CAYMAN ISLANDS: OFFSHORE BUSINESS SECTORS

Cayman is well-developed as an international financial centre. For 25 years the government has welcomed offshore business, and has created a world-standard regulatory structure to avoid money-laundering and other criminal activity. The Cayman Islands has the world's largest offshore banking sector, and is second only to Bermuda as a captive insurance centre. Mutual funds have been a more recent success story, assisted by the establishment of a stock exchange. Trust management has always been a significant activity. The islands also offer a shipping registry. During 2003 and 2004, China's explosive entry into world markets saw the Cayman Islands emerge as one of the primary routes for financial flows into and out of the Chinese mainland.

During 2003, the Cayman government battled to avoid inclusion in the scope of the EU's Savings Tax Directive, but in the end was forced to give in by the UK Treasury, and applied the information exchange model under the Directive from July 1, 2005. This means that information about interest on savings paid to citizens of European member states is being forwarded to the tax authorities of the member state in question. The Cayman Islands authorities have put a brave face on this development, which they tried hard to avoid.

Most sectors of the Cayman Islands financial services industry had a good year in 2004 despite hurricane Ivan. CIMA Chairman Mr. Timothy Ridley observed that: “We are very encouraged to see the impressive growth of the banking and insurance sectors of international business in 2004, despite the unforeseen burdens imposed by hurricane Ivan. Our service providers and their client base remain committed to the jurisdiction as evidenced by the strong licensing and registration activity in the final quarter.”

CIMA's report for 2004/2005 showed continuing growth in the jurisdiction's offshore business sectors, with rapid growth of securitization business being one of the most marked features.

In March 2010, the Cayman Islands Economics and Statistics Office released a report showing deterioration in the island’s economy in all but the banking sector in the third quarter of 2009 as a result of the ongoing global financial and economic crisis.

However bank sector assets continued to grow, albeit at a lower level than earlier in the year, at a rate of 9.5% on Q3 2008, as both net domestic and net foreign assets continued to expand.

The third quarter of 2009 saw a marginal improvement in new company registrations, following a severe drop recorded at the start of 2009. However, new company registrations in the period were down 39.2% on the third quarter of 2008, to total 5,840. A total of 7,863 new companies were registered in 2009, compared to 11,861 in 2008.

Mutual fund registrations also fell during 2009 compared to a year earlier, with 9,523 new registrations, down from 9,870 in 2008.

This section of the site describes the most important types of offshore business activity carried out from the Cayman Islands.

Cayman Islands Investment Fund Management

The Cayman Islands are now one of the world's leading fund management centres due to the welcoming regime, well-constructed legislation, good reputation, and the presence of the Stock Exchange, whose regime is particularly well-suited to mutual funds.

Under the Mutual Fund Law 1996 (revised in 2007 and 2009), investment or mutual funds with more than 15 members must be individually licensed, or must be administered by licensed mutual fund administrators. Licenses are issued by the Governor in Executive Council ('ExCo') after scrutiny of the application by the Monetary Authority.

In November, 2003, CIMA introduced new mutual fund regulations in order to make funds domiciled in the jurisdiction more attractive to Japanese fund distributors. Legal experts explained that the changes were deemed necessary, as although the Japan Securities Dealer's Association had not objected to the distribution of Cayman-registered funds, the guidelines for the selection of foreign unit trusts were vague with regard to the required standards for foreign regulatory regimes, meaning that some Japanese fund distributors had opted not to take the risk.

However, CIMA included a clause in the new regulations exempting existing Cayman funds registered in Japan from the obligation to adopt the more stringent rules if the fund manager does not see the need.

In the early years of the new millennium, the Cayman Islands became the jurisdiction of choice for the registration of hedge funds. The Cayman Islands Monetary Authority (CIMA) announced in mid-2006 that the islands' hedge fund sector was continuing to boom, with an additional 665 funds having registered in the first five months of the year.

The SEC's new rules for hedge fund registration in the US did nothing to lessen the attractions of 'offshore' as an alternative domicile. Many US fund managers now choose to register their funds in Cayman, with actual management sub-contracted to US or UK firms.

