IMF urges Cayman to tighten financial regulations

The IMF is urging the Government of the Cayman Islands to tighten the financial regulations of its offshore banks to minimize possible risks.



This is one of the recommendations of a just published IMF assessment, which was carried out on the British territory\'s offshore sector.



IMF economist, Effie Psalida said Cayman has made significant strides in monitoring the operations of its offshore entities.



However, Ms. Psalida said despite the progress, the sector is in need of greater supervision.



There are at least 278 foreign banks registered in the Cayman Islands with assets totalling US$1.7 trillion.



However, there are concerns that the country’s liberal tax regime would provide opportunities to persons to engage improper financial transactions.