Cayman Island Banking

[Rushman]

So, I like most people heard growing up how Cayman is one of those tax havens where rich people and crooks go to stash money.

I am guessing they toughened things up a bit over the years.

First, you need a letter of reference to open an account. Usually one from your "home bank" and one from your employer as all expats require a work permit.

In fact, if you already have an account with the on-island bank, and you want to open a second, you essentially have to write your own reference letter - explaining source of funds, type and number/amount of future deposits, etc.

Anyway, wife sent some US$ home with me from our store and wanted me to open a dollar based account and hold it here. Yeah right.

It was certainly more money than i normally travel around with in cash - enough to buy a used car, not a new one for instance.

I got questions like:

"where did the money come from" - my answer "my wife"

"where did she get the money" - my answer "from our store in mexico"

"do you have bank statements to show the source of funds" my answer "no, its cash from a store"

their answer: sorry, we cannot take the deposit.

My solution, went to a different branch, deposited a smaller amount, rinse, repeat for a few days and all should be well.

Note to all you future money launderers, pick somewhere else! Sheesh!

[khamy]

I know a guy from Nigeria that could do that for you for a minimal transaction fee.

[Trevor2118]

"do you have bank statements to show the source of funds" my answer "no, its cash from a store"

Let's hope the Mexican Tax Office / Revenue Department are not cigar smokers who visit FOH.

[DrunkenMonkey]

That's crazy. There's no requirement to put all the money from a store through a bank account. Having it in cash doesn't mean the revenue wasn't reported. Everything seems very unbalanced to me.

[Scdalak]

Let's hope the Mexican Tax Office / Revenue Department are not cigar smokers who visit FOH.

LOL Trevor, Does Mexico even have such an office or department!?? I dont think Rush needs to lose any sleep over this one..

[Rushman]

LOL Trevor, Does Mexico even have such an office or department!?? I dont think Rush needs to lose any sleep over this one..

Yup they do. But as a small business we are on a flat tax based on a predetermined average sales volume and pay bimonthly.

No worries here.

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I am here: http://maps.google.com/maps?ll=19.307807,-81.379119

[Fshaw]

The Caymans have had to get much tougher and are no longer a free wheeling tax haven. The long ago gave up bank secrecy if presented with a subpoena. Things will only get worse once the US FATCA comes online later this year.