Tom Cruise Should Invest Here

What does Hollywood have against the Cayman Islands?

In 1993, the movie The Firm put the Caymans on the map, with Tom Cruise playing the part of a young lawyer who joins a law firm that launders organized crime in the Cayman Islands.

In 2004, Bill Paxton starred as a shady businessman who flees to the Cayman Islands to avoid federal prosecution in the film, Haven.

And in 2007′s American Gangster, Denzel Washington portrayed organized crime boss Frank Lucas, who stashed his dirty cash in, you guessed it, the Caymans.

Thanks to the film makers, there have been few places in the world so misaligned with false charges of alleged illicit behavior and financial crime as the Cayman Islands.

But despite the smears it’s received from leftist Hollywood nitwits, the Cayman Islands’ reputation as a legitimate international financial center has never been better

Today, the financial landscape in the Caymans Islands is quite different than it was 20 years ago when Tom Cruise was here gallivanting around a film set. In fact, this jurisdiction has been leading the pack when it comes to transparency and disclosure, with not only the U.S., but also the European Union.

Ultimately, the Cayman government and financial industry are under the direct control of the British authorities in London, with its laws and regulations constantly reviewed and updated to meet the requirement of the financial services industry. Plus, regulatory pressure on offshore financial centers such as the Cayman Islands, particularly during the past 15 years, has led to many reforms.

Also, with much of the Caribbean region struggling under debts, the Caribbean Development Bank has praised the Cayman Islands and other area jurisdictions under the United Kingdom’s administration. London has imposed limits on its overseas territories’ borrowing and forced balanced budgets. The economic and banking climate here is superior to many of its Caribbean neighbors at the moment.

Behold the Cayman Financial Appeal

Most of the Cayman’s appeal as a global financial center comes from its designation as a tax neutral jurisdiction. There are no corporate, capital gains, income, profit, withholding or inheritance taxes. Plus, Cayman fund structures, companies, limited partnerships and trusts are all tax exempt for periods ranging from 20 years (corporations) to 50 years (partnerships and trusts). The government imposes no restrictions on investment policies and there is also no requirement to have directors, administrators or custodians who reside in the Caymans.

Firms from riskier markets in Asia or South and Central America, who find it difficult to attract investors in their home countries, use the Cayman Islands as vehicles to raise funding or to list on one of the major stock markets in New York and other global financial centers. Corporations and financial institutions also raise capital via the Cayman Islands by issuing Eurobonds or through securitization.

The Caymans also have a host of highly qualified financial service providers including lawyers, fund directors, auditors, accountants and administrators to service its bustling financial sector. And as a common law jurisdiction, the islands are also one of the main global centers for the establishment of trusts.

From Our Eyes to Yours

Just a few days ago, Sovereign Society’s executive publisher, Erika Nolan, and I met with Cayman Island financial leaders in George Town, exploring possible future benefits for our readers. In our decade and a half since founding the Sovereign Society, we have carefully cultivated a network of Caribbean area banks, trust companies, attorneys and offshore professional providers, using strict due diligence.

But ours is a dynamic network that requires constant review and revision to assure continued protection for our members, which explains our recent trip to the Caymans.

Before considering offshore asset protection and service, be sure to review my practical rules for offshore banking. Also check the soundness of individual foreign banks at the website of the Bank for International Settlements. And for up to the minute offshore news, consider joining my elite group, the Freedom Alliance.

And should Tom Cruise be reading this, please feel free to contact me for a free tour of the Caymans. A lot has changed over the past 20 years.

Faithfully yours,

Bob Bauman, J.D.
Chairman, Freedom Alliance