## A technical assistance (TA) mission on external sector statistics (ESS) — CARTAC mission to the Cayman Islands (September 30–October 11, 2024)

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---

### Mission scope and objectives
- Follow-up mission under the Caribbean Regional Technical Assistance Centre (CARTAC) work program.
- Focus: improve coverage and classification of data on special purpose entities (SPEs) and strengthen cooperation between the Economics and Statistics Office (ESO) and Cayman Islands Monetary Authority (CIMA) on provision of data on entities under CIMA supervision.
- Additional tasks: assess data collected from non‑SPE companies via redesigned survey forms and provide guidance on addressing inconsistencies in compiled data.

### Coverage and classification of SPEs — key findings
- CIMA provides ESO comprehensive data only on banks and insurance companies with and without physical presence.
- Little progress expanding BOP and IIP coverage to investment funds.
- CPIS coverage increased from about 8,000 investment funds at the end of 2022 to about 20,000 at the end of 2023, corresponding to about 70 percent of investment funds registered in the Cayman Islands.
- Resulted in an increase in total portfolio investment assets reported on the CPIS from USD 2.3 trillion for 2019 to USD 5.7 trillion for 2023. (Also reported as USD 2,559 billion for end-June 2023 and USD 5,690 billion for end-December 2023.)
- No progress in launching the CDIS for the financial sector; planned draft CDIS report form and guidance note approval by the Cabinet by end-2023 postponed to 2025 due to unforeseen staff turnover.
- CIMA has not launched collection of data on financial derivatives from banks yet.

### SPE population, residence concept, and coverage gaps
- About 33,000 financial corporations (banks, insurance companies, investment funds, trusts) regulated by CIMA.
- 300 exempt companies registered in SEZs.
- More than 300 exempt nonfinancial non-SEZ companies.
- Majority of exempt companies do not have physical presence in the Cayman Islands; nonfinancial SPEs legally incorporated but without physical presence are currently excluded from official ESS.
- Residence concept for SPEs without physical presence is partially in line with BPM6:
  - Guidance Note for the Completion of the Quarterly Prudential Report (QPR): offshore banks are considered residents of the country where they are licensed and deemed legally domiciled, regardless of physical presence — aligned with BPM6.
  - For insurance companies, no specific document providing guidance on residence principle in reporting; REEFS portal instructions inaccessible to ESO.

### SEZ exempt companies and data access constraints
- ESO sent combined report form to Cayman Enterprise City (CEC); exercise produced no results because SEZ companies do not fall under the Statistics Act and cannot be mandated to provide data.
- DITC identified about 100 SEZ companies reporting under different reporting frameworks.
- ESO will initiate signing of a memorandum of understanding (MOU) with the Department for International Tax Cooperation (DITC) for access to available financial statements of SEZ companies.

### Test compilations, CPIS vs IIP discrepancies, and required adjustments
- ESO started test compilation of BOP and IIP for financial SPEs (banks and insurance companies) without physical presence using IMF’s SPE reporting template.
- Subject to CIMA’s approval, the SPEs report will be submitted to the IMF’s Statistics Department (STA) for dissemination.
- Priority recommendation: Submit to STA the SPEs report for 2020–2022 with further regular submission (Target Date: December 2024; Responsible: ESO).
- CPIS vs IIP comparison (end-2022 example): CPIS = USD 2,887 billion versus IIP = USD 64.5 billion; about 95 percent of discrepancies come from other financial corporations.
- Table 3 summary figures (USD million) — preserved values:
  - (1) CPIS (CIMA) = 119,441 total; 11,113 equity; 108,328 debt.
  - (2) IIP: portfolio investment, assets = 63,286 total; 1,510 equity; 61,776 debt.
  - (3) Discrepancies = 56,155 total; 9,603 equity; 46,552 debt.
  - (4) Cayman-to-Cayman data in IIP = 935 total; 76 equity; 858 debt.
  - (5) Other causes (random adjustment to Class DInsurer data) = -2,449 total; 0 equity; -2,449 debt.
  - (6) Corrected IIP data = 64,800 total; 1,433 equity; 63,367 debt.
- Banks components (USD million):
  - (7) CPIS (CIMA) = 67,961 total; 3,358 equity; 64,603 debt.
  - (8) CPIS physical presence* = 49,407 total; 905 equity; 48,502 debt.
  - (9) CPIS without physical presence* = 18,554 total; 2,453 equity; 16,101 debt.
  - (10) IIP: portfolio investment, assets = 49,643 total; 963 equity; 48,680 debt.
  - (11) Discrepancies = 18,318 total; 2,395 equity; 15,923 debt.
  - (12) Cayman-to-Cayman data in IIP = 236 total; 58 equity; 178 debt.
  - (14) Corrected IIP data = 49,407 total; 905 equity; 48,502 debt.
- Insurance companies components (USD million):
  - (15) CPIS (CIMA) = 51,480 total; 7,755 equity; 43,725 debt.
  - (16) IIP: portfolio investment, assets = 13,643 total; 547 equity; 13,096 debt.
  - (17) Discrepancies = 37,837 total; 7,208 equity; 30,629 debt.
  - (18) Cayman-to-Cayman data in IIP = 699 total; 18 equity; 680 debt.
  - (19) Other causes (random adjustment to Class D Insurer data) = -2,449 total; 0 equity; -2,449 debt.
  - (20) Corrected IIP data = 15,393 total; 529 equity; 14,865 debt.
  - *Does not include Cayman-to-Cayman position.

### Financial derivatives, CDIS, and pension funds
- No progress in collection of data on financial derivatives; decided to omit derivatives data for banks in BOP/IIP until both assets and liabilities are available.
- CIMA prepared a draft reporting form for financial derivatives and plans to launch collection by end of 2024.
- CDIS participation not yet compiled; draft CDIS report form and guidance submission to Cabinet postponed to 2025 due to staff turnover.
- For investment funds, only portfolio investment assets are available through CPIS; no liabilities or direct investment positions reported to ESO for inclusion in BOP/IIP.
- Pension funds coverage: one public sector pension fund, seven private pension funds, and a few single-employer pension funds; DLP provided financial and income statements for six out of seven private pension funds that hold about 95 percent of total assets of private pension funds.

### Residence, data provision, and reporting limitations
- CIMA provides ESO with aggregated data on banks and insurance companies by instrument broken down by with/without physical presence; ESO includes only data for entities with physical presence in BOP and IIP.
- Data collected by CIMA through Fund Annual Returns (FARs) include country of nonresident investors and net asset value of nonresident investors; additional breakdown needed to identify positions with nonresidents for investment funds with and without physical presence.
- If such breakdown is not available by 2025, CIMA should consider adding to CDIS survey form, as memorandum items, questions on liabilities in other instruments of investment funds (e.g., currency and deposits, loans, etc.).