During the year to the end of June 2007, the number of active mutual funds regulated by CIMA grew to 8,972 funds from 7,845 funds. In 2008, the number of registered funds in the Cayman Islands broke the 10,000 barrier, but by the end of the year the number of registered funds had dipped to 9,780 (comprising 9,231 registered funds; 510 administered funds and 129 licensed funds) as the hedge fund industry fell victim to the volatile world financial markets. There was a total of 9,486 mutual funds registered in the Cayman Islands at the end of June 2010.

See Law of Offshore for more details of the licensing and regulatory process and Offshore Legal and Tax Regimes for details of fees payable.

The Cayman Islands Stock Exchange opened in July 1997 under the Stock Exchange Company Law 1996, specifically targeted at mutual funds and specialised debt securities (SPVs). Funds of funds and umbrella funds are both accepted, and there are no restrictions on investment policies. Funds can be established locally, or in a recognised jurisdiction, meaning the EU, the USA, Japan, Switzerland, Canada, and a number of other IOFCs. Listing takes as little as 1-2 weeks. See Law of Offshore for details of listing requirements.

By mid-2007, the CSX had more than 1,400 listings and a market capitalisation of more than $123bn. New listings fell by over 20% year-on-year in the 3rd quarter of 2009, however.

The Securities Investment Business Law, 2001 (revised in 2004) aims to regulate the business of securities investment in the Cayman Islands and provide an appropriate structure for the regulation of securities brokers, including market makers, arrangers, investment advisors and investment managers. The fundamental objective of the law is to define activity that requires a licence and then to ensure that such activity is undertaken by fit and proper persons in accordance with accepted supervisory standards of conduct for securities investment business. The Cayman Islands Monetary Authority (CIMA) is directly responsible for the licensing, supervision and enforcement of such licences.

The Securities Investment Business Law, 2002 (Commencement) Order 2002 came into force from August 14th 2002. It obliged anyone carrying on SIB to examine their status under the Law and consider whether they should apply for one of the exemptions under the Law, or potentially be subject to its licensing requirements.

With effect from 4 March 2004, the UK's Board of the Inland Revenue designated the Cayman Islands Stock Exchange as a ‘recognised stock exchange’ under section 841 of ICTA. The term ‘recognised stock exchange’ occurs throughout the Taxes Acts and in various tax regulations. For example it is used in the definition of a close company in section 415 ICTA 1988, and in the definition of investments which may be held in PEPs and ISAs. The term is often used in the phrase ‘listed on a recognised stock exchange’ or in similar or related expressions. Firms listed on the CSX will now be able to take advantage of the 'quoted eurobond exemption'. As a result, interest paid on securities listed on the Cayman Islands Stock Exchange can now be paid without deduction of UK tax. Similarly, securities listed on the CSX are now regarded as 'qualifying investments', allowing them to be held directly in Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs).

In March, 2006, offshore law firm Walkers said that collateralized debt obligations (CDOs) were being created at a record pace in the Cayman Islands, with $125 bn of transactions in 2005. Walkers said that more than 270 CDO transactions were established in the Cayman Islands in 2005; the number of CDOs issued in the Cayman Islands grew more than 100% in the two years previous to this.

"The first Cayman CDO was issued in 1994, however current stability in the corporate marketplace combined with the lackluster performance of debt and equity markets worldwide is translating into a surge in demand for CDOs of all types," Ian Ashman, a Partner in Walkers' Structured Finance group, said. "This type of vehicle is being used in a wider range of transactions including high volume commercial real estate deals and middle market loans."

One of the drivers for this growth was that CDOs were being used in more ways than ever before: as asset-backed securities, commercial- and residential-backed securities, balance sheet CDOs backed by pools of commercial loans, high-yield bonds, leveraged loans, and repackaged CDOs.

"There weren't a lot of corporate credit roller coasters in 2005, so CDOs performed well, diversified, and became increasingly attractive to investors and bankers," David Egglishaw, Managing Director of Walkers SPV, a licensed trust company wholly-owned by Walkers, said. "And this seems to be just the tip of the iceberg. The markets are much more transparent and liquid and we expect to see CDOs applied in increasingly innovative ways in 2006."

