located in the western Caribbean Sea and are the peaks of a massive underwater ridge, known as the Cayman Ridge (or Cayman Rise). This ridge flanks the Cayman Trough, 6,000 m (20,000 ft) deep [8] which lies 6 km (3.7 mi) to the south.[9] The islands lie in the northwest of the Caribbean Sea, south of Cuba and west of Jamaica. They are situated about 700 km (430 mi) south of Miami, [10] 366 km (227 mi) south of Cuba, [11] and about 500 km (310 mi) northwest of Jamaica.[12] Grand Cayman is by far the biggest, with an area of 197 km2 (76 sq mi).[13] The two "Sister Islands" of Cayman Brac and Little Cayman are located about 120 km (75 mi) east north-east of Grand Cayman and have areas of 38 and 28.5 km2 (15 and 11.0 sq mi)[14] respectively. George Town waterfront All three islands were formed by large coral heads covering submerged ice age peaks of western extensions of the Cuban Sierra Maestra range and are mostly flat. One notable exception to this is The Bluff on Cayman Brac's eastern part, which rises to 43 m (141 ft) above sea level, the highest point on the islands. [15] Terrain is mostly a low-lying limestone base surrounded by coral reefs. Fauna Further information: List of mammals of the Cayman Islands There are ten mammalian species in the islands. Cayman avian fauna includes two endemic subspecies of Amazona parrots: Amazona leucocephala hesterna, or Cayman Brac Parrot, native only to Cayman Brac, and Amazona leucocephala caymanensis or Grand Cayman Parrot, which is native to the Cayman Islands, forested areas of Cuba, and the Isla de la Juventud. Among other notable fauna is the critically endangered Blue Iguana, which is endemic to Grand Cayman.[16] Also present are the Central American agouti, along with the Booby Birds on Cayman Brac.[17] Climate Main article: Climate of the Cayman Islands Signs at Rum Point commemorating landed and near-miss hurricanes of the past The Cayman Islands have a tropical marine climate, with a wet season of warm, rainy summers (May to October) and a dry season of relatively cool winters (November to April).[citation needed] A major natural hazard is the tropical cyclones that form during the Atlantic hurricane season from July to November. Demographics Main article: Demographics of the Cayman Islands The Cayman Islands have more registered businesses than they have people.[18] The latest population estimate of the Cayman Islands is about 55,700 as of 2009, representing a mix of more than 100 nationalities. Out of that number, about half are of Caymanian descent. About 60% of the population is of mixed race (mostly mixed African-Native American). The islands are almost exclusively Christian, with large numbers of Presbyterians and Catholics. The vast majority of the population resides on Grand Cayman, followed by Cayman Brac and Little Cayman, respectively.[19] The capital of the Cayman Islands is George Town, which is located on the southwest coast of Grand Cayman. Population of the districts Traditional Caymanian home - East End, Grand Cayman According to the Cayman Islands 2010 census the estimated resident population is 54,878 people,[20] broken down as follows: George Town: 35,600 West Bay: 11,269 Bodden Town: 10,341 North Side: 1,437 East End: 1,369 Cayman Brac and Little Cayman (Sister Islands): 2,277 Economy Main article: Economy of the Cayman Islands With an average income of around KYD$47,000, Caymanians have the highest standard of living in the Caribbean. According to the CIA World Factbook, the Cayman Islands GDP per capita is the 14th highest in the world.[21] The islands print their own currency, the Cayman Islands Dollar (KYD), which is pegged to the U.S. dollar at a fixed rate of 1 KYD = 1.20 USD.[22] The government's primary source of income is indirect taxation: there is no income tax, capital gains tax, or corporation tax. An import duty of 5% to 22% (automobiles 29.5% to 100%) is levied against goods imported into the islands. Few goods are exempt; notable exemptions include books, cameras, and infant formula.[citation needed] Tourism Panorama of Seven Mile Beach on Grand Cayman One of Grand Cayman's main attractions is Seven Mile Beach, on which a number of the island's hotels and resorts are located. Historical sites in GCM, such as Pedro St. James Castle in BoddenTown, also attract visitors. Tourists also visit the Sister Islands, Little Cayman[23] and Cayman Brac.