The Royal Cayman Islands Police Service has identified the dead man as 43-year-old Stephen David Kinch. They haven't disclosed his hometown.
Police said Monday that his body was recovered from the ocean floor at a depth of 14 metres off Seven Mile Beach on Grand Cayman Island.
They say the death is a suspected drowning, but an autopsy will be conducted.
Police say Kinch was on a 5.7-metre boat off the beach before he disappeared.
A male friend who alerted police told investigators that Kinch jumped into the water but never surfaced.