### Identified data inconsistencies and methodological issues — selected items
- FISIM estimation: inconsistencies between national accounts compilers’ method and BOP recoding; many financial institutions are captive banks with interbank rates deemed understated. Decision: use as reference an implicit rate estimated as an average between results of dividing actual interest received on loans and paid on deposits to/from nonresidents by the average total position on loans and deposits. Compilers should request positions on loans and deposits to/from nonresidents from CIMA and review methodological soundness with national accounts compilers.
- Merchanting treatment: Wheaton Precious Metals (WPM) transactions recorded as merchanting by WPM; compiled BOP currently records only net export under “Goods sold under merchanting” with zero entries under “Goods acquired under merchanting (negative credits).” Mission recommended recording data only under “Net exports of goods under merchanting” and removing them from “Goods sold under merchanting.”
- Imports adjustments applied by ESO to CDDB to produce BOP basis include:
  - Recalculation from c.i.f. to f.o.b. valuation applying coefficients: 14–15 percent for freight and 1–2 percent for insurance, depending on means of transport.
  - Addition of goods procured in ports by carriers based on Cayman Airways annual reports; mission recommended estimating average fuel per flight and multiplying by inbound flights per quarter (current method uses fuel per passenger multiplied by passengers).
  - Addition of e-commerce goods imported through postal office estimated based on import duties collected (20 percent of cost of the goods). E-commerce deliveries by carriers (e.g., DHL, FedEx) are included in CDDB.

### Frequency, timeliness, and pilot quarterly compilation
- Currently only annual BOP and IIP are compiled and disseminated; dissemination timing does not meet international standard (six to nine months after year-end) because release requires Cabinet notification and ESO publishes statistics only in December.
- CIMA confirmed QPR for banks is available quarterly and committed to exploring increasing frequency of data for insurance companies (e.g., quarterly or semiannually).
- Mission priority: ESO should initiate pilot collection of quarterly data from reporters with significant contributions to ESS representing each branch of activity.
- Target: Launch the pilot quarterly BOPS for the biggest entities within each branch of activity — Target Completion Date: April 2025.
- Pilot quarterly BOPS for onshore non-financial sector to collect quarterly data for four quarters; begin at the beginning of 2025.

### Nonmonetary gold, Strategic Wealth Preservation (SWP), and storage fees
- Nonmonetary gold import/export conducted by Strategic Wealth Preservation (SWP), headquartered in the Cayman Islands, owning storage facilities and trading/storing precious metals.
- Precious metals resold abroad may be stored abroad and not included in CDDB; imported precious metals brought into the Cayman Islands for storage may be owned by SWP or by clients.
- SWP reported cross-border activity in 2024 for 2023 using a customized report form that did not include questions on purchase and sale of gold stored abroad; compilers will adjust the form and request data to cross-check with CDDB.
- CDDB data should be supplemented with SWP data on gold stored abroad.
- Paragraph 10.118 of BPM6 and IMF BOPCOM clarification note Statistical Treatment of Precious Metals Accounts: fees for storage of allocated precious metals should be recorded as financial services; storage fees charged by SWP for gold owned by nonresidents or paid to nonresident bullion banks should be classified as explicit financial services (credit and debit, respectively). Such data are provided by SWP in the reporting form.

### Travel, education, medical services, and card payments — current methods and planned enhancements
- Export of travel services estimated by Department of Tourism (DOT) based on 2019 expenditure survey and Ministry data on traveler numbers; for 2020–2022 methods:
  - (i) For stay over visitors, aggregated average visitors’ expenditures from 2019 survey multiplied by total number of visitors and by average duration of stay.
  - (ii) For cruisers, expenditures (by category) from 2019 survey multiplied by total number of visitor arrivals by cruises.
  - Expenditures updated applying changes in Cayman Islands consumer price index (CPI) of the respective year compared to CPI for 2019.
- DOT plans to reinstate the expenditure survey of departing travelers starting January 2025, to be conducted daily during 2025 at airport and cruise port terminals with objective to collect about 6,000 completed forms, including about 2,000 from cruisers. BOP compilers will be consulted on survey design.
- Imports of travel services estimated based on number of returning residents and estimated expenses abroad; adjustment to base year data (2015) using changes in U.S. CPI as main destination is the United States.
- Compilers should consider using aggregated card payment data from banks differentiated by:
  - (i) transactions using credit/debit cards issued by foreign banks and those issued by domestic banks, and
  - (ii) card-presented and card-not-present transactions.
- Appendix II prescribes classification rules for card transactions by issuer/presentation and grouping by purpose for e-commerce.
- Education services: exports include expenditures by foreign students at St. Matthew’s University; survey form updated and 2023 data received (follow-up needed); mission recommended surveying two other universities with same form.
- Medical services: some payments misclassified under personal, cultural, and recreational services; report forms should separate payments for treatment by visiting doctors (recorded as other services) from payments for treatment abroad of resident patients (recorded under travel services).

### Insurance, primary income, technical reserves, FISIM, and remittances
- Insurance services: data supplied by CIMA cover insurance and reinsurance by resident insurance companies; supplement by estimates on insurance of imported goods and BOPS.
- Recommendation: revise insurance of imported goods to split insurance services and current transfers components.
- Primary income compilation: CIMA data are aggregated and do not specify shareholders’ ratio; all dividends and reinvested earnings included under direct investment.
- Insurance investment income not separately identified between insurance technical reserves and companies’ own funds; recommendation to estimate income on technical reserves by applying ratio of position of technical reserves to total assets at end of period and include estimated premium supplements in insurance services and in secondary income, other current transfers, net non-life insurance premiums, credit.
- FISIM: estimated as described earlier; recommendation to replace actual interest recorded under other investment with pure interest.
- Remittances: CIMA provides inflows/outflows via “Retail Exposure” and “Remittances Report by Number of Transactions, Country, and Value.” One bank uses around 100 codes for cross-border payments by purpose; CIMA should investigate which codes map to personal transfers. ESO should discuss collecting data from banks (monthly or quarterly) on payments by category.

### Crypto assets, VASPs, and reporting plans
- No data on crypto assets currently available and thus not included in ESS.
- CIMA’s Virtual Assets Provider and FinTech Division mandates registration and licensing of VASPs; CIMA started drafting regulation and forms for balance sheet and income statements.
- CIMA to share draft reporting form for VASP balance sheet and income statements with ESO for BOP/IIP purposes; CIMA to launch survey for financial derivatives from banks through mission-approved form (Responsible: CIMA; Target: January 2025 for sharing draft VASP form).

