The reason is that the Cayman Islands is an international tax haven, with no income tax payable whatsoever, so it attracts thousands of tax-dodging individuals and companies from all over the world, but especially from the USA, Canada and the United Kingdom.
Wealthy people from these countries invest their money in Cayman Island banks [often very secretly!] in order to avoid the punitive tax payments of their own countries.
Not every resident of the Cayman Islands is a Cayman National. Bank on it!! Not every company based in the Cayman Islands is run by a Cayman National. Bank on that too!!
Not every individual who hides and banks money in the Cayman Islands is a Cayman National. Bank on that most definitely!
Since the Cayman Islands are a British Overseas Dependancy, it makes it very convenient for British individuals to have tax-free Offshore accounts and family trusts based there, in effect, protected by the British Government.
The last Labour Government was about to make the Cayman Islands far more financially open, with stringent new laws, but the Tory/LibDem Alliance have quashed the new laws. Is it because too many wealthy Tories have their wealth salted away in the Cayman Islands?
According to The Times "Guide to the Nations of the World" published in1994, the Cayman Islands was an "UK Dependent Territory" with a population of only 29000, ........presumably each one a "Cayman National".
Then, according to the National Geographic "Family Reference Atlas of the World", published in 2007, the Cayman Islands had a population of 44,000. That is a very large percentage increase in population in little over a decade. It's 51.7 per cent!
The National Geographic atlas lists the Cayman Islands as 101 square miles in area in 2007.
However, according to the reputable "Times" guide the Cayman Islands was only 100 square miles in 1994! So, how has the archipelago gained a whole square mile ....or 1 per cent of its area ....in about a decade?
One wonders if the extra square mile consists of a new offshore "bank" of land in the waters surrounding the Caymans?....... The ultimate offshore bank, you could say!
One also wonders if this extra "Square Mile" is actually the City of London Financial zone ....known globally as "The Square Mile"?
Has the famous "Square Mile" been surreptitiously shipped out en bloc to the Cayman Islands at dead of night, so that it can operate off-shore to avoid British taxes, without even informing hard-pressed UK tax-payers?
Does the 15,000 increase in population consist largely of overseas bankers and financial workers mainly from London, or is every one of the 15,000 extra people an actual Cayman National?
The population increase in about a decade was 51.72 per cent! That would give the Cayman Islands by far the highest birth-rate of any nation on Earth!! That birth-rate is an impossibility, so immigration must account for much of the population increase......and the burgeoning, and highly secretive, tax-avoiding banking and financial sector would most certainly account for it.
In case you think I exaggerate, just peruse the "Cayman Islands Financial Services" web-site.
In 1997, the Cayman Islands Stock Exchange was set up.
Two years later, in 1999, it became the first offshore Stock Exchange to be registered by the London Stock Exchange, so obviously, there would have been a great influx of financial workers into the Caymans from London at this time, and in ensuing years.
The same web-site informs us that there are 250 banks based in the Cayman Islands, including 40 of the 50 largest banks in the world. That is a phenomenal number of banks for a small town, like George Town, in a group of small islands with a very low native population.
Not only that; there are no fewer than 85,000 companies based in the Caymans listed on the Caymans Register of Companies ........ and they obviously do not all need to operate there! Let's face it.........that is almost two companies for every man woman and child of the population!
The rapidly increasing level of offshore banking and other financial services in the Cayman Islands would not surprise any United Kingdom National viewing the recent Channel 4 "Dispatches" investigative television report by Antony Barnett, into the financial shenanigans and dubious goings-on of this "UK Dependent Territory".
That "dependent" designation is a laugh for a start! Here we have a piece of paradise in the Caribbean ...... DEPENDENT on the United Kingdom and therefore being DEFENDED by the United Kingdom using money obtained from the income tax of hard-pressed British citizens!!
Yet, what does the Cayman Islands do for the UK in return?
It unscrupulously creams off the phenomenal wealth of the very wealthiest of UK citizens and companies, through lucrative Offshore Accounts, Family Trusts, secretive companies, hedge funds and all sorts of other devious financial "goodies" by allowing them all to be based there, in order to avoid paying any tax in the UK .... where much of the money was made in the first place!!!
It is the poorer people in the UK who are actually financing the defence of the tax-dodging mega-rich in the Cayman Islands ........whilst the Cayman Island financial regime ROBS those same British tax-payers!!
Let's face it! Without the guaranteed UK defence of this "Dependency", the comparitively vast communist island of Cuba to the north........already claw-shaped for a classic pincer-movement hovering over the Cayman Islands .......would have walked into the Caymans....with complete impunity.... decades ago, and made it part of Fidel Castro's Caribbean communist state.
Cuba could have walked in there within an hour or two, without a shot being fired, if the Cayman Islands were totally INDEPENDENT and did not enjoy "UK Dependent Territory" status.
Can you imagine the reaction of wealthy British Tories with family trusts in the Caymans if Cuba had tried to invade?
There would have been far more apoplexy than during the Fakland Islands invasion!
In fact, even if the Cuban State had not invaded the Cayman Islands, Cuban refugees, escaping Fidel Castro's Communism, would have flocked there by the tens of thousands in their speed boats, small planes and sailing boats, if the Coast Guard and Customs services did not patrol Cayman Island waters.
Who pays for all that expensive ....and extensive ....border and sea defence of this spread-out group of islands? The "Cayman National" tax-payer or the hard-pressed UK National? No prizes for guessing!!
Since the Cayman Islands do not charge income tax on its citizens, the UK tax-payer ultimately pays for that service, without a doubt!
The devious wealthy British investors in the Cayman Islands will certainly make sure that their MONEY is very safe from communist Cubans or heavily-armed bank robbers and gangs .....latter day pirates of the Caribbean ....sailing out from Jamaica or Haiti!! However, those wealthy investors will ensure that the British tax-payer ......not themselves.......foots the bill to keep their multi-millions of tax-free money completely safe from predators!!!
The "Dispatches" programme revealed many unsavoury aspects of Cayman Islands financial affairs. It revealed that many shady, secretive companies and family trusts were registered in Ugland House and Citrus Grove in the centre of the capital George Town, on Grand Cayman island.
Dispatches revealed that even the family of George Osborne, the British Chancellor of the Exchequer had a Family Trust worth millions based in these buildings. So, whilst Osborne is lecturing us daily on the hard times ahead and really cracking the whip and tightening the belts of UK tax-payers, he benefits personally from a tax-dodging Family Trust in the Cayman Islands!! Marvellous!!
What an absolute hypocrite! What a disgrace!
One wonders how many other famous "PATRIOTIC" true-blue, millionaire British citizens also have family trusts, offshore-based companies and hidden multi-millions in the plethora of Cayman Island banks? These people are not Cayman Nationals .....even if some of the banks themselves are!
The financially hard-pressed citizens of the UK.....United Kingdom Nationals......should DEMAND to know what is going on!
After all.......they are PAYING for this millionaire tax-dodging in the Cayman Islands!
The question is.......who or what is a TRUE Cayman National?
Here is an idea! Why don't British tax-payers DEMAND that the Cayman Islands Government issues a complete list of the companies and family trusts based there? Through their taxes, the UK citizens pay British armed forces several million pounds per year to guarantee the defence of the Caymans, so why shouldn't they know?
At the moment, it is all one-way traffic, for the benefit of this Caribbean tax haven and the UK multi-millionaires who hide their money there to avoid UK tax.
It needs to stop!! The Cayman Islands are bleeding their Mother Country dry!!
Without UK protection the Cayman Islands would cease to be a lucrative tax haven. So why should their banks rob the UK?