The UK in Cayman - National Security

The Cayman Islands remains an Overseas Territory of the United Kingdom, with a Governor appointed by the Crown, a 15 member elected Legislative Assembly, an 8 member Cabinet presided over by the Governor.

The UK is committed to the defense of the population of 52,500. The Royal Navy are regular visitors to the Cayman Islands and, even when out of sight, are patrolling in the Caribbean Sea. The Governor is responsible for ensuring national security from the full range of hazards and threats, whether natural or man-made. This is done in partnership with the elected government who provide most of the financial resources. Once the immediate threat to national security has passed then responsibility for the recovery and reconstruction naturally falls to Cabinet, Ministers and their Ministries. More detail on responding to natural hazards is available at Cayman Prepared.

Chaired by the Governor, the National Security Committee pulls together mainly law enforcement and criminal justice experts, and provides strategic policy direction to addressing threats from illegal immigration and terrorism to serious and organised crime. Reporting to the NSC are the National Aviation Security and National Maritime Security Committees which have responsibility for ensuring that airports and ports security is compliant with the standards laid down by the UK Department for Transport and therefore meets international standards. Through the Governor, the UK is also responsible for ensuring standards of air safety in the Cayman Islands, which is achieved with the support of Air Safety Support International.

The Commissioner of Police reports directly to the Governor. The RoyalCayman Islands Police Service has almost 400 uniformed police officersplus additional civilian staff. They carry out a broad range offunctions, from routine policing, to the investigation of financialcrimes, and working in partnership with customs, immigration and othersto guarantee Cayman’s border security. Given Cayman’s location on akey drug-smuggling route to the US and also to Europe, the RCIPS isbuilding the capacity of its Marine Unit with advice and training fromthe UK. A new Marine Base, vessels, staff, training and air supportwill be operational by the end of 2008.

5 Storey Building in Cayman is home to over 18,500 Firms

A report to be published this morning by the Senate Finance Committee's Government Accountability Office (GAO) will disclose that the number of companies that list their address in a five-story building in the Cayman Islands nearly doubled to more than 18,500 during the past four years, according to a source who has seen the report.

The building is called "Ugland House" and as of March 2008 was home to 18,857 business tenants. That was up from 12,748 reported tenants in August of 2004 - an increase of four tenants a day. Sen. Max Baucus, D-Mont., who is chairing a Thursday hearing of the Senate Finance Committee on the issue, called the findings "hugely troubling." "When you see a huge spike in tenancy in a place like the Ugland House, where no one's really sure what's going on, decent oversight demands that you ask more questions," Baucus said. "If we strengthen transparency for U.S. holdings in places like the Caymans, it will be a lot easier for the IRS to tell who's not playing by the rules."

The GAO report is the culmination of a yearlong inquiry conducted at the behest of the Senate Finance Committee and comes on the heels of another Senate investigation that said the use of tax havens has cost America an estimated $100 billion a year in lost revenue. Companies with addresses in Ugland House are clients of the law firm Maples & Calder, which is the building's sole tenant. Investigators from the General Accounting Office traveled to the Cayman Islands earlier this year and interviewed officials with the law firm. Maples and Calder told GAO that only around 5% of the entities it serves are wholly-U.S. owned.

The GAO also found that U.S. persons reporting to the U.S. Treasury that they control Caymans bank accounts jumped to 7,937 last year, up from 2,677 in 2002. In addition, 732 companies that trade on the U.S. stock exchange are incorporated in the Caymans, GAO said. More than a third of the entities that reside at Ugland House - about 38% - are hedge fund or private equity-related. Caymans-based hedge funds offer U.S. tax-exempt entities like pension funds and foundations the ability to legally invest in the high-return vehicles without paying a U.S. tax that applies to leveraged investments. They also serve foreign investors who prefer not to invest in U.S.-domiciled funds for tax, regulatory or political reasons. Most hedge funds that operate in the Caymans are part of a "master feeder structure" that includes a mirror U.S. fund. Fund managers are responsible for ensuring that U.S. investors only invest in the U.S. feeder fund.

Another 24% of firms registered at Ugland House are related to structured finance - for example, leasing corporations set up to finance commercial aircraft. The remainder, about 38%, are corporate entities like holding companies and wholly-owned subsidiaries. Some of these are legal entities set up by U.S. firms to facilitate doing business overseas. But others are created for the purpose of tax fraud or evasion, GAO said. GAO identified 21 civil and criminal cases brought by U.S. authorities against Caymans entities.

Cayman Islands Living Costs

These were fairly accurate at the time of writing and are designed to be a rough guideline only. These are some approximate guide figures as to how much it would cost to live on the Cayman Islands in CI$ per month.

1 bed apartment: $800 - $1,500
2 bed/2 bath apartment: $1,200 - $5,000
3 bed: $2,000 - $5,000

TV: $70 - (depends on package of channels) Internet: Over $100 for high speed.

Water: $30 - $120 upwards depending on consumption

Electricity: $80 - $250 (for a 1-bed apartment, more if you run the AC) upwards. Obviously a 2 bed or a house will be depending on the AC system and insulation etc. Ecay tip Always ask to see a previous electric bill before taking a lease on a property

Telephone: how long is a piece of string? C&W have a great package called Net Speak that allows inexpensive calls over the Internet. –
We now have several telecomms providers offering mobile, Internet and data services, and C&W, Digicel and Telecayman offer land lines or the equivalent.

Medical Insurance: $90 upwards depending on the coverage - (bare minimum - very limited benefits)

PO Box rental: from $75/year depending on size

Food: $500 (for a family of three) obviously this varies depending on your lifestyle. Imported British products for example are extremely expensive but local Caymanian and Caribbean products are reasonably priced.

Car: $4000 + insurance (starting at $500) + car tax ($180) (for a very basic vehicle!)
One has to be Caymanian to secure a place at a government school, so private schooling is the only thing available to non Caymanian. There is a great choice of schools and prices start at $4,000 - $9,000 per year

Prices for basic items (January 2006)

Item/Services Approximate
Price (CI$)
5lb bag white potatoes $2.69
3lb bag yellow onions $1.49
1lb jumbo slicing tomatoes $3.89
1lb Red Delicious apples $1.49
1lb fresh cabbage $0.69
5lb bag sweet oranges $3.29
Jumbo seeded red grapes $2.29/lb

Beef loin T-bone steak $10.99/lb
Salmon fillets $6.99/lb
Boneless/skinless chicken breasts $5.49/lb
Uncooked bone-in turkey breast $1.59
Honey Ham $4.99/lb
8 oz sliced bacon $2.99
Pork loin chops $2.59/lb

#2 lobster tails $14.99/lb
Salad shrimp $6.99/lb

Lender bagels $1.89
Nature's Own 100% Whole Wheat bread $2.09/loaf
2lb Pillsbury All Purpose Flour $1.35/bag
Dozen large eggs $1.25

Kraft 8oz Strong Cheddar Cheese $2.99
64oz Tropicana Orange Juice $4.45
12-pack 12oz Pepsi etc $5.95
10.5oz pizza $2.25
18oz Kellogg's Corn Flakes $3.79
Paper Towels $0.69/roll
Soft 'n Gentle 24 Roll Bath Tissue

63oz Gain powder detergent $7.49

Milk $5.29/gallon
7oz (200g) Nescafé Classic $5.99
** Please note that prices vary on a weekly basis depending on availability **

Gas $3.29/gallon

Beer $32.00/case
Cigarettes $30.00/200
Postal Rates
Postcards (to US) $0.20
Postcards (to UK/Europe) $0.25
Letters per half ounce (to US) $0.30
Letters per half ounce (to UK/Europe) $0.40
Greetings cards (to US) $0.60
Greetings cards (to UK/Europe) $0.80
Cost of Living in Grand Cayman

The cost of living in the Cayman Islands will often vary depending on a number of factors, including choice of accommodation, entertainment and lifestyle. The summary below highlights the average range of costs. All items are in Cayman Islands dollars which is equivalent to US$1.25.

