The Cayman Islands is a [[British Overseas Territory (BOT)]] and major global financial center located in the Caribbean. Its economy is primarily based on offshore financial services and tourism, operating as a tax-neutral jurisdiction with sophisticated financial regulations. Key economic sectors include banking, investment fund administration, insurance, company registration, structured finance, and high-end tourism. The territory uses the Cayman Islands Dollar (pegged to USD) and is known for hosting many investment funds and financial entities. Despite its small size, it's one of the world's largest banking centers and hedge fund domiciles, though faces ongoing pressure regarding financial transparency and regulatory compliance. The territory benefits from a highly developed legal system based on English common law and a well-established financial services infrastructure.