This is the flag of the Cayman Islands, prior to 1999 (It seems this version is still in use). The base pattern is from HK Blue Ensign and the arms are from the blue ensign. The FOTW was used for the position of the arms.

The three stars mean Grand Cayman(76miles), Cayman Brac(14miles), and Little Cayman(10miles).
No machine-readable source provided. Own work assumed (based on copyright claims).
No machine-readable author provided. Hoshie assumed (based on copyright claims).