Cayman Islands Financial Services

Cayman Enterprise City (CEC) has officially signed a memorandum of understanding with the Dubai Multi Commodities Centre (DMCC) with a view to establish mutually beneficial trade opportunities between the two Freezones.

Following a visit from the CEC to Dubai, UAE, to strengthen trade relations between the United Arab Emirates and the Cayman Islands, CEC has officially signed the above-mantioned document. The agreement signed in November by CEC Chief Executive Officer, Jason Blick and His Excellency Ahmed Bin Sulayem, the Chairman of the DMCC, represents the first major step by CEC to establish the zone internationally through this strategic partnership.

Speaking on the Memorandum of Understanding, CEC Chief Executive Officer Jason Blick said, “The agreement with the DMCC creates a tremendous opportunity for both CEC and the DMCC. By enabling companies to establish in the DMCC and Cayman Enterprise City, we are creating a unique environment for the commodities sector in the Americas and the clients governed by DMCC that can allow the rapid opening of new markets and let companies manage those opportunities successfully.”

The signing of the memorandum of understanding represents the fulfillment of an early part of the CEC vision, to connect the Cayman Islands to established and emerging markets worldwide, and the selection of Dubai as a trade partner is an extension of the earlier trip to the UAE in March 2011 by CEC and a Cayman Islands delegation led by Honorable W. McKeeva Bush, Premier of the Cayman Islands.

Blick said that Dubai is well-known for the world’s most successful Freezones that have completely transformed the local economy and are populated by blue-chip companies from all over the world. So, connecting with Dubai was an integral part of our vision, to gain from their experience while also creating the flow of capital between the two jurisdictions. He added: “We are immensely pleased to realise this agreement, as it shows that the world is interested in what we are doing in Cayman, and brings the success from the Premier’s visit last year”.

Following the ratification of legislation and the establishment of the Cayman Special Economic Zone (SEZA), CEC has officially begun operations and has begun issuing Trade Certificates.

The United States Securities and Exchange Commission (SEC) has announced that it has established a memorandum of understanding (MoU) with the Cayman Islands Monetary Authority (CIMA) as part of its long-term strategy to improve the oversight of regulated entities that operate across national borders.

SEC’s supervisory cooperation arrangement is meant to enhance its ability to share information about regulated entities, such as investment advisers, investment fund managers, broker-dealers and credit rating agencies. It establishes mechanisms for continuous and on-going consultation, cooperation and the exchange of supervisory information related to the oversight of globally active firms and markets.

The SEC attaches particular importance to the Cayman Islands as a major offshore financial centre and home to large numbers of hedge funds, investment advisers and investment managers that frequently access the US market, while ESMA fosters regulatory convergence among EU securities regulators.

The South African Revenue Service has disclosed that a protocol to facilitate the exchange of tax information within the tax information exchange agreement (TIEA) between South Africa and the Cayman Islands entered into force.

Signed last year, the TIEA between South Africa and the Cayman Islands was effective from February 23, 2012.

The new TIEA, incorporating the internationally-agreed OECD standard for the exchange of information for tax purposes, will apply to “taxes of every kind and description” imposed in all of the signing countries.

The implementation of a pending tax agreement (TIEA) with the Cayman Islands has been announced by the Indian Income Tax Department. The TIEA will provide both tax authorities with access to tax information on request as soon as the agreement has entered into force. The document was signed on March 21, 2011.

The completion of India’s domestic ratification procedures with the publication of Notification 61/2011 in the nation’s official gazette means that the bilateral TIEA entered into force immediately, on December 27, 2011.

In accordance with the agreement that was negotiated on the basis of the OECD model agreement, Cayman or Indian authorities may request information pertaining to taxation where there is sufficient evidence of the perpetration of fiscal crime.

A tax information exchange agreement (TIEA) between the Cayman Islands and Japan will come into effect November 13, 2011 as the two governments have completed necessary domestic procedures.

On October 14, Japan notified the Cayman Islands of the completion of its internal procedures necessary for the entry into effect of the agreement. On the same date, the Japanese Embassy in the UK received a similar notification from the Cayman Islands.

The tax treaty was signed February 7 with a view to prevent international tax evasion between the Cayman Islands and Japan.

The British territory in the Caribbean is the 4th offshore tax haven that Japan has concluded such a treaty with. Previously, Japan signed tax agreements with the Isle of Man, the Bahamas, and Bermuda.

