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The C ay m an Islands: An Ex te nde r o f Value to the USA w w w. c a ym a n . f i n a n c e


Table of contents F o r e w o r d P 1 Brief Introduction to Cayman Finance and its leadership

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Executive Summar y

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• International role of the Cayman Islands Financial Ser vices Industr y • The Cayman Model • As an Efficient neutral Hub, the Cayman Islands is an “extender of value” for the USA and other G20 countries • Strong and Diverse Industr y Sectors • Protecting the Global Economy • Best in class Global Ownership Standards • Not a tax haven • Tax neutral • Resilience of the Cayman Islands H i s t o r i c r e c o g n i t i o n o f t h e b e n e f i t s o f t h e C a y m a n I s l a n d s

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A p p e n d i c e s P 1 3 A . S u p p o r t i n g G 2 0 M u l t i l a t e r a l A i d t o t h e D e v e l o p i n g Wo r l d B. Importance of IFCs in the global economy C. G20 Plus Global Financial Agreements D . C a y m a n I s l a n d s Ve r i f i e d O w n e r s h i p R e g i m e

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E . N o t a Ta x H a v e n

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Fo r ew ord Th i s d o c u m e n t h a s b e e n d e v e l o p e d b y C a y m a n F i n a n c e t o s h a r e i n f o r m a t i o n a b o u t t h e e s s en ti al r o l e o f t h e C a y m a n I s l a n d s f i n a n c i a l s e r v i c e s i n d u s t r y i n t h e g l o b a l e c o n o m y, a n d p a r t i c u lar ly h i g h l i g h t h o w t h e C a y m a n I s l a n d s i s a n e x t e n d e r o f v a l u e a n d a n i m p o r t a n t p a r t n e r t o t h e Un i ted S t a t e s o f A m e r i c a a t a t i m e w h e n t h e U S A i s i n a n e r a o f e v o l v i n g g l o b a l t r a d e r e l a t i o n s a n d o th er i m p o r t a n t c h a n ge s i n t h e g l o b a l e c o n o m y. Th e C a y m a n I s l a n d s i s a p r e m i e r gl o b a l f i n a n c i a l h u b t h a t e f f i c i e n t l y c o n n e c t s l a w a b i d i n g u ser s a n d p r o v i d e r s o f i n v e s t m e n t c a p i t a l a n d f i n a n c i n g a r o u n d t h e w o r l d a n d h a s a l o n g s t an di n g r e l a t i o n sh i p w i t h t h e U n i t e d S t a t e s o f A m e r i c a . G l o b a l t r a d e i s a n i m p o r t a n t c o r n e r s t o n e o f t h e U S A’s e c o n o m i c p o l i c y a n d t h e C a y m a n Islan ds i s t h e w o r l d ’s m o s t p o p u l a r g l o b a l f i n a n c i a l h u b f o r i n t e r n a t i o n a l i n v e s t m e n t , p r o v i d i n g a p r o ven , t r u st e d , st a b l e , t a x -n e u t r a l , a n d w e l l r e g u l a t e d e n v i r o n m e n t d e s i g n e d t o s u p p o r t g l o b a l t r a de. Th e C a y m a n I s l a n d s i s a ‘ gl o b a l e x t e n d e r o f v a l u e ’ f o r t h e U n i t e d S t a t e s o f A m e r i c a , i t s b u s i n esses, a n d i t s c i t i z e n s t o b e c o m p e t i t i v e t h r o u g h g l o b a l t r a d e , i n v e s t i n g a n d f i n a n c i n g a c t i v i t i e s , p r ovi di n g t h e u l t i m a t e p l a t f o r m t h a t i s d y n a m i c e n o u g h t o s u p p o r t t h e U S A c u r r e n t l y a n d a s i t e n t e r s a n ew era of global trade relations. I n o r d e r f o r t h e C a y m a n I s l a n d s t o b e a b l e t o b e s t a s s i s t t h e U S A , a n d f o r t h e U S A t o t a k e m a x i mu m a d v a n t a g e o f t h e o p p o r t u n i t i e s a v a i l a b l e i n t h e e v o l v i n g g l o b a l e c o n o m y, i t i s i m p e r a t i v e t hat th e U n i t e d S t a t e s o f A m e r i c a u n d e r s t a n d s f u l l y t h e b e n e f i c i a l r o l e p l a y e d i n g l o b a l f i n a n c i a l s er vi ces by the Cayman Islands. Th e C a y m a n I s l a n d s , t h r o u g h i t s p i v o t a l r o l e i n i n t e r n a t i o n a l i n v e s t i n g a n d f i n a n c i n g , s u p p o r ted by i t s r o b u st a n d w e l l -r e gu l a t e d f i n a n c i a l s e r v i c e s i n d u s t r y, c a n h e l p t h e U S A a s i t p r e p a r e s f o r th e e v o l v i n g c h a n g e s i n gl o b a l t r a d e a n d t h e g l o b a l e c o n o m y b y p r o v i d i n g u n p a r a l l e l e d a c c e s s to : • Foreign Direct Investment or “FDI” (essential to save or grow US businesses and jobs) • Inward infrastructure investing and financing • Liquidity for the US economy • US Job growth • Increased US tax base • Global diversified investments for US pensioners • Free flow of global trade, capital, investing, financing, and ser vices In 2 0 1 7 , t h e O E C D G l o b a l F o r u m o n Tr a n s p a r e n c y a n d E x c h a n g e o f I n f o r m a t i o n f o r Ta x P u rpo ses e st i m a t e d t h a t i n j u s t o n e r e c e n t y e a r, C a y m a n a t t r a c t e d a t l e a s t U S $ 4 . 1 t r i l l i o n i n b a n k i n g a ssets, d i r e c t i n v e st m e n t a n d p o r t f o l i o i n v e s t m e n t .

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B e c a u se t h e C a y m a n I s l a n d s i s h o m e t o a p p r o x i m a t e l y 7 0 % o f g l o b a l h e d g e , p r i v a t e e q u i ty, an d v e n t ur e c a p i t a l f u n d s , i t i s w e l l p o s i t i o n e d j u s t l i k e a f t e r t h e 2 0 0 8 g l o b a l c r e d i t c r i s i s , t o p r o vi de i n wa r d i n v e s t i n g, f i n a n c i n g , a n d l i q u i d i t y i n t o e c o n o m i e s d u r i n g t i m e s o f n e e d o r u n c e r t a i nty, as might be expected with the evolutions in global trade relations. The Cayman Islands investment fund provides the vehicle to facilitate trade to, from and through

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t h e U n i t e d S t a t e s o f A m e r i c a b r i n g i n g e m p l o y m e n t , e x p e r t i s e a n d t a x r e c e i p t s t o t h e U S A. T h e C a y m a n I s l a n d s i n v e s t m e n t f u n d i s t h e g l o b a l c o l l e c t i v e i n v e s t m e n t v e h i c l e , p r e f e r r ed by i n v e st o r s i n N o r t h A m e r i c a , t h e M i d d l e E a s t , C h i n a , J a p a n a n d m a n y o t h e r c o u n t r i e s . I t i s u sed b y i n t e r n a t i o n a l i n v e s t o r s i n t h o s e r e gi o n s t o a g g r e g a t e o v e r s e a s i n v e s t m e n t i n t o c o u n t r i e s ar o u n d t h e wo r l d , i n c l u d i n g t h e U n i t e d S t a t e s o f A m e r i c a ; t o f a c i l i t a t e c o - i n v e s t m e n t b y U S i n v e s t o rs wi th o t h e r s f r o m a r o u n d t h e gl o b e ; a n d t o e n a b l e a s s e t m a n a g e r s i n t h e U S A t o p r o v i d e s e r v i ces to international investors. Fo r e x a m p l e , C a y m a n -b a s e d f u n d s a r e u s e d t o f a c i l i t a t e i n f r a s t r u c t u r e d e v e l o p m e n t s s uch as h o sp i t a l s, s c h o o l s , r o a d s , p o w e r p l a n t s , e t c . w h i c h h e l p i n c r e a s e t h e q u a l i t y o f l i f e i n t h a t c o u n tr y. A d d i t i o n a l l y, f a i l i n g b u s i n e s s e s a r e p u r c h a s e d , l o a n s a r e p r o v i d e d t o c o m p a n i e s i n d i f f i cu lty, e m p l o y e e s a r e r e -e m p l o y e d a n d n e w j o b s a r e c r e a t e d , i n c r e a s i n g t h e t a x b a s e i n t h a t c o u ntr y. A m o n g t h o s e i n v e s t i n g i n C a y m a n f u n d s a r e U S p e n s i o n s , w h i c h t h e n h a v e a c c e s s t o glo bal d i v e r si f i e d i n v e s t m e n t s , p o t e n t i a l l y r e d u c i n g r i s k s a s s o c i a t e d w i t h h a v i n g t h e s e i n v e s t e d in o n e g e o g r a p h i c a r e a w h e r e d i s a s t e r s a n d ot h e r f a c t o r s c o u l d h a v e a n e g a t i v e i m p a c t o n t h e i n v e s t m en ts. In t ur n , t h e s e gl o b a l l y d i v e r s i f i e d i n v e s t m e n t s c o n t r i b u t e h i g h e r r e t u r n s t o U S p e n s i o n e r s .