Accommodation costs in Cayman Islands


A large selection of apartments and condos are available for long term rental. Accommodation cost vary dramatically with location (proximity to George Town, Seven mile beachfront, canal, waterfront), condition of the premises and facilities (pool, dock, tennis court). The rental costs for a reasonable apartment/condo are as follows:


1 bedroom - 2 bedroom
Seven mile Beach or canal $1,500 + $3,000 +
Off the beach $1,200 + $1,800 +

It is possible to find cheaper units that may not be in such a desirable area. Click on the link here to take you to the Ecay Trade free classified section of this site where hundreds of properties are listed. Alternatively go to the Ecay Cayman Islands Business Directory and check under Cayman Islands Real Estate and Developers for local agents who offer rentals and Property Management
Utilities (electricity and water) costs in Cayman Islands

Average monthly electricity charge (including air conditioning) for 1 to 2 bedrooms ranges from $100 to $250. However, some may be more if they do not have good insulation. We would recommend monitoring your consumption for the first month so you do not get any nasty surprises when your bill comes in. Average monthly water charge range from $50 to $100. If you are renting a house with a pool, you should expect far higher water bills than stated above. Security deposits are required for electricity and water services and apartment/property size. Electricity $100 to $500 and water roughly $200.
Our business directory has contact details for:

* Utilities
* Telecommunications

Cable costs in Cayman Islands

Generally the cost of cable (approximately $75 per month) is included in monthly rental charge. Weststar now offers some great upgrade packages should you wish to get more movies or sports channels etc.
Telecommunication costs in Cayman Islands

Basic monthly connection with voicemail is approximately $15. Long distance charges range from $0.50 to $0.90 per minute within the Caribbean, $0.60 to $1.20 per minute to the US & Canada and $0.80 to $1.60 per minute for the rest of the world. Security deposit for new phone service ranges from $100 to $350, dependent upon payment method.
Please note that these amounts quoted are rough. Check out the Ecay Cayman Islands Business Directory to get information on Cayman Islands Telecommunication Companies. Since the advent of telecoms competition rates have plummeted and some good deals are now available from: Telecayman, Digicel and Westtel.
Vehicle costs in Cayman Islands

The cost of a basic mid-size used car can range from $3,500 to $10,000 depending on size and age. Insurance premiums generally range from $500 to $1,500 per year. Some discounts are available and it is worthwhile to arrange a reference letter from a previous insurer. Check out the Ecay Business Directory for a full list of Insurance Providers in the Cayman Islands.
A three year driver’s license cost $65. Vehicle registration can be purchased for either a six-month period or a full year. The annual inspection and registration fees are approximately $200.
Food Costs in Cayman Islands

There are number of large grocery stores on the Island which offer a wide selection of fresh and packaged goods. Food costs are relatively expensive as the majority of items are imported. The average cost for groceries for one month can range from $450 to $1,000 depending on the size of your family and your dietary preferences.

Health Insurance costs in Cayman Islands

Health insurance is mandatory. Your company will arrange basic group health cover with a local recognized insurer and will contribute half of the monthly health insurance premium for employees and their families. Employee contributions are made by way of salary deduction. Some pre-existing conditions are specifically excluded from coverage by local insurers.

Exchange Rate in Cayman Islands

The currency in the Cayman Islands is the Cayman Island Dollar (denoted CI$). The CI$ is exchanged to the US dollar at the following rates:
US$1.00=CI$.80 (cash), US$1.00 = CI$.82 (check)
Our business directory has contact details for:

* Electronics
* Furniture
* Home & Garden
* Linens
* Shopping

Housing costs in Cayman Islands

Rented accommodation is relatively easy to find, and generally annual leases are available, although less so between November and February (the tourist season). Monthly rental costs can vary considerably depending upon the nature (furnished or unfurnished), location, and size of the accommodation. The following is a general guide:

Modern fully furnished one-bedroom apartment:

* On the beach CI$1,500-2,500
* Off the beach CI$750-1,200

Modern fully furnished two-bedroom apartment:

* On the beach CI$2,000-3,000
* Off the beach CI$1,200-1,800

Two- or three-bedroom fully furnished houses:

* Off the beach CI$1,500-3,000

Generally deposits of one month’s rent are required for apartments. Also, telephone, water, and electricity deposits are approximately CI$750 in total.
Household Goods costs in Cayman Islands

All household goods can be purchased locally. Many landlords provide a full range of crockery, cutlery, cooking utensils, and linen in furnished accommodations although quality can vary considerably. The electric current is 110 volts AC.

HURRICANE SEASON 2008 IS IN EFFECT FOR THE CAYMAN ISLANDS

Atlantic Hurricane Season is from June 1 - November 30

Invest 94L has already passed Jamaica and on the satellite image it is now a big white blob over Cayman.

Establishing a business in the Cayman Islands

Establishing a business in the Cayman Islands involves approvals by several government agencies depending on the type of business being established and the industry in which the business will operate. A company wishing to trade within the Cayman Islands, e.g., in retail trading, real estate, hotel operation, restaurants, maintenance services or local shipping, must obtain a licence under the Local Companies (Control) Law. No less than 60 percent of the equity must be Caymanian-owned and there should be more than 2/3 local directorship. Depending on the nature of business or industry, if less than 60 percent of the equity is Caymanian-owned, the Trade and Business Licensing Board will have to be convinced of the need for the company’s services. An application may go before the Trade & Business Licensing Board within four weeks or less of receipt of the application. This period may be greater, whenever an applicant has not provided all the requisite information.

Below is a general outline of this process.

Business Entity

Businesses in the Cayman Islands are usually established by an individual, a company, or a partnership:

Company

The registration of companies is governed by the Companies Law (2004 Revision), and all companies must be registered with the Registrar of Companies. Companies can be formed with one shareholder and with no minimum capitalisation requirements (except for Exempted Limited Duration Companies).

Client privacy is protected by the fact that the Registrar can only release the name and type of company, its date of registration, the address of the registered office and the company's status. Disclosing any other information is prohibited except where assistance to law enforcement agencies is required.

Businesses that intend to operate in the jurisdiction are typically incorporated as a 'Resident Company'. Resident Companies are companies carrying on business in the Cayman Islands, which must report annually to the Registrar and which can hold land. As an alternative, companies that are incorporated outside of the Cayman Islands that wish to carry on business locally can register as a 'Foreign Company'.

Click here for details on the ways in which a company may be registered in the Cayman Islands.

Partnership

Limited partnerships, which can be formed by two or more people or companies, are governed by the Partnership Law (2002 Revision), which requires them to be registered with the Registrar of Limited Partnerships.

Click here for details on registering a limited partnership in the Cayman Islands.

Business Licensing

All businesses and professionals operating in the Cayman Islands must be licensed under the law relevant to their industry.

General Business Licences

Trade and Business Licences are administered through the Trade and Business Licensing Board of the Immigration Department as specified under the Trade and Business Licensing Law (2003 Revision). The fees for licence application and annual renewal depend on the broad nature of the business and/or profession. Certain types of business premises, such as restaurants, also require inspection by the Department of Environmental Health.