The Cayman Islands provide CDOs with a tax neutral jurisdiction, a sophisticated financial infrastructure that includes major banks and accounting firms, and therefore the ability to achieve measurable savings which, in turn, are passed along to investors.

Cayman legal firms were indeed in great demand from the issuers of structured finance securities during the first six months of 2006, underlining the Cayman Island's pre-eminence as a jurisdiction of choice for special purpose vehicles (SPVs) used in securitisation transactions.

According to UK data provider FactSet Global Filings, leading Cayman Islands law firms Maples and Calder and Walkers gave legal advice on 147 asset-backed securitisation (ABS) deals between January and June 2006.

Maples gave advice on a total of 111 deals and Walkers on a further 36 deals, while smaller contributions from Mourant du Feu & Jeune and Ogier pushed the total number higher still. This compares with the combined total of 92 from the three main Irish law firms of A&L Goodbody, Matheson Ormsby Prentice and McCann Fitzgerald.

The process of asset securitisation involves the sale of income-generating financial assets (such as loans, trade receivables and leases) by a company to a special purpose vehicle. The SPV, which might be a trust or a company, finances the purchase of these assets by the issue of bonds, which are secured by those assets.

Cayman law firms were also dominant in advising on collateralised deals during the first half of the year with Maples and Walkers advising on a combined 143 transactions compared, compared with 77 from the main Irish firms.

CDO issuance continued to balloon during 2007, with Cayman eventually responsible for 80% of the market; but when the sub-prime mortgage crisis hit late in the year, CDO issuance was an immediate casualty. Such recovery in issuance as took place in 2009 largely bypassed Cayman, with its strong US links. Long-term, the Islands' expertise in structured products will ensure that the business continues, but for the time being it is not the brightest star in the Cayman firmament.

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Cayman Islands Banking

Cayman banks must be licensed under the Banks and Trust Companies Law (2009 Revision) (formerly the Banks and Trust Companies Law 1995, as amended in 2001 and 2003). The astonishing Cayman Islands banking industry had 265 banks under the supervision of the Banking Supervision Division at the end of June 2010, of which 18 held Class A licenses permitting local and offshore business activity, while the remainder hold Class B licenses, permitting only offshore business - a local office is allowed, but only very limited transactions can be carried out with Cayman Islands residents. Banks do not need to be incorporated locally: a foreign bank can register as a foreign company and then obtain a license. For further details of licensing requirements and procedures and fees payable see Law of Offshore and Offshore Legal and Tax Regimes.

As of September 2009, total assets were reported at US$1.8 trillion, up 3.75% since the same period of the previous year when total assets stood at US$1.7 trillion.

A very wide range of services is offered: the 90,000 offshore companies registered in Cayman include many treasury management or investment management subsidiaries of multinationals taking advantage of the excellent banking environment and absence of taxation. Evidently, private banking is a major component of the industry: asset protection rather than tax avoidance as such is the driving force, so that the stability of Cayman alongside stringent banking secrecy and its sophisticated investment environment are very attractive to wealthy individuals, particularly those from the US where Cayman has a very good reputation.

Cayman Islands' banks are supervised by the Cayman Islands Monetary Authority (CIMA), which concentrates on banks for which Cayman is the home-country supervisor. CIMA recently extended its bank inspection programme to on-shore subsidiaries of Cayman banks.

Cayman signed a Memorandum of Understanding on cross-border banking supervision with Brazil in 1999, and intended to create a network of such agreements with all the countries whose banking supervisors evince interest in Cayman's banking sector.

Following KPMG's independent report to the UK Government on the regulatory regime in the Cayman Islands and other offshore financial centres in the autumn of 2000, CIMA made a ruling on private 'shell' banks that have no effective supervision because they are not units of established international banks, subject to stringent regulation in their home jurisdictions. Such mainly US banks had no physical presence in the Cayman Islands.

