Confidentiality

Strict confidentiality of business transaction in the Cayman Islands is preserved by the Confidential Relationship (Preservation Law) enacted in 1976. This law is designed to protect legal business dealings and impose strict penalties and sentences on those disclosing such information. It is especially emphasized that Cayman's confidentiality laws are not designed to accomodate criminal activities. The Cayman Islands Government has negotiated treaties about information disclosure with foreign governments, in relation to matters which may be evaluated as criminal according to Cayman law (especially those concerning drug trafficking and money laundering).

It should be noted that information evolving taxation matters and tax authorities of foreign countries cannot be exchanged and is excluded from the above treaties.

However there are certain countries that impose reporting requirements on their citizens who own shares in off-shore companies. For this reason beneficial owners of Cayman companies are usually advised to take professional advice in their own countries concerning their personal reporting requirements and tax liability.