In a statement released prior to the 21 May implementation date of the new act, the Cayman Islands government announced that: 'All Caymanians now possess dual citizenship.' However it added that: 'the provisions of British citizenship are only activated when the individual chooses to be recognised as a British citizen, either by applying for a passport with that status or through other means.'

Under the provisions of the act, only Overseas Territory residents who decide to acquire British Citizen passports will be permitted to live and work in European Union member states without immigration restrictions, and those who choose to travel on the passports of their home country have been warned that, despite the new dual citizenship provisions, they are likely to encounter difficulties proving their status as a British citizen for the purposes of working and living in the EU.

The status of UK nationals living in Overseas Territories is unlikely to change, however, due to strict immigration requirements and limited space and resources in the majority of such regions. Speaking at the end of last week, Cayman's Chief Immigration Officer, Orrett Connor detailed the likely procedure within his jurisdiction:

'I anticipate that in order to distinguish between British citizens with Caymanian status or permanent residence and those without such right of abode, local immigration authorities will place an endorsement in the British citizen passport denoting the holder's immigration status in the Cayman Islands. British citizenship, with its rights of travel, work, and abode will not be reciprocated and therefore this endorsement is necessary,' he explained.