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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!
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 thoroughly 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 your choice of 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. It must be the original copy and if a husband and wife are sharing a bank account, they both have to be referenced in the letter. Please note it is much easier to get this letter right before you leave your home country and bring it with you.
> 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.
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.
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. When you change jobs you must get a job letter from your new employer stating how much you are earning and submit this to the bank.
Local Banks
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 (GT); Compass Centre Branch (GT); Governors Square Branch (SMB)
Branch services: Accounts, Online Banking, ATMs, Credit Cards, Debit Cards, Currency Exchange, Wire Transfers, Bank Drafts, Utility Bill Payment, Night Deposit Facilities, Safety Deposit Boxes, Standing Orders, Saturday Banking, Mortgage Services, Loans.
Other: Credit References, Home Insurance, Trust Services and Investment Management.
Electronic Banking, Online Banking & ATMs
All the banks offer internet banking but some are definitely more sophisticated and user friendly than others, so if online banking is important to you, or what you are used to at home it is definitely worth asking around as to the usability of each bank’s online capabilities. For example it is currently not possible to transfer money online from a personal account to another’s bank account at another bank (without involving personnel at the bank and it incurring a cost). At Butterfield and HSBC you can transfer money to another person’s account if they also bank at Butterfield or HSBC (without involving bank personnel). What is really convenient is that with online banking you can pay almost all your monthly bills online as well as many school fees or random bills.
ATM machines are available at almost all the bank branches and at all the supermarkets. You can use another bank’s ATM machines to withdraw money but it will incur a fee of around CI$1.25 for each withdrawal with most banks.
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.
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