Hurricane Irma – Business Continuity /Disaster Recovery (2017-10-17)

Summary

This is a general industry notice issued by the Cayman Islands Monetary Authority (CIMA) on 17 October 2017, shortly after Hurricane Irma caused significant infrastructure damage across the Caribbean region. CIMA notes that some of its licensees may have activated business continuity plans or been asked by parent or affiliate companies to host operations or staff in the Cayman Islands as a result of the storm's impact elsewhere.

The notice asks licensees who are providing, or planning to provide, this kind of assistance to other group companies to consult with the Authority about any resulting change in their business plan or operations, either before doing so or immediately upon receiving the notice if the change has already occurred.

• Details required: What business or operations are being relocated to the Cayman office
• How many foreign staff are being accommodated
• The expected duration of the temporary arrangement

CIMA indicates that a separate licence would not typically be required for such temporary arrangements, but this will be assessed case-by-case. Licensees are reminded that any such operations must still comply with all Cayman Islands laws and regulations, particularly the regulatory laws defined under the Monetary Authority Law (2016). The notice does not set out a formal ongoing compliance regime but is a time-limited request tied to the aftermath of Hurricane Irma.

Key obligations

• Licensees engaged in or planning to provide assistance (business/operations/staff hosting) to other group companies must consult with CIMA about any resulting change in business plan or operations, either prior to the change or immediately upon receipt of the notice if already underway.
• Licensees must provide CIMA with details of what business/operations are being relocated or housed at the Cayman licensee's offices, the number of foreign office staff being accommodated, and the expected duration of the temporary arrangement.
• Licensees must ensure that any such temporary operations comply with all Cayman Islands laws and regulations, particularly the regulatory laws as defined in the Monetary Authority Law (2016).

Applies to

Licensees

Deadlines

• immediately upon receipt of this notice: Licensees already engaged in providing assistance/relocating operations must consult CIMA and provide required details immediately upon receiving the notice.
• prior to any change in business plan/operations: Licensees planning to provide assistance to other group companies must consult CIMA before making the change.