Cayman Islands

Coordinates: Template:Coor dm

The Cayman Islands are an overseas territory of the United Kingdom in the western Caribbean Sea comprising the islands of Grand Cayman, Cayman Brac, and Little Cayman. It is known as one of the largest tax havens in the world.

History

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The Cayman Islands - often referred to as The Caymans, or (more correctly) just Cayman - were first visited by Christopher Columbus on May 10, 1503 during his fourth and final voyage to the New World. The first recorded English visitor to the islands was Sir Francis Drake, who landed there in 1586 and named them the Cayman Islands after the Neo-Taíno nations term (caiman) for crocodile (Zayas, 1914).

The first recorded permanent inhabitant of the Cayman Islands, Isaac Bodden, was born on Grand Cayman around 1700. He was the grandson of the original settler named Bodden who was likely one of Oliver Cromwell's soldiers at the taking of Jamaica in 1655.

The islands, along with nearby Jamaica, were ceded to England in 1670 under the Treaty of Madrid. They were governed as a single colony with Jamaica until 1962 when they became a separate British overseas territory and Jamaica became an independent commonwealth realm.

The island of Grand Cayman was severely damaged by the Category Five Hurricane Ivan in September 2004, which destroyed many buildings and damaged most of them. Power, water and communications were all disrupted. Ivan was the worst hurricane to hit the islands in 86 years. The island has made rapid recovery since Ivan, with most of the infrastructure now restored.

Geography

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The Cayman Islands are located in the western Caribbean sea. The three islands are situated about 480 miles (770 km) south of Miami, 150 miles (240 km) south of Cuba, and 180 miles (290 km) northwest of Jamaica. Grand Cayman is by far the largest, with an area of 76 square miles (197 km²). The two "Sister Islands" of Cayman Brac and Little Cayman are located about 90 miles (145 km) east of Grand Cayman and have areas of 14 square miles (36 km²) and 10 square miles (25.9 km²) respectively. All three islands were formed by large coral heads covering submerged ice age peaks of western extensions of the Cuban Sierra Maestra range and are mostly flat. One notable exception to this is The Bluff on Cayman Brac, which rises to 140 feet (42.6 m) above sea level, the highest point on the island.

Cayman avian fauna includes two endemic subspecies of Amazona parrots: Amazona leucocephala hesterna, or Cayman Brac Parrot, native only to Cayman Brac, and Amazona leucocephala caymanensis or Grand Cayman Parrot, which is native only to Grand Cayman. Another notable fauna is the endangered Blue Iguana, which is native to Grand Cayman.

Image:Cayman Islands districts.png

Districts

The Cayman Islands are administratively divided into 7 districts. They include:

1. Bodden Town
2. Cayman Brac
3. East End
4. George Town
5. Little Cayman
6. North Side
7. West Bay

Demographics

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The population of the Cayman Islands is 45,436 as of July 2006. Out of that number, about half are of Caymanian descent. About 60% of the population is of mixed race. Of the remaining 40%, about half are Caucasian and half are of African descent. The islands are almost exclusively Christian, with large number of Presbyterians and Anglicans. Caymanians enjoy one of the highest standards of living in the West Indies. The vast majority of the population resides on Grand Cayman. Cayman Brac is the second most populated with about 2,000 residents, followed by Little Cayman with around 200 permanent residents. Approximately one quarter of the Islands' population left following Hurricane Ivan, due to the myriad of problems, financial and otherwise, caused by the hurricane.

The capital and major city of the Cayman Islands is George Town, which is located on the west coast of Grand Cayman.

Economy

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The economy of the Cayman Islands used to be built around turtling. However, this industry began to disappear in the 20th century and tourism and financial services began to become predominant due to the advent of modern transportation. The United States of America is the Cayman Islands' largest trading partner.

With an average income of around $35,000, Caymanians enjoy the highest standard of living in the Caribbean. The islands print their own currency, the Cayman Islands Dollar (KYD), which is pegged to the US dollar at a fixed rate of 1 KYD = 1.227 USD. Thus, the C.I. Dollar's rate of exchange with all other world countries is directly tied to the U.S. Dollar's rate of exchange with those same countries.

