The Cayman Islands are a British Overseas Territory, meaning they are under the sovereignty and jurisdiction of the United Kingdom but are not part of the UK itself. In 2026, the islands are self-governing in most internal affairs, with their own Parliament, Premier, and cabinet. The British monarch, King Charles III, serves as the Head of State and is represented on the islands by an appointed Governor (currently Jane Owen). The UK remains responsible for the islands' external affairs, defense, and internal security. This unique status began in 1962 when Jamaica gained independence and the Cayman Islands chose to remain a direct dependency of the British Crown rather than becoming part of Jamaica. This relationship provides the islands with a stable legal and political framework that has helped them become one of the world's leading offshore financial centers. While they function as a modern, autonomous nation in daily life, the final "ownership" or sovereign authority rests with the British government in London.