In addition, foreign-owned or controlled companies doing business in the Cayman Islands must obtain a licence under the Local Companies (Control) Law (1999 Revision). A company is considered foreign owned if less than 60 per cent of the equity is owned by Caymanians or if less than 60 per cent of the board of directors is Caymanian. This licence has a maximum duration of 12 years, but a longer period may be approved by the Governor.

For more details, please visit the Immigration Department website.

Financial Services Licences

Companies operating in the financial services industry must apply for the license relevant to its industry from the Cayman Islands Monetary Authority (CIMA). CIMA is responsible for processing applications, regulation and supervision of the following types of businesses:

* Banks and Trust Companies

* Insurance Companies

* Fiduciary Services (Companies Management, Corporate Services, Trust Companies in of companies without a banking licence)

* Investment & Securities Services (Mutual Funds, Mutual Fund Administrators, Securities Investments Businesses)

For more details, please visit the Cayman Islands Monetary Authority website.

Hotel Licences

Hotels seeking to operate in the Cayman Islands must apply for a hotel licence from the Hotel Licensing Board under the Tourism Law (1995 Revision). This process is administered through the Department of Tourism.

A Trade and Business Licence is not required, but a LCCL is required if the level of Caymanian participation does not meet the threshold stated in law.

Telecommunications and Radio Licences

The Information and Communications Technology Authority (ICTA) is an independent statutory Authority which is responsible for the regulation and licensing of Telecommunications, Broadcasting, and all forms of radio which includes ship, aircraft, mobile and amateur radio. The ICTA conducts the administration and management of the .ky domain, and also has a number of responsibilities under the Electronic Transactions Law 2000.

A Trade and Business Licence is not required for a business licensed by the ICTA, but a Local Companies (Control) Licence is required if the level of Caymanian participation does not meet the threshold stated in law.

For more details, please visit the Information and Communications Technology Authority website.

Building Regulations

Applications for permission to carry out development must be made to the Planning Department in accordance with land uses indicated in the Development and Planning Law (2003 Revision), Development and Planning Regulations (2003 Revision), and the Cayman Islands Development Plan.

Applications for planning permission to carry out development must be made to the Central Planning Authority (CPA) in Grand Cayman and the Development Control Board (DCB) in the Sister Islands. Land uses (zoning) are indicated by The Development Plan. Planning permission is required even for an established location where the intended use of the location is significantly different from what was originally approved.

A building permit is required prior to start of construction and a Certificate of Occupancy is required before buildings can be occupied. In certain limited circumstances, home offices are permitted subject to conditions restricting and limiting the scope of activities within the designated address. Applicants are advised to consult the Planning Department for advice on registering a business at a private residence.

All major developments must go to the Central Planning Authority (CPA) for approval. The CPA may require an Environmental Impact Assessment depending on the project (type and size) and its impacts. Advice on the environmental impact of development projects is taken from the Department of Environment. The Department of Environment encourages pre-application consultation with project proponents to discuss areas of environmental concern or mitigating impacts through best management practices and other internationally accepted mechanisms.

For more details, please visit the Planning Department website.

Work Permit Requirements

Non-Caymanians or people not legally and not ordinarily resident in the Cayman Islands aren not allowed to work in the Cayman Islands without a work permit.

Under the Immigration Law (2003), a person or his/her employer may apply for a work permit to the Work Permit Board or the Business Staffing Plan Board for employment in Grand Cayman, or to the Cayman Brac and Little Cayman Immigration Board for employment in the Sister Islands.

In Grand Cayman, all businesses employing fifteen or more work permit holders must submit their work permit application through the Business Staffing Plan Board as opposed to the Work Permit Board. Businesses employing fewer than fifteen work permit holders have the option of applying to either of these boards.

The boards may grant work permits for up to three years. Five-year permits can also be granted to holders of certain positions that have been approved under a business-staffing plan. A work permit holder can work continuously for no more than seven years. After this, the board can’t normally grant any further work permits until that person has left the Islands for at least two years. The only exceptions to this would be a worker designated an ‘exempted employee’ in a business staffing plan, or where there are exceptional circumstances. In such cases, the board may, at its discretion, grant additional work permits to enable the person to complete an aggregate period of eight years, thus making him or her eligible to apply for the status of permanent residence.

For more details, please visit the Immigration Department website.

Terms of Employment

Under the Labour Law (2001 Revision), every employer who enters into a contract of employment with an employee shall within ten working days of entering into such contract, furnish the employee with a written statement of his conditions of employment. This statement covers, amongst other things, job title, responsibilities, special requirements, regular working hours, rate of remuneration, and period of employment if any.

Labour Tribunals have been established under the Law for the purpose of hearing complaints from employers and employees, though provision has also been made for the complaints to first go through a Conciliation and Mediation process. In the event that this process fails to resolve the situation it is then referred to the Labour Tribunal. For more information, please visit the Department of Employment Relations website.

There is currently no National Minimum Wage in the Cayman Islands.

Under the Health Insurance Law (2003 Revision), an employer must pay the standard premium of any standard health insurance contract issued by an approved insurer. Up to 50 per cent of this premium can be recovered directly or deducted from the employee's salary. Health insurance coverage is also required for an employee within the first fifteen days of employment. For more details, please visit the Health Insurance Commission website.

Under the National Pensions Law (2000 Revision), employers don’t have to provide pension plans or contribute to pension plans for employees who do not have Caymanian status, or who are not permanent residents in the Cayman Islands during the first nine months of their employment.

Employers are responsible for providing a pension plan for eligible employees, and for maintaining current information with the National Pensions Office. For more details, please visit the National Pensions Office website.

Can I work while I’m visiting the Cayman Islands?

A casual visitor is not permitted to take up or solicit employment while in the Islands. A work permit must be applied for and obtained before arrival, either by the individual, if he is to be self-employed, or by the employer with a post to fill. A work permit entitles the holder and named dependents (normally limited to three) to live in the Islands during the term of the license or specific employment. Dependents will not be allowed to work without their own licenses.

If you're planning a business trip, know in advance that sales people planning to solicit business and take orders in our islands require a temporary work permit. Applications for this may be obtained in advance from the Department of Immigration. Contact their office weekdays between 9 a.m. and 4 p.m. at (345) 949-8344. You also must declare all samples of goods you're bringing into the country and these must leave with you.

Under Immigration Laws visitors are not allowed to accept jobs in the Cayman Islands without a government-issued work permit.

Sixth Murder of the year make 2008 the most violent in Grand Cayman

Police investigators collecting evidence and clues on Birch Tree Hill Road in the murder case of 23-year-old Mark Anthony Jefferson. Photo by Trent Jacobs

With the shooting death of a 23-year-old man in West Bay on Friday, 11 July, the Cayman Islands is experiencing its highest rate of homicides for the decade.

In comparison, there were six killings for all of 2004 and three last year. The sixth murder victim of this year, Mark Anthony Jefferson, was shot dead on Birch Tree Hill Road around midnight near local hangout, Kelly’s Bar; a few hours later there were shots fired near Funky Tangs on Shedden Road, with no injuries reported.

During the West Bay shooting, another man, 20, was shot in the arm for which he required surgery, though his wounds were not life threatening, according to police. The initial police investigation says that bystanders scattered upon numerous shots being fired after which Mr Jefferson collapsed and died in the street.

Mr Jefferson is the same man who was arrested for the December hit-and-run death of 55-year-old Quindel Ames, who was leaving a Health Services Authority Christmas party at Boatswain’s Beach in West Bay.

