The Caymans are not a “tax haven” and are a part of the US treaty network. The Cayman Islands are a low tax jurisdiction with a sophisticated and fully transparent banking and financial services industry with many international treaties and agreements. In 1990, Cayman authorities entered into a Mutual Legal Assistance with the U.S. to enable information to be provided to the Department of Justice on all crimes and money laundering. In 2001, Cayman signed a bilateral tax information exchange agreement with the U.S. that provides for exchange of information relating to U.S. federal income tax. Moreover, the Cayman Islands have comprehensive bilateral agreements with all 27 EU jurisdictions that provide complete transparency and prevent tax evasion. Offshore accounts are used by U.S. corporations to compete internationally. With offshore tax jurisdictions, US multinationals can enter global markets competitively against foreign companies whose domestic jurisdictions do not burden them with corporate tax rates as high as those in the United States. In the global financial marketplace, the Caymans provide a tax-neutral jurisdiction with a secure legal system that is used by global financial institutions to access international capital markets. In 2007, at the peak of the market, $2 to $3 trillion flowed into the U.S. through Cayman Island funds, providing a tremendous lift to the U.S. financial system. While it is prudent policy to crack down on international tax fraud and money laundering, it is important to keep in mind that 1. Money laundering and tax fraud are not taking place in the Caymans. 2. Offshore tax centers are an integral aspect of the global economy and essential to US corporations’ global competitiveness.