Cayman Islands Financial Services

The Population and Housing Census of the Cayman Islands will be officially launched in Grand Cayman on October 10, 2010. An official ceremony is to be held as well as there will be an opportunity for residents to sign up as census workers.

Currently, the population of the jurisdiction is speculated to be between 60 000 and 70 000 persons. Also, there are reports of a decline of some 3 000-5 000 in 2009.

The launching in Grand Cayman is scheduled for April 29. It will be organized by the Economics and Statistics Office, in cooperation with the multi-sectoral Census Advisory Committee, its sub-committees and the office of the Sister Islands’ District Commissioner. The event will feature Census messages from government officials, including Governor Duncan Taylor, Premier McKeeva Bush and the Financial Secretary Kenneth Jefferson, JP. Census spokespersons from various sectors including National Hero Mrs Sybil McLaughlin, Pastor Davelee Tibbetts, 2010 YCLA winner Mr Collin Anglin, Miss Teen Jamesette Anglin and Mrs Chevala Burke, will be introduced at the event.

Previous population censuses in the Cayman Islands revealed the following figures: 1802 – 933 people; 1891 – 3 366 people; 1911 – 5 564 people; 1921 – 5 270 people; 1934 – 6 009 people; 1943 – 6 670 people; 1960 – 8 511 people; 1970 – 10 068 people; 1979 – 16 677 people; 1989 – 25 355 people; 1999 – 39 410 people.

The government of India will proceed with negotiations towards tax information exchange agreements with the Cayman Islands as well as other 8 low-tax jurisdictions.

The Indian government has approved the notification of the offshore jurisdictions for the purpose of the Income Tax Act 1961. These are the Cayman Islands as well as the British Virgin Islands, Gibraltar, Guernsey, Jersey, the Isle of Man, Bermuda, the Netherland Antilles, and Macau. Also, the notification of Hong Kong is in process.

The Cayman Islands and India could not enter into agreement until India’s Section 90 of the Income Tax Act was amended by the Finance Act 2009 as then India could enter agreements only with sovereign states.

An extension in the consultation period for responses to proposed changes to the Cayman Insurance Law has been announced by the Cayman Islands Chamber of Commerce.

The consultation that was published on the website of the Cayman Islands Chamber of Commerce is related to the final draft of a bill. The bill aims at enhancing the regulation of the insurance industry as well as ensuring the jurisdiction’s continued compliance and adherence to international regulatory standards.

The following changes to operational aspects of the Insurance Law are included into the draft bill:
- licensing (includes provision for the licensing of persons carrying on insurance business or acting as insurance agents, insurance brokers or managers);
- obligation of licensees (includes continuing obligations for licensees, terms and conditions of contractual agreements and ensuring full compliance by licensees in adhering to regulations set out in the Insurance Law);
- powers and duties of the Authority (includes maintenance of a general review of insurance business in the Islands and increased enforcement powers for the Cayman Islands Monetary Authority).

The draft bill will be presented to the Legislative Assembly at the earliest possible opportunity.

Any comments on the draft bill should be submitted before the extended date of April 23, 2010.

On April 1, 2010, Assistant Treasurer, Nick Sherry, announced that Australia has signed 7 Tax Information Exchange Agreements (TIEAs). This move revealed its efforts to achieve greater transparency in tax-related issues.

Australia has announced that it signed a TIEA with the Cayman Islands.

Also, on March 30 and 31, Australia signed TIEAs with the following jurisdictions:
- Belize,
- the Bahamas,
- Dominica,
- Grenada,
- Saint Lucia,
- the Turks and Caicos Islands.