[24] Stingrays pass each other at Stingray City sandbar off Grand Cayman Island All three islands offer scuba diving, and the Cayman Islands are home to several snorkeling locations, where tourists can swim with stingrays. The most popular area to do this is Stingray City, Grand Cayman. There are two shipwrecks off the shores of Cayman Brac, including the MV Keith Tibbetts;[citation needed] Grand Cayman has several shipwrecks off its shores. The USS Kittiwake was decommissioned on 30 September 1994 and struck from the Naval Vessel Register on the same day. Her title was transferred in November 2008 for an undisclosed amount to the government of the Cayman Islands. The Cayman Islands government intended to use Kittiwake to form a new artificial reef. Originally intended to be sunk in June 2009, she was finally sunk off Seven Mile Beach, Grand Cayman on 5 January 2011. Other Grand Cayman tourist attractions include the Ironshore landscape of Hell, the 23-acre (93,000 m2) marine theme park Boatswain's Beach, also home of the Cayman Turtle Farm, the production of gourmet sea salt, and the Mastic Trail, a hiking trail through the forests in the centre of the island. The NationalTrust for the Cayman Islands provides guided tours weekly on the Mastic Trail and other locations.[25] See also: Scuba diving in the Cayman Islands . Points of interest include the East End Light (sometimes called Gorling Bluff Light) is a lighthouse located at the east end of Grand Cayman island in the Cayman Islands. The lighthouse is the centerpiece of East End Lighthouse Park, managed by the National Trust for the Cayman Islands; the first navigational aid on the site was the first lighthouse in the Cayman Islands. Shipping The merchant marine total is 123 ships (1,000 GRT or over) totaling 2,402,058 GRT/3,792,094 metric tons deadweight (DWT) ships by type: bulk 22, cargo 5, chemical tanker 31, container 2, liquefied gas 1, petroleum tanker 21, refrigerated cargo 35, roll on/roll off 5, specialized tanker 1 note: some foreign ships register in the Cayman Islands as a flag of convenience; includes ships from 11 countries among which are: Greece 15, US 5, UK 5, Cyprus 2, Denmark 2, Norway 3 (2002 est.). Financial services industry The Cayman Islands are a major international financial centre. The biggest sectors are "banking, hedge fund formation and investment, structured finance and securitization, captive insurance, and general corporate activities."[26] Regulation and supervision of the financial services industry is the responsibility of the Cayman Islands Monetary Authority (CIMA). The Cayman Islands are the fifth-largest banking centre in the world,[27] with $1.5 trillion in banking liabilities.[26] There are 279 banks (as of June 2008[update]), 19 of which are licensed to conduct banking activities with domestic (Cayman-based) and international clients, the remaining 260 are licensed to operate on an international basis with only limited domestic activity. Financial services generated CI$1.2 billion of GDP in 2007 (55% of the total economy), 36% of all employment and 40% of all government revenue. In 2010, the country ranked fifth internationally in terms of value of liabilities booked in the Cayman Islands and sixth in terms of assets booked. It has branches of 40 of the world's 50 largest banks. The Cayman Islands are the second largest captive domicile in the world with more than 700 captives, writing more than US$7.7 billion of premiums and with US$36.8 billion of assets under management.[28] There are a number of service providers. These include global financial institutions including HSBC, Deutsche Bank, UBS, and Goldman Sachs; over 80 administrators, leading accountancy practices (incl. the Big Four auditors), and offshore law practices including Maples & Calder.[29] They also include wealth management such as Rothschilds private banking and financial advice.[30] Since the introduction of the Mutual Funds Law in 1993, which has been copied by jurisdictions around the world, the Cayman Islands have grown to be the world's leading offshore hedge fund jurisdiction.[29] In June 2008, it passed 10,000 hedge fund registrations, and over the year ending June 2008 CIMA reported a net growth rate of 12% for hedge funds.[31] Starting in the mid-late 1990s, offshore financial centres, such as the Cayman Islands, came under increasing pressure from the OECD for their allegedly harmful tax regimes, where the OECD wished to prevent low-tax regimes from having an advantage in the global marketplace. The OECD threatened to place the Cayman Islands and other financial centres on a "black list" and impose sanctions against them.[32] However, the Cayman Islands successfully avoided being placed on the OECD black list in 2000 by committing to regulatory reform to improve transparency and begin information exchange with OECD member countries about their citizens.[32] In 2004, under pressure from the UK, the Cayman Islands agreed in principle to implement the European Union Savings Directive (EUSD), but only after securing some important benefits for the financial services industry in the Cayman Islands. As the Cayman Islands are not subject to EU laws, the implementation of the EUSD is by way of bilateral agreements between each EU member state and the Cayman Islands. The government of the Cayman Islands agreed on a model agreement, which set out how the EUSD would be implemented with the Cayman Islands.