Banking in the Cayman Islands: The Ultimate Guide

When you think of offshore banking, the Cayman Islands is among the first countries that come to mind, partly due to how it’s portrayed in movies and the media. 

However, the truth about banking in the Caymans is far from Hollywood fiction. It’s no longer a place for unscrupulous characters to hide money – in fact, it’s now highly sought-after in the world of offshore banking. 

The Cayman Islands’ reputation as a financial haven is well-founded, underlined by its position as a leading global financial centre that holds nearly US$7 trillion in deposits. 

‌It’s also home to three-quarters of the world’s hedge funds.

‌Since Caymanian banks aren’t reliant on a high volume of clients, they can afford to be selective, ensuring that all incoming funds are legitimate and originate from reputable sources.

In terms of offshore jurisdictions, banking in the Cayman Islands is the crème de la crème. Its high incorporation costs attract hedge funds and wealthy individuals, making it a hub for high-value finance. 

It’s more expensive than Dubai and Hong Kong and significantly more so than jurisdictions like Belize and Seychelles. Simply put, it’s not a place for bargain hunters.

However, if you can afford the fees, hold Cayman Island residence or have strong ties to the country‌ and money to invest, then banking in the Cayman Islands can be a great option.

Here, we discuss the benefits of banking in the Cayman Islands, who it will work best for, how to open an account and banking options that might fit your profile.

Benefits of Banking in the Cayman Islands

Caymanian banks are staffed with highly sophisticated professionals experienced in international banking. They also have expert knowledge of the non-resident banking scene and various tools to support your lifestyle. 

Their services are what you’d expect from other top offshore banking facilities. They offer first-rate asset management options such as wealth and estate management, tax planning with a strong emphasis on legal compliance, fantastic investment services ‌and stable banking options.

In addition to the financial benefits, banking in the Cayman Islands puts you just south of the US and provides easy access to a majority of North and South America. 

As a British Overseas Territory, the Cayman Islands benefits from a stable government, strong economic links to the global market and high-quality legal, healthcare and education systems. 

If you are a resident, there are even greater benefits to banking in the Cayman Islands. 

Beyond its beauty and high quality of life, the Cayman Islands is known for being a tax-free jurisdiction.

So, unless you have tax obligations in other countries, you could feasibly move to the Cayman Islands and reduce your tax burden to zero.

Who Should Open an Offshore Bank Account in the Cayman Islands?

In today’s world, if you want to open a bank account in the Cayman Islands, you need some sort of connection to the country. 

If you’re a non-resident, with no ties to the Cayman Islands, you might want to start looking elsewhere. It’s one of the most difficult jurisdictions in which to open an account as a non-resident, both for personal and corporate accounts. 

If you can prove ties to the islands, it is possible to open an account as a non-resident, even without being present, but not without difficulty. 

You will be subject to a higher level of scrutiny, requiring more documentation, paperwork‌ and tracking of funds, so be ready to work for it. 

But, it is a possibility if you have local connections.

As far as proving a connection or tie to the islands, it doesn’t mean you have to live there, but you would need to have a residence permit, business or family there. 

If you are a non-resident planning to establish clear ties with the Cayman Islands, you’ll also have a better chance of successfully opening a bank account. 

If you’re someone looking to establish residence or if you’re becoming involved in a business that’s already there, they’ll at least look at you.

Trust and investment entities are particularly well-suited for banking in the Cayman Islands. Clients with ample assets to manage and invest, particularly those with existing ties, will find a range of banking solutions.

Now, with all this being said about having a connection to the islands, if you call Butterfield, which has banks around the world, and let them know you have US$5 million to deposit, then they might talk to you about investing in the Cayman Islands. 

Or if you have an account with CIBC, a Canadian bank, then they might talk to you. 

Simply having a lot of money to deposit or invest, or having a relationship with a bank, can get you a foot in the door in the Cayman Islands.

