How To Open a Bank Account in the Cayman Islands (Overseas)

The Cayman Islands is renowned for its zero-tax regime, including no income tax, property tax, wealth or inheritance tax, or company tax. However, the landscape has changed, and stringent international regulations, particularly from the US government in 2010, have eliminated its reputation as a tax haven.

Opening a bank account in the Cayman Islands as a foreigner can now be a challenging task. Cayman offshore accounts are generally reserved for high net worth individuals, corporations, insurance companies, and trusts. Factors such as physical presence, family ties, business presence, or a substantial financial commitment are often required.

In this article, we will list a few options of reputable banks in the Cayman Islands and detail how the Wise Multi-Currency Account may be an attractive alternative for retail international finances.

How to Open a Personal Bank Account as a Resident

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Each bank in the Cayman Islands may have slightly different requirements for residents looking to open a personal bank account.

Typically, you'll need to provide:

• An employment letter confirming your position, salary, and expected length of employment.
• A recent utility bill or lease agreement as proof of address.
• Original passports for all countries of citizenship.
• W9 forms for US citizens.
• Additional documents such as work permits or naturalization certificates may also be required.

Opening a Personal Bank Account as a Non-Resident

Non-residents can open bank accounts in the Cayman Islands, although not all banks offer this service. Requirements often include certified documents to prove identity, overseas address, source of funds, and bank references.

As a non-residents Cayman Islands banks will want to know your profile as a client and where the source of funds is coming from. You references must be written by a professional, such as an attorney, accountant, director or manager of a regulated institution, teacher, notary public, justice of the peace, or even priest or pastor.

US citizens must still declare their accounts to the US Department of Treasury and report any income earned to the IRS.

Here is a holistic list of documents you may need:

• Employment letter.
• Original bank and professional references.
• Curriculum Vitae (CV).
• Utility bill or lease agreement.
• Certified copies of passports.
• W9 forms for US citizens.

Top Banks in the Cayman Islands

The Cayman Islands boasts a robust banking sector, with over 85 banks catering to various needs. However, not all banks offer the same services or cater to the same clientele. The Cayman Islands Monetary Authority issues two primary types of banking licenses:

1. Category A Banking Licence: This license permits banks to offer both domestic and international services to residents and non-residents alike. Currently, only 11 banks hold this license, mainly focusing on serving the local population.
2. Category B Banking Licence: Banks with this license primarily serve non-residents in international markets. The remaining 76 banks hold this license, focusing on offshore banking services for individuals and businesses.

Regarding Category A banks, it could take around 5 to 10 working days to open a personal account while corporate accounts could take from 15 to 20 working days.

Cayman National Bank

• License Type: Category A
• Services: Premier domestic and non-resident financial banking services, including online banking, asset and trust management, and company formation. Largest ATM network on the island.

PROVEN Bank (Cayman) Limited

• License Type: Category A
• Services: Personal, corporate, and private banking facilities, along with a full suite of client services from credit and debit cards to land loans and mortgages.

Butterfield Bank

• License Type: Category A
• Services: International bank offering asset management, private banking, trust and estate planning, and more.

CIBC FirstCaribbean International Bank

• License Type: Category A
• Services: Corporate and investment banking, investment portfolio customization and management, premium personal and business accounts.

Alhambra Bank & Trust Ltd

• License Type: Category B
• Services: Focuses on non-US, high-net-worth individuals with a minimum initial deposit of $1,000,000. Provides personalized banking services with a client-focused approach.

Trident Trust Company (Cayman) Ltd

• License Type: Category B
• Services: Corporate, trust, and fund services with a focus on the formation and administration of corporations and private family trust funds. Strong international connections.

Who Should Bank in the Cayman Islands?

As a British Overseas Territory, the Cayman Islands can offer tax advantages for individuals and businesses. In addition, it has stable governance and a sophisticated banking sector.

However, high fees make it most suitable for high net worth individuals and trusts. US citizens may find better options domestically by changing state residency and establishing companies in tax-friendly states. Similarly, UK citizens might explore alternatives like the Isle of Man or Jersey.

Wise: An Alternative For Your International Money Needs

For those seeking international banking solutions, Wise provides a powerful multi-currency alternative. While not offering services directly to the Cayman Islands, Wise allows account holders to open accounts in 10 countries and conduct transactions at the mid-market rate.

With functionalities like currency conversion and money transfers, Wise offers flexibility for individuals in the following eligible countries: the UK, US, Australia, Brazil, New Zealand, Singapore, Malaysia, Japan, Switzerland or EEA.

Wise's Top Features

Your Wise account will come with a US account number, UK sort code, and 8 others.

This means you'll be able to spend and be paid just like a local in the US or UK and convert your USD or GBP balance into your home currency without the exorbitant bank fees. Here's an overview of the other features you'll get:

• Local bank details, not just in the US and UK, but also in the EU, Australia, New Zealand, Singapore, Romania, Canada, Turkey, and Hungary.
• Hold, exchange, and top-up up to 56 currencies.
• A multi-currency VISA debit card that's handy for paying in foreign currencies without hidden fees.
• Access to Wise's powerful international money transfer service right from your account balance.

How to Transfer Money to a Cayman Islands Bank Account

Once you've established a bank account, the next step is moving your funds to the Cayman Islands, a process that can incur high costs, especially since you're probably depositing currencies other than Cayman dollars. To deposit money into your new account before your move, you have two primary options:

1. Send a wire transfer directly through your bank.
2. Use a money transfer specialist service for your bank transfer.

While your home bank may handle international money transfers, they may offer preferential rates only for high-volume transfers with closely affiliated clients. Generally, we advise against using traditional banks for international transfers due to potentially high fees and lengthy processing times. Banks typically route funds over the SWIFT network, which adds timely steps and expensive middlemen to the money transfer process.

Send Money With the Best Online Specialist

For online transfers to Cayman Islands bank accounts, especially for amounts ranging from several hundred to thousands of dollars or equivalent, consider using a money transfer specialist service like Wise and Wise Business.

However, for larger sums exceeding $30,000 or equivalent, explore options among foreign exchange brokers supporting transfers to the Cayman Islands. These brokers specialize in securing favorable exchange rates for significant sums, making them a more cost-effective choice for transferring substantial amounts across borders.

To find the most suitable service for your transfer in real-time, run a search on Monito's real-time comparison engine.