As of April 2024, stricter record-keeping and professional translation requirements have come into full effect for company management licensees under the Companies Management Act, Banks and Trust Companies Act, Mutual Funds Act, and Insurance Act. These rules initially applied to newly established licensees in August 2023, now encompass existing licensees as well, creating a uniform compliance framework across the Cayman Islands’ financial services sector.
The Cayman Islands Monetary Authority (CIMA) has outlined minimum expectations in its guidance, emphasizing that records must be legible, easily accessible, and systematically categorized. These records must comply with the jurisdiction’s Data Protection Act, ensuring security and privacy throughout their lifecycle. Key highlights include:
- Retention and Accessibility: Original records must be retained for at least five years after a transaction or longer if fiduciary relationships are involved.
- Translation Requirement: Records must be kept in English or professionally translated into English without delay when requested by CIMA. Notably, translations must be performed by qualified individuals or entities, ensuring accuracy and reliability.
- Electronic Records: Electronic systems must offer high-quality, reproducible records while safeguarding against data loss.
The mandate for professional translation highlights the importance of accuracy in ensuring that essential documents are readily understandable by regulatory authorities. Lingua Franca Ltd., an established provider of professional translation services in the Cayman Islands, is well-positioned to assist company management licensees in meeting these requirements.
The Role of Professional Translation in Compliance
Under the new rules, licensees must ensure that any non-English documents are translated by qualified professionals. This requirement ensures regulatory compliance and avoids delays during CIMA’s reviews. Lingua Franca Ltd., a trusted translation service provider since 2020, specializes in delivering accurate and sworn translations, as required under The Companies (Translation Certificate) Regulations, 2011, tailored to the financial and corporate sectors.
By leveraging Lingua Franca’s expertise, licensees can:
- Ensure Regulatory Compliance: Professionally translated documents meet CIMA’s standards, avoiding potential fines or delays.
- Retain Original Records: Lingua Franca’s certified translators guarantee that the integrity of the original documents is maintained while providing high-quality translations.
- Support Multilingual Records Management: As global business becomes increasingly diverse, Lingua Franca offers solutions to manage multilingual documentation efficiently.
Adapting to the New Era of Record-Keeping
The enhanced record-keeping rules emphasize the importance of robust systems and procedures, including the professional translation of records. By partnering with experienced service providers like Lingua Franca, company management licensees can streamline compliance while maintaining the security and integrity of their documentation.
Whether you’re an existing licensee adapting to these changes or a newly established entity navigating the regulatory landscape, professional services like those offered by Lingua Franca can help ensure that your records meet the stringent requirements of the Cayman Islands Monetary Authority.
For more information or to discuss how Lingua Franca can assist with your professional translation needs, contact us today.
The Rule and SOG can be found on CIMA’s website (guidance, PDF)
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