On Monday, 14 July, several officers, donning rubber gloves and equipped with metal detectors, were still combing through residents’ front yards and alleyways looking for clues that might lead to an arrest.

Police say they have already collected several spent shells but have yet to find the murder weapon.
Cayman Net News spoke with an eyewitness, who requested anonymity, who said the victim fell dead just feet in front of him. According to the witness, several people were hanging out at a laundromat by Kelly’s Bar, an area he alleges is a hangout for drug dealers, when the shooting began.

The police say that a 19-year-old is currently assisting authorities with their investigation but they are still urging anyone with any information they think might help to contact the West Bay Police station on 949-3999 or Crime Stoppers on 1-800-TIPS (8477).

King’s Point Towers on Cayman Brac

King’s Point Towers, a development by Whitewater Point Ltd. which is owned by Robert Banks and former Chief Secretary James Ryan, will consist of 23 two-bedroom condos located 200 feet east of Cayman Breakers on a 2.57-acre parcel of land on the southeast end of Cayman Brac.

The initial phase of King’s Point Towers, consisting of the first 16 two-bedroom units, will be finished 28 months after construction begins. Mr Banks said 12 units have already been sold.

Phase 1 includes two swimming pools – a smaller pool with spa features and a waterfall, and a larger pool.

No bar or restaurant is planned, but there will be a deli for owners’ convenience and five poured concrete cabanas for outside dining, as well as a dedicated building for divers.

Phase 3 will be four three-storey penthouses and three one-bedroom efficiencies, plus management offices. All units in the development will have an ocean view on one side and a view of the Bluff face on the other.

At the ceremony, Mr Banks told the gathering that King’s Point Towers is designed and engineered to withstand a direct hit from an F5 tornado, which packs one-third higher wind gusts than any recorded hurricane to date.

They will be built of solid poured-in-place concrete walls, eight-inch thick for the first and second floor exterior walls, and four-inch thick for all interior walls. The entire floor will be poured monolithically and consist of steel-reinforced concrete only – there will be no wood used in these structures.

“A building is only as strong as its weakest point,” said Mr Banks. Therefore, the roofs will also be concrete, with a 1-in-12 compound pitch for water drainage. All the concrete will have a chemical compound additive for 100 percent waterproofing, and the roofs will have an additional coating of EPDM rubberised membrane as an additional sealer against water intrusion.

The units will be two-storey with a town house-style layout. They will have two and a half baths and two bedrooms, consisting of approximately 1,400 square feet of living space. The kitchens will have solid wood cabinets with granite countertops and stainless steel appliances, and the units will have top quality furniture throughout.

An anti-fracture membrane under all tile floors will prevent cracks, and windows will be full-impact solid laminate and just over half-an-inch thick, guaranteed not to breach wind or water during a hurricane.

“Two years ago, a foreign entity, the Divi Corporation, owned most of the rooms on Cayman Brac. When that closed, a lot of people were out of work and the question was, how do we go forward?” said Mr Kirkconnell.

Acknowledging Linton Tibbetts, whose family owns the Brac Reef Beach Resort, currently the only hotel on the island, he said, “These Brackers stepped up to the plate, and I’m proud to see the partnership between stakeholders on Cayman Brac supporting each other. The community will do whatever it can to support these developments, and we thank you all having the courage to take this step.”

At the ceremony, Mr Banks told the gathering that King’s Point Towers is designed and engineered to withstand a direct hit from an F5 tornado, which packs one-third higher wind gusts than any recorded hurricane to date.

They will be built of solid poured-in-place concrete walls, eight-inch thick for the first and second floor exterior walls, and four-inch thick for all interior walls. The entire floor will be poured monolithically and consist of steel-reinforced concrete only – there will be no wood used in these structures.

“A building is only as strong as its weakest point,” said Mr Banks. Therefore, the roofs will also be concrete, with a 1-in-12 compound pitch for water drainage. All the concrete will have a chemical compound additive for 100 percent waterproofing, and the roofs will have an additional coating of EPDM rubberised membrane as an additional sealer against water intrusion.

The units will be two-storey with a town house-style layout. They will have two and a half baths and two bedrooms, consisting of approximately 1,400 square feet of living space. The kitchens will have solid wood cabinets with granite countertops and stainless steel appliances, and the units will have top quality furniture throughout.

An anti-fracture membrane under all tile floors will prevent cracks, and windows will be full-impact solid laminate and just over half-an-inch thick, guaranteed not to breach wind or water during a hurricane.

“Two years ago, a foreign entity, the Divi Corporation, owned most of the rooms on Cayman Brac. When that closed, a lot of people were out of work and the question was, how do we go forward?” said Mr Kirkconnell.

Acknowledging Linton Tibbetts, whose family owns the Brac Reef Beach Resort, currently the only hotel on the island, he said, “These Brackers stepped up to the plate, and I’m proud to see the partnership between stakeholders on Cayman Brac supporting each other. The community will do whatever it can to support these developments, and we thank you all having the courage to take this step.”

Cayman investment funds failure

Naul Bodden over-extends his CPA status...

Prominent Caymanian businessman Naul Bodden is linked with at least one of the four Cayman–domiciled entities, which are called Grand Island Commodity Trading Fund I; Grand Island Commodity Trading Fund II; Grand Island Income Fund; and Grand Island Master Fund. The first three entities are all registered by CIMA, while the last one is unregulated.

CIMA issued a statement on the matter after meeting with Joint Voluntary Liquidators David Walker and Nick Freeland of PricewaterhouseCoopers this week.

The JVLs were appointed by the shareholders after an extraordinary general meeting on 17 June following the discovery of trading irregularities, CIMA said in its statement.

Contacted on 13 June, Mr. Bodden said CIMA had already been made aware of the situation. He also confirmed the extraordinary general meeting would take place when it did. However, Mr. Bodden said he did not want to make any further comment before speaking to his attorney at Appleby.

Efforts to get further comment from Mr. Bodden have been unsuccessful.

Mr. Bodden’s exact involvement in the funds is not clear at this time. However, in his biography posted on the website of the non–profit organisation Generation Now – of which he is patron – Mr. Bodden is stated to be the “Investment Advisor and founder of Grand Islands Commodities Trading Fund”. The website also says Mr. Bodden is the shareholder and director of a number of companies and manages in excess of $100 million of diversified assets.

Naul Bodden also an investment advisor on the Cayman Island Real Estate Fund so one might want to think twice about putting their money with someone who is really only a CPA, and not classical trained in business finance.

Cayman's Second Murder Within Four Days

May 20, 2008

"Paradise" is the island's moniker. Not so anymore. A Canadian Man was found murdered Tuesday, and a Caymanian man found dead on Saturday. Bringing the total to 5 homicides in Cayman this year.

Starting with the most recent murder: An autopsy has confirmed that a former Saskatchewan man found dead in his seaside rental home in the Cayman Islands was the victim of murder. The Royal Cayman Islands Police Service said Thursday that Martin Joseph Gareau, 47, suffered multiple injuries to his head and body caused by sharp and blunt objects.

"The post-mortem shows that Mr. Gareau suffered very serious injuries, which could only be caused by another person or persons," said Det. Insp. Kim Evans. Gareau, a former resident of Prince Albert, Saskatchewan (Canada) who had been living in the Cayman Islands for the last four years, was last heard from in the city of Bodden Town on Sunday. His body was discovered by a co-worker Tuesday after he failed to show up for his construction job. Police said there was no sign of forced entry at Gareau's residence and no one has been charged in his death.