### Action plan — selected priority recommendations and timelines
- October 2024: Finalize the compilation of BOP and IIP for financial SPEs without physical presence (Responsible: ESO).
- November 2024: Include in BOP and IIP for 2022 and backward adjustments including:
  - (i) remove data recorded under “Goods sold under merchanting” and include only under “Net exports of goods under merchanting”,
  - (ii) revise insurance of imported goods splitting insurance services and current transfers,
  - (iii) replace actual interest with pure interest,
  - (iv) include fees for storage of precious metals in explicit financial services (Responsible: ESO; Target Completion Date: November 2024).
- December 2024: Submit to STA the SPEs report for 2020–2022 with further regular submission (Responsible: ESO).
- January 2025: CIMA to share draft reporting form for VASP balance sheet and income statements with ESO for BOP/IIP purposes; CIMA to launch survey for financial derivatives from banks through mission-approved form (Responsible: CIMA).
- March 2025: Sign an MOU with DITC for access to available financial statements of SEZ entities (Responsible: ESO).
- March 2025: Adjust estimation of fuel bought by the domestic airline abroad and reclassify withholding taxes from other business services to secondary income, other current transfers (Responsible: ESO).
- June 2025: Together with national accounts compilers, review method applied for estimating export of FISIM (Responsible: ESO).
- December 2025: ESO to expand coverage of BOP and IIP to investment funds; CIMA to start providing ESO with data on assets and liabilities with nonresidents of investment funds broken down by investment fund with physical presence and without physical presence (Responsible: ESO and CIMA).
- Target: Launch pilot quarterly BOPS for biggest entities within each branch of activity — Target Completion Date: April 2025 (Responsible: ESO).

### Recommended operational and institutional actions (selected)
- ESO: Submit to STA the SPEs report for 2020–2022 and continue regular submissions.
- ESO: Expand the coverage of BOP and IIP to investment funds and include claims to nonresident reinsurers for unpaid claims and unearned premiums (insurance technical reserves).
- ESO: Adjust BOPS population and launch pilot quarterly BOPS for the biggest entities within each branch; prepare list of targeted entities for quarterly reporting.
- ESO: Implement changes in compilation for merchanting, insurance import splits, pure interest, and inclusion of precious metals storage fees in explicit financial services.
- ESO: Request from CIMA positions on loans and deposits to/from nonresidents for FISIM estimation and request aggregated card payment data by issuer and card-presented status.
- ESO: Sign MOUs with DITC and CBCD for access to SEZ financial statements and CBCD database fields.
- CIMA: Share draft VASP reporting forms with ESO; provide data on shareholding of banks and insurance companies; investigate bank transaction code mappings; consider adding memorandum items on investment funds’ liabilities to CDIS survey form; launch CDIS reporting subject to Cabinet approval.
- CIMA: Submit to the ESO quarterly QPR for banks starting with data for Q1 2025 and explore increasing frequency of data for insurance companies to quarterly or semiannually.

### Appendices — reporting templates and guidance excerpts
- Appendix II: Breakdown of data on payments by credit and debit cards with classification rules for card issuer and card-presented status for BOP registration.
- Appendix III: Sample report form on financial derivatives (Parts A–D) specifying reporting dimensions (Receipts, Payments, Transactions, Outstanding Positions, market values), option/futures/swaps categories, and currency breakdown instructions (report in thousands of USD).

*IMF | CARTAC Cayman Islands | tarea2025024-print-pdf (excerpts, pages 11–15, 26–30)*

### 1.      A technical assistance (TA) mission on external sector statistics (ESS) was provided to the

### A technical assistance (TA) mission on external sector statistics (ESS) was provided to the Economics and Statistics Office (ESO) and Cayman Islands Monetary Authority (CIMA) during September 30–October 11, 2024.

### Mission scope and objectives
- Follow-up mission conducted as part of the Caribbean Regional Technical Assistance Centre (CARTAC) work program.
- Focus: assist in improving the coverage and the classification of the data on special purpose entities (SPEs), including strengthening the cooperation between the ESO and CIMA on provision of data on entities under its supervision.
- Additional tasks: assess data collected from non-SPE companies through redesigned survey forms and provide guidance on addressing inconsistencies in compiled data.

### Coverage and classification of SPEs
- CIMA continues to provide the ESO comprehensive data only on banks and insurance companies with and without physical presence.
- Little progress in expanding BOP and IIP coverage to investment funds.
- CPIS coverage increased from about 8,000 investment funds at the end of 2022 to about 20,000 at the end of 2023, corresponding to about 70 percent of investment funds registered in the Cayman Islands.
- Resulted in an increase in total portfolio investment assets reported on the CPIS from USD 2.3 trillion for 2019 to USD 5.7 trillion for 2023.
- No progress in launching the CDIS for the financial sector, including investment funds; planned draft CDIS report form and guidance note approval by the Cabinet by the end of 2023 postponed to 2025 due to unforeseen staff turnover.
- CIMA has not launched the collection of data on financial derivatives from banks yet.

### Residence concept and ESS coverage issues
- Residence concept for SPEs without physical presence registered in the Cayman Islands is partially in line with BPM6.
- Guidance Note for the Completion of the Quarterly Prudential Report (QPR): offshore banks are considered residents of the country where they are licensed and deemed to be legally domiciled, regardless of physical presence — aligned with BPM6.
- Nonfinancial businesses: only those with physical presence and engaging/intending to engage in significant economic activity within the Cayman Islands for one year or more are currently included in official ESS compilation.
- Consequence: nonfinancial SPEs legally incorporated in the Cayman Islands but without physical presence are excluded from official published ESS.

### Special Economic Zones (SEZ) and exempt companies
- Little progress extending ESS coverage to exempt companies operating in SEZs.
- ESO sent a combined report form to Cayman Enterprise City (CEC) for collecting data from SEZ companies; companies in SEZ do not fall under the Statistics Act and cannot be mandated to provide data, so the exercise produced no results.
- Meeting with the Department for International Tax Cooperation (DITC) identified about 100 SEZ companies reporting to the DITC under different reporting frameworks.
- ESO will initiate signing of a memorandum of understanding (MOU) with the DITC for access to available financial statements of SEZ companies.

### Test compilations and data submissions for SPEs
- ESO started test compilation of BOP and IIP for financial SPEs (banks and insurance companies) without physical presence using the IMF’s reporting template for SPEs.
- Financial entities without physical presence registered in the Cayman Islands meet the definition of SPEs.
- Based on data reported by CIMA, the ESO compiled BOP and IIP for financial entities without physical presence and incorporated them in the IMF reporting template for SPEs.
- Subject to CIMA’s approval, the SPEs report will be submitted to the IMF’s Statistics Department (STA) for dissemination.
- Priority recommendation: Submit to STA the SPEs report for 2020–2022 with further regular submission (Target Date: December 2024; Responsible: ESO).

### Balance of Payments Survey (BOPS) population and survey adjustments
- Until 2023, about 800 nonfinancial entities with physical presence were covered by the BOPS.
- Revision before 2023 BOPS reduced the survey population to 476 nonfinancial entities by excluding dormant companies or those with little or no impact on cross-border activity.
- ESO adjusted BOPS population to focus on entities with significant cross-border activity.

