The Cayman Islands has established itself as a leading jurisdiction for alternative investment funds, boasting nearly 13,000 open-ended and over 17,000 closed-ended regulated funds. Its appeal stems from tax neutrality, U.S. proximity, and a robust legal framework evolving to market needs. Funds are regulated under the Mutual Funds Act for open-ended funds and the Private Funds Act for closed-ended ones. Various fund structures, such as exempted companies and limited partnerships, are utilized. Compliance requirements include anti-money laundering regulations, FATCA/CRS obligations, and maintaining beneficial ownership transparency. Breaches can lead to criminal, civil, or administrative penalties.