New York Stock Exchange To LLOYD'S FUNDS A GLOBAL FINANCIAL POWER-HOUSE Lloyd's Funds International is an executive level financial and management consulting firm that provides support to corporations, financial institutions and high net worth individuals Offshore Bank Formation Jurisdiction Cayman Islands

The Cayman Islands are now among the world's leading offshore banking centers and have over five hundred (500) licensed banks and trust companies, including 45 of the world's top 50 international banks. Bank and Trust companies represent 65 different countries in the world, including the United States, Canada, the United kingdom, Switzerland, Hong Kong, Japan, Germany, France, Brazil, Mexico and Portugal. Definitions: Banking business is defined under The Banks & Trust Companies Law (1995 Revision) as "the business of receiving (other than from a bank or trust company) and holding on current, savings, deposit or other similar account money which is repayable by check or order and may be invested by way of advances to customers or otherwise." Trust business is defined under the Banks & Trust Companies Law as "the business of acting as trustee, executor or administrator." License: No person may carry on banking business and no trust company may carry on trust business from within the jurisdiction of the Islands, whether or not carried on in the Islands, without a license as governed by The Banks & Trust Companies Law (1995 Revision).

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Opening of Accounts: Any person, entity or association, by completing the account opening forms provided by a bank, may open an account in such currency as the bank will accept. Each bank has specific due diligence requirements which must be met prior to the opening of an account.

Services: Many of the major banks are full service retail banks and provide a variety of services, including the buying and selling of precious metals, securities, trading in currencies, commodities and investment in funds. Protection of Customers' Information: The combined effect of Section 13 of The Banks & Trust Companies Law and The Confidential Relationships (Preservation) Law is to prohibit disclosure of any information whatsoever not authorized by the customer or in accordance with the law and to make such disclosure punishable by fine or imprisonment or both. This prohibition applies to banks, trust companies and professional and other persons in possession of confidential information. It is also an offence to attempt to obtain confidential information. The Monetary Authority: There is no central bank in the Cayman Islands but there is a statutory agency created by the Cayman Islands Government, which is The Cayman Islands Monetary Authority ("the Authority"). The Authority was created to regulate and supervise the financial services industry, including the review and monitoring of all banks and trust companies on the island. The Authority also promotes and maintains monetary stability and advises the Government on banking and monetary matters.

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There are no Government guarantees to depositors but most of the major banks operating in the Islands are branches or subsidiary companies of the world's leading banks. Many banks incorporated locally place their deposits with major international banks.

Most of the "A" licensed full service banks and trust companies are branches or subsidiaries of Canadian and European banks and are operated and managed in a manner similar to major international banks in Canada and Europe.

Duties of the Monetary Authority: The duties of the Monetary Authority are as follows: to maintain a general review of banking practice in the Islands; whenever it thinks fit or when so required by the Governor, to examine by way of the receipt of regular returns or in such other manner as it thinks necessary the affairs or business of any licensee carrying on business in or from within the Islands for the purpose of satisfying itself that the provisions of the Law are being complied with and that the licensee is in a sound financial position and, whenever it thinks fit or when so required by the Governor, to report to the Government the results of every such examination; when required by the Governor to assist in the investigation of any offence against the laws of the Islands which it has reasonable grounds to believe has or may have been committed by a licensee or by any of its directors or officers in their capacity as such; to examine accounts and audited annual accounts required by Section 9 of the Law to be filed with the Authority and to report on them to the Governor whenever it thinks fit or when so required by the Governor; to examine and make recommendations to the Governor with respect to applications for licenses; to examine all proposals and make recommendations to the Governor in respect of the exercise of his powers under Sections 14, 15 and 16 of the Law; and to act as the adviser to the Governor and to take all necessary action to ensure the proper and just implementation of the Law.

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The Authority in carrying out its duties ensures that a reasonable ratio exists between deposits, loans, debt and capital at all times and reviews quarterly reports from the various licensees.

The Authority is in constant contact with various regulatory authorities around the world and its staff attend important meetings of regulators to ensure that the Cayman Islands maintain its position as the world's leading offshore banking center.

No information given to or obtained by the Authority may be disclosed unless with the authority of an order of the Grand Court and there are severe penalties for unauthorized disclosure.