### Identified data inconsistencies and methodological issues
- Some inconsistencies identified in compiled BOP/IIP data, including the method applied for estimation of export of financial intermediation services indirectly measured (FISIM) developed by national accounts compilers and its recoding in the BOP.
- Merchanting treatment: Wheaton Precious Metals (WPM) transactions are recorded by WPM as merchanting (sales to bullion banks without entering territory). For confidentiality, compiled BOP records only the net export under “Goods sold under merchanting” with zero entries under “Goods acquired under merchanting (negative credits).”
- Mission recommended recording data only under “Net exports of goods under merchanting” and removing them from “Goods sold under merchanting.”
- Imports adjustments applied by ESO to CDDB (general trade system) to produce BOP basis include:
  - Recalculation from c.i.f. to f.o.b. valuation applying coefficients: 14–15 percent for freight and 1–2 percent for insurance, depending on means of transport.
  - Addition of goods procured in ports by carriers based on Cayman Airways annual reports; mission recommended estimating average fuel per flight and multiplying by inbound flights per quarter (current method uses fuel per passenger multiplied by passengers).
  - Addition of e-commerce goods imported through postal office estimated based on import duties collected (20 percent of cost of the goods). E-commerce deliveries by carriers (e.g., DHL, FedEx) are included in CDDB.

### Frequency of compiled ESS and data flow enhancements
- Currently only annual BOP and IIP are compiled and disseminated.
- CIMA confirmed QPR for banks is available quarterly and committed to exploring possibility of increasing frequency of data for insurance companies (e.g., quarterly or semiannually).
- Mission reiterated ESO should initiate pilot collection of quarterly data from reporters with significant contributions to ESS representing each branch of activity.
- Priority actions target increasing periodicity and launching pilot quarterly BOPS for biggest entities by branch (Target: H ESO: Launch the pilot quarterly BOPS for the biggest entities within each branch of activity — Target Completion Date: April 2025).

### Action plan — priority recommendations and timelines (selected items)
- December 2024: Submit to STA the SPEs report for 2020–2022 with further regular submission (Responsible: ESO).
- March 2025: Sign a MOU with DITC for access to available financial statements of SEZ entities (Responsible: ESO).
- June 2025: Together with compilers of national accounts, review the method applied for estimating export of FISIM (Responsible: ESO).
- October 2024: Finalize the compilation of BOP and IIP for financial SPEs without physical presence (Responsible: ESO).
- November 2024: Include in BOP and IIP for 2022 and backward a set of adjustments including (i) removing data recorded under “Goods sold under merchanting” and including only under “Net exports of goods under merchanting,” (ii) revising insurance of imported goods splitting insurance services and current transfers, (iii) replacing actual interest with pure interest, and (iv) including fees for storage of precious metals in explicit financial services (Responsible: ESO; Target Completion Date: November 2024).
- March 2025: Adjust estimation of fuel bought by the domestic airline abroad and reclassify withholding taxes from other business services to secondary income, other current transfers (Responsible: ESO).
- January 2025: CIMA to share draft reporting form for VASP balance sheet and income statements with ESO for BOP/IIP purposes; CIMA to launch survey for financial derivatives from banks through mission-approved form (Responsible: CIMA).
- December 2025: ESO to expand coverage of BOP and IIP to investment funds; CIMA to start providing ESO with data on assets and liabilities with nonresidents of investment funds broken down by investment fund with physical presence and without physical presence (Responsible: ESO and CIMA).

*Source: tarea2025024-print-pdf.*

### 15.        Another component identified in the goods account is nonmonetary gold. The import/export of

### 15.        Another component identified in the goods account is nonmonetary gold.

### Nonmonetary gold and Strategic Wealth Preservation (SWP)
- The import/export of nonmonetary gold is conducted by the Strategic Wealth Preservation (SWP) — a company specializing in trade and storage of precious metals headquartered in the Cayman Islands.
- The SWP owns storage facilities in the Cayman Islands and specializes in the acquisition and sale, as well as in storage of precious metals for individuals, companies, and other entities.
- The SWP purchases precious metals and either keeps them as its own assets or sells them to clients.
- If the precious metals are to be resold abroad, they are not brought to the Cayman Islands but are stored in facilities abroad; consequently, they are not included in CDDB.
- Imported precious metals brought into the Cayman Islands for storage are either owned by the SWP or are owned by clients (e.g., storage for precious metals held within self-directed Individual Retirement Accounts for American citizens).
- The SWP reported to the ESO its cross-border activity in 2024 for 2023, using the updated customized report form which did not include questions on purchase and sale of gold stored abroad.
- The compilers will adjust the report form and will request the data from the SWP to cross-check with data included in CDDB.
- The CDDB data should be supplemented with the SWP data on gold stored abroad.
- Paragraph 10.118 of BPM6 and the IMF’s BOPCOM clarification note Statistical Treatment of Precious Metals Accounts indicate that fees for storage of allocated precious metals should be recorded as financial services; storage fees charged by SWP for gold owned by nonresidents or paid to nonresident bullion banks should be classified as explicit financial services (credit and debit, respectively). Such data are provided by the SWP in the reporting form.

### Travel services: current methods and planned enhancements
- Export of travel services has been estimated by the Cayman Islands Department of Tourism (DOT) based on an expenditure survey of departing travelers and on data from the Ministry of Border Control, Labor, and Culture on the number of travelers by category.
- The latest expenditure survey was conducted in 2019.
- For 2020–2022, the BOP data were estimated as follows:
  - (i) for stay over visitors, the aggregated average visitors’ expenditures from the 2019 survey were multiplied by total number of visitors and by average duration of stay;
  - (ii) for cruisers, the expenditures (by category) from the 2019 survey were multiplied by the total number of visitor arrivals by cruises.
- For both cases, expenditures were updated applying the changes in the Cayman Islands consumer price index (CPI) of the respective year compared to the CPI for 2019.
- Recommendations and planned improvements:
  - Compilers should request access to all fields in the database of the CBCD that combines data from the entry documents for residents and nonresidents and data from the travel survey form completed by arriving nonresidents; a MOU should be signed between the ESO and CBCD.
  - BOP compilers will be provided with data on average length of stay by purpose of visit and average hotel rates by category of hotel/lodging.
  - New estimation method for export of travel: average number of visitors by purpose multiplied by average duration of stay by purpose and by average expenditures by category of lodging (enhancement of accommodation expenditure estimates).
  - DOT plans to reinstate the expenditure survey of departing travelers starting January 2025, to be conducted daily during 2025 at the airport and cruise port terminals with the objective to collect about 6,000 completed forms, including about 2,000 from cruisers.
  - BOP compilers will be consulted on the design of the survey form to assure it covers questions needed for the BOP estimates.

### Imports of travel services and card payments
- Imports of travel services are estimated based on the number of returning residents and their estimated expenses abroad.
- As the main destination of Cayman Islands residents is the United States, an adjustment to base year data (2015) is made considering the changes in the U.S. CPI.
- To improve coverage, compilers should consider using data on payments by credit/debit cards:
  - Aggregated data from banks should be requested from CIMA differentiated by:
    - (i) transactions using credit/debit cards issued by foreign banks and those issued by domestic banks, and
    - (ii) transactions where the card was presented (card presented) and those where the card was not presented (card not presented).
  - Data on payments by credit/debit cards issued by foreign banks (card-presented transactions) could be used to estimate/cross-check exports of travel services.
  - Data on payments abroad by credit/debit cards issued by resident banks (card not presented transactions) should be split between payments for goods (e-commerce digitally ordered) and payments for services (travel, recreational, etc.—transactions not digitally ordered).
- Appendix II presents the breakdown of data on credit and debit cards and their use in BOP compilation.

