There are close to 600 Bank and Trust companies in the Cayman Islands. These banks and Trust Services are licensed under the Banks and Trust Companies Law. These are not paper banks as you might think. Forty-Seven of the largest banks in the world out of the top 50 have Cayman banking licenses which include the combined assets exceeds one half trillion United States dollars.

In the Cayman Islands, there are three types of banking licenses are issued:

Class A – At this time, only around 30 banks in the Cayman Islands have these licenses. This type of license is quite expensive and it not easy to receive. These licenses allow retail business with Cayman Island residents as well as offshore banking.
Class B and Restricted Class B – This type of license is for only offshore banking. Persons with this type of license cannot do business with residents of the Cayman Islands. The only difference between Class B and a Restricted Class B license is the amount of capitalization.

The laws governing Cayman Islands banking is flexible which allows the banks to offer all kinds of banking services. Cayman banks stand behind the "Know Your Client" principal. In most cases they require bank references, photocopy of passport, etc. However, accounts can also be opened by mail.