In 2000, the Cayman Islands introduced additional due diligence procedures for banks when they were required to comply with fresh Know Your Customer regulations. The original deadline of December 31, 2002 for the provision of information about customers to the authorities was extended, and the new rules came into force in March 2004.

The due diligence rules require both new and long-standing account holders in the jurisdiction to provide proof of identity and physical address, in addition to an explanation of their banking activities. The rules have provoked criticism from some quarters, particularly from those who have banked in the Caymans for many years, who argue that they are intrusive and unnecessary.

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Cayman Islands Trust Management

Trust Management has been a major activity in the Cayman Islands for 30 years or more, and trust assets in Cayman now equal or exceed banking assets. Originally the trust was used primarily by wealthy individuals from the major common law countries, but it is now accepted as a major technique of asset protection in all parts of the world. Over the last 25 years the Cayman Islands, perhaps more than some other jurisdictions, have extended and adapted their trust laws to accommodate this wider market, which is not necessarily interested so much just in tax avoidance, but also in the efficient management of wealth in a more general sense. See Law of Offshore for a fuller treatment of trust law in Cayman.

There is a large and sophisticated community of professional advisers on trust matters in Cayman. Individuals can provide trust services in the Cayman Islands without registration, but companies offering trust services must be licensed under the Banks and Trust Companies Law (2009 Revision) (formerly the Banks and Trust Companies Law 1995, as amended in 2001 and 2003). Foreign or Cayman-resident companies may obtain licenses. These are issued by the Governor, after the Monetary Authority has accepted an application giving comprehensive information about the applicant.

A licensed trust company may be 'restricted' or 'unrestricted'. 'Restricted' companies require less capital, but are more strictly controlled. See Law of Offshore and Offshore Legal and Tax Regimes for further details of the licensing regime for trusts, and fees payable.

Private trustee companies have recently become popular. In this arrangement, the trust itself remains uncluttered by control arrangements, which are exercised by the private trustee company, which in turn can be administered by a licensed trust company. This form is particularly suited to the larger type of family trusts with multiple beneficiaries and objects.

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Cayman Islands Insurance

See Offshore Business Review – Insurance for a more general treatment of captive insurance companies.

The Cayman Islands insurance sector is regulated under the Insurance Law 1979 as amended and revised in 2004 and 2008. Class A insurance licenses cover domestic insurance in Cayman itself; Class B licenses cover Cayman or (registered) foreign companies conducting external business; restricted Class B licenses are for captives. Applications for licenses are made to the Cayman Islands Monetary Authority (CIMA). See Law of Offshore and Offshore Legal and Tax Regimes for further details of the licensing regime, minimum capital requirements and fee levels.

Legislation in 1998 introduced a Segregated Portfolio Company Law. The SPC is an exempted company which may create one or more segregated portfolios in order to segregate the assets and liabilities of the company held within or on behalf of the portfolio from the assets and liabilities of other portfolios. As originally passed, SPCs were available only to certain types of insurance company, but in 2002 amendments extended the provisions relating to segregated portfolios to any exempted company. In essence, the new law provided that any new company may apply to be registered as a segregated portfolio company. A segregated portfolio company must pay additional fees and must provide notice to the Registrar of the names of all segregated portfolio accounts created.

The changes allow an existing company to convert into an SPC, although a number of criteria will need to be met, including the written consent of each creditor of the company and the approval of the Cayman Islands Monetary Authority (CIMA). An SPC is also able to create separate portfolios by reference to a series of shares, as well as by reference to separate classes of shares.

The improvement to the SPC structure, adopted from Guernsey legislation, ensures that there is no ‘flow over’ from an insolvent cell to general assets. A key change for mutual fund issuers is a provision that secured creditors are able to enforce their security against a segregated portfolio, despite the existence of a receivership order against that portfolio. This ensures that a segregated portfolio is acceptable to – and can be rated by – the rating agencies in the same manner as an exempt company.

In 2004 the Cayman Islands had the second-largest captive insurance community in the world, after Bermuda. The year 2000 saw 48 new captives set up in the Caymans, bringing the total to 535. By the end of 2002 Cayman had 642 captives, having beaten Bermuda into second place for new formations in the year with 97 new companies.