### Education and medical services
- The ESO estimates export and import of education and medical services; however, some services are misclassified under personal, cultural, and recreational services.
- Exports of education services include education expenses by foreign students at St. Matthew’s University.
- The survey form was updated based on comments from St. Matthew’s University on types of activities, ownership, tuition fee, etc.
- The ESO received data for 2023 based on the updated report form; follow-up is needed as not all data have been reported.
- There are two other universities in the Cayman Islands; the mission recommended surveying them using the same form.
- Import of education services is estimated based on the number of residents studying abroad under government programs and the estimated average education cost for three countries—the United States, the United Kingdom, and Canada—using tuition fees at the universities for which the Cayman Islands Government provides the scholarship.
- Estimates of expenditures by residents studying abroad under individual programs are not covered; compilers should investigate with the Department of Labor and Pensions (DLP) and DOT the possibility of gathering information on the number of returning/visiting students studying abroad.

### Financial services, FISIM, and storage fees
- Financial services are compiled based on data from CIMA and BOPS.
- Export of FISIM is estimated by the national accounts compilers together with the domestic component of such services.
- Many financial institutions in the Cayman Islands are captive banks that transfer money between members at very low, non-market rates; therefore interbank rates are deemed understated.
- It was decided to use as a reference rate an implicit rate estimated as an average between the results of dividing the actual interest received on loans and paid on deposits to/from nonresidents by the average total position on loans and deposits.
- Compilers should request from CIMA the positions on loans and deposits to/from nonresidents and use it in estimation of the average implicit rate.
- Together with national accounts compilers, further analysis should be conducted to assess the methodological soundness of this approach.
- Fees for storage of precious metals should be included in explicit financial services (see SWP section above).

### Insurance, personal/cultural/recreational services, and other business services
- Insurance services are an important component of services; data are supplied by CIMA and cover insurance and reinsurance by resident insurance companies.
- Data are supplemented by estimates on insurance of imported goods and by those collected through BOPS.
- Insurance services on imported goods should be revised to incorporate a split between insurance services and current transfers components.
- Significant amounts are registered under personal, cultural, and recreational services and under other business services:
  - Personal, cultural, and recreational services include payments for online training reported by companies and payments by medical facilities for treatment provided to residents by visiting doctors.
  - The medical facilities’ report form should add questions to separate payments for treatment provided by visiting doctors from payments for treatment abroad of resident patients (the latter should be recorded under travel services).
  - For other business services, the mission recommended checking whether reporters (e.g., legal and accounting firms) correctly apply the residence concept to SPEs without physical presence registered in the Cayman Islands.
  - Instances exist where withholding taxes were classified as other business services; these should be reclassified to secondary income, other current transfers.

### Primary income, insurance technical reserves, and FISIM recording
- Primary income is compiled based on data from BOPS and CIMA on income received/paid by banks and insurance companies.
- Data reported by CIMA are aggregated and do not specify shareholders’ ratio; therefore all data on dividends and reinvested earnings are included under direct investment.
- Data for insurance companies on investment income received do not specify if it is earned on insurance technical reserves or on investment of insurance companies’ own funds.
- CIMA confirmed it is not feasible to separately identify income on insurance technical reserves; consequently it is recommended to estimate it applying the ratio of position of technical reserves to total assets at the end of the period.
- The total investment income received/paid by insurance companies should be included under respective investment income; the estimated income on insurance technical reserves (premium supplements) should be used in calculating insurance services and also registered in secondary income, other current transfers, net non-life insurance premiums, credit.
- Data on FISIM are estimated as described earlier and are registered under financial services; however, under interest on other investment the actual interest received/paid is registered instead of pure interest (recommendation to replace actual interest by pure interest).

### Remittances and transaction coding
- Remittances data (personal transfers and compensation of employees) cover data reported in BOPS and those reported by CIMA.
- CIMA provides data on inflows and outflows of remittances by individuals/households through two quarterly reports: “Retail Exposure” and “Remittances Report by Number of Transactions, Country, and Value.”
  - The first report includes remittances by individuals/households through banks broken down by country.
  - The second report comprises remittances through MSP also broken down by country.
- One bank categorizes cross-border payments by purpose using around 100 codes listed in the International Bank Transfers Categories; CIMA was not able to provide details which specific codes were categorized as personal transfers.
- It is unclear which codes are used by other banks and by MSP. Data on payments broken down by category could be useful for different BOP components; CIMA should investigate obtaining required details on code applications.
- The ESO should discuss with CIMA the possibility of collecting data from banks (monthly or quarterly) on payments by category.

### Crypto assets and VASP reporting
- No data on crypto assets are currently available and thus not included in ESS.
- CIMA’s Virtual Assets Provider and FinTech Division has the mandate to register the VASPs; after registration the VASPs will be licensed.
- CIMA started drafting the regulation and the forms for balance sheet and income statements.
- CIMA should share the draft reporting form with the ESO for comments for BOP/IIP purposes.

### Direct investment, CDIS, and portfolio investment discrepancies
- Direct investment includes available data from CIMA on companies with physical presence and from BOPS.
- Reported QPR data on share capital for banks and insurance companies are not broken down by the ownership threshold (10 percent and more, and less than 10 percent); therefore the whole amount is included under direct investment.
- CIMA committed to exploring the possibility of requesting data specified by the ownership threshold.
- BOP compilers will request from the Banking Supervision and Pension Supervision Departments information on shareholders of banks and insurance companies.
- CIMA plans to launch the CDIS survey using as a reporting template the survey form presented in the CDIS Guide.
- For liabilities of investment funds, CIMA only collects data on direct investment instruments (for banks and insurance companies, all liabilities are reported in QPR).
- The mission reiterated the recommendation to consider adding to the CDIS survey form, as memorandum items, questions on liabilities in other instruments of investment funds (e.g., currency and deposits, loans, etc.) to assure comprehensive coverage of investment funds in ESS.
- Data on portfolio investment assets are compiled based on CIMA QPR reports; only banks and insurance companies with physical presence and their positions with nonresident companies are included in ESS.
- A comparison of portfolio investment assets in IIP and those reported in the CPIS revealed significant discrepancies; detailed analysis and adjustments are described in the section on IMF Data Reporting Initiatives.

### Pension funds coverage
- Progress on improving coverage of pension funds in ESS:
  - One public sector pension fund, seven private pension funds, and a few single-employer pension funds exist in the Cayman Islands.
  - Investment requirements for private pension funds: about 30 percent of their assets should be invested domestically, but this threshold is not always met.
  - The public sector pension fund assets are invested in full in assets abroad; the Public Service Pension Board (PSPB) reports comprehensive data through BOPS.
  - Following the 2023 mission, the DLP provided to the ESO financial and income statements for six out of seven private pension funds that hold about 95 percent of total assets of private pension funds, assuring good coverage of cross-border positions of pension funds in ESS.