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A d d i t i o n a l l y, m a n y s e r v i c e p r o v i d e r s t o C a y m a n I s l a n d s f u n d s a r e b a s e d i n t h e U S A a nd, i n p a r t i c u l a r, U S c i t i e s s u c h a s N e w Yo r k , B o s t o n , C h i c a g o , a n d o t h e r s w h i c h a r e g l o b a l cen ter s o f e x c e l l e n c e f o r t h e a l t e r n a t i v e i n v e s t m e n t m a n a g e m e n t i n d u s t r y. T h e i n c o m e o f s u c h s er vi ce p r o v i d e r s, i n c l u d i n g i n v e s t m e n t m a n a g e r s , i s d e p e n d e n t u p o n t h e f e e s g e n e r a t e d f r o m m a nagi n g g l o b a l p o o l s o f c a p i t a l w h i c h a r e a s s e m b l e d i n t h e C a y m a n I s l a n d s . T h i s i n c o m e c r e a t e s a d d i ti o n al j o b s a n d t a x a b l e r e v e n u e i n t h e U S A a n d h e l p s p r e s e r v e U S c i t i e s ’ p o s i t i o n s a s l e a d i n g f i n an ci al c e n t e r s b y gi v i n g U S -b a s e d m a n a ge r s th e a b i l i t y t o m a n a g e g l o b a l c a p i t a l t h a t m i g h t n o t o t h er wi se b e i n v e st e d i n t h e U S A .

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Th e A l t e r n a t i v e I n v e s t m e n t Ma n a ge r s A s s o c i a t i o n , h e a d q u a r t e r e d i n t h e U K , h a s n o t e d t hat th e m o n e y i n v e s t e d i n o f f s h o r e f u n d s l i k e t h o s e i n t h e C a y m a n I s l a n d s i s n o t k e p t i n a n o f f s h o r e ban k b ut i n v e s t e d i n f i n a n c i a l m a r k e t s a r o u n d t h e w o r l d . I t a d d e d t h a t t h i s a c t i v i t y h e l p s t o p r o vi de a d d i t i o n a l s o u r c e s o f f i n a n c i n g t o b u s i n e s s e s a n d i n f r a s t r u c t u r e p r o j e c t s i n p l a c e s l i k e t h e U K, c r e a t i n g s i g n i f i c a n t j o b s a n d ge n e r a t i n g t a x r e v e n u e s f o r t h e g o v e r n m e n t t h e r e . [ ‘ Tr a n s p ar en t, S o p h i s t i c a t e d , Ta x N e u t r a l : T h e Tr u t h A b o u t O f f s h o r e F u n d s ’ – A I M A R e p o r t N o v 2 0 1 7 ] W h i l e C a y m a n a d d s n o a d d i t i o n a l t a x t o f i n a n c i a l s e r v i c e s t r a n s a c t i o n s i n i t s j u r i s d i c t i o n , i n vesto r s ( i n d i v i d u a l s a n d b u s i n e s s e s ) a r e s t i l l s u b j e c t t o a n y t a x e s o w e d a t h o m e . T h i s i s e n s u r ed by C a y m a n m e e t i n g o r e x c e e d i n g a l l g l o b a l l y - a c c e p t e d s t a n d a r d s f o r t r a n s p a r e n c y a n d c r o s s bo r der c o o p e r a t i o n w i t h t a x a u t h o r i t i e s a n d la w e n f o r c e m e n t i n c l u d i n g t h r o u g h t h e U S F o r e i g n A cco u n t Ta x C o m p l i a n c e A c t ( FAT C A ) . Th e i m p o r t a n c e o f C a y m a n ’s t a x n e u t r a l s t a t u s c a n b e i l l u s t r a t e d b y c o n s i d e r i n g w h a t wo u ld h a p p e n we re C a y m a n t o i n t r o d u c e d i r e c t c o r p o r a t e t a x o n p r o f i t s , e . g . h e d g e f u n d s . T h i s wo u ld r e d u c e r e t ur n s t o t h e U S i n v e s t o r s i n t h o s e f u n d s a n d , c o n s e q u e n t l y, r e d u c e t h e t a x e s t h a t th o se i n v e s t o r s w o u l d i n t u r n b e l i a b l e t o p a y a t h o m e . A c c o r d i n g l y, C a y m a n ’s e f f i c i e n t t a x n eu tr al platform provides the optimum outcome for investors, investees, and home tax jurisdictions.

Histor y of par tnering with the US to fight financial crime • 1986: Agreed the Mutual Legal Assistance Treaty (MLAT) with the USA, one of the first in the world and has been proven highly effective in the restraint and forfeiture of the proceeds of crime as well as the repatriation of assets to the USA for restitution to victims of crime. • 2001: The first UK Overseas Territor y to sign a Tax Information Exchange Agreement with the USA. • 2013: The first UK Overseas Territory to sign the FATCA Model 1 Intergovernmental Agreement with the USA, complementing a leading number of bilateral tax information exchange agreements with other jurisdictions with a view to tax transparency and cooperation. • Implemented the US FATCA regime so that Cayman financial institutions are obliged to report through the Cayman Tax Information Authority details of financial accounts held by US citizens and residents. Th e U S Go v e r n m e n t A c c o u n t a b i l i t y O f f i c e R e p o r t t o t h e C h a i r m a n a n d R a n k i n g M e m b e r, C o m mi ttee o n F i n a n c e , U S S e n a t e ( J u l y 2008) : • The IRS official also told us that the Cayman Islands government has provided the requested information in a timely manner for all TIEA requests. • Officials from Treasur y and the SEC reported that the Cayman Islands has been cooperative in sharing information and SEC reported that several of the SARs have led to U.S. investigations. • A senior official from DOJ’s Office of International Affairs indicated that the Cayman Islands is the busiest United Kingdom overseas territor y with regard to requests for information, but also the most cooperative. She also said that the Cayman Islands is one of DOJ’s “best partners” among offshore jurisdictions. • A DOJ official reported that the Cayman Islands has an agreement to share proceeds of criminal-asset

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forfeitures with the US government, and has been a ver y cooperative partner.

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Summar y W i t h t h e C a y m a n I s l a n d s b e i n g a p r e m i e r g l o b a l h u b f o r i n v e s t m e n t c a p i t a l a n d f i n a n c i ng, th e United States of America stands to benefit on three important fronts: F i r st l y, t h e U S A , i t s b u s i n e s s e s , a n d i t s p e o p l e h a v i n g a c c e s s t o p a r t i c i p a t e i n g l o b a l l y d i v er si f i ed i n v e s t m e n t a n d f i n a n c i n g o p p o r t u n i t i e s r e s u l t i n g i n b e n e f i t s s u c h a s g r e a t e r r e t u r n s f o r U S p e n si o n er s o n p e n si o n f u n d i n v e s t m e n t s . S e c o n d l y, w i t h t h e s u b s t a n t i a l i n v e s t i b l e a s s e t s p o o l e d i n C a y m a n f u n d s f r o m a r o u n d t h e wo r ld, C a y m a n e n t i t i e s a r e u n i q u e l y p o s i ti o n e d t o p r o v i d e s u b s t a n t i a l f o r e i g n d i r e c t i n v e stmen t, i n f r a s t r uc t ur e f i n a n c i n g , a n d l i q u i d i t y w h i c h c a n b e u s e d t o s a v e o r g r o w U S b u s i n e s s e s , j o bs an d t a x b a se . L a s t l y, a s t h e U S A w i l l l o o k t o o p p o r t u n i t i e s a r o u n d t h e g l o b e t o s e c u r e i t s f u t u r e , t h e C ay man I sl a n d s i s we l l p o s i t i o n e d t o w o r k h a n d i n h a n d w i t h Wa s h i n g t o n D C , N e w Yo r k , B o s t o n , C h i cago , a n d o t h e r U S c i t i e s t o c o n n e c t t h e U n i t e d S t a t e s o f A m e r i c a t o t h e e f f i c i e n t f l o w o f g l o b a l tr ade, c a p i t a l , i n v e s t i n g , f i n a n c i n g, a n d s e r v i c e s a r o u n d t h e w o r l d .

The Cayman Islands: A snapshot of strength in numbers • Top jurisdiction for Alternative Investment Funds: Two-thirds of global hedge funds with over US$2.3 trillion in assets under management (AUM). • Number 2 jurisdiction for Insurance Captives (Number 1 jurisdiction for Healthcare Captives and Group Captives). • IPOs: Cayman companies accounted for 83% of firms listed on the Main Board of the Hong Kong Stock Exchange and the Hong Kong Growth Enterprise Market. • A leading Specialized International Financial Centre (The Banker Magazine). • Cayman entities support the US Government by being among the top 10 jurisdictions investing in and holding US treasuries. • The Cayman Islands is the largest domicile in the world for US healthcare captives, thereby supporting lower US healthcare costs and better access to affordable reinsurance premiums in the global marketplace. Th e m e ssa g e i n t h i s d o c u m e n t a b o u t t h e C a y m a n I s l a n d s i s a c o m p e l l i n g o n e . I t h i g h l i g h t s t h e gr eat w o r k t h a t h a s b e e n d o n e t h r o u g h c o l l a b o r a t i v e e f f o r t s o v e r m a n y y e a r s t o e s t a b l i s h t h e C ay man I sl a n d s a s t h e p r e m i e r g l o b a l f i n a n c i a l h u b .

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We r e m a i n c o m m i t t e d t o c o n t i n u i n g o u r w o r k t o p r o m o t e a n d p r o t e c t t h e C a y m a n I s l a n d s f i nan ci al s e r v i c e s i n d u s t r y a n d i t s i m p o r t a n t r o l e i n t h e g l o b a l e c o n o m y a n d e x t e n d i n g v a l u e t o t h e U n i ted S t a t e s o f A m e r i c a t h r o u gh o u t t h e e v o l u t i o n o f g l o b a l t r a d e a n d t h e g l o b a l e c o n o m y. We lo o k f o r w a r d t o w o r k i n g t o ge t h e r t o e n s u r i n g t h i s i m p o r t a n t r e l a t i o n s h i p w i t h t h e U S A c o n t i n u e s to be m ut ua l l y b e n e f i c i a l .

