The financial services industry has warned of Cayman’s rapidly deteriorating position because of the Organisation for Economic Cooperation and Development (OECD) “greylist” and has demanded that government officials replace the unilateral mechanisms for the exchange of tax information with bilateral agreements.

Government, however, anticipates OECD approval of Cayman’s unilateral mechanism, possibly next week, and has obliquely rejected recommendations offered by Anthony Travers, Chairman of the Cayman Islands Financial Services Association (CIFSA).

Meanwhile, Mr Travers has written to US President Barack Obama, lamenting the politicisation and lack of understanding of Cayman’s regulatory structure among Washington policymakers.

Coming in the wake of the Mr Obama’s Monday remarks about closing loopholes in the US tax code, with specific reference to the Cayman Islands, Mr Travers’ 5 May letter says CIFSA is “gravely concerned” about charges that locally registered US corporations are engaging in fraud.

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