On Saturday, the body of 20yr old Brian Adrian Rankine (also known as Rankine-Carter) of West Bay. Rankine-Carter’s body was found in a car parked on McField Lane, George Town, shortly after midnight. He was believed to be homeless at the time of his murder according to family members, and the Royal Cayman Islands Police Service has contacted his mother who lives in the United Kingdom.

Arrangements are also being made for her return to the Cayman Islands and a pathologist is being flown in from Miami to complete a post mortem. Two men remain in custody (a Jamaican and Nicaraguan) on suspicion of murder in connection with Rankine-Carter’s death and a vehicle seized during the course of the investigation is undergoing a forensic examination, as is other evidence obtained from the two suspects.

UPDATE:

Suspect arrested in Cayman Islands in stabbing death of former Prince Albert man

A 28 year old man was arrested Thursday afternoon on the Cayman Islands in the beating and stabbing death of Martin Gareau, 47.

Gareau had been working construction on the islands for the past four years, but he was raised on a farm about six kilometres west of Prince Albert.

His body was found May 20 in his rented home in Bodden Town by co-workers after he didn't show up for work at Cayman Islands-based manufacturer CI Precast.

An autopsy has shown the 47-year-old had multiple injuries caused by both sharp and blunt objects.

Police corruption and cover-up against Cayman Net News

Deputy Commissioner Rudolph Dixon and former Inspector Burmon Scott were arrested on Thursday as London’s Metropolitan Police widened their investigation into corruption in the Royal Cayman Islands Police Service (RCIPS). At a 15 May press conference, H.E. the Governor Stuart Jack, flanked by Acting Commissioner David George and Senior Investigating Officer Martin Bridger, announced that Commissioner Stuart Kernohan and Detective Chief Superintendent John Jones are being formally investigated for “misconduct in public office”.

Mr Bridger said that Mr Dixon had been arrested for “other criminal acts completely unrelated” to the current investigation involving Mr Kernohan, Mr Jones and Mr Dixon. On Thursday afternoon Mr Dixon was granted bail. "We have now reached a stage where, again supported by legal advice, we have reasonable grounds to suspect Mr Dixon of being involved in other criminal acts,” Mr Bridger said..

“In this regard he was arrested this morning. A former RCIPS officer has also been arrested this morning in connection with the matters connected to Mr Dixon. Mr Bridger declined to identify the former officer referred to at the press briefing on Thursday but Cayman Net News has since identified the unnamed officer as Mr Burmon Scott, a now retired 28-year veteran of the RCIPS.

For the first time since the suspension of the top cops, Mr Bridger said Mr Dixon was being investigated for his role in the events surrounding the 3 September 2007 break-in at the office of Net News Publisher Desmond Seales by former staffers Lyndon Martin and John Evans. Pressed by reporters for details on the nature of the alleged crimes under investigation, Mr Bridger said it was too early to go public. Mr Jack said the decision to widen the Kernohan-Jones-Dixon investigation followed fresh allegations of police corruption.

On Thursday, 27 March, Mr Jack had announced the suspension of the three commanders to facilitate a probe into alleged wrongdoing. The move came in the wake of an earlier Metropolitan Police investigation into an alleged “corrupt relationship” between Deputy Police Commissioner Anthony Ennis and Mr Seales. Both Mr Ennis and Mr Seales were exonerated of any wrongdoing by the officers, who subsequently charged Mr Martin for his role in the Ennis/Seales investigation, which lasted six months. “While conducting the investigation involving Mr Seales, Mr Ennis and Mr Martin, it became clear to my team that both Commissioner Stuart Kernohan and Detective Chief Inspector John Jones were involved in developing matters from the time Mr Martin made the original allegations about Mr Seales and Mr Ennis,” Mr Bridger said.

“Seeking corroboration of what Mr Martin was saying, Mr Kernohan, subsequently supported by Mr Jones, conducted certain enquiries, which led to a Cayman Net News employee entering the newspaper’s offices on the night of 3 September 2007.” Mr Jack said that the three officers would continue to receive full pay. He said he had given Mr Kernohan permission to visit the United Kingdom on “compassionate grounds”.

The Governor urged the public to have confidence in the RCIPS, saying the majority of officers were honest and hardworking. “The fact that we are taking the received information seriously is not an indication that we have a wholesale lack of integrity in our police service,” Mr Jack said. “Rather, it means that we in the Cayman Islands want a police service above reproach, and if this means further investigations, we are willing to commit to it. This entire process gives us all an unprecedented opportunity to review and adjust our police system to deter those who may be tempted to behave inappropriately. We are looking at both creating stronger internal processes within the RCIPS and considering an independent complaints mechanism.”

Acting Commissioner George said he would ensure that systems are in place to deliver a robust and transparent complaint and discipline policy, and customer-centred processes at the RCIPS.

Perplexing Construction Costs, Expensive Housing

Editorial: Construction costs
Published on Monday, May 12, 2008
The recent award of contracts for the construction of the new schools reveals an astonishing differential between the lowest (and successful) bid and the tender submitted by another well-known local construction firm. In fact, the losing bid was half as much again as the winning one. If we were just talking about a few thousand dollars, perhaps the discrepancy would not be worth commenting on, but in this case the sums involved amount to several tens of millions. If one can safely assume that the bid specifications were exactly the same in each case, the government must be congratulated on some effective value engineering. However, if the successful bidder is going into this project in the hope that the inevitable change orders can be padded to compensate for a low bid, then clearly the situation is not so rosy. We also hope that the country is not headed into a similar situation that some homeowners find themselves in when a contractor has spent all the money agreed on but cannot afford to complete the job, leaving the customer over the proverbial barrel with no option but to find more money. But, let’s assume that the school projects can indeed be completed for the sums agreed, the sheer scale of the differential still raises some wider-ranging questions about construction costs locally. Housing costs have always been expensive here and the contrast in the school bids leads us to wonder to what extent construction costs are unnecessarily inflated across the board, to allow the contractors to make more than an acceptable profit. Indeed, the whole concept of affordable housing in the Cayman Islands has been one plagued with difficulties and controversy. Concerns were widely expressed in relation to the Affordable Housing Initiative established by the previous United Democratic Party (UDP) administration and the process by which such housing was constructed, focused largely on the disregard for the customary tendering process. Not only were there wholly unwarranted prepayments for work not done, but serious issues of immigration violations and political favouritism were also raised. And to no one’s surprise, the principal beneficiaries of what the Auditor General subsequently referred to as the “misuse of public funds” turned out to be well-known UDP supporters and activists. The current People’s Progressive Movement (PPM) government has also not adequately covered itself either in this area. The issue of housing many unfortunate Caymanians, still essentially homeless after Hurricane Ivan in 2004, remains unresolved after three years in office. In launching the mortgage guarantee programme last year, the Leader of Government Business, Hon Kurt Tibbetts, admitted that this would not address the needs of many who could not afford to participate. One has to question, therefore, what was the point in the first place. Mr Tibbetts also negotiated the sale of the affordable housing site in George Town, saying the land was too valuable for the project. We have observed before that, surely, the country has the resources to solve this problem once and for all, especially with some community involvement augmenting government action instead of inaction. In the meantime, the need for affordable housing in Cayman, whether it is to rent or own, continues to increase. For as long as anyone can remember, lip service at one extreme and highly questionable conduct at the other has been outpacing reality when it comes to moving towards affordable housing for this country, which is so quick to boast of the highest income per capita in the Western Hemisphere. The country has continually been offered shortsighted, band-aid approaches that show a complete misunderstanding of the real issues confronting the people who are willing to sacrifice to become homeowners and the needs of renters in the market. It is about time that the stakeholders in the area of providing affordable housing – and yes, this includes Government housing – came up with another model than the traditional methods of construction and financing. And a one-third reduction in construction costs, as we have seen in the case of the school contracts, would surely aid this process. This would allow deserving individuals, along with public and private sector stakeholders, to become partners and make the dream of owning a home an attainable reality.