### Financial derivatives and reporting plans
- No progress has been made in the collection of data on financial derivatives; this category would be fed mainly from CIMA reporting for banks, but only data on assets were reported.
- It was decided to omit data for financial derivatives for banks in BOP/IIP until data on both assets and liabilities are available.
- CIMA plans to launch separate reporting by banks on transactions and positions in financial derivatives; a draft report form was prepared and reviewed by the mission.
- Recommendations on the form: adjustments for capturing transactions, positions, and price changes on financial derivatives by type, and breakdowns in Guidance Note F.1 More Disaggregated Institutional Sector and Financial Instrument Breakdowns approved by BOPCOM within the revision of BPM6 (Appendix III).
- CIMA plans to launch the collection of data on financial derivatives through the designed form by the end of 2024.

### Other accounts receivable/payable and attribution issues
- Other accounts receivable/payable registered significant amounts and cover data reported in BOPS by companies.
- Included under this component is the difference between portfolio investment assets reported in CPIS and total assets as reported by banks in their balance sheets—a practice without methodological basis intended to reduce errors and omissions.
- The mission recommended investigating with CIMA the possible causes of such discrepancies and conducting proper attribution of data to relevant BOP components.

### Recommendations (selected, as presented)
- ESO: introduce in the compiled BOP and IIP for 2022 and possibly backward the following changes:
  - (i) Remove data recorded under “Goods sold under merchanting” and include them only under “Net exports of goods under merchanting”.
  - (ii) Revise the data on insurance of imported goods for splitting the insurance services and current transfers components.
  - (iii) Replace the actual interest received/paid registered in BOP by pure interest.
  - (iv) Include the fees for the storage of precious metals in explicit financial services.
- ESO: Adjust the estimation of fuel bought by the domestic airline abroad.
- ESO: Reclassify withholding taxes from other business services to secondary income, other current transfers.
- ESO: Adjust the report form for SWP for adding additional questions on storage of precious metals abroad.
- ESO: Request from CIMA data on payments by credit/debit cards for use in estimation of travel services and other services components.
- ESO: Implement the new estimation model for export and import of travel services recommended by the mission.
- ESO: Sign a MOU with the CBCD for access to additional fields from the CBCD’s database.
- ESO: Survey the two universities incorporated in the Cayman Islands by using the report form customed for surveying the St. Matthew’s University.
- ESO: Together with the national accounts compilers, review the method applied for estimating export of FISIM.
- ESO: Include in explicit financial services the fees for the storage of precious metals.
- ESO: Estimate premium supplements applying the method recommended by the mission.
- ESO: Include in BOP and IIP claims to nonresident reinsurers for unpaid claims and unearned premiums (insurance technical reserves).
- CIMA: Share the draft reporting form of collecting data from VASP on balance sheet and income statements with the ESO for comments for BOP/IIP purposes.
- CIMA: Provide data on shareholding of banks and insurance companies based on information from the Banking Supervision and Pension Supervision Departments.
- CIMA: Request from banks and MSP the explanations to the transaction codes included in the estimation of personal transfers.
- CIMA: Investigate the possibility of collecting data from banks (monthly or quarterly) on payments by category.
- CIMA: Consider adding to the CDIS survey form for investment funds, as memorandum items, questions on liabilities in other instruments (e.g., currency and deposits, loans, etc.).
- CIMA: Launch the survey for collection of data on financial derivatives from banks through the form approved by the mission.

*IMF | CARTAC Cayman Islands | pages 11–15*

### 36.        A significant number of SPEs   are domiciled in the Cayman Islands. This includes about

### tarea2025024-print-pdf - 36.        A significant number of SPEs   are domiciled in the Cayman Islands. This includes about 

### SPE population and physical presence
- About 33,000 financial corporations (banks, insurance companies, investment funds, trusts) regulated by CIMA.
- 300 exempt companies registered in SEZs.
- More than 300 exempt nonfinancial non-SEZ companies.
- The majority of these exempt companies do not have physical presence in the Cayman Islands.
- Nonfinancial SPEs that are legally incorporated in the Cayman Islands but do not have physical presence are not currently accounted for in ESS.

### Residence concept for SPEs and reporting implications
- Residence concept for SPEs without physical presence registered in the Cayman Islands is partially in line with the BOP methodology.
- Guidance Note for the Completion of the Quarterly Prudential Report used in the compilation of ESS: offshore banks are considered residents of the country where they are licensed and deemed to be legally domiciled, regardless of whether they have a physical presence—this is in line with the BPM6 framework.
- For insurance companies, there is no specific document providing definition/guidance on the residence principle to be applied in reporting.
- Insurance companies submit documents to CIMA via the Regulatory Enhanced Electronic Forms Submission (REEFS); instructions on REEFS are accessed through a portal to which the ESO does not have access, so residence concept applied in REEFS could not be verified by the mission.
- The ESO will continue discussions with CIMA to obtain access to REEFS or to obtain the guidance applied in REEFS.
- According to BPM6, all SPEs, with or without physical presence in the territory, that are incorporated in the economy, should be treated as residents of the territory of incorporation.

### CIMA data provision and gaps for ESS compilation
- CIMA is a main data provider for ESS covering financial entities with and without physical presence.
- CIMA provides the ESO with aggregated data on banks and insurance companies by financial instrument, broken down by those with and those without physical presence; however the ESO includes only data for entities with physical presence in the BOP and IIP.
- For investment funds, only data on their assets in the form of securities are reported by CIMA in the CPIS (in 2022, securities constituted about 20 percent of total investment funds’ assets).
- No data on investment funds’ assets and liabilities are yet provided to the ESO for inclusion in BOP and IIP.
- CIMA plans to launch the CDIS survey for the financial sector, including investment funds, to fill gaps in coverage of liabilities in the form of equities and debt instruments for investment funds.
- Data currently collected by CIMA through Fund Annual Returns (FARs) include country of nonresident investors and net assets value of nonresident investors, but an additional breakdown is needed to identify positions with nonresidents for investment funds with physical presence and without physical presence.
- If such breakdown is not available by 2025, CIMA should consider adding to the CDIS survey form, as memorandum items, questions on liabilities in other instruments of investment funds (e.g., currency and deposits, loans, etc.).

### SEZ exempt companies and data access constraints
- Exempt companies registered in SEZs do not report data to the ESO.
- ESO’s attempts to collect data from SEZ companies were unsuccessful: SEZ companies do not fall under the Statistics Act and cannot be mandated to provide data under the act.
- DITC reports: about 100 SEZ companies provide reports under different reporting frameworks.
- Agreement: ESO will cooperate with the DITC legal unit to draft an MOU to provide the ESO with access to financial statements of SEZ companies available at the DITC.

### Nonfinancial non‑SEZ entities without physical presence
- Department of Commerce and Investment informed there are about 300 nonfinancial non-SEZ entities without physical presence registered in the Cayman Islands; these entities are omitted from ESS.
- The ESO will investigate the possibility of including them in ESS at a later stage.

