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The Cayman Islands Data Protection Act, 2017 (DPA) came into full effect on September 30, 2019 establishing a comprehensive framework for the lawful processing of personal data. This legislation ensures that individuals have greater control over their personal information, while requiring organisations to handle data responsibly, fairly, and securely. The Act applies to all entities operating in the Cayman Islands, including public authorities, private businesses, and foreign companies that process personal data within the jurisdiction.
The Data Protection Act, 2017 is built upon eight fundamental data protection principles, which govern how personal data should be collected, stored, processed, and shared. These principles require organisations to process personal data fairly and lawfully, ensuring transparency and accountability. Data must be collected for a specific and legitimate purpose, be limited to what is necessary, and kept accurate and up to date. The Act also mandates that personal data should be stored securely to prevent unauthorised access, misuse, or loss, and should only be retained for as long as necessary before being securely deleted or anonymised. Furthermore, any transfer of personal data outside the Cayman Islands must be subject to appropriate safeguards to ensure continued protection.
To empower individuals, the Act grants several key rights over their personal data. Individuals have the right to access their personal data, as well as the right to correct any inaccuracies. Under certain circumstances, they may also exercise the right to restrict processing, object to how their data is used, or request the deletion of their personal data (commonly referred to as the "right to be forgotten"). Additionally, individuals have the right to data portability, enabling them to transfer their personal data from one organisation to another in a structured format.
For organisations, the DPA imposes strict obligations to ensure compliance with data protection standards. Businesses must ensure that they have a lawful basis for processing personal data, whether through explicit consent, contractual necessity, or legal obligation. Where required, organisations must appoint a Data Protection Officer (DPO) to oversee compliance and manage data protection risks. Furthermore, the Act requires robust security measures to be implemented to prevent data breaches. In the event of a serious breach that poses a significant risk to individuals' rights and freedoms, organisations must report the breach to the Office of the Ombudsman and notify affected individuals without undue delay.
To enforce compliance, the Office of the Ombudsman has the authority to investigate complaints, conduct audits, and issue enforcement notices. Where serious breaches of the law occur, the Ombudsman can impose fines of up to CI$250,000 (approximately US$300,000) on non-compliant organisations.