Joe Anne Cowin claimed overall third in the Natural Caribbean Grand Prix Bodybuilding and Figure Championships

By RICK FARAGHER

Sports reporter

FIGURE competitor Joe Anne Cowin claimed overall third in the Natural Caribbean Grand Prix Bodybuilding and Figure Championships recently, which was this year held in the Cayman Islands.

The The Isle of Man competitor, who has lived in Cayman for the past nine years, exceeded all expectations by recording a top-three result in her very first contest, beating a host of recognized names within the sport in the process.

In front of a packed crowd at the Lion's Centre for the annual WNBF Mr and Ms Universe event, Joe Anne entered the stage with the other contestants parading the Manx flag as one of more than 40 nations represented in the event.

>> Read a report from the event at www.caymennetnews.com

As the final placings in the amateur figure category were called out one by one, the Manx woman was in with a great chance of taking the overall title.

However, a somewhat controversial decision by the judges placed Joe Anne third in what was still a fantastic achievement by the former Nautilus Gym instructor.

Although she has been training for 16 years, the build-up to the show required months of intense workouts and a disciplined diet.

In order to fit in her training around her hectic day as a hairdresser her day begins at 5am with an hour of cardio followed by abs conditioning before beginning work at 8am.

Joe Anne's diet consists of six small meals a day which she has to fit in around her busy schedule, usually in between clients. All of her meals consist of a mix of protein and carbohydrates such as chicken, fish, sweet potatoes, brown rice and green vegetables.

Prior to the Miss Universe show the Manx woman completely eliminated sugar and sodium from her diet in a bid to fine-tune her physique, which means having to cut all fruit from the menu and drinking only distilled sodium-free water.

After work at 5pm it's back to the gym for weight training five times a week, with specific focus on one muscle group each day for maximum results.

Joe Anne generally trains for five consecutive days followed by two days of rest where she admits she allows her usually rigorous diet to stray occasionally!

With a third place finish in Ms Universe now under her belt, the former Ballakermeen High School student can now set her sights on a possible victory at her next show in New York this November and put the Isle of Man to the fore of the fitness scene once again.

Gay Kissing in Cayman Not "Illegal", Just Unwise

The Department of Tourism has issued an official apology to the man who was detained by police after publicly kissing his boyfriend at the Royal Palms bar last Wednesday night (30 April).

Meanwhile, Cayman Net News has learned that a full investigation is being launched into the incident, where an off-duty officer took tourist Aaron Chandler to the George Town Police Station after he kissed his boyfriend on the dance floor at the Seven Mile Beach bar.

Director of Tourism Pilar Bush subsequently issued an apology for the incident. "I apologize for your upsetting experience and want to assure you that the Cayman Islands is a welcoming jurisdiction to all people," she wrote to Mr Chandler.

"What happened to you was an isolated incident, and is not representative of Cayman. We know that thousands of gay and lesbian visitors travel to the Cayman Islands every year and enjoy their vacation," she continued, adding: "I am truly sorry to learn of what you went through during your visit."

Mr Chandler has filed a complaint to the Royal Cayman Islands Police Service (RCIPS) over the incident, in which he recalled that after dinner at the Reef Grill he, his boyfriend, and his boyfriend's sister and husband moved to the adjacent Royal Palms bar. While at the bar, he and his boyfriend were dancing together and "occasionally kissing", he said.

"At approximately 11 pm, an unidentified woman came up to me and asked me to follow her to meet a 'friend' at the edge of the club. I went, but reluctantly," Mr Chandler said.

The man requested that Mr Chandler walk with him out of the bar where they could speak alone.

"Not knowing him, and having heard numerous accounts of anti-gay violence on Grand Cayman, I refused. He continued to get me to walk out with him, saying that 'I don't want to create a scene here,' but each time I refused."

The man then identified himself as a police officer and, upon Mr Chandler's request, displayed his badge. Then, according to Mr Chandler's statement, the officer told him: "It is against the law for two people of the same sex to show displays of affection in public."

Mr Chandler's boyfriend then came over, and as the couple was about to leave, the men kissed one more time, after which the officer physically restrained Mr Chandler by the wrist.

"This police officer, upon seeing my boyfriend and I kiss, walked up to me, grabbed my arm and told me that I was going to be arrested. My boyfriend, his sister and his brother-in-law pleaded with the officer to let me go since we were on our way home, but the officer refused."

Legal sources have confirmed that the Cayman Islands does not have any law on its books that prohibits same-sex couples from publicly displaying affection.

Mr Chandler also said in the complaint that a crowd of nearly 20 people from the bar pleaded with the officer to release him as he was "dragged" outside.

"I occasionally tried to gently squeeze my arm and hand out of his grip, but each time he told me, 'Do not resist me' and tightened his grip."

Mr Chandler was then placed in a police car called in by the off-duty officer. On the drive to the George Town Police Station, he said the responding officer told him that "the law is stupid and a waste of time, but that he has to enforce it."

Mr Chandler said he spent about an hour at the police station but was not questioned by an inspector and no charges were laid.

Before leaving the station, Mr Chandler said the off-duty police officer who detained him attempted to elicit a promise not to repeat his behaviour while on the island. Mr Chandler refused and was then driven by police back to where he was staying.

Mr Chandler, an active gay and lesbian rights advocate, is the Board President of the National Youth Advocacy Coalition in Washington DC and former Commissioner of the City of Seattle Commission for Sexual Minorities.

Three questions: Just who was this unidentified off duty cop, and why was Chandler's partner not detained as well, and why bother upsetting the "values" of a homophobic island when it is well known you will be mistreated?

UPDATE:
The Ministry of Tourism announced today (Wednesday, 21 May) that Pilar Bush has resigned from the position of Director of Tourism (DoT) effective 30 June 2008. In accepting the resignation, Gloria McField-Nixon, Chief Officer of the Ministry of Tourism, Environment, Investment and Commerce, thanked Ms Bush for her dedicated service. Mr Shomari Scott, will be appointed as Acting Director.

I wonder if she was forced to resign from all the flack she received from the Christians on the island, or maybe she was just a symbolic "firing" from the backlash against Cayman from the world of tourism.

Cayman Islands: Confusion Over Same Sex Marriages

Cayman Islands lawmakers and UK officials have both assured the public that neither same sex marriages nor any union similar to them will be legally allowed under the country’s constitutional reform plans.

Education Minister Alden McLaughlin said during a press conference last week that one of the reasons to change the current constitution was to allow elected leaders more control over legislation.

“So that we don’t have to live in fear or concern about the input of EU directives or specific UK legislation relating to things like civil unions,” Mr. McLaughlin said.

UK Parliamentary Under–Secretary of State Meg Munn previously said Britain has no intention of forcing Cayman to accept civil unions or civil partnerships, even though she is personally in favour of allowing such arrangements to exist.

However, despite claims from both sides on the issue, the phrases “civil partner” and “civil partnership” actually do appear in legislation that has recently been gazetted in the Cayman Islands.

The British Nationality (British Overseas Territories) Regulations, 2007 set out certain guidelines for how a person applies to be registered as a British Overseas Territories citizen. It essentially advises governments in overseas territories on how those matters should be handled in accordance with the British Nationality Act of 1981.

