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This section provides detailed information on Cayman banks; how to open a bank account whether for personal use or for a business; investing in Cayman and what the laws are; what it takes to get a local mortgage. We look at telecommunications in Cayman, internet providers and monthly costs; how to connect up your utilities whether electricity, water, cable, or cooking gas. We talk about postal costs and courier fees; Cayman's insurance scene and the costs of health, property and life insurance; the local laws on pensions and empoyer/employee contributions; how to renew your passort once you are here; Basically everything you will need to know about settling into the Cayman Islands!
Money & Banking
Opening a Personal Bank Account
All banks in the Cayman Islands adhere to mandatory due diligence requirements, which means they will perform fairly extensive checks before they open an account for you. There are no social security numbers here and no credit checks are run, so they need to check fairly diligently that you are legitimate and that no money is going to be laundered. The banks will need some or all of the following:
● Bank reference from your current bank. This must be addressed specifically to the bank in the Cayman
Islands and must include how long you have banked there (i.e. minimum of three years), the average
balance and manner in which your account has been conducted;
● A letter from your Cayman employer stating the origin of your funds, the position or job you have with
the company and the length of time you will be employed with them;
● Your driver’s licence and passport (they will photocopy your licence and the pages of your passport);
● One form of physical address confirmation, such as your local Cayman electricity bill;
● Your full name and residential address, your phone and fax number, your nationality, date and place of
birth, occupation and the name and address of your employer.
Note: Some banks will not offer chequing facilities to a new account holder who has just arrived on the Island. However, they will offer you a savings account and a debit card.
Opening a Business Bank Account
For a company incorporated in Cayman, the bank or trust company will need the following:
● Full incorporation paperwork;
● Bank references from your current bank;
● All directors, members and signatories need to supply all the information needed for a personal bank account.
Local Banks
Butterfield Bank (Cayman) Limited
PO Box 705, Grand Cayman KY1-1107
Tel: (345) 949 7055 Fax: (345) 949 7004
Email: info@butterfieldbank.ky
www.butterfieldbank.ky
Branches: Butterfield Place Branch (GT); Compass Centre Branch (GT); Governors Square Branch (SMB)
Cayman National Bank Ltd.
PO Box 1097, Grand Cayman KY1-1102
Tel: (345) 949 4655 Fax: (345) 949 7506
Email: cnb@caymannational.com
www.caymannational.com
Branches: Edward Street (GT); Elgin Ave (GT); Buckingham Square on West Bay Road (SMB); Centennial Towers (WB); Savannah; Little Cayman; Cayman Brac.
Fidelity Bank (Cayman) Ltd.
PO Box 914, Grand Cayman KY1-1103
Tel: (345) 949 7822 Fax: (345) 949 6064
Email: bank@fidelitycayman.com
www.fidelitycayman.com
Branches: Cayman Financial Centre, Dr. Roy’s Drive (GT); Marquee Plaza (SMB).
FirstCaribbean International Bank
PO Box 68, Grand Cayman KY1-1102
Tel: (345) 949 7300 Fax: (345) 815 2190
Email: care@firstcaribbeanbank.com
Branches: Downtown George Town;
Safehaven, West Bay Road (SMB); and Plaza Venetia, North Sound Rd.
HSBC
This international bank is due to open a commercial branch in Grand Cayman in the spring/summer of 2008.
Royal Bank of Canada
PO Box 245, Grand Cayman KY1-1104
Tel: (345) 949 4600 Fax: (345) 949 7396
www.rbcroyalbank.com/caribbean
Branches: 24 Shedden Rd (GT); Queens Court, West Bay Rd (SMB).
Scotiabank & Trust (Cayman) Ltd.
PO Box 689, Grand Cayman KY1-1107
Tel: (345) 949 7666 Fax: (345) 945 3694
Email: scotiaci@candw.ky
Branches: Cardinal Ave (GT); Foster’s Airport
(GT); and The Strand (SMB).
Electronic Banking, On-Line Banking & ATMs
Butterfield Bank, Cayman National Bank, Fidelity Bank, FirstCaribbean International Bank, Scotiabank, and Royal Bank of Canada offer electronic and on-line banking. Some have more user friendly websites than others. ATMs are offered by Butterfield Bank, Cayman National Bank, Royal Bank of Canada, Fidelity, FirstCaribbean International Bank and Scotiabank. When HSBC opens they will also have full on-line banking and ATM machines.
Getting a Mortgage
Any of the local Class A banks (as above) can lend money. It’s sensible to shop around as rates are getting more competitive and the percentage above prime (from 1 to 5%) can be negotiated. The usual term for a mortgage is 25 years and expatriates may be asked to provide upwards of 20% as a deposit. Also consider that on the purchase of every property, stamp duty is payable (usually at the rate of 6% or 7.5% depending on the area) and a 1% stamp duty is payable on mortgages of less than CI$300,000 and 1.5% on mortgages of CI$300,000 or higher. If you think you will be here for a few years, buying can be a good investment and you may well pay less on your mortgage than if you rented the same property. However, when calculating the amount you need to show a profit, remember that real estate agents’ fees are between 5% and 10% of the purchase price.
Asset Management
Investing in the Cayman Islands may be a whole different ball game from what you are used to at home. Thankfully, there are plenty of professionals who can help guide you through the myriad of investment options. Significant benefits can be gained by investing in the Cayman Islands, including no income tax or capital gains tax and a more diversified range of investment products to choose from. Whether you are a control freak or prefer to let the experts earn their keep, there will certainly be an option to fit your needs.
Brokerage firms here offer a range of client account types and a full suite of products. You will have access to the full spectrum of offshore hedge funds with choices ranging from low volatility funds to those which are aggressive and specialised. You will also find that you have access to a wide range of interest bearing securities, structured notes (including equity link notes) and step up bonds; in addition to full access to the Eurobond market in multiple currencies. There really is an endless array of product options.
If you are more of a traditionalist then you may prefer to stay with the types of services you are used to back home. Brokers in Cayman can offer traditional, execution only, brokerage style accounts where little or no advice is given. These accounts can be commission or fee-based. Alternatively, there are managed account options where the client can still have significant input or opt for a fully managed discretionary portfolio employing professional money managers. Managed accounts tend to be fee-based and you will find the fee-based accounts to be competitive in their pricing structure.
There are not a lot of monthly contribution-style accounts because of the lack of deferred tax planning necessary. However, a number of the large retail banks and brokerage firms will structure a traditional brokerage account to receive monthly contributions and to re-invest those contributions into a portfolio of mutual funds and hedge funds.
Basically there are two things to think about when you are investing in Cayman: Legal and tax compliance considerations and the actual asset management process. The following is a list of companies which can help with your needs:
Butterfield Bank (Cayman) Limited
Butterfield House, 68 Fort Street
PO Box 705, Grand Cayman KY1-1107
Tel: (345) 949 7055 Fax: (345) 949 7004
Email: investments@butterfieldbank.ky
Cayman National Securities
62 Forum Lane, Camana Bay
PO Box 275, Grand Cayman KY1-1104
Tel: (345) 949 4655 Fax: (345) 949 8203
Coutts (Cayman) Limited
Coutts House, West Bay Road
PO Box 707, Grand Cayman KY1-1107
Tel: (345) 945 4777 Fax: (345) 945 4799
RBC Dominion Securities (Global) Ltd.
Royal Bank House, 4th Floor
PO Box 1095, Grand Cayman KY1-1102
Tel: (345) 949 4066 Fax: (345) 949 0092
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