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 corporate 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, time zone, and desire to attract foreign investors, it's the perfect destination for businesses with international operations and 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.

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.

Banking fees in the Cayman Islands

So, how much money does one need to open a Cayman Islands bank account?"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 are 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.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.

Step 1: Choose from the best banks

If you still want to take advantage of the many business benefits the Caymans offer, despite the banking fees and potential hiccups, you need to start by choosing a reputable bank. The Cayman Islands is home to a mix of international and global banks that can cater to different needs. Maybe international transactions are your main priority, and you need a global bank with multi-currency capabilities. Alternatively, perhaps you’re looking for a local bank on Grand Cayman with solid local connections and personalized service. Or, you could ditch the in-person banking and choose a fully online bank for extra convenience. In a later section, We’ll review a couple of online and offline banks.

Step 2: Determine the type of account you need

Most financial institutions offer multiple business bank accounts to accommodate different-sized businesses. These accounts come with varying fees and features, which you’ll have to evaluate. Smaller businesses can make do with the essentials, like an operation checking account and debit cards. However, larger businesses may require a lot more, like higher transaction limits, specialized services like payroll management, and accounting tools.

Step 3: Gather the required documentation

Your business license and registration documents
Proof of identity and residential address for all authorized signatories (usually shown on a utility bill)
A certificate of incorporation or registration
Business plan
Business reference letter
Optionally, bank statements from previous company accounts.

Step 4: Complete the application remotely or in person

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.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.

Step 5: Wait for the 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.

Step 6: Fund the 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.

What companies can open an offshore account in the Caymans?

These are some common company structures in the islands:

Cayman Islands Ordinary (or Resident) Company, usually established by Cayman citizens.
Cayman Islands Ordinary Non-Resident Company and Cayman Islands Exempt Company cater better to foreign investors. Say, a finance company from Hong Kong wants an account without having operations in the Caymans — this would be a likely incorporation form for them).
Cayman Islands Foreign (or Overseas) Company is for entities that are established abroad and want to conduct business in the islands.

Offshore banking regulations in the Cayman Islands

Opening an offshore bank account is certainly effective if you’re looking for better interest rates, a way to protect your assets, or access specific financial services. Since these bank account owners typically reside outside of the country, banking hubs like the Caymans take great care to abide by a strict regulatory framework.For United States citizens, a federal law known as the Foreign Account Tax Compliance Act (FATCA) requires any foreign financial institution to report information about US account owners to the IRS. That holds Americans accountable for reporting their finances in the Cayman Islands on US tax returns.In general, the Cayman Islands Monetary Authority (CIMA) oversees the regulation of all financial institutions in the territory so they stay compliant with international standards.

bar chart showing net trade statistics in Cayman islands until 2021

Online Banks Serving the Cayman Islands

If you don’t require any brick-and-mortar banking services, online banking 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 banking providers serving the Cayman Islands:

Butterfield Bank
Cayman National Bank
HSBC Cayman Islands
RBC Royal Bank
Narvi Payments

The issue is that 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 — neobanks.

Narvi Payments: Your Global Banking Start

When you 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 offshored?If we caught your interest, look no further than Narvi Payments. With our powerful integrated solution, doing business across European borders has never been easier.Our customizable banking experience allows us to be efficient, seamless, and user-friendly. Your dedicated business account will let you receive and make payments all over the world with no hassle. And with our financial expertise 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.

Offline Banks in the Cayman Islands

While internet 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:

PROVEN Bank Corporate & Private Banking

PROVEN Bank has a full suite of corporate banking products dedicated to keeping any business’s bottom line healthy. With Operating Current Accounts, High-Interest Accounts, a wide range of business credit cards with international capabilities and rewards, and merchant services, businesses can experience complete financial solutions in one place.

Butterfield Bank

Butterfield focuses on wealth management and trust services, with principal banking operations in the Cayman Islands, Guernsey, Jersey, and Bermuda and branches around the world. It has a strong reputation in the offshore banking world, offering bespoke services with unique financial goals.

Cayman National Bank

If you’re looking for a homegrown bank with integrated financial solutions for international and domestic clients, Cayman National Bank has the connection to the local market you need. The bank has all sorts of services to meet your needs, including business banking, merchant services, and cross-border services.

CIBC Caribbean

CIBC Caribbean is the largest bank in the Caribbean. With 48 branches and offices, its financial services can accommodate even the most complex needs. Its integration with the global CIBC network means that you can benefit from worldwide connectivity, cross-border banking solutions, and more to help achieve your business financial goals.