The government intends to prohibit same sex marriages by amending the Cayman Islands Marriage Law to reflect that marriage here will be considered solely the union of one man and one woman.

However, it’s not known whether such an amendment would legally prohibit the formation of civil unions, or any other legal arrangement similar to marriage.

There has also been some confusion over whether government would attempt to ban same sex marriage in a bill of rights. Mr. McLaughlin said that would be handled under the Marriage Law, not in any human rights section of the constitution.

“One wouldn’t put that (language outlawing same sex marriage) in a bill of rights,” he said. “A bill of rights is about affording people rights, not ––– making prohibitions about various things.”

Precisely what language might be placed in the constitution regarding marriage isn’t certain. The first summary of constitutional proposals released by government said “the right to marriage between members of the opposite sex” would be considered.

Bill Clinton Evades Taxes With Sketchy Account in Grand Cayman

In recent weeks, reports from the USA suggest that the fight between the two hopefuls, Hillary Clinton and Barack Obama, has included a number of robust, vocal attacks on the use of the Cayman Islands by US citizens and US companies to avoid paying US federal taxes.

The Cayman Net News Online published a story about former President Bill Clinton's "substantial financial stake in three Cayman Islands-registered investment entities."

They were referring to President Clinton's investments with Yucaipa Companies, a Los Angeles-based holding company founded in 1986 by self-made billionaire and former grocery store bag boy, Ron Burkle. The investments, according to the report, "are believed to offer the former president a fairly risk-free potential yield in the order of tens of millions of dollars."

The Cayman Islands have no domestic taxation system, but President Clinton is still liable for U.S. taxes on income earned through Yucaipa's investment funds.

"The crucial, and as yet unanswered question," said Cayman Net News, "is whether the money in the funds represents a salary, taxed at a potential high of 35 percent, or equity compensation, which could only attract 15 percent taxation."

Yesterday afternoon the Clintons released their tax returns, perhaps answering the crucial question.

We say "perhaps," because we have no expertise in tax law.

But a cursory look at the Clintons' 2005 return finds a $5,000,000 payment from "Yucaipa Global Opportunities Fund I" reported on Schedule E, "Income or Loss from Partnerships and S Corporations."

Bloomberg News dug through the tax returns and found $15.4 million in income from Yucaipa since 2003. Reporter Ryan J. Donmoyer calculates that it was twenty percent of Mr. Clinton's income during that period.

Mr. Donmoyer got some tax lawyers on the phone and reports that they think "the Yucaipa partnership income for Bill Clinton looks to be a form of salary because it was in round numbers for most years."

Documents show that Yucaipa paid the ex-president $1 million in 2003, $4 million in 2004, and $5 million in 2005, and Bill reported $12,674,668 in income from Yucaipa between 2001 and 2006.

Tom Ochsenschlager, vice president of taxation at the American Institute of Certified Public Accountants, told Bloomberg News that "the flat amounts received from Yucaipa are odd" and agreed with other experts that it indicated Bill Clinton was paid for performing a service.

Apparently, if that money was a salary, President Clinton owed 35 percent of it in income taxes. And that's not what he has paid, apparently.

It looks like the whole time that Hillary Clinton and her husband have been telling anyone who'll listen that they didn't want George W. Bush's tax cut, they've been evading taxes with a sketchy partnership in the Cayman Islands.

If the usual pattern holds, Bill Clinton will spend the next week thunderously denying that he did any favors for Dubai or any of Ron Burkle's other interesting partners. He'll also be trying to deflect continued negative attention away from himself, and Hillary's Democratic run against Obama.

Cayman Royal Cayman Islands Police Embroiled in Corruption

The officers above were not necessarily the ones put on suspension.

The Governor of the Cayman Islands, His Excellency Stuart Jack, CVO, today (Thursday, 27 March) announced that he has put three senior police officers on required leave to facilitate enquiries into allegations against officers of the Royal Cayman Islands Polput on ice Service (RCIPS). Police Commissioner Stuart Kernohan, Deputy Commissioner Rudolph Dixon and Detective Chief Superintendent John Jones were put on required leave with immediate effect to enable an investigating team from the Metropolitan Police Service led by DCS Martin Bridger to proceed with their enquiries. This action follows a separate investigation by Mr Bridger’s team into serious allegations made against the Deputy Commissioner Anthony Ennis and the editor in chief of Cayman Net News Desmond Seales. “The investigating team has shown that these allegations were false. However, in the course of their original investigation certain other matters have come to light which now, in the interest of protecting the high standards of the RCIPS, we must look into,” the Governor explained.

Although the Governor said that it could cause “some anxiety”, he urged the community to look at the positive outcomes of these matters: “It sends a clear signal that regardless of position, serious allegations will be investigated, and that we are committed to pursue the highest ethical standards in public office without fear or favour. It also serves as an assurance to our community that illegal or unethical actions that tarnish the reputation or interfere with the media will not be allowed.” Further in his statement to the media Governor Jack emphasised that the decision to take action against these top level officers was not taken lightly: “It was after very careful examination by me of the information that have been gathered to date. I am grateful for the valuable advice received from the Attorney General’s Office. And of course I was also mindful of the high public office that these individuals hold.” He added: “The enquiries are ongoing and I want to make it clear at this point that no judgment has been made as to the guilt, innocence or culpability of any person.

The decision to put these officers on required leave was made to protect the integrity of the enquiries to be made and it shows fairness to the officers involved.” The conditions of the required leave will be under constant review by HE the Governor as the investigation progresses. To lead the RCIPS in the interim the Governor has appointed David George, an UK police officer, as Acting Commissioner. While Mr Jack pledged to make every effort to keep the community informed, he did say that the sensitivity of the issues involved as well as the sub judice rule will restrict the amount of information the investigative team can provide. The Governor urged the community to steer clear of “sensationalism and divisive politics” and instead work together to combat rumour, innuendo and mischief making.

Offshore Financial Centers: Myth And Reality

Bryan Hunter

For too long, offshore financial centers like the Cayman Islands have been stereotyped as refuges for the wealthy to stash their fortunes. Like most stereotypes that grow more out of myth than reality, the role of today's offshore financial centers is quite different from what many perceive.

Successful offshore financial centers uphold global transparency and cooperation standards and enable market efficiency and competition. It's time to dispel the stereotypes that have long driven global efforts to stem the vital role of financial services centers. The realities of what offshore financial centers are and their contributions to global financial markets are explained below, alongside four of the most commonly held myths.

Myth: Offshore financial centers only benefit the rich and powerful.

Reality: The Cayman Islands and other offshore financial centers compete aggressively with each other every day to offer the most cost-efficient environment for international capital flow. This competitive market allows companies to raise financing and package financial risk more economically. These efficiencies benefit businesses, consumers of goods and services sold by these companies around the world and shareholders, which include such venerable clientèle as non-profit endowments and public-sector pension funds.

Myth: Companies and investors doing business in offshore financial centers are driven by a need for secrecy.

Reality: Today's successful offshore financial centers have a long history of promoting commercial certainty for global clientèle. For the Cayman Islands, this has meant adherence to recognized and relevant international standards--not absence of regulation--which has helped fuel sustainable growth of the sector. Since the early- to mid-1980s, the Cayman Islands has progressively reinforced its international cooperation channels in law enforcement, regulation and exchange of information on tax matters. These channels include a tax information exchange agreement that was signed with the U.S. in 2001 and is in force, as well as a mutual legal assistance treaty with the U.S. on criminal matters in effect since 1990 and under which the Cayman Islands and the U.S. have cooperated in some 230 requests for assistance.

