Not long ago, Cayman Islands funds were popular due to the low cost of set up and maintenance. Since OECD pressure mounted to bring Cayman Islands funds in line with the levels of transparency level that the OECD promotes, the cost of funds’ set up and maintenance rose sharply.
The Cayman Islands Monetary Authority (CIMA) was given additional power to fine trusts, funds, and individuals for non-compliance in June 2020. The hefty penalties range from USD $6k to USD $122k for individuals and up to USD $1.2 million for legal entities.
Cayman Islands, like other tax havens are experiencing the business outflow, losing the battle to the low tax jurisdictions like Singapore, Hong Kong, and Cyprus. It would be interesting to watch developments after the UK finally leaves the EU by the end of this year. If relaxation of UK regulations goes through, the country will get a substantial chunk of business from its overseas territories.