Hurricane Ivan in 2004 damaged the Cayman Islands in physical terms, but did not halt the expansion of the insurance sector. According to CIMA, in the weeks that followed the devastating hurricane, nine licences were granted to captive insurance companies, and the authority also issued an insurance management licence to Strategic Risk Solutions (Cayman) Limited.

There were a total of 760 Class “B” companies under the supervision of the Insurance Supervision Division at the end of June 2010, 4 less than at the end of the previous quarter and 20 less than in December 2009. Pure captives and Segregated Portfolio Companies represent the two main categories of Class “B” entities, with 424 and 121 companies respectively.

In June 2008, the Cayman government elaborated on planned measures that would be taken during the 2008/09 fiscal year to further develop the reinsurance sector in the Cayman Islands. The measures are based on recommendations submitted to government on April 23, 2008 by the Reinsurance Task Force (RTF).

The RTF's recommendations focused on promoting commercial certainty for prospective reinsurance firms, specifically through provisions in Immigration Law via the business staffing plan regime, as well as progressive approaches to the regulation of reinsurance companies in Insurance Law.

The RTF also recommended that reinsurance firms who wished to take advantage of the Cayman Islands as a location enter into a "social contract" with the government on career, education and training opportunities for Caymanians, reflecting a partnership approach to joining the Cayman Islands financial services community.

The RTF comprises senior and experienced figures in the Cayman Islands insurance industry familiar with the reinsurance sector as well as members from government's Financial Services Council.

"The reinsurance business plays to Cayman's natural strengths," commented Alden McLaughlin, Minister for International Financial Services Policy. He pointed to Cayman's institutional business specialisation, including a vibrant insurance sector; existing professional infrastructure; experience in reinsurance products (sidecars and catastrophe bonds), and the presence of the hedge fund industry – a natural source of capital for reinsurers.

"We hope to attract industry partners who recognise our strengths and want to grow their reinsurance business in a conducive location," said Minister McLaughlin, adding: "We also want to attract firms who will generate substantial activity for and in our financial services sector and who are willing to provide new careers and training opportunities for Caymanians."

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Cayman Islands Ship Management and Operations

See Offshore Business Review – Shipping for a more general treatment of offshore shipping registries.

The Cayman Islands operates Registers of Shipping and Civil Aircraft. George Town is a Port of British Registry. Over the years, Cayman has been included in most English merchant shipping acts, with the result that it is a Category 1 registry, entitled to register all classes of vessel.

The Cayman Islands Shipping Registry administers Cayman registration, and has a full professional staff for this purpose. The Merchant Shipping Law (2008 Revision) governs Cayman registration and lays down fee levels according to tonnage.

Aircraft are registered under the (English) Aircraft Navigation (Overseas Territories) Order 1989 (updated in 2007). The Civil Aviation Authority of the Cayman Islands maintains the register. The UK Civil Aviation Authority has discretion over Cayman registration, and in practical terms limits it to private aircraft.

The Air Navigation (Overseas Territories) Order 2007 came into force on January 9, 2008. The new Order consolidates the provisions of the 2001 Order and its four amendment orders and has also been substantially restructured to make it more user-friendly. A lot of the procedural and administrative material has been removed, largely from the schedules, and is now in the relevant OTAR Parts. A number of new provisions have been introduced, including those relating to regulation of corporate operations, and provisions have been introduced to enable Governors to give instructions concerning the equipment, performance and manner of operation of aircraft. Some changes have also been made to the airworthiness requirements; in relation to permits to fly; and in respect of the introduction of requirements for safety management systems.

In mid 2008, the Cayman Islands Shipping Registry had over 1,700 vessels on its books.