Myth: Offshore financial centers prey upon other countries' tax codes, fostering illegal tax shelters.

Reality: Investors and/or their advisers choose the Cayman Islands for tax neutrality. This simply means that investors and their specific corporate activities--which can often involve two or more countries--are not subject to additional layers of taxation over and above those of their home country, which is where capital flows ultimately end up and are then taxed. In a similar context, numerous U.S. companies have left states where they were founded or have substantial business operations and established registered offices in Delaware, Nevada, Colorado and Texas so they can take advantage of the tax savings and efficiencies of having a registered office there. This is not seen as being shady or unduly evasive in the least.

Myth: Offshore financial centers foster illicit activity and are unregulated.

Reality: The Cayman Islands has a strong track record of effectively regulating a full spectrum of financial services that measures up with standards found anywhere in the world. Effective oversight of complex financial activity--where literally billions of dollars trade hands every day--can only be accomplished by regulating services typically unregulated in other global regimes, such as company formation services, trust-services providers and fund administration. In addition, the Cayman Islands government invests significantly back into regulation and into combating cross-border financial crime.

Over the past 15 years, the Cayman Islands financial regulation and prevention of financial crime regimes have been evaluated, "road-tested" and recognized by many third-party organizations such as the IMF, FATF and OECD. The Cayman Islands continues to participate in these valuable "health checks" to help ensure the integrity of its regimes.

Due to necessity and market expectations, offshore financial centers must be mature, sophisticated and specialized providers of financial services with sound legal frameworks and modern infrastructure in order to succeed. The "Big Four" accounting and auditing firms, most of the world's fund-service providers and substantially all of the world's top global banks have a presence in the Cayman Islands.

It's time to focus on the reality. Offshore financial centers are increasingly critical economic catalysts in today's fast-paced, cross-border, open-market system. Their continued and singular focus on transparency and appropriate levels of regulation is vital to a dynamic and resilient global economy.

Quick Facts about The Cayman Islands

1. The Cayman Islands were discovered in 1503 by Christopher Columbus. They were originally named “Tortugas” [Spanish for turtles] due to their large population of green sea turtles.
2. Grand Cayman is 22 miles long and less than 8 miles wide. Maximum elevation is about 60 ft.
3. Corals, which resemble colorful rocks and plants, are actually vast colonies of tiny animals. Coral reefs are home to over 25% of all marine life and are among the most fragile and endangered ecosystems.
4. It can take 5 to 10 thousand years for a fully developed reef system to evolve.
5. Over 400 species of fish and over 100 species of coral inhabit Cayman’s reef.
6. A Nor’ wester is a storm which generates strong winds and high seas along the north and west area of the island. Nor’ westers occasionally occur between November and April, usually lasting 2-3 days.
7. Pollution, over -fishing, reckless dredging and nefarious diving practices are leading causes of reef destruction.
8. Turtles are air breathing reptiles who must surface every hour or so to breathe. Look for them resting on the surface in between dives.
9. Fire coral appears in many intricate forms. However, it delivers a painful sting upon contact with skin. Vinegar or isopropyl alcohol will help alleviate the pain.
10. The wreck of the ten sails, off the shores of East End is a monument to the bravery of many Camanian men who, in 1794 risked their lives to rescue the crew of this ill- fated expedition from England when they floundered on the reef. Legend has it that in appreciation of their heroic efforts, King George III granted permanent tax -free status to the Cayman Islands.
11. Cayman is a Christian country and as such observes the Sunday Sabbath. Supermarkets, bars, nightclubs and liquor stores are closed. It is forbidden to dance on Sundays, and establishments are only permitted to play soft, background music. Bars are required to close early on Saturday night and must be empty by midnight to observe the Sabbath.
12. With a resident population of less than 200, shy iguanas and rare birds out-number humans on Little Cayman. Little Cayman has the largest known breeding colony of the Red Footed Booby (5000 pairs) and only breeding colony of Magnificent Frigate Birds in this hemisphere.
13. Black corals are not harvested in the Cayman Islands. It is imported for crafting from places such as; Honduras by professional divers, at depths and locations well outside the recreational dive limits.
14. The hurricane season is from 1st June to 30th November.
15. There are approximately 4,000 hotel and condo rooms available to visitors most of which are adjacent to the Seven Mile Beach.
16. Hurricane Ivan left most of the reefs intact and made many of the existing sites different and more exciting. Shipwrecks render a bridge from past to future as their slow decay affords birth to new living reef.

Polo Ralph Lauren, Hugo Boss, Lacoste available at Camana Bay

NKY at Camana Bay opens its doors to the public on Friday, 7 March. Presenting the latest collections from today’s top fashion designers, the stylish new store offers a wide choice of men’s and women’s clothing and accessories.

Visitors to Camana Bay will find NKY at the crossroads of The Paseo and Market Street, at the very heart of the Town Centre. The 2,200 square foot store, decorated with dark hardwood floors, Grecian pillars and a beautiful leather sales desk, is a stunning showcase for some of the best-selling names in fashion. Lines available at NKY include popular brands such as Polo Ralph Lauren, Hugo Boss, Lacoste, Calvin Klein Underwear, Tommy Bahama and Façonnable. New additions to the portfolio are Paul & Shark, a collection of yachting and sportswear, Robert Graham’s beautiful woven shirts and Nilika by Xsara, an Israeli designer who has fast become one of the hottest labels in Miami.

NKY’s owner Nicola de Lima says, “NKY’s mission in fashion retail is directed towards our local residents and visitors. Our objective is to offer the latest collections from all of our lines at competitive pricing from all of our designers. NKY now eliminates the need for anyone who lives on the Island to have to travel off island to do their shopping. Our new location at Camana Bay is the ideal venue for the top designers’ labels we carry. They are as excited to be a part of such a great new shopping destination as I am.”

Accessories are also a key focus for NKY, where a dedicated handbag and shoe gallery will provide irresistible temptation for window shoppers and browsers. Even canine fashion followers will be well catered to with a fun and glitzy range of dog accessories.

“We are delighted to have NKY leading the way as our first clothing and fashion store in the Town Centre,” said Jackie Doak, Executive Vice President of Dart Realty (Cayman) Ltd, the developers of Camana Bay.

Editors note: The brands selling in this store are notoriously discounted, and marked down designer labels that are available in Miami, New York, California, Detroit, Chicago, and Toronto for almost next to nothing.

Cayman carbon footprint raises concern

The United States Energy Department’s Carbon Dioxide Information Analysis Center has ranked the Cayman Islands at number 55 on a list of 207 countries, for global carbon emissions per person.

Published on the BBC website in December 2007, in a study where all countries want to come in last, Cayman’s carbon footprint leaves a worldwide impression.

According to the report, the Cayman Islands national emissions (thousands of tonnes of carbon) are 85, and emissions per person (tonnes of carbon) equals 1.96. The statistics are for 2004, the year of Hurricane Ivan.

After several telephone calls and emails to the Department of Environment Health (DEH) this week, Cayman Net News received no comments at press time. An initial enquiry to the Department of Environment resulted in the newspaper being directed to the DEH Assistant Director Sean McGinn, who has responsibilities for the Solid Waste Unit.

Trinidad and Tobago, Netherlands Antilles, and Bermuda are the only Caribbean islands ranked above the Cayman Islands in the US Carbon Dioxide Information Analysis.

The definition of carbon emissions is: a polluting carbon substance released into the atmosphere; carbon dioxide and carbon monoxide produced by motor vehicles and industrial processes and forming pollutants in the atmosphere.

A carbon footprint is a measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.