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B r ief I ntrod uc tion to C aym an F i nance and i ts L eadersh i p Cayman Finance C a y m a n Fi na n c e i s a p r i v a t e s e c t o r n o t f o r p r o f i t o r g a n i s a t i o n t h a t r e p r e s e n t s t h e e n t i r e C ay man I sl a n d s f i n a n c i a l s e r v i c e s i n d u s t r y, i n c l u d i n g 1 5 i n d u s t r y a s s o c i a t i o n s . C a y m a n Fi na n c e ’s m i s s i o n i s t o p r o t e c t , p r o m o t e , d e v e l o p a n d g r o w t h e C a y m a n I s l a n d s f i n an ci al s e r v i c e s i n d u s t r y t h r o u g h c o o p e r a t i o n a n d e n g a g e m e n t w i t h d o m e s t i c a n d i n t e r n a t i o n a l p oli ti cal l e a d e r s , r e g u l a t o r s , o r ga n i z a t i o n s a n d m e d i a ; t o p r o m o t e t h e i n t e g r i t y a n d t r a n s p a r e n c y o f th e i n d us t r y b y l e gi s l a t i v e a n d r e gu l a t o r y e n a c t m e n t a n d t o e n c o u r a g e t h e s u s t a i n a b l e g r o w t h o f th e i n d us t r y t h r o u gh e x c e l l e n c e , i n n o v a t i o n a n d b a l a n c e .

Leadership of Cayman Finance Th e C h a i r m a n o f C a y m a n F i n a n c e i s C o n o r O ’ D e a . S i n c e 1 9 8 9 , M r O ’ D e a w o r k e d f o r B u t t e r f i eld B a n k ( C a y m a n ) L i m i t e d i n v a r i o u s c a p a c i t i e s . H e e n d e d h i s e x e c u t i v e c a r e e r w i t h a s ti n t as M a n a g i n g D i r e c t o r C a y m a n a n d P r e s i d e n t & C h i e f O p e r a t i n g O f f i c e r, B N T B G r o u p . I n A p r i l 2016, h e r e t i r e d f r o m e x e c u t i v e r e s p o n s i b i l i t i e s w i t h B u t t e r f i e l d G r o u p a n d a s s u m e d a n o n - e x e c u t i v e r o le a s D i r e c t o r o f B N T B B o a r d a n d C h a i r m a n o f B u t t e r f i e l d ’s B o a r d . T h r o u g h o u t h i s c a r e e r, M r O’D ea h a s a l so se r v e d i n v a r i o u s a s s o c i a t e a n d g o v e r n m e n t p o s i t i o n s , i n c l u d i n g P r e s i d e n t a t t h e C ay man I sl a n d s B a n ke r ’s A s s o c i a t i o n a n d t h e C h a m b e r o f C o m m e r c e . J ud e S c o t t , C E O o f C a y m a n F i n a n c e s i n c e 2 0 1 4 , i s w e l l r e s p e c t e d l o c a l l y a n d g l o b a l l y havi n g s p o k e n i n t e r n a t i o n a l l y o n f i n a n c i a l s e r v i c e s t o p i c s a n d f e a t u r e d o n a n u m b e r o f o c c a s i o n s i n th e i n t e r n a t i o n a l m e d i a . H e r e t i r e d a s a n A u d i t P a r t n e r i n 2 0 0 8 a f t e r s p e n d i n g o v e r 2 3 y e a r s wi th E r n st & Yo un g. A s t h e G l o b a l C E O o f M a p l e s a n d C a l d e r ( t h e l a r g e s t C a y m a n I s l a n d s l a w f i r m, h e t o o k a n a c t i v e r o l e i n t h e s t r a t e gi c g r o w t h a n d d e v e l o p m e n t o f t h e f i r m . Ha v i n g s e r ved o n v a r i o u s C a y m a n I s l a n d s G o v e r n m e n t a n d p r i v a t e s e c t o r c o m m i t t e e s , i n c l u d i n g t h e C a y m a n I slan ds F i n a n c i a l S e r v i c e s C o u n c i l , C a y m a n A i r w a y s , M i n i s t e r i a l C o u n c i l f o r To u r i s m a n d D e v e l o pmen t, t h e C a y m a n I s l a n d s S o c i e t y o f P r o f e s s i o n a l A c c o u n t a n t s , t h e E d u c a t i o n C o u n c i l , t h e I n s o lven cy R u l e s C o m m i t t e e a n d t h e S t o c k E x c h a n g e , J u d e h a s a t t a i n e d e x t e n s i v e e x p e r i e n c e w i t h i n th e C a y m a n Isl a n d s ’ f i n a n c i a l s e r v i c e s i n d u s t r y.

Cayman’s role in the global economy

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Th e f a c t s a b o u t t h e C a y m a n I s l a n d s i m p o r t a n c e t o t h e g l o b a l l y e c o n o m y, t h e w o r l d class t r a n s p a r e n c y a n d c o o p e r a t i o n s t a n d a r d s i t h a s h a d i n p l a c e f o r m a n y y e a r s , a n d t h e b e n ef i ci al r o l e t h e C a y m a n I s l a n d s c o n t i n u e s t o p l a y i n s u p p o r t i n g t h e s u c c e s s o f t h e U n i t e d S t ates o f A m e r i c a , i s n o t w e l l u n d e r s t o o d . C a y m a n F i n a n c e i s u n i q u e l y w e l l p o s i t i o n e d t o s h a r e t h e s e f acts a n d a ssi s t w i t h t h i s u n d e r s t a n d i n g.

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E xecutive Summar y T h i s d o c u m e n t c o n t a i n s t h e f o l l o w i n g i m p o r t a n t s e c t i o n s t h a t s h o u l d b e r e a d i n t h e i r e n t i r ety to h a v e a f ul l a n d a c c u r a t e u n d e r s t a n d i n g o f t h e C a y m a n I s l a n d s f i n a n c i a l s e r v i c e s i n d u s t r y a n d i ts b e n e f i t s t o th e U n i t e d S t a t e s o f A m e r i c a . T h e s t r o n g h i s t o r i c a n d o n g o i n g c o n n e c t i o n b etween t h e U S A a n d t h e C a y m a n I s l a n d s i s t e s t a m e n t t o t h e f a c t t h a t b o t h c o u n t r i e s v a l u e t h i s i m p o r tan t r e l a t i o n s h i p . G i v e n t h e p r o m i n e n t r o l e t h a t t h e C a y m a n I s l a n d s p l a y s i n f i n a n c i a l m a r k e t s g l o bally a n d i n p a r t i c u l a r N o r t h A m e r i c a n a n d A s i a n f i n a n c i a l m a r k e t s , t h e C a y m a n I s l a n d s w i l l b e well p l a c e d t o a s s i s t t h e U S A a s s i g n i f i c a n t c h a n g e t a k e s p l a c e i n e c o n o m i e s a n d t r a d e r e l a t i o n sh i ps a r o u n d t h e w o r l d . I n o r d e r f o r t h e C a y m a n I s l a n d s t o b e a b l e t o a s s i s t t h e U S A f u l l y, a n d f o r th e U S A t o t a k e m a x i m u m a d v a n t a ge o f t h e o p p o r t u n i t i e s a v a i l a b l e i n t h e e v o l v i n g g l o b a l e c o n omy, i t wi l l b e c r i t i c a l t h a t t h e U S A u n d e r s t a n d s c l e a r l y t h e b e n e f i c i a l r o l e p l a y e d b y t h e C a y m a n I slan ds i n g l o b a l f i na n c i a l s e r v i c e s t o d a y. • International role of the Cayman Islands Financial Ser vices Industr y • The Cayman Model • As an Efficient neutral Hub, the Cayman Islands is an “extender of value” for the USA and other G20 countries • Strong and Diverse Industr y Sectors • Protecting the Global Economy • Best in class Global Ownership Standards • Not a tax haven • Tax neutral • Resilience of the Cayman Islands * N o t e : F o r p u r p o s e s o f t h i s d o c u m e n t , w h e n t h e p h r a s e s “ C a y m a n ” , “ t h e I s l a n d s ” , “ t h e J u r i s d icti o n ”, “ u s” , o r “ we ” a r e u s e d , t h e y a l l r e f e r t o t h e C a y m a n I s l a n d s . Th e f o l l o wi n g i s d e t a i l e d e v i d e n c e t o s u p p o r t t h e i m p o r t a n c e o f t h e C a y m a n I s l a n d s t o t h e U n i ted S t a t e s o f A m e r i c a a n d t h e g l o b a l e c o n o m y.

International role of the Cayman Islands Financial Ser vices Industr y T h e C a y m a n I s l a n d s i s a p r e m i e r g l o b a l f i n a n c i a l h u b , e f f i c i e n t l y c o n n e c t l a w - a b i d i n g u ser s a n d p r o v i d e r s o f i n v e s t m e n t c a p i t a l a n d f i n a n c i n g a r o u n d t h e w o r l d , b e n e f i t i n g d e v e l o p e d an d developing countries. A s a t r us t e d , e f f i c i e n t n e u t r a l h u b , C a y m a n s u p p o r t s e f f i c i e n t f r e e f l o w o f t r a d e , c a p i t a l , i n vesti n g, financing and ser vices around the world.