The government's primary source of income is indirect taxation. An import duty of 20% is levied against goods imported into the islands. Few goods are exempt; notable examples include books, cameras & baby formula. Duty on automobiles is charged on a sliding scale with the duty reaching 40% for expensive models. The government charges a flat licensing fee to financial institutions that operate in the islands. A small fee is also charged to each tourist that arrives on the islands.

Tourism

Tourism accounts for 70-75% of the annual GDP of the Cayman Islands and is hence a major part of the economy. Of the millions of tourists that visit the islands annually, 99% of the them stay on Grand Cayman. George Town also serves as a major cruise ship port, which brings in 2,000-3,000 tourists a day, 5 days a week.

Grand Cayman's major tourist attraction is the world-famous Seven Mile Beach on which most of the island's hotels and resorts are located. SMB was recently named the "Caribbean's Best Beach" by Caribbean Travel and Life Magazine and is regarded by many as one of the best beaches in the world.

The Cayman Islands are also world famous as a Scuba Diving destination because of their crystal-clear waters and their proximity to the Cayman Wall. Cayman Brac and Little Cayman are also considered to be elite dive destinations. There are several snorkeling locations where tourists can swim with stingrays.

See also: Scuba Diving on the Cayman Islands

Financial services industry

The Cayman Islands financial services industry encompasses banking, mutual funds, captive insurance, vessel registration, companies and partnerships, trusts, structured finance and the Cayman Islands Stock Exchange. As of December 2005, just over 70,000 companies were incorporated on the Cayman Islands including 430 banking and trust companies, 720 captive insurance firms and more than 7,000 funds.

A recent report released by the International Monetary Fund (IMF) assessing supervision and regulation in the Cayman Islands' banking, insurance and securities industries, as well as its anti-money laundering regime, recognised the jurisdiction's comprehensive regulatory and compliance frameworks. "An extensive program of legislative, rule and guideline development has introduced an increasingly effective system of regulation, both formalising earlier practices and introducing enhanced procedures," noted IMF assessors. The report further stated that "the supervisory system benefits from a well-developed banking infrastructure with an internationally experienced and qualified workforce as well as experienced lawyers, accountants and auditors," adding that, "the overall compliance culture within Cayman is very strong, including the compliance culture related to AML [anti money-laundering] obligations...".

Government

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The Cayman Islands are currently a British Overseas territory, listed by the U.N Special Committee of 24 as one of the last non self governing territories. A 15-seat Legislative Assembly is elected by the people every 4 years to handle domestic affairs. Of the elected Members of the Legislative Assembly, or MLA's, 5 are chosen to serve as government ministers in a cabinet headed by the governor. The head of government is the Leader of Government Business, which is currently The Honourable Kurt Tibbetts.

A Governor is appointed by the British government to represent the monarch. The governor can exercise complete executive authority if he wishes through blanket powers reserved to him in the constitution. He must give royal assent to all legislation, which allows him the power to strike down any law the legislature may see fit for the country. In modern times, the governor usually allows the country to be run by the cabinet, and the civil service to be run by the Chief Secretary, who is the Acting Governor when the Governor is not able to discharge his usual duties for one reason or another. The current governor of the Cayman Islands is Stuart Jack and the current Chief Secretary is Hon. George McCarthy, OBE, JP.

Constitutional Modernization has come to the forefront of politics recently with the collapse of the now defunct Euro Bank Corporation in 2003. The prosecution in the trial was forced to reveal that the British Government had planted moles (and used wire taps) throughout the banking industry using MI6 MI6, at the consent of the governor. This caused the trial's collapse, and subsequent release of those charged with wrongdoing. Along with this, the only mole that was known at the time was allowed to leave the the country, never to answer for what he (or the United Kingdom) was doing. This infuriated the elected members of the legislative assembly as they maintained that the governor and the United Kingdom has put into question Cayman's reputation as a tightly regulated offshore entity. Some saw this as the United Kingdom meddling in the territory's affairs to benefit itself (and the EU), at the expense of the islands' bread and butter.