Types of Banks permitted Under the Law: The Banks & Trust Companies Law (1995 Revision) provides for the following types of banks and trust company licenses: "A" Licenses These licenses allow banks to carry on the business of banking within and outside the Islands. This license is the most difficult to obtain and is subject to stringent regulations. As a result, the "A" license is usually issued only to branches or affiliates of established international banks. "B" Licenses are divided into two types Unrestricted "B" Licenses: These licenses allow banks to carry on offshore banking business and are prohibit the bank from:-

Relaxing Cayman Islands Style

• taking deposits from any person resident in the Islands, other than another licensee, or an exempted or an ordinary non resident company which is not carrying on business in the Islands;

• investing in any asset which represents a claim on any person resident in the Islands, except a claim resulting from:

1. a loan to an exempted or an ordinary non resident company not carrying on business in the Islands; or
2. a loan by way of mortgage to a member of its staff or to a person possessing or being deemed to possess Caymanian status under the Immigration Law, 1992, for the purchase or construction of a residence in the Islands to be owner occupied; or
3. a transaction with another licensee; or
4. the purchase of bonds or other securities issued by the Government, a body incorporated by statute or a company in which the Government is the sole or majority beneficial owner; or
5. without the written approval of the Governor, carrying on any business in the Islands other than one for which the "B" license has been obtained.

Establishing a Bank in the Cayman Islands: A person, firm, entity or association who or which has large or frequent banking transactions may find it profitable and convenient to own and operate a bank in the Cayman Islands. This type of bank, usually private ("B" Restricted), has emerged as a result of the need to conduct financial transactions with as few restrictions as possible. Lending limitations, investment restrictions, reporting requirements, taxation, double taxation (where one may be taxed at home and abroad), compliance with burden-some government regulations and public disclosure of transactions all constitute restrictions which limit a businessman's ability to act as freely as he wishes.

The use of a Cayman bank enables a businessman to do business with very few restrictions. The availability of such a bank not only provides an opportunity to make tax free profits but makes daily transactions with foreign countries simple when compared to the approvals and reporting requirements necessary in some developed countries, and many persons have found that they are able to increase and expand their respective businesses beyond that of their initial expectations. Even when the Exchange Control Law was in force, there were in fact no restrictions whatsoever on foreign exchange dealings by the banks or their customers once an initial approval was obtained. The Exchange Control Law was repealed in 1980 and there are now no restrictions whatsoever on the transfer of currency to or from the Islands or on the holding of assets outside of the Islands. The benefits of using a Cayman bank as a base for operations include the ability to: Conduct business free of taxation; Freely exchange, trade or deal in any currency; Make and switch investments through stockbrokers, mutual funds and other investment vehicles; Operate bank accounts with a high degree of privacy; Conduct offshore banking with reasonable but effective lending limits and investment restrictions; Engage in business transactions free from excessive regulatory interference; Issue letters of credit and bank guarantees.

Cayman Islands; Live Another Life

Confused? The average person is frequently confused by the complexity of international tax planning and discouraged by the substantial costs involved in an offshore company formation or registering of a bank or trust in a tax haven. The registration costs and ongoing yearly administration expenses frequently exceed what the average person could save in taxes. Lloyd's Funds International Group has a new program to answer those concerns. We provide the simple, secure, private and low cost answer for the person who is just starting out or the veteran who now understands that simplicity is the essence of genius. Our survey has shown that this solution answers all of the needs for 100% of the persons seeking to go offshore.

The program includes bearer shares so that complete anonymity is guaranteed, documentation and support services so that you can open a financial account under your complete control, where and when you wish, and flexibility so that you can change your financial affairs to reflect your future needs.

We trust that we have clarified the intriguing world of Cayman Islands bank formation programs. We will be happy to answer any questions you may have, relating to this opportunity and provide you with additional details regarding any of our devoted services. Please click here to write us the full particulars of your situation and what you wish to accomplish. We will review your situation and offer to you a custom fitted solution. 95% of the time it will be simple to understand and 100% of the time it will be the least expensive alternative.

In Cayman Islands The Time Is

If you would like to obtain further details of the legislation surrounding the formation of an Cayman bank or wish to discuss any matter in complete confidence, please click here to contact: Mr. Oscar Parker Ph.D. Vice President Lloyd's Funds International Offshore Services

Thank you for your interest and feel free to contact Lloyd's Funds International Offshore Services if you believe the formation of Your Own Offshore Bank in Cayman Islands may be appropriate in your particular situation. Any communication with us is considered PRIVILEGED and CONFIDENTIAL.

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