US citizens should be aware that Cayman Islands accounts do not offer anonymity from US tax authorities. The US has implemented strict reporting requirements, and any income or interest earned in offshore accounts must be declared.

How to Open a Bank Account in the Cayman Islands

There are some general rules to know when opening an offshore account, and doing so in the Cayman Islands is no different. Call your bank, get to know what they expect‌ and come well-dressed and prepared to answer their questions. 

Specifically, for the Cayman Islands, the banks are looking for sufficient rationale as to why you want to bank there (again, the ties to the country are important) and they want to assess the risk they’re taking in giving you an account.

They’ll perform their mandatory due diligence, including an extensive check on your identity, the origin of your funds and your anticipated banking activity. Transparency and honesty are essential or you can kiss your chances of getting a bank account goodbye.

The first set of documentation a bank will ask for is your banking history. 

Your new bank will want to know how long you’ve banked with your home bank, your average balance over a multiple-year period‌ and details of your transactions. They need this to get an understanding of how you managed your account.

If you don’t have a home bank, they’ll ask for a professional reference, which must be mailed as an original to the bank in the Cayman Islands. If you’re married, your spouse must also be referenced in the letter to be eligible for a new account.

Next, you’ll need to provide documentation showing the source of your funds. This includes things like a rental agreement showing your income from rental properties or a letter from your job stating your salary.

You’ll also need documents to verify who you are and where you’re coming from. For proof of identification, you’ll need to provide either a driver’s license or passport. For proof of residence, you’ll need to provide a recent (less than 3 months old) utility bill. 

In addition to this, you’ll be asked to describe and demonstrate your ties to the country. 

If your ties to Cayman are less established, a pre-existing relationship with a bank or banker can be beneficial, as they may have more flexibility in assessing your connection. 

If you’ll be involved with a company in the Cayman Islands, you’ll need to provide a letter from your Cayman employer stating when you’ll start working, your position in the company, as well as your salary.

As noted above, some banks offer services that allow non-residents to open bank accounts in Cayman without visiting the islands. 

In this scenario, you’ll be required to submit several certified documents to prove your identity, along with a current overseas address, bank references and extra documentation explaining the source of your funds. 

How Much Money Do You Need to Open a Cayman Islands Bank Account?

It goes without saying that to open an account, you’ll need a significant amount of money for an initial deposit. 

This can vary from bank to bank and also depends on your relationship with your banker, but in general, you can expect the deposit to range from US$50,000 to US$100,000 with a reputable bank.

If you’re looking at private banking options in the Cayman Islands, the deposit amount will be far higher.

A lot of companies will charge you US$1,000 or so to help you get an account in Cayman, many guaranteeing success. Good luck with that. Opening an account is getting harder and the compliance laws are stricter. 

Don’t fall victim to other people’s claims of guaranteed success.

Here at Nomad Capitalist, we don’t guarantee opening an account in a certain place, but we’ll find a replacement one in another great (perhaps even better) location if necessary. This is often where you’ll actually be treated best, not just access a name brand in banking like the Cayman Islands. Not everyone can do that. 

Top Cayman Islands Banks

There are over 94 banks in the Cayman Islands, but not all operate the same way or provide the same services. 

There are several different types of licences a bank can get from the Cayman Island Monetary Authority, which influences what they can do. 

The two most relevant for opening an offshore account are a:

• Category A Banking Licence: With this licence, a bank may offer domestic and international services to both residents and non-residents. There are currently only 11 banks in the Cayman Islands with this type of license, which mainly focuses on serving the local domestic population.
  
• Category B Banking Licence: This licence allows banks to serve non-residents in international markets. The remaining 83 banks have this type of licence, and focus on providing individual and business services for offshore banking.

The deposit requirements for opening will be different for each bank. Even within a bank, it can be negotiable and people will throw around different numbers. 

Once again, that’s why it’s important to do your homework to get to know your bank, understand what they’re looking for and network with any connections you can make.