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O n e o f t h e b e s t e x a m p l e s o f C a y m a n ’s r o l e a s a p r e m i e r g l o b a l f i n a n c i a l h u b i s h o w t h e j u r i s di cti o n e f f i c i e n t l y su p p o r t s f u n d i n g b y g l o b a l m u l t i l a t e r a l o r g a n i z a t i o n s l i k e t h e Wo r l d B a n k Gr o u p’s In t e r n a t i o n a l F i n a n c e C o r p o r a t i o n i n t o d e v e l o p m e n t p r o j e c t s t o p r o m o t e g r o w t h i n e m e r g i n g mar kets. M ul t i l a t e r a l d e v e l o p m e n t o r ga n i z a t i o n s l i k e t h e I F C c h o o s e t o i n v e s t r e s o u r c e s u s i n g C ay man d o m i c i l e d i n v e s t m e n t v e h i c l e s b e c a u s e t h e y o f f e r a n e f f i c i e n t a n d e f f e c t i v e n e u t r a l p l a t f o r m th at e n a b l e s p a r t i e s f r o m a r o u n d t h e w o r l d w i t h d i f f e r i n g l a w s , r e g u l a t i o n s , t a x r u l e s a n d c u s t o ms to b e n e f i t f r o m d o i n g b u s i n e s s w i t h e a c h o t h e r. C a y m a n i s o n e o f t h e f e w j u r i s d i c t i o n s t h a t m e e t s t h e I F C ’s s t r i n g e n t s t a n d a r d s f o r i n v e s t men ts i n In t e r m e d i a t e J u r i s d i c t i o n s .

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I n 2 0 1 5 a l o n e , t h e I F C i n v e s t e d m o r e t h a n $ 4 0 0 m i l l i o n i n t e n d i f f e r e n t C a y m a n - b a s e d i n v e stmen t v e h i c l e s t o s u p p o r t c r i t i c a l t e l e c o m , e n e r g y, a g r i c u l t u r e , t e c h n o l o g y, v e n t u r e c a p i t al an d m a n u f a c t ur i n g d e v e l o p m e n t p r o j e c t s i n m o r e t h a n 2 4 d e v e l o p i n g c o u n t r i e s ( s e e A p p e n d i x A ) . A r e c e n t st u d y p e r f o r m e d b y C a p i t a l E c o n o m i c s e s t i m a t e s t h a t f o r e i g n i n v e s t m e n t m e d i a t e d t h r o u gh t h e C a y m a n I s l a n d s w a s a r o u n d U S $ 4 . 5 t r i l l i o n a n d s u p p o r t s i n t h e r e g i o n o f 5 m i l l i on j o bs g l o b a l l y. A d d i t i o n a l l y, t h e r e s e a r c h f o u n d t h a t i n v e s t m e n t t h r o u g h t h e C a y m a n I s l a n d s s u ppo r ts e s t i m a t e d t a x r e v e n u e s f o r t h e U n i t e d S t a t e s g o v e r n m e n t o f a p p r o x i m a t e l y U S $ 6 0 b i l l i o n. ( see Appendix B)

The Cayman Model Th e C a y m a n M o d e l d e m o n s t r a t e s h o w a j u r i s d i c t i o n c a n m a k e a l e a d i n g c o n t r i b u t i o n t o f igh ti n g g l o b a l f i n a n c i a l c r i m e , p r o t e c t i n g i t s e l f a n d s t r e n g t h e n i n g t h e g l o b a l e c o n o m y i n t h e p r o c e ss. Th e C a y m a n M o d e l c o m b i n e s m u l t i l a t e r a l c o o p e r a t i o n w i t h i n d i v i d u a l j u r i s d i c t i o n a l l e a d e r s h i p an d i t extends across seven key areas: • Ser ving as a Premier Global Financial Hub • Meeting or Exceeding Highest Global Financial Standards • Operating a Transparent Jurisdiction • Managing a Responsible, Effective Tax Regime • Maintaining Professional Leadership • Supporting Industr y Diversification • Encouraging Industr y-Government Collaboration T h e C a y m a n Mo d e l n o t o n l y h e l p s t o d e f i n e o u r j u r i s d i c t i o n a s a r e s p o n s i b l e f i n a n c i a l c e n ter, i t h a s e a r n e d u s a p l a c e a m o n g t h e l e a d i n g i n t e r n a t i o n a l f i n a n c i a l c e n t e r s a n d G 2 0 c o u n t r i e s wh o a d h e r e t o t h e h i gh e s t g l o b a l l y i m p l e m e n t e d s t a n d a r d s f o r c o m b a t i n g f i n a n c i a l c r i m e . A s a n e f f i c i e n t n e u t r a l h u b , t h e C a y m a n I s l a n d s i s a n “ e x t e n d e r o f v a l u e ” f o r t h e U S A a n d o th er G2 0 c o u n t r i e s . C a y m a n i s a g r e a t e x t e n d e r o f v a l u e f o r G 2 0 a n d d e v e l o p i n g c o u n t r i e s , t h e i r b u s i n e s s e s a nd th ei r people to participate in trade, investment and financing opportunities around the world. In a d d i t i o n , b e c a u s e t h e C a y m a n I s l a n d s i s t h e h o m e t o a s i g n i f i c a n t p r o p o r t i o n o f t h e wo r ld’s a l t e r n a t i v e f u n d s , i n c l u d i n g i n f r a s t r u c t u r e f u n d s a n d v e n t u r e c a p i t a l f u n d s , t h e C a y m a n I slan ds i s w e l l p o sit i o n e d , m u c h a s w e d i d a f t e r t h e g l o b a l c r e d i t c r i s i s , t o p r o v i d e i n w a r d i n vesti n g, f i n a n c i n g , a n d l i q u i d i t y i n t o e c o n o m i e s d u r i n g t i m e s o f n e e d o r u n c e r t a i n t y, i n c l u d i n g e v olu ti o n s in global trade relations. T h i s i n w a r d i n v e s t i n g, f i n a n c i n g, a n d l i q u i d i t y h e l p s s a v e o r g r o w b u s i n e s s , c r e a t e j o b s, an d expand the tax base within those countries.

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A t t h e sa m e t i m e , t h e C a y m a n I s l a n d s u p h o l d s t h e s a m e g l o b a l s t a n d a r d s a s t h e G 2 0 c o u n tr i es d o ( se e A p p e n d i x C ) . P a r t i e s f r o m d i f f e r e n t c o u n t r i e s w h o h a v e d i f f e r e n t l a w s , r e g u l a t i o n s , t a x r u l e s , a n d c u s t o m s ar e able to do business with each other in a trusted and efficient neutral jurisdiction. U si n g a n e u t r a l j u r i s d i c t i o n l i k e C a y m a n , n o p a r t y i s a t a d i s a d v a n t a g e o f b e i n g s u b j e cted to a n o t h e r p a r t y ’s l a w s , r e gu l a t i o n s , t a x r u l e s o r c u s t o m s .

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Th r o ug h C a y m a n , U S p e n s i o n s a n d e n d o w m e n t s h a v e a c c e s s t o g l o b a l d i v e r s i f i e d i n v e s t men ts, p o t e n t i a l l y r e d u c i n g g e o gr a p h i c a n d c u r r e n c y r i s k a n d c o n t r i b u t i n g t o h i g h e r r e t u r n s to U S p e n si o n e r s a n d e n d o w m e n t s . A s a r e s u l t o f U S u n i v e r s i t y e n d o w m e n t f u n d s b e i n g i n v e s ted i n C a y m a n f u n d s , t h i s c o n t r i b u t e s t o l o w e r e d u c a t i o n c o s t s f o r A m e r i c a n s t u d e n t s . M a n y s er vi ce p r o v i d e r s t o C a y m a n I s l a n d s a l t e r n a t i v e f u n d s a r e b a s e d i n t h e U S A a n d , i n p a r t i c u l a r, U S ci ti es s u c h a s N e w Yo r k , B o s t o n , C h i c a g o , a n d o t h e r s a r e g l o b a l c e n t e r s o f e x c e l l e n c e f o r t h e a l t e r n ati ve i n v e s t m e n t m a n a g e m e n t i n d u s t r y. T h e i n c o m e o f s u c h s e r v i c e p r o v i d e r s , i n c l u d i n g i n v estmen t m a n a g e r s, i s d e p e n d e n t u p o n t h e f e e s g e n e r a t e d f r o m m a n a g i n g g l o b a l p o o l s o f c a p i t a l wh i ch a r e o f t e n a s s e m b l e d i n t h e C a y m a n I s l a n d s . T h i s i n c o m e g e n e r a t e d c r e a t e s a d d i t i o n a l j o b s an d t a x a b l e r e v e n u e i n t h e U S A a n d h e l p s p r e s e r v e U S c i t i e s ’ p o s i t i o n s a s l e a d i n g f i n a n c i a l c e n ter s by g i v i n g U S - b a s e d m a n a ge r s t h e a b i l i t y t o m a n a g e g l o b a l c a p i t a l w h i c h w o u l d n o t o t h e r w i s e i n vest in a US-based vehicle.

Strong and Diverse Industr y Sectors Th e C a y m a n I s l a n d s F i n a n c i a l S e r v i c e s i n d u s t r y i s l e d b y f i r s t r a t e s e r v i c e p r o v i d e r s w i t h i n i n v estmen t f u n d s a n d a s s e t m a n a g e m e n t , b a n k i n g , i n s u r a n c e , c a p i t a l m a r k e t s , a n d t r u s t s s e c t o r s a n d wo r ld c l a ss f i d u c i a r y, l e ga l , a n d a c c o u n t i n g s e r v i c e p r o v i d e r s a c r o s s t h e i n d u s t r y. Th e c o m b i n e d e f f o r t s o f t h e C a y m a n I s l a n d s G o v e r n m e n t , t h e C a y m a n I s l a n d s M o n e t a r y A u th o r i ty a n d C a y m a n F i n a n c e e n s u r e t h a t t h e f i n a n c i a l p r o d u c t s a n d s e r v i c e s a r e c o n s i s t e n t l y d e l i v e r ed to meet or exceed international standards through excellence, innovation and balance.

