How to Open a Business Bank Account in the Cayman Islands

Are the Cayman Islands the place to make that dream of taking your business global a reality?

Intro to the Cayman Islands Banking

With its enticing tax laws, solid political stability, and robust banking system, it's no surprise that many entrepreneurs are turning to the Cayman Islands to expand their businesses.Opening a business bank account in the Cayman Islands could be the gateway to accessing global markets, enjoying a secure banking environment, and taking advantage of efficient and reliable financial services. And with the country's ideal location and time zone, it's the perfect destination for businesses with international clients.In this article, we're going to take you on a journey to discover how to open a business bank account in the Cayman Islands. We'll provide you with all the information you need, from the necessary requirements and documentation to the best banking options available.

Why the Cayman Islands?

We’ve mentioned the Cayman Islands’ tax laws, political stability, ideal time zone, and banking reputation, but let’s bring out the magnifying glass and take a closer look.The Cayman Islands are considered a “tax haven,” like Panama, Switzerland, and Monaco. It’s probably the biggest reason why businesses choose to base their operations here. After all, what kind of business doesn’t want to minimize its tax liability? The government imposes no income tax, capital gains tax, or corporate tax, which can lead to significant cost savings.These tax havens are able to operate this way by providing offshore banking services to foreign businesses. This attracted plenty of multinational corporations looking to take advantage of this.And being situated at the crossroads of major trade routes, it’s an excellent gateway to the rest of the world. Additionally, the Cayman Islands operate in the Eastern Time Zone, which is convenient for businesses dealing with clients in North and South America.Political Stability and Regulatory ChangesSomething else that characterizes the islands is their stable political environment and strong economy, which is ever-so-important for businesses looking to establish a presence in a new country. The government attributes its successful financial services to its cooperation with over 100 countries and political and economic stability.At the same time, while the Cayman Islands still offers a stable environment, political shifts within the U.S. and Europe could impact tax haven regulations. For example, the OECD’s BEPS (Base Erosion and Profit Shifting) initiative could lead to new rules impacting Cayman banking for multinationals, particularly those seeking tax minimization.Global Scrutiny on Tax HavensIn recent years, global scrutiny on tax havens, such as the Cayman Islands, has intensified due to international pressures aimed at increasing transparency and cooperation in tax reporting. Organizations, including the EU and OECD, are leading initiatives that enforce regulations like the Common Reporting Standard (CRS) and Base Erosion and Profit Shifting (BEPS) actions, requiring more rigorous compliance from low-tax jurisdictions. This focus seeks to curb tax avoidance and increase financial disclosure by mandating that these jurisdictions adopt standardized tax information exchanges and limit harmful tax practices.Such regulatory measures could mean heightened documentation standards and longer processing times as the Cayman Islands, alongside other offshore centers, aligns with global tax frameworks like OECD’s Pillar Two. This framework includes the global minimum tax, which many countries are adopting, creating additional pressure on tax havens to adapt quickly to avoid sanctions and maintain favorable market perceptions. These developments underscore a shift where tax havens are being held increasingly accountable to international tax norms, potentially impacting both local regulatory landscapes and multinational compliance obligations.

Offline options

While online banking is becoming increasingly popular, some businesses prefer to do all their business banking through offline banking methods. The good news is that plenty of offline banking options exist in popular locations such as George Town and Seven Mile Beach.Visiting a bank branch lets you speak directly with banking professionals, ask questions, and get advice on which banking services are best suited for your business needs.A few options include:

Cayman National Bank has provided banking services in the Cayman Islands since 1974. They have a major presence throughout the islands and offer a range of business accounts for sole proprietors, non-profits, associations, societies, and small, medium, and large corporations.
Butterfield Bank describes itself as a “leading, independent offshore bank and trust company.” They specialize in tailored and bespoke banking services, including merchant services and other corporate banking offerings.

So how does one open a business bank account in the Caymans?