The Merchant Shipping Law of 1997 together with its amendments was commenced in July 1999 to revise, streamline and update the previous law. The law was based mainly on the United Kingdom ("UK") Merchant Shipping Act, 1995, the UK Aviation and Maritime Security Act, 1990 and the UK Merchant Shipping and Maritime Security Act, 1997. It also embraced up-to-date convention requirements together with a number of innovations that address some of the specific needs of the Cayman Islands. These included: wider ownership, extended demise charter, enhanced mortgagee protection, registration and mortgage of ships under construction, mandatory minimum insurance, anti-piracy measures and clearer exercise of due diligence in the registration, deletion and representation of ships. The provisions of a number of ILO Conventions were also incorporated, covering the engagement and welfare of seafarers, recruitment and placement of seafarers, regulation on hours of work and rest, and living and working conditions of seafarers.

A similar revision exercise has taken place with the Merchant Shipping (Marine Pollution) Law. This Law places all applicable aspects of marine pollution into one comprehensive and up-to-date body of law. It incorporates relevant aspects of UNCLOS, MARPOL, the Intervention Convention, OPRC 90, the London Convention on dumping of wastes (including its Protocol of 1996) and the Hazardous and Noxious Substances Convention. Some applications that have a broader reach than strict pollution issues have been included in the Merchant Shipping Law. Examples include the Civil Liability Convention and the Fund Convention.

The third body of principal maritime legislation introduced was the Admiralty Jurisdiction Law, which came into effect in 2003. It was based on the UK Supreme Court Act, 1981 and incorporated the Arrest Convention of 1952. It operated as part of the Cayman Islands Grand Court Law and Rules.

In July 2004 it was announced that the Cayman Islands' shipping registry was fully compliant with the International Maritime Organisation’s International Ship and Port Facility Security Code. These international maritime security measures entered into force on July 1, 2004 and are designed to enhance maritime security on board ships and at ship/port interface areas. They were adopted by a Conference on Maritime Security, part of the United Nations, in December 2002. The new chapter applies to passenger ships and cargo ships of 500 gross tonnage and above, including high speed craft, mobile offshore drilling units and port facilities serving such ships engaged on international voyages.

In 2005 a Maritime Authority Law was passed, creating the Maritime Authority of the Cayman Islands (MACI), a body which incorporates the Cayman Islands Shipping Registry, Cayman’s Port State Control and Marine Casualty Investigation arms into one entity.

In 2007, Cayman maritime legislation was amended with the aim of improving the services provided by the CISR. The amendments, which were welcomed by MACI, included changes to the Merchant Shipping Law (2005 Revision) or MSL 2005, and the Maritime Authority of the Cayman Islands Law, 2005, (MACI 2005). Under the revisions, the range of countries in which a person or other entity may be eligible to own a Cayman Islands ship was extended by including those countries which are listed under the Third Schedule to the Cayman Islands Money Laundering Regulations. Ship-owning entities in those countries are now able to register ships in the Cayman Islands. Prior to the amendment, qualifying countries only included the 25 European Union countries and their 50-plus overseas dependencies, countries and territories. Two additional Ports of Registry (The Creek and Bloody Bay) were also added to that of George Town.

Other amendments to MSL 2005 included the introduction of updated terminology with respect to UK Overseas Territories and references to seafarers; the revision of existing provisions regarding seafarers' wages to maintain the appropriate level of protection under international requirements, ensuring that Cayman continues to meet its international obligations; and the introduction of provisions to ensure that the Cayman Islands are able to take full advantage of emerging international requirements regarding the levels of compensation available to the Islands in the event of a ship-generated major oil pollution incident.

CEO of MACI and Director of the CISR, Joel Walton, commented: "All of these changes will allow MACI to operate in a more efficient and effective manner while continuing to give Cayman's shipping sector a competitive edge globally."

In 2007, the United States Coast Guard (USCG) awarded the Cayman Islands Qualship 21 Status, a maritime quality benchmark which currently only about 10% of foreign ships entering US waters meet.

Qualship 21 is the USCG’s matrix system of extending recognition to “foreign” ships, which fly the Flag of a state which has demonstrated a good safety and pollution prevention record with respect to its ships. Ships in the Qualship 21 system are required to undergo significantly less Port State Control inspections by the USCG whilst in US waters.

Essentially, the Qualship 21 system “rewards” good ships thereby contributing to the elimination of substandard ships.

