The Cayman Islands is reporting an increase in licenses for the offshore business for the last fiscal year.
Business registering in the British dependant territory rose from 663 to 709, an increase of seven percent, according to the 2005 Cayman Islands Monetary Authority report.
And in the tax-free zone, mutual funds increased from 5,399 in 2004 to 6,527 in 2005.
The increase comes as U.S. State Department third year said in its International Narcotics Control Strategy Report, that while the Cayman Islands continues to make strides in strengthening its anti-money laundering program, it remains vulnerable to money laundering due to their significant offshore sector.
As the worlds fifth largest center, the Cayman Islands is home to a well-developed offshore financial center that provides a wide range of services such as private banking, brokerage services, mutual funds, and various types of trusts, as well as company formation and company management. There are over 500 banks and trust companies, 7,100 mutual hedge funds, and 727 captive insurance companies licensed in the Cayman Islands.
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