United Kingdom, as the islands remain an overseas territory of the UK The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located However, the Government of the Cayman Islands often resolves important issues with foreign governments alone, without intervention from Britain. Although in its early days, the Cayman Islands' most important relationships were with Britain and Jamaica, in recent years, a relationship with the United States has developed. Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. The United States of America —commonly referred to as the

Though the Cayman Islands are involved in no major international disputes, they have come under some criticism due to the use of their territory for narcotics trafficking and money laundering. Money laundering is the practice of engaging in financial Transactions in order to conceal the Identity, source and/or destination of Money, In an attempt to address this, the Government entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the United States, in order to reduce the use of their facilities associated with these activities. A mutual legal assistance treaty is an Agreement between two Foreign Countries for the purpose of gathering and exchanging Information in an In more recent years, they have stepped up the fight against money laundering, by limiting banking secrecy, introducing requirements for customer identification and record keeping, and requiring banks to cooperate with foreign investigators.

Due to their status as an overseas territory of the UK, the Cayman Islands have no representation either on the United Nations, or in most other international organisations. The United Nations ( UN) is an International organization whose stated aims are to facilitate cooperation in International law, International security However, the Cayman Islands still participates in some international organisations, being a full member of the Central Development Bank, International Olympic Committee and FIFA, an associate member of Caricom and UNESCO, and a member of a sub-bureau of Interpol. The Fédération Internationale de Football Association (French for International Federation of Association Football) The Caribbean Community ( CARICOM) is an organization of Caribbean nations and dependencies United Nations Educational Scientific and Cultural Organization ( UNESCO) is a specialized agency of the United Nations established on November 16 The International Criminal Police Organization, better known by its telegraphic address Interpol is an organization facilitating international police cooperation

See also

• 1932 Cuba Hurricane
• Cayman Islands national football team
• The Scout Association of the Cayman Islands

Footnotes

References

• Cayman Islands. 2005 CIA World Factbook. Retrieved on 4 July, 2005. Events 836 - Pactum Sicardi, peace between the Principality of Benevento and the Duchy of Naples Originally from the CIA World Factbook 2000. The World Factbook ( ISSN; also known as the CIA World Factbook) is an annual publication of the Central Intelligence Agency of the
• Non-Self-Governing Territories listed by General Assembly in 2002. United Nations Special Committee of 24 on Decolonization. Retrieved on 4 July, 2005. Events 836 - Pactum Sicardi, peace between the Principality of Benevento and the Duchy of Naples
• Michael Craton and the New History Committee (2003). Founded upon the Seas: A History of the Cayman Islands and Their People. Ian Randle Publishers, Kingston, Jamaica. ISBN 0-9729358-3-5.  
• Roberts, H. H. (1994). Reefs and lagoons of Grand Cayman (in "Monographiae biologicae", ed. Brunt, MA and Davies, JE). Kluwer Academic Publishers, Boston, MA. . ISBN 0-7923-2462-5.  
• Alfredo Zayas y Alfonso, (1914). Lexografía Antillana. El Siglo XX Press, Havana.  

External links

• Cayman Islands travel guide from Wikitravel
• Cayman Islands Government
• Cayman Islands Financial Services
• National Hurricane Committee Cayman Islands Government - Emergency Management. Wikitravel is a Web -based project "to create a free, complete up-to-date and reliable worldwide travel guide. Cayman Islands Government. Retrieved on 2007-08-18. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 293 BC - The oldest known Roman temple to Venus is founded starting the institution of Vinalia Rustica.
• Cayman Islands entry at The World Factbook

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