In a move to further expand its global network, in January 2009, the Cayman Islands Shipping Registry (CISR) named Mr. Martin Chu as its first representative in Hong Kong, opening up a new location for the CISR. He joined the Registry as CISR Business and Technical Consultant Far East. Hong Kong marks the ninth location in the world to have CISR representation, and brings to a total of three representatives to the Far East for the CISR, a division of the Maritime Authority of the Cayman Islands (MACI). Commenting on his appointment, Mr. Chu stated: "It is widely acknowledged that the Cayman fleet quality is benchmarked as a leading industry standard and I am delighted to be given the opportunity to join the Cayman Islands Shipping Registry to contribute to its continued success.

The appointment was announced six months after MACI appointed Ms Evelyn Soon to be the Singapore Representative of the Cayman Islands Shipping Registry (CISR).

In April 2009, the top management of the Maritime Authority of the Cayman Islands visited France to sign an agreement with Bureau Veritas (BV), the French classification society.

"We have official affiliations with seven global Class Societies to ensure our ability to meet the needs of our valued clients on a worldwide basis, and also to keep Cayman at the forefront of the international maritime safety arena," explained MACI CEO, Mr A. Joel Walton, head of the Cayman delegation

In May 2009, the CISR announced that it had relocated its Mediterranean representation to the Principality of Monaco with effect from May 1, 2009.

"Expansion over the past two years has been significant to the CISR," explained Mr Joel Walton, CEO (Designate) of the MACI and Director of CISR.

"In order to strategically place ourselves for the convenience of our clients, we opened our first representative Mediterranean office in Cannes and it was very well received. However, in order to expand our services, we decided to move our representation to Monaco, where we have a large client base, once accommodation and representation services there could be secured," he added.

Walton went on to explain that Monaco, with its wealth of financial services and international high net worth individuals, is a natural fit for the CISR, remarking:

"It’s where we always intended to be, but it was very difficult to find the right fit initially, so we went a little further afield, locating in Cannes when we first had the opportunity."

The Cayman Islands Shipping Registry has representation in nine locations globally: George Town, Grand Cayman Head Office; European Regional Office, Southampton, UK; London; Ft. Lauderdale; Monaco, Athens, Singapore, Hong Kong and Tokyo.

Also in May 2009, it was announced that the CISR had attained "White List" status under the Tokyo Memorandum of Understanding on Port State Control (MOU).

This particular MOU has been signed by 18 countries including Japan, Australia, New Zealand, China, Canada, Chile, Republic of Korea and the Russian Federation.

Previously on the "Grey List", the MACI had worked arduously to achieve the top ranking by diligently upgrading and improving the calibre of its worldwide fleet of vessels.

"This is a great achievement for us, and, more so of our Safety and Survey Division, although the entire organization contributed to this success," said the MACI's CEO, Mr. A. Joel Walton.

"Tokyo is one of the most important MOUs internationally, and brings further recognition to the high standing of the Cayman Islands Shipping Registry," he added.

Later that month, the top management of the Maritime Authority of the Cayman Islands signed an agreement with Registro Italiano Navale (RINA), the Italian marine interests classification society.

"In order to effectively expand our capabilities on a worldwide basis, we have official affiliations with seven global Class Societies, thus enabling them to act on our behalf," explained MACI CEO, Mr A. Joel Walton, head of the Cayman delegation.

Mr Walton added: "MACI has a broad global network of Cayman Islands Shipping representatives, in addition to George Town and UK-based maritime professionals who travel extensively, but our agreements with the various prestigious classification societies give us even more reach in effectively and efficiently servicing our valued clients' needs."

The Maritime Authority of the Cayman Islands (MACI) received news in June 2009 that the CISR had maintained its prestigious “White List” status on the Paris Memorandum of Understanding (MoU) on Port State Control.

According to the MACI's CEO, Mr A. Joel Walton: “Paris is surely one of the most significant MOUs internationally, and being on its “White List” brings well-earned global recognition to the high standing of the Cayman Islands Shipping Registry”.

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