The Cayman Islands are a
British overseas territory, listed by the UN Special Committee of 24 as one of the 17
non-self-governing territories. The current Constitution, incorporating a Bill of Rights, was ordained by a
statutory instrument of the United Kingdom in 2009. A 19-seat (not including two non-voting members appointed by the Governor which brings the total to 21 members)
Parliament is elected by the people every four years to handle domestic affairs. Of the elected Members of the Parliament (MPs), seven are chosen to serve as government Ministers in a Cabinet headed by the Governor. The
Premier is appointed by the Governor. Although geographically remote, the Islands (like other British Overseas Territories) share a direct connection with elements of supervisory governance (as did the now independent Commonwealth Nations) still exercisable by the UK's Government in London, UK. A
Governor is appointed by the
King of the United Kingdom on the advice of the
British Government to represent the monarch. Governors can exercise complete legislative and executive authority if they wish through blanket powers reserved to them in the constitution. Bills which have passed the Parliament require
royal assent before becoming effective. The Constitution empowers the Governor to withhold
royal assent in cases where the legislation appears to be repugnant to or inconsistent with the Constitution or affects the rights and privileges of the Parliament or the Royal Prerogative, or matters reserved to the Governor by article 55. The executive authority of the Cayman Islands is vested in
the, , and is exercised by the Government, consisting of the Governor and the Cabinet. There is an office of the Deputy Governor, who must be a Caymanian and have served in a senior public office. The Deputy Governor is the acting Governor when the office of Governor is vacant, or the Governor is not able to discharge their duties or is absent from the Cayman Islands. The current Governor of the Cayman Islands is
Jane Owen. The Cabinet is composed of two official members and seven elected members, called Ministers; one of whom is designated
Premier. The premier can serve for two consecutive terms. After two terms the premier is barred from attaining the office again. Although an MP can only be premier twice any person who meets the qualifications and requirements for a seat in the Parliament can be elected to the Parliament indefinitely. There are two official members of the Parliament, the
Deputy Governor and the
Attorney General. They are appointed by the Governor in accordance with His Majesty's instructions, and although they have seats in the Parliament, under the 2009 Constitution, they do not vote. They serve in a professional and advisory role to the MPs, the Deputy Governor represents the Governor who is a representative of the King and the British Government. While the Attorney General serves to advise on legal matters and has special responsibilities in Parliament, they are generally responsible for changes to the Penal code. The seven Ministers are voted into office by the 19 elected members of the
Parliament 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 Minister. Under the principle of collective responsibility, all Ministers are obliged to support in the Parliament 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. Since 2000, there have been two official major political parties: The
Cayman Democratic Party (CDP) and the
People's Progressive Movement (PPM). While there has been a shift to political parties, many contending for office still run as independents. The two parties are notably similar, though they consider each other rivals in most cases, their differences are generally in personality and implementation rather than actual policy. The Cayman Islands generally lacks any form of organised political parties. As of the May 2017 General Election, members of the PPM and CDP have joined with three independent members to form a government coalition despite many years of enmity. Before the
2021 Caymanian general election, leader of the CDP
McKeeva Bush received a two-month suspended jail sentence for assaulting a woman in February 2020 leading to a no-confidence motion against him. Premier McLaughlin asked Governor
Martyn Roper to dissolve Parliament on 14 February, triggering early elections instead of having the vote on the motion. In the lead-up to the election, the Democratic Party was described as "[appearing] to be defunct" as figures previously of the party (including Bush) instead contested as independents.
Police Policing in the country is provided chiefly by the RCIPS or
Royal Cayman Islands Police Service and the CICBC or Cayman Islands Customs & Border Control. These two agencies co-operate in aspects of law enforcement, including their
joint marine unit.