### Recommendations (SPEs, CIMA, ESO)
- CIMA: Start providing the ESO with data on assets and liabilities with nonresidents of investment funds broken down by investment fund with physical presence and without physical presence.
- ESO: Expand the coverage of BOP and IIP to investment funds.
- ESO and CIMA: Verify the residence principle applied in insurance companies’ reporting, and, if needed, undertake the steps for bringing it in line with the BPM6 requirements.

### CPIS reporting, coverage expansion, and recent CPIS results
- CIMA is in charge of CPIS production and dissemination.
- Private Funds Law, 2020 mandated private investment funds to report data to CIMA; data collection from private investment funds started in 2021 with data for 2020.
- CPIS coverage increased from about 8,000 investment funds at end-2022 to about 20,000 at end-2023, which is about 70 percent of investment funds registered in the Cayman Islands.
- Result: total portfolio investment assets increased from USD 2,559 billion for end-June 2023 to USD 5,690 billion for end-December 2023.

### CPIS vs IIP discrepancies and causes
- IIP portfolio investment assets are compiled based on CIMA’s QPR and include only banks and insurance companies.
- Comparison for end-2022: CPIS = USD 2,887 billion versus IIP = USD 64.5 billion.
- About 95 percent of discrepancies come from data for other financial corporations.
- Main causes of discrepancies summarized in Table 2 (textual highlights):
  - Banks: IIP includes only banks with physical presence; CPIS covers resident banks with and without physical presence and includes portions of Cayman-to-Cayman positions.
  - Insurance companies: IIP includes only insurance companies with physical presence; CPIS covers resident insurance companies with and without physical presence and includes portions of Cayman-to-Cayman positions; ESO made a USD 2,449 million downward adjustment to Class D reported data to offset a USD 8 billion (25 percent) increase in debt securities (CIMA could not explain).
  - Other financial corporations: IIP includes no data; CPIS includes money market funds (USD 714 million) and other financial corporations (USD 2,766,915 million).

### Required adjustments to IIP to reduce CPIS inconsistencies
- Short-term corrections (before release of BOP/IIP for 2023):
  - Remove positions between residents (Cayman-to-Cayman).
  - Discontinue the random adjustment to Class D Insurer data.
- By end of 2025:
  - Include in BOP and IIP data on investment funds.
- Medium term:
  - Consider including in BOP and IIP data on banks and insurance companies without physical presence when consolidated BOP and IIP covering both with and without physical presence is approved.
- Table 3 summary figures (USD million) — preserved values from source:
  - (1) CPIS (CIMA) = 119,441 total; 11,113 equity; 108,328 debt.
  - (2) IIP: portfolio investment, assets = 63,286 total; 1,510 equity; 61,776 debt.
  - (3) Discrepancies = 56,155 total; 9,603 equity; 46,552 debt.
  - (4) Cayman-to-Cayman data in IIP = 935 total; 76 equity; 858 debt.
  - (5) Other causes (random adjustment to Class DInsurer data) = -2,449 total; 0 equity; -2,449 debt.
  - (6) Corrected IIP data = 64,800 total; 1,433 equity; 63,367 debt.
  - Banks (components):
    - (7) CPIS (CIMA) = 67,961 total; 3,358 equity; 64,603 debt.
    - (8) CPIS physical presence* = 49,407 total; 905 equity; 48,502 debt.
    - (9) CPIS without physical presence* = 18,554 total; 2,453 equity; 16,101 debt.
    - (10) IIP: portfolio investment, assets = 49,643 total; 963 equity; 48,680 debt.
    - (11) Discrepancies = 18,318 total; 2,395 equity; 15,923 debt.
    - (12) Cayman-to-Cayman data in IIP = 236 total; 58 equity; 178 debt.
    - (14) Corrected IIP data = 49,407 total; 905 equity; 48,502 debt.
  - Insurance companies (components):
    - (15) CPIS (CIMA) = 51,480 total; 7,755 equity; 43,725 debt.
    - (16) IIP: portfolio investment, assets = 13,643 total; 547 equity; 13,096 debt.
    - (17) Discrepancies = 37,837 total; 7,208 equity; 30,629 debt.
    - (18) Cayman-to-Cayman data in IIP = 699 total; 18 equity; 680 debt.
    - (19) Other causes (random adjustment to Class D Insurer data) = -2,449 total; 0 equity; -2,449 debt.
    - (20) Corrected IIP data = 15,393 total; 529 equity; 14,865 debt.
  - *Does not include Cayman-to-Cayman position.

### CDIS participation and compilation progress
- CDIS data are not currently compiled, but efforts to initiate participation are ongoing.
- CIMA intends to launch the CDIS survey for the financial sector using the CDIS reporting template.
- Draft CDIS report form and guidance were expected to be sent to the Cabinet for approval by end-2023; postponed to 2025 due to staff turnover.
- For investment funds, only portfolio investment assets are available through CPIS; no data on liabilities or direct investment positions.
- Mission reiterated recommendation to include in CDIS reporting template questions on investment funds’ liabilities in other financial instruments.
- ESO initiated compilation of CDIS data for the nonfinancial sector within BOP/IIP collection through the BOPS; BOPS collects ownership percentage of shareholders’ equity by country and debt assets/liabilities with affiliates by instrument but not broken down by country.
- For CDIS, ESO should adjust BOPS to collect country breakdown of debt liabilities between affiliates.

### IMF survey on resident SPEs and SPE template
- ESO initiated work filling the SPEs data template for the IMF survey on resident SPEs, compiling BOP and IIP covering banks and insurance companies without physical presence (they meet SPEs definition per Special Purpose Entities: Guidelines for a Data Template).
- ESO assumed entities with physical presence have more than five employees; consequently only entities without physical presence were treated as SPEs.
- ESO compiled pilot consolidated BOP and IIP including entities with and without physical presence, but dissemination of consolidated data not approved by the Cabinet; SPEs template therefore includes BOP/IIP data only for onshore entities and, for each indicator, data on SPEs.
- Mission found the compiled SPEs data template adequate but noted limitations: partial application of BPM6 residence concept to SPEs without physical presence and inclusion of BOP/IIP covering only onshore entities.
- Recommendation: Fine tune SPEs data template for submission to STA for dissemination; CIMA’s approval needed for dissemination of financial SPEs data. Include disclosure on methodological inconsistencies and coverage limitations when submitting to STA.

### Recommendations (CPIS, IIP, CDIS, SPEs, BOPS)
- ESO and CIMA: Continue investigation of possible causes of discrepancies between CPIS data and data in banks’ balance sheets.
- ESO: Apply short-term adjustments for portfolio investment assets in IIP as recommended to reduce inconsistencies with CPIS.
- CIMA: Submit for approval to the Cabinet the CDIS report form and the CDIS Guidance.
- CIMA: Subject to the Cabinet’s approval, launch CDIS reporting for banking, insurance, and investment funds.
- ESO: Adjust the BOPS form for collecting data on debt liabilities between affiliates by country.
- ESO: Submit to STA the SPEs report for 2020-2022 with further regular submission.