[33] A report published by the International Monetary Fund (IMF), in March 2005, assessing supervision and regulation in the Cayman Islands' banking, insurance and securities industries, as well as its money laundering regime, recognised the jurisdiction's comprehensive regulatory and compliance frameworks. "An extensive program of legislative, rule and guideline development has introduced an increasingly effective system of regulation, both formalizing earlier practices and introducing enhanced procedures", noted IMF assessors. The report further stated that "the supervisory system benefits from a well-developed banking infrastructure with an internationally experienced and qualified workforce as well as experienced lawyers, accountants and auditors", adding that, "the overall compliance culture within Cayman is very strong, including the compliance culture related to AML (anti-money laundering) obligations".[34] [35] On 4 May 2009, United States President Barack Obama declared his intentions to curb the use of financial centres by multinational corporations. In his speech, he singled out the Cayman Islands as a tax shelter.[36] The next day, the Cayman Island Financial Services Association submitted an open letter to the President detailing The Cayman Islands' role in international finance and its value to the US financial system.[37] Labour The Cayman Islands has a small population and therefore a limited work force. Work permits may therefore be granted to foreigners. On average, there have been more than 21,000 foreigners holding valid Work Permits.[38] Jamaican-born roadside woodcarver working outside Bodden Town Work permits for non-citizens In order to work in the Cayman Islands as a non-citizen, a work permit is required. This involves passing a police background check and a health check. A prospective immigrant worker will not be granted a permit unless certain medical conditions are present which include testing negative for syphilis or HIV. A permit may be granted to individuals on special work. A foreigner must first have a job in order to move to the Cayman Islands. The employer applies and pays for the work permit.[39] Work permits are not granted to foreigners who are in the Cayman Islands (unless it is a renewal). The Cayman Islands Immigration Department requires foreigners to remain out of the country until their work permit has been approved.[40] The Cayman Islands presently imposes a controversial "rollover" in relation to expatriate workers who require a work permit. Non-Caymanians are only permitted to reside and work within the territory for a maximum of seven years unless they satisfy the criteria of key employees. Non-Caymanians who are 'rolled over' may return to work additional 7 year periods subject to a 1 year gap between their periods of work. The policy has been the subject of some controversy within the press. Law firms have been particularly upset by the recruitment difficulties that it has caused.[41] Other less well remunerated employment sectors have been affected as well. Concerns about safety have been expressed by diving instructors and realtors have also expressed concerns. Others support the rollover as necessary to protect Caymanian identity in the face of large immigration of expatriate workers.[42] Concerns have been expressed that in the long term, the policy may damage the preeminence of the Cayman Islands as an offshore financial centre by making it difficult to recruit and retain experienced staff from onshore financial centres. Government employees are no longer exempt from this "rollover" policy according to this report in a local newspaper.[43] The governor has used his constitutional powers, which give him absolute control for the disposition of civil service employees to determine which expatriate civil servants are dismissed after seven years service and which are not.[citation needed] This policy is incorporated in the Immigration Law (2003 revision), written by the United Democratic Party government, and subsequently enforced by the People's Progressive Movement Party government. Both governments agree to the term limits on foreign workers, and the majority of Caymanians also agree it is necessary to protect local culture and heritage from being eroded by a large number of foreigners gaining residency and citizenship.[44] Government Main article: Politics of the Cayman Islands   The Legislative Assembly building in George Town The Cayman Islands are a British overseas territory, listed by the UN Special Committee of 24 as one of the last non-self governing territories. A 15-seat Legislative Assembly is elected by the people every four years to handle domestic affairs. Of the elected Members of the Legislative Assembly (MLAs), five are chosen to serve as government ministers in a Cabinet headed by the Governor. The head of government is the Premier.