It has been announced by the Cayman Islands that the offshore jurisdiction has entered into an agreement on sharing tax information with China.

On September 26, the signing ceremony was held. At the event, the Cayman Islands’ Premier, McKeeva Bush said that signing this Tax Information Exchange Agreement is a significant step in enhancing the relationship between the Cayman Islands and China. He noted that China is one of the fastest growing economies in the world, so he expressed his confidence that this TIEA will contribute positively to economic activity between the two jurisdictions.

Bush said: “This is 26th signed agreement for exchange of information for tax purposes, and the People’s Republic of China has become another member of the G20 countries to have a TIEA with the Cayman Islands.”

Bush co-signed the agreement with Song Lan, the State Administration of Taxation Deputy Commissioner and Vice Minister. Both parties must conclude their individual ratification procedures before the agreement enters into force.

It has been announced by the government of Guernsey that a Tax Information Exchange Agreements (TIEA) was signed between Guernsey and the Cayman Islands.

Guernsey Chief Minister, Lyndon Trott expressed his delight to announce that, with the signing of the agreement with the Cayman Islands, Guernsey has signed its 1st TIEA with a Caribbean territory. The signing of the TIEA further underlines Guernsey’s ongoing commitment to the international standards of wider transparency and exchange of information in tax matters, as well as brings the number of countries which have signed TIEAs with Guernsey to 26.

In accordance with the terms of the agreement, the signatories will, on request, exchange bank and other information relating to both criminal and civil tax matters.

On June 1, 2011, the Tax Information Exchange Agreement (TIEA) signed between Canada and the Cayman Islands entered into force. The document was signed by the jurisdictions on June 24, 2010.

The treaty is applicable to taxes on income and taxes on capital in each territory. The TIEA provides for the exchange of information relevant to the administration of domestic tax laws, and to the collection of tax, and investigation or prosecution of criminal matters. It also permits the request of information held by banks and other financial institutions, and information relating to the ownership of companies, partnerships, trusts and foundations.

On March 21, A Tax Information Exchange Agreement (TIEA) that is designed to strengthen the commercial relationship between the Cayman Islands and India was signed by the 2 countries.

This is the 22nd agreement signed by the Cayman Islands. Premier McKeeva Bush said that the government of the Cayman Islands has a strong working relationship with Indian government, so the jurisdiction looks forward to implementing the terms of this TIEA.

On behalf of India, the document was signed by High Commissioner to the Bahamas, the Cayman Islands and Jamaica Mohinder S. Grover. He commented that both the Cayman Islands and India are members of the OECD Global Forum Global Forum on Transparency and Exchange of Information for Tax Purposes, therefore it is important to ensure the effective implementation of the international standards of transparency and exchange of information for tax purposes.

George McCarthy of the Cayman Islands International Tax Cooperation Team said that the TIEA “will provide a common ground upon which the Cayman Islands and India can exercise mutual cooperation and focus on increasing investment funds business in the Cayman Islands”.

A new Memorandum of Understanding (MOU) has been signed by the Cayman Islands with the jurisdiction’s neighbour Turks and Caicos Islands.

The agreement was signed on February 25 to formalize cooperation between the 2 Caribbean authorities, which had been informally occurring otherwise. The document provides for the exchange of information and investigative assistance between the Cayman Islands Monetary Authority (CIMA) and the Turks and Caicos Financial Services Commission (TCI FSC).

The MOU outlines the types of assistance that can be requested and given by CIMA and the TCI FSC including providing, confirming or verifying information; obtaining specified information and documents from other parties; discussing issues of mutual interest; arranging and/or conducting inspections of financial services providers; and permitting representatives of the requesting authority to participate in enquiries by or on behalf of the requested authority.

On behalf of the Turks and Caicos Islands, the MOU was signed by TCI FSC Managing Director, Mr. Kevin Higgins, who welcomed the development: “The FSC looks forward to working more closely with one of the premier regulatory agencies in the Caribbean.”

CIMA’s Managing Director Cindy Scotland said: “We are pleased to formalize methodologies of cooperation that has existed between CIMA and the Turks and Caicos Islands. We see this MOU as reinforcing our strong international cooperation regime and further demonstrating our commitment in this area.”

This Memorandum of Understanding is the 19th signed by the Cayman Islands Monetary Authority (CIMA).