RBC (Cayman) Ltd.

RBC has been present in the financial services community in the Cayman Islands since 1964. Because of its close relationship with its Canadian parent company, account holders can enjoy secure assets while experiencing the benefits of its relationship with the Caribbean. From everyday business services to cash payment solutions, these comprehensive solutions will give you the financial security you need in the Caymans.

Scotiabank & Trust (Cayman) Ltd.

Scotiabank has been present in the Cayman Islands since the 1960s and has a network of nine ATMs and two full-service branches. Its financial products include corporate and commercial services, small business accounts, retail tools, and more. Scotiabank owns the only digital branch in the Caymans, which allows clients to interact with advanced digital technology and the Scotiabank team.Banking Statistics in the Cayman Islands

Forty of the world’s top 50 banks hold licenses in the Cayman Islands.
Home to just under 100 banks and trust companies.
Leading jurisdiction for digital asset ventures with half of the world’s crypto hedge funds.
Leading financial center in Latin America and the Caribbean.

line chart showing Cayman Islands' gross national income until 2022

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.

Tax neutrality

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.

Asset protection

Thanks to the Caymans’ tax neutrality and legal framework, businesses can feel confident that their assets are protected and wealth can grow. There are plenty of trust laws that hand flexibility and control over to the business and no forced heirship rules to dictate asset distribution. With such a sophisticated financial sector, too, banking and accounting professionals are always available to guide clients on asset protection.

Financial privacy

Businesses that want a degree of confidentiality favor the Cayman Islands for its strong privacy laws. They were able to build a data protection act that complied with international regulatory standards while keeping sensitive information private from the public. This responsible disclosure is a huge draw for businesses that crave a balance between compliance and financial privacy.

Political and economic stability

Something else that characterizes the islands is their stable political environment and strong economy, which is ever-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.

KYC and AML Compliance

To 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.

Access to global financial markets

The Cayman Islands is a major financial hub, home to countless financial entities. Being situated at the crossroads of major trade routes, the Cayman Islands is an excellent gateway to the rest of the world. Additionally, it operates in the Eastern Time Zone, which is convenient for businesses dealing with clients in North and South America.It is absolutely dominant when it comes to hedge funds, housing over 75% of the entire world’s offshore investment funds. And its access to international banking services and capital markets is unmatched.

Easy process for opening an account

Financial institutions in the Caymans don’t make businesses jump through hoops to open an account — you can open bank accounts without in-person visits to the islands. So long as you have the right documentation and the minimum deposit requirements, getting started with a bank is smooth sailing.

Range of banking services

The Caymans have just about every business banking service you can imagine, including payroll services, merchant services, checking and savings accounts of every nature, corporate loans, trade financing, wealth management, investment products, private banking, asset management, and trust services.

Ease of international transactions

Financial services in the Cayman Islands are well-equipped to handle the requirements of global clients. Very few clients operate entirely locally, which means they need to facilitate all sorts of international transactions and obligations. With online and mobile banking platforms, clients can fulfill their financial duties no matter where they are and access many global financial markets for their activities.

Know a country's economic and political situation before opening a bank account. Chart shoring refugees seeking asylum in Caymans trend

A few setbacks you need to consider

As great as the Cayman Islands is for business finances, it doesn’t come without a few considerations.

Global scrutiny on tax havens

In recent years, global scrutiny of tax havens, such as the Cayman Islands, has intensified due to international pressures aimed at increasing transparency and cooperation in tax reporting on offshore companies. 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.

Limited local market

Another aspect that needs to be considered is its limited local market. After all, the Cayman Islands have a small population of just under 70,000 people, which means limited domestic business opportunities. If your business is primarily focused on catering to local markets, it won’t be prime for growth or diversification compared to other markets. However, if maintaining an offshore account is your main goal, this won’t be much of a concern.

High cost of banking

As highlighted earlier, private banking services and corporate accounts typically require clients to have a high net worth or enough funds to cover a lofty minimum initial deposit. If you’re a small business or startup, you may have to hunt around to find a bank without these requirements.

Natural disasters

Those doing offshore banking or having an investment account in the area need to consider the potential trouble that natural disasters could bring. Even if you primarily deal with online banking, any natural disaster can disrupt operations and affect your assets. In the Caymans, hurricane season happens every year from May to November, and earthquakes are possible due to the location in an active seismic area.

Published April 20, 2023. Updated December 17, 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 on business topics.

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.