Each provider will likely have slightly different requirements and procedures, but we’ll give you an overview of the steps you’ll have to go through to open your account:

Choose a bank: Research and compare the different banks operating in the Cayman Islands to find one that suits your business needs. Consider factors such as fees, services offered, location, and reputation.
Gather required documentation: You will need to provide the bank with several documents, just like you would in any other country. These might include:

Your business license and registration documents
Proof of identity and address for all authorized signatories
A certificate of incorporation or registration
Business plan
Business reference letter

Complete the application: Fill out the bank's application form, providing details about your business, such as its name, type, and purpose. You may also need to provide financial information, such as projected revenue and expenses.
Submit the application: Once you have completed the application and gathered all required documents, submit them to the bank. You may be required to provide the original documents, or you can submit certified copies.
Wait for approval: The bank will review your application and may request additional information or documentation. After your application has been approved, you will be notified and can proceed with opening your account.
Fund your account: You will need to deposit funds into your new account to activate it. The amount required may vary depending on the bank and the type of account you end up choosing.

KYC and AML ComplianceTo bolster Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, regulations in the Cayman Islands have intensified throughout 2024. Key changes include stricter due diligence standards, which now encompass more comprehensive background checks on business owners and officers.Applicants for bank accounts or financial services may need to provide enhanced documentation, such as proof of the source of funds and more detailed financial disclosures. Additionally, the Cayman Islands have implemented further requirements for risk assessments and updated penalties that hold individuals in management positions accountable for compliance breaches.These changes aim to strengthen the jurisdiction's stance against money laundering and terrorist financing risks, aligning it with global AML and counter-terrorism financing standards.How much money does one need to open a business bank account in the Caymans?"There are a lot of companies that charge you $1,000 or so to help you get an account in Cayman. Good luck. Opening an account there is getting harder and the compliance laws stricter," writes Nomad Capitalist.If your business is incorporated in the Caymans, it makes sense to consider having the business owner's personal account there, too, so let's have a look at reported fees for both types of accounts.According to this investment strategy company, a Cayman Islands resident needs to put down an initial deposit of $500 in PROVEN Bank (Cayman) Limited (formerly Fidelity Bank (Cayman) Ltd) — a reasonable amount for a personal account. Consultancy company Offshore Protection writes that minimum deposits range from $50,000 to $100,000 for reputable banks. The number grows higher for private banking services. Nomad Capitalist reports that Alhambra Bank & Trust Ltd, which focuses on non-US, high-net-worth individuals, requires a minimum initial deposit of $1,000,000.Caymancompanyincorporation.com reports that in 2024, for corporate accounts, local banks can impose a minimum average balance of $100,000. The minimum average balance for personal banking can be lower — e.g., $10,000.

Online Banks Serving the Cayman Islands

If you don’t require any brick-and-mortar banking services, online banks can be a convenient option for businesses that prefer to manage their finances digitally. These online banks or institutes may offer lower fees and more flexible account options than traditional banks. Here are some online banks serving the Cayman Islands:

PROVEN Bank - PROVEN bank offers business accounts in the Cayman Islands, catering to the needs of companies of all sizes. With a range of services such as online banking, wire transfers, foreign exchange, and cash management, PROVEN bank provides a comprehensive suite of financial solutions to support the growth and success of businesses.
Butterfield Online - Butterfield Bank, which we previously mentioned as an offline bank, also offers online banking services to their business clients. Business owners can use Butterfield Online to manage their accounts, transfer funds, and pay bills.

However, some providers may have limited functionality when dealing entirely online from abroad, and physical presence requirements can vary by bank. For those outside the Cayman Islands, additional steps for account verification or notarization might be required. When traditional banks refuse to be flexible, it might make sense to turn to other financial institutions such as neobanks.

Narvi Payments: Your Global Banking Start

If you’re a business owner or plan to become a business owner in the Cayman Islands, you need a financial solution that can keep up. If the local regulations for your industry permit storing corporate funds outside the Islands, why not consider a fully AML-compliant provider that's as agile as your operations and doesn't hold the stigma associated with offshores?If we caught your interest, look no further than Narvi Payments. With our powerful integrated solution, doing business across borders has never been easier.Our customizable banking experience allows us to be efficient, seamless, and user-friendly. Your dedicated IBAN account will let you receive and make payments all over the world with no hassle. And with our financial expertize and regulation as a Finnish Electronic Money Institute (EMI), you can rest easy knowing that your funds are safe, your banking is AML-compliant, and support is close by.

Originally published April 20, 2023. Updated November 12, 2024. Sources checked November 12, 2024.Author

Noah Edis, online entrepreneur and writer in the SaaS and fintech space. Noah has contributed to SEMRush, NordVPN, and dozens of other seven-figure content companies.
Valeriya Kushchuk, now Narvi's Digital Marketing Manager, previously a business reporter and marketer in the crypto space.

Disclaimer
This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.