[citation needed] A Governor is appointed by the British Government to represent the monarch. Governors can exercise complete executive authority if they wish through blanket powers reserved to them in the constitution. They must give Royal Assent to all legislation, which allows them the power to strike down any law the legislature may see fit for the country. In modern times, the Governor usually allows the country to be run by the Cabinet, and the civil service to be run by the Deputy Governor, who is the Acting Governor when the Governor is not able to discharge his usual duties for one reason or another. The current Governor of the Cayman Islands is Duncan Taylor and the current Deputy Governor is The Honourable Donovan Ebanks. The Cabinet is composed of two official members and five elected members, called ministers; one of whom is designated Premier. The official members are the Deputy Governor and the Attorney General. They are appointed by the governor in accordance with Her Majesty's instructions, and although they have seats in the Legislative Assembly, under the 2009 Constitution, they do not vote. The five ministers are voted into office by the 15 elected members of the Legislative Assembly of the Cayman Islands. One of the ministers, the leader of the majority political party, is appointed premier by the governor. After consulting the premier, the governor allocates a portfolio of responsibilities to each Cabinet member. Under the principle of collective responsibility, all ministers are obliged to support in the Assembly any measures approved by Cabinet. Almost 80 departments, sections and units carry out the business of government, joined by a number of statutory boards and authorities set up for specific purposes, such as the Port Authority, the Civil Aviation Authority, the Immigration Board, the Water Authority, the University College Board of Governors, the National Pensions Board, and the Health Insurance Commission. The defence of the Cayman Islands is the responsibility of the United Kingdom. The Royal Cayman Islands Police Service provides police services in the country. The Cayman Islands Cadet Corps was formed in March 2001.[citation needed] Since 2000, there have been two official major political parties: United Democratic Party (UDP) and the People's Progressive Movement (PPM). While there has been a shift to political parties, many contending for an office still run as independents. Taxation No direct taxation is imposed on residents and Cayman Islands companies. The government receives the majority of its income from indirect taxation. Duty is levied against most imported goods, which is typically in the range of 22% to 25%. Some items are exempted, such as baby formula, books, cameras and certain items are taxed at 5%. Duty on automobiles depends on their value. The duty can amount to 29.5% up to $20,000.00 KYD CIF and up to 42% over $30,000.00 KYD CIF for expensive models. The government charges flat licensing fees on financial institutions that operate in the islands and there are work permit fees on foreign labour. A 10% government tax is placed on all tourist accommodations in addition to US$25.00 departure tax each tourist pays upon leaving the island.[45] There are no taxes on profits, capital gains, income or any withholding taxes charged to foreign investors. There are no estate or death duties payable on Cayman Islands real estate or other assets held in the Cayman Islands.[citation needed] Foreign relations Main article: Foreign relations of the Cayman Islands Foreign policy is controlled by the United Kingdom, as the islands remain an overseas territory of the United Kingdom. Although in its early days, the Cayman Islands' most important relationships were with Britain and Jamaica, in recent years, as a result of economic dependence, a relationship with the United States has developed. Though the Cayman Islands are involved in no major international disputes, they have come under some criticism due to the use of their territory for narcotics trafficking and money laundering. In an attempt to address this, the government entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the United States, in order to reduce the use of their facilities associated with these activities. In more recent years, they have stepped up the fight against money laundering, by limiting banking secrecy, introducing requirements for customer identification and record keeping, and requiring banks to cooperate with foreign investigators. Due to their status as an overseas territory of the UK, the Cayman Islands have no representation either in the United Nations or in most other international organizations. However, the Cayman Islands still participates in some international organizations, being an associate member of Caricom and UNESCO, and a member of a sub-bureau of Interpol.[citation needed] The defence and internal security of the Cayman Islands is the responsibility of the United Kingdom. Infrastructure Mai