Protecting the US and global economies B o t h t h e C a y m a n I s l a n d s a n d t h e C a y m a n I s l a n d s f i n a n c i a l s e r v i c e s i n d u s t r y h a v e b e e n r e c o gn i sed f o r d e c a d e s a s a s t r o n g i n t e r n a t i o n a l p a r t n e r i n c o m b a t i n g c o r r u p t i o n , m o n e y - l a u n d e r i n g , t e r r o r i sm financing and tax evasion. Cayman has gained a reputation as a transparent, cooperative jurisdiction by meeting or e x c e e d i n g a l l gl o b a l l y -a c c e p t e d s t a n d a r d s f o r t r a n s p a r e n c y a n d c r o s s b o r d e r c o o p e r a t i o n wi th law enforcement. Cayman cooperates with international authorities through 3 platforms: • Regulator y matters – Cayman Islands Monetar y Authority (CIMA) • Tax matters – Department of International Tax Cooperation (DITC) • Anti-Money Laundering matters – Financial Reporting Authority (FRA). The OECD recently rated Cayman as “largely compliant” with the international standard for t r a n sp a r e n c y a n d e x c h a n g e o f i n f o r m a t i o n – t h e s a m e r a t i n g g i v e n t o G 2 0 c o u n t r i e s l i k e U K, Ge r m a n y, C a n a d a a n d A u s t r a l i a .

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C a y m a n h a s a d o p t e d a t l e a s t a s m a n y g l o b a l s t a n d a r d s f o r t r a n s p a r e n c y a s a n y G 2 0 c o u n tr y – a n d m o r e , w h e n a gr e e m e n t s s p e c i f i c t o I n t e r n a t i o n a l F i n a n c i a l C e n t e r s ( I F C s ) a n d U K O ver seas Te r r i t o r i e s a r e i n c l u d e d .

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Best in class Ownership Standards Th e C a y m a n I s l a n d s h a s h a d a w o r l d c l a s s v e r i f i e d o w n e r s h i p r e g i m e i n p l a c e f o r m o r e t h an 15 years (see Appendix D). A l l c o m p a n i e s e s t a b l i s h e d i n t h e C a y m a n I s l a n d s m u s t b e f o r m e d u s i n g a l i c e n s e d C a y m a n Islan ds c o r p o r a t e s e r v i c e p r o v i d e r, a n d a n n u a l m a i n t e n a n c e c o s t s f o r a b a s i c c o m p a n y a r e i n t h e r egi o n o f U S $ 2 , 0 0 0 p e r a n n u m . T h e r e i s n o a b i l i t y f o r t h e g e n e r a l p u b l i c t o f o r m C a y m a n I slan ds companies online. Th e i n f o r m a t i o n i n t h e C a y m a n I s l a n d s o w n e r s h i p r e g i m e i s c o l l e c t e d a n d v e r i f i e d b y t h e s e l i c en sed C a y m a n I sl a n d s c o r p o r a t e s e r v i c e p r o v i d e r s u n d e r e x i s t i n g a n t i - m o n e y l a u n d e r i n g a n d k n o w-y o u r c us t o m e r l a w s a n d r e gu l a t i o n s . Th o se sa m e l i c e n s e d C a y m a n I s l a n d s c o r p o r a t e s e r v i c e p r o v i d e r s a r e r e s p o n s i b l e f o r s u b m i s si o n o f b e n e f i c i a l o w n e r s h i p r e g i s t r y i n f o r m a t i o n t o t h e C a y m a n I s l a n d s G o v e r n m e n t , a n d t h a t i n f o r mati o n f o r m s p a r t o f t h e C a y m a n I s l a n d s ’ c u r r e n t e n h a n c e d i n f o r m a t i o n e x c h a n g e a r r a n g e m e n t s w i th th e U K * ( se e b e l o w ) . Th i s c l o se l y r e g u l a t e d c o m p a n y f o r m a t i o n s i t u a t i o n c o n t r a s t s w i t h t h e s i t u a t i o n i n t h e U K . C o m pan i es H o u se i n t h e U K o f f e r s o n l i n e c o m p a n y f o r m a t i o n s e r v i c e s t o t h e g e n e r a l p u b l i c w i t h n o f o r mati o n a g e n t i n v o l v e m e n t f o r a s l i t t l e a s G B P 1 2 . 0 0 p e r c o m p a n y, a n d d o e s n o t r e q u i r e s u b m i s s i o n o f th e a n t i - m o n e y l a u n d e r i n g a n d k n o w -y o u r -c u s t o m e r d o c u m e n t a t i o n w h i c h h a s b e e n s t a n d a r d p racti ce in Cayman for 15 years. Th e i n f o r m a t i o n C a y m a n r e q u i r e s t o b e c o l l e c t e d i s a v a i l a b l e t o t h e a u t h o r i t i e s m a k i n g pr o per r e q u e st s t o C a y m a n I s l a n d s a u t h o r i t i e s t h r o u g h e x i s t i n g i n f o r m a t i o n s h a r i n g c h a n n e l s b e t w e en th e C a y m a n Isl a n d s g o v e r n m e n t a n d t h e U S A a s w e l l a s o t h e r c o u n t r i e s . Th e C a y m a n I s l a n d s d o e s n o t p e r m i t b e a r e r s h a r e s o r a n o n y m o u s n u m b e r e d b a n k a c c o u n t s . * T h e C a ym a n I s l a nd s c o m m e nc e d n e w l a w s o n 1 J u l y 2 0 1 7 t h a t i n t r o d u c e d t e c h n o l o g y - b a se d s ys t e m e n h a n c e m e nt s t o i t s e x i s t i ng i n f o r m a t i o n s h a r i n g a r r a n g e m e n t s w i t h t h e U K , i m p rov i n g t h e s p e e d a t w h i c h r e q u e s t e d i n f o r m a t i o n , i n c l u d i n g b e n e f i c i a l o w n e r s h i p i n f o r m a t i o n ca n b e provided to UK law enforcement.

Not a tax haven Cayman is a transparent, tax neutral jurisdiction and is not a tax haven (see Appendix E). I n t e r n a t i o n a l p o l i c y m a k e r s c o n t i n u e t o r e c o g n i z e t h e v i t a l r o l e C a y m a n ’s f i n a n c i a l s e r v i c e s i n du str y p l a y s a s a s t r o n g i n t e r n a t i o n a l p a r t n e r i n c o m b a t i n g c o r r u p t i o n , m o n e y - l a u n d e r i n g , t e r r o r i st financing and tax evasion.

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C a y m a n m e e t s o r e x c e e d s a l l g l o b a l l y - a c c e p t e d s t a n d a r d s f o r t r a n s p a r e n c y a n d c r o s s bo r der c o o p e r a t i o n w i t h l a w e n f o r c e m e n t . T h i s c o m m i t m e n t t o g l o b a l t r a n s p a r e n c y s t a n d a r d s makes Cayman a ver y unattractive destination for would-be tax evaders. Th e d e f i n i t i o n s o f t a x h a v e n s b y l e a d i n g i n t e r n a t i o n a l o r g a n i s a t i o n s d o n o t a p p l y t o t h e Cay man I sl a n d s a s t h e l e ga l , r e g u l a t o r y a n d l e g i s l a t i v e b a s i s f o r t h e C a y m a n I s l a n d s f i n a n c i a l s er vi ces i n d us t r y c l e a r l y d e m o n s t r a t e s C a y m a n i s a t r a n s p a r e n t , t a x n e u t r a l j u r i s d i c t i o n a n d n o t a t a x h aven .

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Tax neutral Th e C a y m a n I s l a n d s i s t a x n e u t r a l a n d a d d s n o a d d i t i o n a l t a x t o f i n a n c i a l s e r v i c e s t r a n s a c t io n s i n i t s j u r i sd i c t i o n . I n v e s t e e e n t i t i e s a n d i n v e s t o r s a r e s t i l l s u b j e c t t o r e p o r t i n g a n d p a y i n g t h e i r h o me j u r i sd i c t i o n s’ r e l e v a n t t a x e s . I n a d d i t i o n , t h e C a y m a n I s l a n d s m e e t s o r e x c e e d s g l o b a l l y a c cepted s t a n d a r d s f o r t r a n s p a r e n c y a n d c r o s s b o r d e r c o o p e r a t i o n w i t h t a x a u t h o r i t i e s a n d l a w e n f o r c emen t. Th e i m p o r t a n c e o f m a i n t a i n i n g C a y m a n ’s t a x n e u t r a l s t a t u s c a n b e i l l u s t r a t e d b y c o n s i d e r i n g wh at w o ul d h a p p e n w e r e C a y m a n t o i n t r o d u c e d i r e c t c o r p o r a t e t a x o n p r o f i t s o f e . g . C a y m a n I slan ds a l t e r n a t i v e f u n d s . T h i s w o u l d r e d u c e r e t u r n s t o i n v e s t o r s ( i n c l u d i n g U S i n v e s t o r s ) i n t h o s e f u n ds a n d , c o n se q u e n t l y, r e d u c e t h e t a x e s t h a t t h o s e i n v e s t o r s ( i n c l u d i n g U S i n v e s t o r s ) w o u l d i n t u r n be l i a b l e t o p a y i n t h e i r h o m e j u r i s d i c t i o n ( i n c l u d i n g i n t h e U S A ) . I t w o u l d a l s o u n f a i r l y d i s a d v a n tage t h e m a n y i n v e s t o r s i n C a y m a n I s l a n d s a l t e r n a t i v e f u n d s w h o a r e p r i v a t e a n d g o v e r n m e n t p en si o n f u n d s , c h a r i t i e s a n d n o t -f o r -p r o f i t o r ga n i z a t i o n s t h a t a r e n o t s u b j e c t t o t a x i n t h e i r h o m e j u r i s d i cti o n ( i n c l ud i n g i n t h e U S A ) . C a y m a n h a s a d o p t e d a u t o m a t i c e x c h a n g e o f t a x i n f o r m a t i o n w i t h r e l e v a n t a u t h o r i t i e s i n o th er c o u n t r i e s . U n d e r t h e O E C D ’s C o m m o n R e p o r t i n g S t a n d a r d ( “ C R S ” ) a n d U S FA C TA r e g i m e s , b o th o f w h i c h h a v e b e e n i m p l e m e n t e d i n t h e C a y m a n I s l a n d s , C a y m a n p r o a c t i v e l y s h a r e s t a x i n f o r m ati o n w i t h o t h e r g o v e r n m e n t s – a l e v e l o f t r a n s p a r e n c y w h i c h e s s e n t i a l l y a s s i s t s t h e m i n t h e c o l l e c ti o n o f their own taxes, regardless of what their unique tax laws are.