Military and defence The defence of the Cayman Islands is the responsibility of the United Kingdom. The
Royal Navy generally maintains a ship on station in the Caribbean (usually a
River-class offshore patrol vessel) and, from time-to-time, the Royal Navy or
Royal Fleet Auxiliary may deploy another ship as a part of Atlantic Patrol (NORTH) tasking. These ships' main mission in the region is to maintain British sovereignty for the overseas territories, provide humanitarian aid and disaster relief during disasters such as hurricanes, which are common in the area, and to conduct counter-narcotic operations. In July 2024, the patrol vessel
HMS Trent (which had temporarily replaced her sister ship HMS
Medway on her normal Caribbean tasking) deployed to the islands to provide assistance in the aftermath of
Hurricane Beryl.
Cayman Islands Regiment On 12 October 2019, the government announced the formation of the
Cayman Islands Regiment, a new
British Armed Forces unit. The Cayman Islands Regiment which became fully operational in 2020, with an initial 35–50 personnel of mostly reservists. Between 2020 through 2021 the Regiment grew to over a hundred personnel and over the next several years expected to grow to over several hundred personnel. In mid-December 2019, recruitment for commanding officers and junior officers began, with the commanding officers expected to begin work in January 2020 and the junior officers expected to begin in February 2020. In January 2020, the first officers were chosen for the Cayman Islands Regiment. Since the formation of the Regiment, it has been deployed on a few operational tours providing HADR, or Humanitarian Aid and Disaster Relief as well as assisting with the COVID-19 Pandemic.
Cadet Corps The
Cayman Islands Cadet Corps was formed in March 2001 and carries out military-type training with teenage citizens of the country.
Coast Guard In 2018, the PPM-led Coalition government pledged to form a
coast guard to protect the interests of the Cayman Islands, especially in terms of illegal immigration and illegal drug importation as well as
search and rescue. In mid-2018, the Commander and second-in-Command of the
Cayman Islands Coast Guard were appointed. Commander Robert Scotland was appointed as the first commanding officer and Lieutenant Commander Leo Anglin was appointed as Second-in-Command. In mid-2019, the commander and second-in-command took part in international joint operations with the
United States Coast Guard and the
Jamaica Defense Force Coast Guard called Operation Riptide. This makes it the first deployment for the Cayman Islands Coast Guard and the first in ten years any Cayman Representative has been on a foreign military ship for a counternarcotic operation. In late November 2019, it was announced that the Cayman Islands Coast Guard would become operational in January 2020, with initial total of 21 Coast Guardsmen half of which would come from the
joint marine unit, with further recruitment in the new year. One of the many taskings of the Coast Guard will be to push enforcement of all laws that apply to the designated Wildlife Interaction Zone. On 5 October 2021, the Cayman Islands Parliament passed the Cayman Islands Coast Guard Act thus establishing the Cayman Islands Coast Guard as a uniformed and disciplined department of Government.
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
electric vehicles, while 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 (cost, insurance and freight) 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 13% government tax is placed on all tourist accommodations in addition to a US$37.50 airport departure tax which is built into the cost of an airline ticket. There is a 7.5% sales tax on the proceeds of the sale of the property, payable by the purchaser. There are no taxes on corporate profits, capital gains, or personal income. There are no estate or death inheritance taxes payable on Cayman Islands real estate or other assets held in the Cayman Islands. The legend behind the lack of taxation comes from the
Wreck of the Ten Sail, when multiple ships ran aground on the reef off the north coast of Grand Cayman. Local fishermen are said to have then sailed out to rescue the crew and salvage goods from the wrecks. It is said that out of gratitude, and due to their small size, King George III then issued the edict that the citizens of the country of the Cayman Islands would never pay tax. There is, however, no documented evidence for this story besides oral tradition.
Foreign relations , 1953 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 is 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, 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 co-operate with foreign investigators. Due to their status as an overseas territory of the UK, the Cayman Islands has no separate representation either in the
United Nations or in most other international organisations. However, the Cayman Islands still participates in some international organisations, being an associate member of
CARICOM and
UNESCO, and a member of a sub-bureau of
Interpol. == Emergency services ==