Constitutional talks however went on hold following Hurricane Ivan in 2004. Subsequently in May of 2005 the ruling UDP was ousted by the PPM, which have slowed the constitutional modernization process to a standstill.

Taxation

Caymanians and Caymanian companies are not subject to any form of direct taxation as well as residents of the Islands. However, an import tax of between 5% and 20% is levied on almost all imported goods.

Education

The Cayman Islands Education Council operates public schools on the island, with a Caribbean-oriented education curriculum. Various churches and private foundations operate several private schools offering curricula derived from American and UK education systems from kindergarten to 12th Grade.

Military

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The defence of the Cayman Islands is the responsibility of the United Kingdom. Therefore, the islands have no established military. They do however have their own police force, the Royal Cayman Islands Police Service, and in 2001 the small Cayman Islands Cadet Corps was formed in the place of a traditional army. Regular off-shore marine patrols are conducted by the RCIP and Grand Cayman is a port-of-call for the United States Coast Guard.

Foreign relations

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The foreign relations of the Cayman Islands are largely managed from the United Kingdom, as the islands remain an overseas territory of the UK. However, the Government of the Cayman Islands often resolves important issues with foreign governments alone, without intervention from Britain. Although in its early days, the Cayman Islands' most important relationships were with Britain and Jamaica, in recent years, this has shifted, and they now rely more so on the United States.

Though the Cayman Islands are involved in no major international disputes, they have come under some criticism due to the use of their territory for narcotics trafficking and money laundering. In an attempt to address this, the Government entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the United States, in order to reduce the use of their facilities associated with these activities. In more recent years, they have stepped up the fight against money laundering, by limiting banking secrecy, introducing requirements for customer identification and record keeping, and requiring banks to cooperate with foreign investigators.

Due to their status as an overseas territory of the UK, the Cayman Islands have no representation either on the United Nations, or in most other international organizations. However, the Cayman Islands still participates in some international organisations, being a full member of the Central Development Bank and International Olympic Committee, an associate member of Caricom and UNESCO, and a member of a sub-bureau of Interpol.

In fiction

Large parts of the novel The Firm by John Grisham takes place on the Cayman Islands. The main character works for a Memphis, Tennessee law firm that uses island banks for money laundering.

Frankie Flowers' 2004 film Haven takes place on Grand Cayman. Frankie Flowers is a native of the Cayman Islands.

Image:Cayman Islands-CIA WFB Map.png

See also

• The Scout Association of the Cayman Islands

References

• {{cite web

| url = http://www.cia.gov/cia/publications/factbook/geos/cj.html
| title = Cayman Islands
| work = 2005 CIA World Factbook
| accessyear = 2005 | accessdate = July 4
}} Originally from the CIA World Factbook 2000.

• Template:Note{{cite web

| url = http://www.un.org/Depts/dpi/decolonization/trust3.htm
| title = Non-Self-Governing Territories listed by General Assembly in 2002
| work = United Nations Special Committee of 24 on Decolonization
| accessyear = 2005 | accessdate = July 4
}}

• {{cite book

| author = Michael Craton and the New Historical Committee
| year = 2003
| title = Founded upon the Seas: A History of the Cayman Islands and Their People
| publisher = Ian Randel Publishers
| id = ISBN 0-9729358-3-5
}}

• Roberts, H. H. 1994 Reefs and lagoons of Grand Cayman Monographiae biologicae (Brunt, MA; Davies, JE eds). Kluwer Academic Publishers, Boston, Ma The Hague. ISBN 0792324625
• {{cite book

| author = Alfredo Zayas y Alfonso, 
| year = 1914
| title = Lexografía Antillana
| publisher = El Siglo XX Press, Havana
| id = ISBN 0-000-000
}}

External links

• Cayman Islands Government
• Cayman Islands Department of Tourism
• Cayman Islands Investment Bureau
• Grand Cayman Islands Vacation Directory
• Map of Grand Cayman

Information on Cayman Fauna and Geography

• [1]
• [2].
• [3]
• [4]
• [5]

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