Cayman’s Globally Responsible, Effective Tax Regime L i k e a l l o t h e r j u r i s d i c t i o n s , C a y m a n h a s t h e r i g h t t o e s t a b l i s h a t a x r e g i m e t h a t c o l l e c t s t h e r i gh t t a x e s f r o m t h e r i g h t p e o p l e a t t h e r i g h t t i m e w i t h i n i t s j u r i s d i c t i o n . U n l i k e o t h e r j u r i s d i cti o n s, C a y m a n h a s c h o s e n t o u s e f e e s a n d ot h e r t a x e s i n s t e a d o f a n a c r o s s - t h e - b o a r d c o r p o r a t e i n co me tax. C a y m a n ’s gl o b a l l y r e s p o n s i b l e t a x r e g i m e m e e t s o r e x c e e d s t h e r e v e n u e t a r g e t s u s e d b y o th er l e a d i n g c o u n t r i e s a r o u n d t h e w o r l d , g e n e r a t i n g g o v e r n m e n t t a x a t i o n r e v e n u e e q u a l t o a p p r o x imately 2 2 % o f o ur G D P ( 2016) . I t ’s a t a x a t i o n r e v e n u e r a i s i n g s y s t e m t h a t w o r k s w e l l f o r o u r j u r i s d i cti o n a n d v e r y a d e q u a t e l y f u n d s o u r g o v e r n m e n t o p e r a t i o n s a n d k e e p s o u r d e b t - t o - G D P r a t i o m o dest. Ta x e v a s i o n i s u n l a w f u l a n d t h e C a y m a n I s l a n d s d o e s n o t s u p p o r t i t . Cayman has in place globally-accepted standards for transparency and cross border cooperation with tax authorities and law enforcement. C a y m a n d o e s n o t h a v e a n y d o u b l e t a x a t i o n a g r e e m e n t s ( o r t r e a t i e s ) t h a t c o u l d b e u s e d t o un f ai r ly s h i f t t a x b a s e f r o m a n o t h e r c o u n t r y t o C a y m a n . ( I t s h o u l d b e n o t e d t h a t , t e c h n i c a l l y, C ay man h a s si g n e d a D T T w i t h t h e U K , b u t i t i s m e r e l y t h e f o r m i n w h i c h t h e U K p r e f e r r e d t o h ave i ts t a x i n f o r m a t i o n e x c h a n g e a g r e e m e n t w i t h C a y m a n e x e c u t e d a n d t h e a g r e e m e n t p r o v i d e s n o tax benefits to Cayman as Cayman does not have any taxes covered by the agreement.)

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Th i s r e sp o n s i b l e a p p r o a c h t o t a x a t i o n i s c e n t r a l t o T h e C a y m a n M o d e l a n d a d i s t i n g u i s h i n g f eatu r e o f o ur j u r i sd i c t i o n a m o n g I n t e r n a t i o n a l F i n a n c i a l C e n t e r s ( “ I F C s ” ) m a n y o f w h i c h h a v e e x ten si ve double tax treaty networks.

Resilience of the Cayman Islands Th e C a y m a n I s l a n d s h a s h i s t o r i c a l l y a l w a y s b e e n s e l f - f u n d e d a n d d o e s n o t r e q u i r e f u n d i n g f r o m t h e U n i t e d K i n gd o m o r o t h e r gl o b a l b o d i e s . T h i s h a s b e e n t h e c a s e e v e n i n t h e a f t e r math o f significant natural events such as hurricane Ivan that impacted the Islands in 2004. The Ca y ma n Is l a n d s : A n Ex t e n d e r o f Va l ue to th e USA

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Cayman has a stable and fiscally responsible government. C a y m a n s s t r o n g l e g a l f r a m e w o r k i s b a s e d o n U K C o m m o n L a w w i t h a s p e c i f i c d i v i s i o n o f th e C a y m a n C o u r t s f o c u s e d o n f i n a n c i a l s e r v i c e s c a s e s t h a t h a s t h e U K P r i v y C o u n c i l a s t h e u lti mate c o u r t o f a p p e a l s . T h e C a y m a n C o u r t s h a v e , o v e r t h e y e a r s , d e v e l o p e d b e n e f i c i a l l e g a l p r e c eden ts t h a t a r e i m p o r t a n t t o t h e c e r t a i n t y a n d p r e d i c t a b i l i t y o f g l o b a l f i n a n c i a l s e r v i c e s t r a n s a c t i o n s an d arrangements. Th e f i n a n c i a l s e r v i c e s i n d u s t r y i s w o r l d c l a s s a n d i s t h e e n g i n e t h a t d r i v e s t h e C a y m a n I slan ds e c o n o m y, c o n t r i b u t i n g o v e r U S $ 3 0 0 m i l l i o n ( > 5 0 % ) i n r e v e n u e t o t h e l o c a l g o v e r n m e n t , a nd o ver U S $ 1 . 5 b i l l i o n t o w a r d G D P ( a g a i n , m o r e t h a n 5 0 % ) . F i n a n c i a l s e r v i c e s i s a l s o t h e s e c t o r p r ovi di n g t h e l a r g e s t n u m b e r o f j o b s , w i t h a p p r o x i m a t e l y 4 , 0 0 0 C a y m a n i a n s w o r k i n g i n t h e i n d u s t r y.

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Th e sa m e w a y t h a t t e c h n o l o g y i s n o w e s s e n t i a l g l o b a l l y, i n v e s t m e n t c a p i t a l a n d f i n a n c i n g h ave b e e n , a n d w i l l c o n t i n u e t o b e , c r i t i c a l t o t h e s u c c e s s f u l g r o w t h a n d d e v e l o p m e n t o f e c o no mi es a r o un d t h e w o r l d . T h e C a y m a n I s l a n d s i s w e l l p o s i t i o n e d t o c o n t i n u e t o e f f i c i e n t l y s u p p or t th at g l o b a l g r o w t h a n d d e v e l o p m e n t a s a t r u s t e d p r e m i e r g l o b a l f i n a n c i a l h u b t h a t i s p r o u d t o be a B r i t i sh O v e rs e a s Te r r i t o r y t h a t s u p p o r t s t h e s u c c e s s o f t h e U n i t e d S t a t e s o f A m e r i c a i n t h e glo bal e c o n o m y.

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His t o r ic rec ognition of the benef i ts of the Cayman Isla n d s A l e a d i n g i n t e r n a t i o n a l p u b l i c a t i o n , t h e U K - b a s e d F i n a n c i a l Ti m e s s a i d t h e f o l l o w i n g a b ou t th e C a y m a n I sl a n d s a n d o t h e r i n t e r n a t i o n a l f i n a n c i a l c e n t e r s : “ T h e y a r e c e n t r e s o f e x p e r t i s e t h at can a l l o w l e g i t i m a t e i n t e r n a t i o n a l t r a n s a c ti o n s t o t a k e p l a c e u n d e r a s o u n d l e g a l s y s t e m a n d wi th o u t un p i c k i n g a t a n gl e o f c l a s h i n g i n t e r n a t i o n a l r e g u l a t i o n s . ” [ A s t r o n g t a x s y s t e m d o e s n ’t r ely o n n a m i n g a n d s h a m i n g , F i n a n c i a l Ti m e s , A p r i l 2 0 1 6 ] Th e U n i t e d K i n gd o m G o v e r n m e n t n o t e d t h a t “ B e r m u d a , t h e B r i t i s h V i r g i n I s l a n d s a n d t h e C ay man I sl a n d s h a v e d e v e l o p e d i m p o r t a n t n i c h e p o s i t i o n s i n i n t e r n a t i o n a l f i n a n c i a l m a r k e t s . T h e U K G o v e r n m e n t s t r o n g l y b e l i e v e s t h a t Te r r i t o r i e s w h i c h m e e t f i n a n c i a l s e c t o r i n t e r n a t i o n a l s t a ndar ds s h o u l d b e f r e e t o c o n t i n u e t o c o m p e t e i n i n t e r n a t i o n a l m a r k e t s w i t h o u t d i s c r i m i n a t i o n .” [ Th e O v e r se a s Te r r i t o r i e s – S e c u r i t y, S u c c e s s a n d S u s t a i n a b i l i t y, F o r e i g n & C o m m o n w e a l t h O f f i c e, Ju n e 2012] Th e U S Go v e r n m e n t A c c o u n t a b i l i t y O f f i c e R e p o r t t o t h e C h a i r m a n a n d R a n k i n g M e m b e r, C o m mi ttee on Finance, US Senate (July 2008): • Factors that attract U.S.-related financial activity to the Cayman Islands include its reputation for stability and compliance with international standards, its business-friendly regulator y environment and its prominence as an international financial center. • Officials from the Export-Import Bank of the United States (“Ex-Im”) stated that Cayman Islands law gives them confidence that they will have less difficulty reclaiming assets if a party in an Ex-Im-backed transaction defaults. • [The Cayman Islands] has a robust financial ser vices sector, which includes several major law firms and other locally based ser vice providers, as well as prominent international accounting and audit firms, fund administrators, and banking institutions. The high volume of existing Cayman-based financial activity may also be responsible for drawing additional business. Finally, U.S. persons may carry out activity in the Cayman Islands because of its reputation as a neutral jurisdiction for structuring deals with foreign partners.