The following are some of the top banks in the Cayman Islands that you might want to consider.

Cayman National Bank

Holding a Category A banking licence, Cayman National Bank primarily serves the local population while also offering international banking services. It provides online banking, asset and trust management, company formation assistance and maintains the largest ATM network on the island.

PROVEN Bank (Cayman) Limited

Formerly Fidelity Bank (Cayman) Ltd, this bank was acquired by the Proven Group on February 1, 2022. PROVEN Bank holds a Category A banking licence and offers a range of personal, corporate and private banking facilities along with a full suite of client services from credit and debit cards to land loans and mortgages.

Opening a personal account takes 5–10 working days and requires:

• Residence in the Cayman Islands (proof of residency/work permit, job letter or  utility bill)
• Passport
• Initial deposit of US$500.

Anyone looking to open a corporate account will require a connection to the Cayman Islands, such as an active company there (with local directors or employees). ‌With those requirements met, it takes 15–20 working days to open a corporate or private account. 

PROVEN Bank tells us that a dedicated relationship manager is assigned to each applicant for corporate or private banking to guide them through the onboarding process and relevant form-filling and will remain the point of contact in managing the corporate or private account.

Butterfield Bank

Butterfield is an international bank offering great asset management services, private banking, trust and estate planning‌ and more. As one of the top banks, you will need good reference letters from your bank and employer showing your income and management of funds for the past three  years. 

CIBC FirstCaribbean International Bank

CIBC FirstCaribbean International Bank is based out of Canada but offers a variety of services in the Cayman Islands, including corporate and investment banking services, investment portfolio customisation and management, as well as premium personal and business accounts.

Alhambra Bank & Trust Ltd

Established in 2014, Alhambra Bank & Trust Ltd holds a Category B business licence and focuses on serving the needs of non-US, high-net-worth individuals. ‌With minimum accounts of US$1,000,000, it offers a client-focused approach, personalised services ‌ and world-class banking facilities.

Trident Trust Company (Cayman) Ltd

Trident Trust Company (Cayman) Ltd is an international bank with a Category B business licence. It provides corporate, trust‌ and fund services, specialising in the formation and administration of corporations and private family trust funds.he islands, if you don’t fit that profile, there are better options.

Like most things in the offshore industry, the answer to the question of which bank and which country are best will depend on what you want and what you need.

If you’re looking to open an offshore bank account for your business or need help deciding where to open a personal account, feel free to reach out to our team of experts.

Banking in the Cayman Islands: FAQs

Why You Might Want to Look Elsewhere

Most people who only consider the Cayman Islands for offshore banking are living in the old world and only do so because they’ve heard of its reputation, whether right or wrong.

This is why, at Nomad Capitalist, we increasingly tell people who don’t want to put a lot of money into an offshore bank that they need to start looking past the name brands. 

There’s nothing wrong with these name brands, or the Cayman Islands, if your profile fits. But if you expand your sights, you’ll find better options.

We recommend several countries that are more open to non-residents. 

A smart, fast‌ and easy move is to get started in Georgia by creating a priority banking relationship with a deposit of US$20,000. 

Armenia is another great place to look if you want to invest or bank. 

Serbia has some of the highest interest rates in all of Europe. 

Ecuador has great credit union options that continuously offer the highest rates in the region and is an excellent option if you’re looking to get residency by opening a bank account. 

An unexpected but solid place to open an account remotely is the United States — if you can get in there. If you can find the right banker who has an international outlook, then opening an account in the US can be a great option. 

The point is, don’t just go for offshore banking in the Cayman Islands because you’ve heard of it. 

While it offers a premium banking experience for high-net-worth individuals and companies with ties to the islands, if you don’t fit that profile, there are better options.

Like most things in the offshore industry, the bank and country that are best for you will depend on your unique wants and needs. 

If you’re looking to open an offshore bank account for your business or need help deciding where to open a personal account, feel free to reach out to our team of experts.