Business Law Developments In The Cayman Islands

Introduction

This year saw further significant legislation enacted in the Cayman Islands to enhance its financial services industry. The establishment of the Cayman Islands Stock Exchange and other principal developments are discussed below.

The Year In Review

With the Cayman Islands Stock Exchange becoming operational on 2nd January 1997, the Cayman Islands can now offer investors, in addition to other wide-ranging financial services, its own stock exchange. Another significant development is new trusts legislation expected to be enacted before the end of this year which will not only permit the creation of non-charitable purpose trusts but will provide an alternative regime under which trusts of any kind may be created. This year also began with the recent enactment of significant legislation designed to combat "money-laundering" and to make provision for asset freezing and forfeiture of criminal proceeds; legislation of this kind now being considered as essential if an