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T h e C a y m a n I s l a n d s h a v e a l w a y s b e e n a s t r o n g p a r t n e r o f t h e U n i t e d S t a t e s o f A m e r ica, i ts P e o p l e , a n d t h e U S A’s E c o n o m y a n d w i l l c o n t i n u e t o b e a s t r o n g p a r t n e r f o r m a n y y e a r s t o co me.

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Appen dic es A. Su ppo r ti ng G 2 0 M u l ti l a ter a l Ai d t o t h e D e ve l o p i n g Wo r l d B. Impor t a nc e o f I F C s i n the g l o b a l e co n o m y C. G20 P l u s G l o b a l F i na nc ia l A g r e e m e n t s D. Cayma n I s l a nd s Ve ri fi e d O w n e r s h i p R e g i m e

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E . Not a Ta x H a v e n

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Appendix A

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Su ppor tin g G 20 M u l ti l a te ra l Ai d t o t h e D e ve l o p i n g Wo r l d

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funds small and medium-sized agriculture projects in Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay.

$70

from the World Bank Groups’ International Financing Corporation to Cayman-based investment fund.

DEVELOPMENT LOAN

MILLION

• Transparent jurisdiction as was most recently recognized by its inclusion on the Italian “good tax governance” White List.

• Meets or exceeds all globally-accepted standards for transparency and cross border cooperation with law enforcement, including those of OECD.

• Recognized for decades as a strong international partner in combating corruption, money-laundering and tax evasion.

Cayman is also one of the few places that meet the IFC’s stringent standards for investments in Intermediate Jurisdictions:

• The Quality and Experience of our Professional Service Providers. • The Cayman Islands Government’s commitment to the Financial Services industry. • Has taken a leadership role in international regulatory issues • Our Innovative Approach to developing Products and Services that benefit the global market. • Neutral platform that does not add additional tax frictions to international investments and finances.

Cayman’s strengths:

Multilateral development organizations like the IFC choose to invest resources using Cayman as an effective financial hub. because it offers an efficient & effective neutral platform that enables parties from around the world with differing laws, regulations, tax structures and customs to benefit from doing business with each other.

Why Cayman?

The Cayman Islands is a premier global financial hub, connecting law-abiding users and providers of investment capital and financing around the world. We play a critical role in the success of the global financial economy, benefiting both developed and developing countries. One of the best examples of this role is Cayman’s efficiently supporting funding by global multilateral organizations like the World Bank Group’s International Finance Corporation (IFC) into development projects to promote economic growth in emerging markets around the world. In 2015 alone the IFC invested more than $400 million in ten different Cayman-based investment vehicles to support critical telecom, energy, agriculture, technology, venture capital and manufacturing development projects in more than 24 developing countries. One of those investments was a $70 million loan from the IFC to support small- and medium-sized agriculture projects in Latin America. This is particularly important as, according to the IFC, “Agribusiness sectors generally do not enjoy good access to finance and financing for smaller- and medium-sized companies in Emerging Market countries is especially in short supply.”

Premier Global Financial Hub efficiently supporting G20 Multilateral Aid to the Developing World

CAYMAN-BASED FINANCING

MILLION

$70

An example of the Cayman Islands supporting access to financing for smaller and medium-sized companies in Emerging Markets

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Appendix B

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Impor tance o f I F C s i n the gl ob a l e co n o m y

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The importance of international finance centres in the global economy Key points 

International finance centres (IFCs) have developed to facilitate cross-border activities in a world in which global trade is increasingly significant

IFCs serve an important role in the global economy. By providing efficient and effective neutral platforms for facilitating cross-border investment, parties around the world with differing laws, regulations and tax systems can do business with each other

The economic and fiscal benefits of the investment mediated by IFCs are clear. They facilitate trillions of dollars of investment, which supports jobs, growth, and consequent tax revenues around the globe

1. International finance centres have developed to provide services that facilitate cross-border activities in a world where global trade is increasingly significant International finance centres (IFCs) are part of a global economic system that facilitates more efficient trade in goods and services between nations, and helps to increase overall levels of wealth and prosperity in both developed and developing economies. The world’s economies continue to move closer together. Over recent decades, global prosperity has been boosted by greater trade and investment across borders, with international trade growing from 25% of global GDP in the 1970s to 60% today.1 This is positive for the global economy. Trade is a mutually beneficial process that has enriched almost every nation on Earth in recent decades and centuries. In a world where national boundaries have ever-decreasing significance to people and to businesses, it should come as no surprise that there is demand for services that facilitate efficient and secure crossborder transactions. Exports are strongly correlated with possessing more developed financial markets, with countries where banks lend 100% more of GDP to business exporting 6.5 times as many product lines internationally.2 However, with many countries lacking the financial infrastructure to facilitate that lending, IFCs have evolved to meet the needs of global businesses and investors.

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Increased cross-border trade and mobility isn’t restricted to goods, services, or people. Capital markets are increasingly global – with investors seeking diversification beyond national borders to reduce risk and borrowers accessing wider sources of finance to reduce borrowing costs. IFCs play a vital role in helping these global investment flows. 1 Robert Feenstra, Robert Inklaar, and Marcel Timmer (2015): “The Next Generation of the Penn World Table”. American Economic Review 105(10), pp.3150-3182 2 Kalina Manova (2013): “Credit Constraints, Heterogeneous Firms, and International Trade”. The Review of Economic Studies 80(2), pp711-744

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Substantial investments by businesses and governments in new housing, industrial and commercial premises, airports and roads, computers and telecoms infrastructure, or plant and equipment – as well as softer intangibles like research and development – are increasingly financed internationally. Meanwhile, the local banks and financial services firms that offer the credit cards, overdrafts, mortgages, and lease agreements to support consumers’ purchases of their cars, consumer goods, and homes increasingly depend upon international capital markets to provide liquidity and keep costs down. In this way, what appears to be the obscure and remote world of international finance provides the ‘financial investment’ that helps to deliver the ‘economic investment’ that matters to the real lives of employees, families, and businesses. Globalisation of capital brings material advantages to investors, firms, and consumers. These include:

Reducing the cost of borrowing by providing access to deeper capital markets and increasing competition between lenders

Increasing returns to investment by facilitating the pooling of investments and their diversification across a wider range of international assets: reducing risk

Providing investors with greater opportunities to match their portfolios of investments to their desired profiles of risks and expected returns

Making insurance cheaper by allowing risks to be reinsured cost-effectively around the world by investing in geographies or assets with differing risks

Preventing domestic credit crunches by facilitating borrowing from abroad to offer respite during temporary recessions or natural disasters

Providing investment into less developed countries with limited domestic capital, thereby promoting economic growth in countries with low savings potential

At the global level, international capital markets channel the world’s savings to their most productive uses – irrespective of location. IFCs have developed the expertise and specialisation to foster these cross-border flows. 2. International finance centres offer a wide array of benefits, and serve an important role in the global economy

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IFCs offer this wide array of benefits by providing highly-specialised environments that are tailored to cater for the needs of international commerce and the pooling of international investments:

Jurisdictional neutrality. A location that is independent of the home jurisdictions of the various counterparties where transactions can be conducted, whilst adding little or no additional cost. This can be important, for example, when forming joint venture vehicles between organisations from different countries.

Tax neutrality. Tax neutrality means that investments do not pay additional taxation just because they are pooled in such a neutral jurisdiction, although they still pay taxes where funds are invested and where the investor is based. Assets and investment funds can be

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pooled, grown, and distributed across borders without imposing any additional taxation. This is important, for example, when developing fund structures to attract international investors and/or to invest in a portfolio of assets across borders.

Regulatory specialisation. Bespoke regulation that allows specific sectors located in IFCs to avoid the unintended inefficiencies of ‘catch-all’ regulation of larger jurisdictions that are often aimed at protecting retail investors that are based there. IFCs may be able to concentrate resources on regulating specific types of financial sector activity effectively, while larger countries have to spread regulatory resources across a wider range of activities.

Country risk mitigation and protection of wealth. Keeping assets protected from potential loss, damage, or sequestration resulting from socio-political instability or delinquent legal, regulatory, or enforcement institutions in a particular country.

Specialist and expert services. Many IFCs offer particular niche services, such as private banking, asset management, and reinsurance. These centres often focus in a particular business sector and even market segment, providing a high degree of specialisation and expertise attractive to clients and providing a neutral location for administrative tasks

Access to capital markets. IFCs have strong links with capital markets across the globe. Banks, trust companies, legal practices, and accountancy firms are closely networked into their counterparts in major cities across the world, and can provide their clients with access to these centres’ liquidity and expertise.

