News & Insights

Ongoing Obligations of Funds in the Cayman Islands

Funds that are registered with the Cayman Islands Monetary Authority (“CIMA”), whether under the Private Funds Act (as Revised) or the Mutual Funds Act (as Revised) are subject to ongoing regulatory requirements.

Ongoing Regulatory Requirements for Cayman Islands Funds

Funds that are registered with the Cayman Islands Monetary Authority (“CIMA”), whether under the Private Funds Act (as Revised) or the Mutual Funds Act (as Revised) are subject to ongoing regulatory requirements as set out by CIMA and more particularly in our guidance note here.

CIMA will expect to see a fully compliant AML Manual (and supporting logs and ancillary documents) in place, as well as the following suite of policies:

  1. An Anti-Money Laundering Manual together with the following supporting items:
    • Training Log in respect of all senior staff and directors (specifically in respect of Cayman AML laws) and a training plan for annual training;
    • Competent Authority enquiries log;
    • Complaints log;
    • Declined business log;
    • SAR log;
    • PEP log; and
    • An Annual review of the AML Manual and related policies.
  2. Data Protection Policy (and privacy notice for investors);
  3. Operations and Governance Policy;
  4. Outsourcing Policy (and template outsourcing agreement);
  5. Cybersecurity Policy;
  6. Automatic Exchange of Information (AEOI) Policy;
  7. Succession Plan;
  8. Remuneration Policy;
  9. Risk Management Policy;
  10. Business Plan & Asset Protection Policy;
  11. Conflicts Log; and
  12. Board self-assessment.

It may be possible to rely on policies provided by your service providers, however each policy will need to be compliant with CIMA’s requirements, and will need to be formally adopted by the fund in question. Policies should also be reviewed regularly, and the AML Manual in particular should be reviewed on an annual basis.

Should you believe that for any reason your fund does not currently have any of the listed policies in place, then Stuarts would be happy to assist with drafting them and causing them to be adopted by the Fund.

Please contact your usual Stuarts attorney if you have any questions, or email Chris Humphries at chris.humphries@stuartslaw.com or Simon Orriss at simon.orriss@stuartslaw.com.

For more information on this topic see our full Guidance Note here

Contact our experts for further advice

View profile for Chris HumphriesChris Humphries
Managing Director and Head of Funds
, View profile for Simon OrrissSimon Orriss
Senior Associate

This publication is for general guidance and is not intended to be a substitute for specific legal advice. Specialist advice should be sought about specific circumstances.