### BOPS survey population, quarterly compilation, timeliness, and other recommended actions
- BOPS survey population revised and reduced: until 2023 about 800 nonfinancial entities with physical presence were covered; revised to 476 nonfinancial entities for 2023 after excluding reporters with no cross-border transactions for three years and small companies with limited cross-border impact.
- Additional entities identified during mission will be excluded in next round.
- ESO should initiate compilation of BOP and IIP on a quarterly basis by preparing a reduced list of reporters for a quarterly survey including companies from each branch with significant contributions to ESS.
- Quarterly survey pilot to be launched at the beginning of 2025 to collect quarterly data for four quarters.
- CIMA’s engagement crucial: CIMA confirmed QPR for banks is available quarterly and committed to exploring increasing frequency of data for insurance companies (e.g., quarterly or semiannually).
- Dissemination timing: BOP and IIP dissemination does not meet international standard (six to nine months after year-end) because release requires Cabinet notification; ESO publishes statistics only in December.
- Recommendations for quarterly and timeliness improvements:
  - ESO: Prepare the list of targeted entities for quarterly reporting that would include the biggest companies from each branch of activity.
  - ESO: Launch pilot quarterly BOPS for biggest entities within each branch.
  - ESO: Start compiling quarterly BOP and IIP on a pilot basis for the onshore non-financial sector.
  - ESO: Submit to STA the BOP and IIP on a regular basis.
  - CIMA: Submit to the ESO quarterly QPR for banks starting with data for Q1 2025.
  - CIMA: Explore increasing the frequency of data for insurance companies to quarterly (or, as interim, semiannually).

*IMF | CARTAC Cayman Islands (excerpts) from tarea2025024-print-pdf*

### APPENDIX II. BREAKDOWN OF DATA ON PAYMENTS BY CREDIT AND DEBIT CARDS

### APPENDIX II. BREAKDOWN OF DATA ON PAYMENTS BY CREDIT AND DEBIT CARDS

### Type of Transaction by Credit/Debit Cards Use in BOP Compilation
- Foreign issued cards used at a domestic automated teller machine (ATM)
  - Classification: Travel services, export
- Foreign issued cards used at a domestic point of sale
  - Classification: Travel services, export
- Foreign issued cards used at a domestic e-commerce merchant
  - Instruction: Transactions should be grouped by purpose of payment (e.g., payment for goods, payment for audio/video service, payment for tickets (air, train, etc.), payment for hotel/accommodation, payment for gambling, etc.). The registration in BOP will be according to the purpose of the payment.
- Domestically issued cards used at an ATM abroad
  - Classification: Travel services, import
- Domestically issued cards used at a point of sale abroad
  - Classification: Travel services, import
- Domestically issued cards used at an e-commerce merchant abroad
  - Instruction: Transactions should be grouped by purpose of payment (e.g., payment for goods, payment for audio/video service, payment for tickets (air, train, etc.), payment for hotel/accommodation, payment for gambling, etc.). The registration in BOP will be according to the purpose of the payment.

### APPENDIX III. SAMPLE REPORT FORM ON FINANCIAL DERIVATIVES

### Part A. Options (Report in thousands of USD)
- Reporting dimensions / columns (as presented):
  - Receipts
  - Payments
  - Decrease in asset positions with delivery of underlying item
  - Decrease in liability positions with delivery of underlying item
  - Increase (+)Decrease (-)
  - Premiums
  - Cash Settlements (No Delivery of Underlying Item)
  - Transactions
  - Changes in Value of Option Contracts During the Reporting Period (Other than Changes from Transactions)
  - Outstanding Positions (Market Value) at End-Quarter
  - Value of Derivative Contract When Underlying Item is Delivered (i.e., Difference Between Strike Price and Market Price/Value)
- Option categories to report (Bought options (total) / Written options (total)):
  - Foreign exchange
  - Single currency interest rate
  - Equity
  - Commodity
  - Credit *  (Note: * Includes credit default swaps)
  - Other

### Part B. Futures and Forwards (Report in thousands of USD)
- Reporting dimensions / columns (as presented):
  - Receipts
  - Payments
  - Decrease in asset positions with delivery of underlying item
  - Decrease in liability positions with delivery of underlying item
  - Increase (+)Decrease (-)
  - Outstanding Positions (Market Value) at End-Quarter
  - Cash Settlements (No Delivery of Underlying Item)
  - Value of Derivative Contract When Underlying Item is Delivered (i.e., Difference Between Strike Price and Market Price/Value)
  - Transactions
  - Changes in Value of Futures and Forwards Contracts During the Reporting Period ** (Other than Changes from Transactions)
- Risk Category:
  - Assets positions (total)
    - Foreign exchange
    - Single currency interest rate
    - Equity
    - Commodity
    - Credit
    - Other
  - Liability positions (total)
    - Foreign exchange
    - Single currency interest rate
    - Equity
    - Commodity
    - Credit *  (Note: * Includes credit default swaps)
    - Other
- Reporting instruction: ** If asset/liability positions switch, both a decrease in assets/liabilities and an increase in liabilities/assets should be recorded.

### Part C. Swaps (Report in thousands of USD)
- Reporting dimensions / columns (as presented):
  - Receipts
  - Payments
  - Decrease in asset positions with delivery of underlying item
  - Decrease in liability positions with delivery of underlying item
  - Increase (+)Decrease (-)
  - Transactions
  - Risk Category
  - Changes in Value of Swap Contracts During the Reporting Period ** (Other than Changes from Transactions)
  - Outstanding Positions (Market Value) at End-Quarter
  - Cash Settlements (No Delivery of Underlying Item)
  - Value of Derivative Contract When Underlying Item is Delivered (i.e., Difference Between Strike Price and Market Price/Value)
- Risk Category (same breakdown as Part B):
  - Assets positions (total) and Liability positions (total) with subcategories:
    - Foreign exchange
    - Single currency interest rate
    - Equity
    - Commodity
    - Credit
    - Other
- Reporting instruction: ** If asset/liability positions switch, both a decrease in assets/liabilities and an increase in liabilities/assets should be recorded.

### Part D. Financial Derivatives Positions with Nonresidents: Notional Value of Foreign-Currency and Foreign Currency-Linked Contracts * (Report in thousands of USD)
- Instrument outstanding position at End-Quarter (columns A and B)
  - To receive foreign currency:
    - Forwards: USD, EUR, GBP, JPY, RMB, AUD, CAD, Other
    - Options: USD, EUR, GBP, JPY, RMB, AUD, CAD, Other
  - To pay foreign currency:
    - Forwards: USD, EUR, GBP, JPY, RMB, AUD, CAD, Other
    - Options: USD, EUR, GBP, JPY, RMB, AUD, CAD, Other
- Note: * The composition of currency should be adjusted to reflect the economic characteristics of the Cayman Islands.

*IMF | CARTAC The Cayman Islands | 26–30*

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_Source: https://www.imf.org/-/media/files/publications/tar/2025/english/tarea2025024-print-pdf.pdf_