3. International finance centres support jobs and economic activity. Governments around the world benefit significantly from the economic activity that is supported by international investment mediated through these centres The investment mediated by IFCs supports economic activity, jobs and incomes around the world. It provides the underlying finance that enables real world economic investment in housing, businesses, or infrastructure – or the essential liquidity for the secondary markets that underpin and provide confidence in these real world primary investments. We examine the global value of the British Virgin Islands (BVI), the Cayman Islands, and Jersey’s finance centres as examples. We estimate that the foreign investment mediated through the BVI, the Cayman Islands, and Jersey in 2016 was $1.5 trillion, $4.5 trillion, and $1.8 trillion respectively. The investment mediated by the BVI and Jersey supports 2.2 and 2.3 million jobs respectively, while the investment mediated by the Cayman Islands supports in the region of 5.0 million jobs (see Figure 1).

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The economic activity and jobs supported by the investment mediated by these jurisdictions will generate tax revenues for governments around the world. Governments benefit significantly from the economic activity that is supported by international investment mediated through these jurisdictions. For example, our estimates suggest that investment through the Cayman Islands, supports tax revenues for the United States government to the tune of roughly $60 billion, while the United Kingdom government benefits in the region of $20 billion from Jersey’s activities.3

3

These are indicative estimates based on the best evidence available and are intended to provide an idea of the broad scale of the benefits rather than be precise estimates.

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Figure 1: Investment mediated by the BVI, the Cayman Islands and Jersey’s international finance centres by location of underlying asset ($ billion) and employment related to investment (thousand people), 2016 United Kingdom Investment 170 590 1,000

BVI Cayman Islands Jersey

Jobs 150 520 840

United States and Canada BVI Cayman Islands Jersey

Investment 90 3,100 180

Jobs 80 2,810 170

Europe excluding the United Kingdom BVI Cayman Islands Jersey

BVI Cayman Islands Jersey

Jobs 330 280 130

Jobs 290 170 330

BVI + Cayman Islands + Jersey China and Hong Kong BVI Cayman Islands Jersey*

Latin America including the Caribbean Investment 110 100 40

Investment 330 200 380

Investment 610 140 -

Jobs 870 140 -

Rest of world BVI Cayman Islands Jersey

Investment 150 380 270*

Jobs 440 1,140 820*

Source: Capital Economics. *Note: The investment mediated through Jersey from China and Kong Hong is included in the Rest

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of World estimates.

Disclaimer: This note has been commissioned by IFC Forum from Capital Economics, an independent macroeconomics research consultancy. The views expressed remain those of Capital Economics and are not necessarily shared by IFC Forum. While every effort has been made to ensure that the data quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Capital Economics Limited and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or investments.

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Appendix C

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Impor tance o f I F C s i n the gl ob a l e co n o m y

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“G20 PLUS” GLOBAL FINANCIAL AGREEMENTS

The Cayman Islands has earned its place among G20 Plus jurisdictions because it is a premier global financial hub, connecting law-abiding users and providers of investment capital and financing around the world - benefitting both developed and developing countries. The Cayman Islands has also built a reputation for transparency by meeting or exceeding globally-accepted standards for transparency and cross border cooperation with law enforcement.

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Both the Cayman Islands and the Cayman Islands financial services industry have been recognised for decades as strong partners with other leading jurisdictions and industries in promoting transparency to combat corruption, moneylaundering, terrorism financing and tax evasion. These leading jurisdictions – G20 countries and a few select International Financial Centres such as the Cayman Islands, Bermuda, Jersey and Guernsey – make up the G20 Plus.

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countries such as the UK, Germany, Canada and Australia. The Cayman Islands has been delivering on its prior commitments to cooperate with the EU as well as the OECD as one of the 120-member jurisdictions in the BEPS Inclusive Framework. That has included advancing legislation to meet an evolving global business framework in compliance with OECD global standards.

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As the chart below shows, the Cayman Islands has adopted at least as many global standards for transparency and crossborder cooperation as any G20 country – and more, when agreements specific to International Financial Centres (IFCs) and UK Overseas Territories are included. The OECD’s latest assessment rated the Cayman Islands as “largely compliant” with the international standard for transparency and exchange of information – the same rating given to other G20 Plus

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Appendix D

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Cayman I s l a nd s Ve ri fi e d Ow n e r s h i p R e g i m e

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Does a verified ownership regime or a self-reporting public register provide a jurisdiction with the best protection from criminal and illicit use of the jurisdiction and its financial system?

Honest People Honest people will follow the law so an ownership register isn’t really targeted at them. However, a verified ownership regime will ensure all information is accurately collected and available to authorities.

Protected by:

self-reporting public ownership register

Verified ownership regime

Opportunistic People Opportunistic people will likely follow the law but may choose to cut corners if they see an advantage and there are no consequences for doing so. A self-reporting ownership regime enables them to report information inaccurately with little likelihood of consequences, even if the information is public. A verified ownership regime acts as a deterrent because it requires an independent evaluation of the information they provide, which will encourage – and enforce – honest reporting.

Protected by: Verified ownership regime

?

self-reporting public ownership register

Criminals Criminals have no intention of following the law. They also have no intention of reporting their illegal activities. So, they will provide false information under a self-reporting ownership regime with very little likelihood that it is discovered, even if the information is public. And if it is discovered, there may be no way to determine who is behind it. A verified ownership regime requires an independent evaluation of the information they provide, which will serve as a greater deterrent to illegal activity and will identify potentially questionable activity if it is attempted.

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Protected by: Verified ownership regime

self-reporting public ownership register

*Cayman has had in place for over 15 years AML/KYC/CFT and verified ownership regulations. By law the information is available for legitimate cross-border regulatory, tax and money laundering investigations.

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Appendix E

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Not a Ta x H a v e n

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THE CAYMAN ISLANDS IS A TRANSPARENT, TAX NEUTRAL JURISDICTION, NOT A TAX HAVEN The Cayman Islands is a premier global financial hub efficiently connecting law abiding users and providers of investment capital and financing around the world — benefiting developed and developing countries which use this investment capital to finance economic activity which helps create jobs and taxable revenue and improved infrastructure in those countries. International policymakers continue to recognise the vital role Cayman’s financial services industry plays as a strong international partner in combatting corruption, money-laundering, terrorist financing and tax evasion. Cayman has an effective and predictable globally responsible tax system, and meets or exceeds all globally-accepted standards for transparency and cross border cooperation with law enforcement. This commitment to global transparency standards makes Cayman a very unattractive destination for would-be tax evaders or aggressive tax avoiders. A review of the definitions of a tax haven used by leading transparency organizations contrasted with the real legal, regulatory and legislative basis for the Cayman Islands financial services industry clearly demonstrates Cayman is a transparent, tax neutral jurisdiction and not a tax haven. WHY THE CAYMAN ISLANDS IS NOT A TAX HAVEN

WHAT IS A TAX HAVEN?

Levies “no or nominal tax on the relevant income” though it’s important to note that “no or nominal tax is not sufficient in itself to classify a country as a tax haven.” (OECD)

Cayman: –

Has an effective tax system whereby total government tax revenues as a percentage of GDP are similar to tax rates in G20 countries and sufficient to fund government operations. Therefore additional taxes such as corporate income taxes have never been necessary.

Has transparent effective tax rates.

Does not have differing tax rates for foreign entities.

Does not have legal mechanisms or treaties (such as double taxation agreements) in place with other countries to legally transfer tax bases from one country to another in order to aggressively reduce taxes.

Does not promote itself as a jurisdiction for aggressive tax planning.

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WHY THE CAYMAN ISLANDS IS NOT A TAX HAVEN

WHAT IS A TAX HAVEN?

Grants “favourable tax treatment which can benefit non-residents.” (Transparency International)

Cayman:

Has a “lack of effective exchange of information” (OECD)

Cayman:

A “secrecy jurisdiction” that encourages “the relocation of otherwise foreign economic and financial transactions through strong privacy protection rules” and ensures “that the identity of those relocating their money through them cannot be disclosed.” (Transparency International) Provides “facilities that enable people or entities [to] escape (and frequently undermine) the laws, rules and regulations of other jurisdictions elsewhere, using secrecy as a prime tool.” (Tax Justice Network; emphasis in original)

Offers no tax incentives designed to favour non-resident individuals or businesses.

Signed its first Mutual Legal Assistance Treaty with the USA in the 1980s.

Has tax information exchange agreements with 36 jurisdictions; the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which allows tax information exchange with more than 90 countries; automatic data exchange as part of the European Union Savings Directive; and has adopted US FATCA, UK FATCA and was an early adopter of the OECD’s Common Reporting Standard.

Cayman: –

Has operated a verified beneficial ownership regime for over 15 years that provides for due diligence and know-your-customer checks by licensed regulated Corporate Service Providers that are critical to proper law enforcement authorities conducting legitimate investigations and is superior to self-reporting systems adopted by other countries.

Adheres to the same high global standards for transparency and cross border cooperation as G20 countries and other top International Financial Centres (IFCs) - together the “G20 Plus.” It has been rated “Largely Compliant” by the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, the same rating given to the UK, Germany, Italy and the USA.

Does not have numbered accounts.

Does not have bearer shares.

Does not have shell companies.

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MISSION STATEMENT To protect, promote, develop and grow the Cayman Islands financial services industry through cooperation and engagement with domestic and international political leaders, regulators, organisations and media; to promote the integrity and transparency of the Industry by legislative and regulatory enactment and to encourage the sustainable growth of the Industry through excellence, innovation and balance.


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The Cayman Islands: An Extender of Value to the USA  

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