Money Services Business
This page covers:
Definition of Money Services Business
Under the Money Services Law (2010 Revision) the term money services business is defined as
- the business of providing (as a principal business) any or all of the following services:-
- money transmission;
- cheque cashing;
- currency exchange;
- the issuance or, sale or redemption of money orders or travellers checks;
- such other services as the Governor in Council may specify by notice published in the Gazette; or
- the business of operating as an agent or franchise holder of a business mentioned under (1).
Regulation of Money Services Business
The Money Services Law (2010 Revision) provides for the licensing of all money services businesses and for the regulation of such businesses by the Monetary Authority. The on-going supervision of money services businesses falls under the remit of the Banking Supervision Division.
Those institutions that provide the above mentioned services in the Cayman Islands are required:
- to be licensed in accordance with the licensing requirements;
- to meet the minimum net worth requirements establish in law;
- to have two directors;
- to obtain the Authority's written approval prior to the appointment of all directors and officers (N.B.: if the Authority is of the opinion that the director or officer is not a fit and proper person, it may reserve the right to refuse to grant approval of the appointment);
- to be in compliance with the Money Laundering Regulations;
- to submit quarterly returns as specified by CIMA; and
- to provide CIMA with annual audited financial statements.
A primary objective of the Authority is to maintain a first class financial system and a supervisory system that reflects international supervisory standards. It does so through integrated off-site and on-site functions, the actual processes of which are reviewed continuously in light of experience and changes in the global financial industry.
Inspections are conducted pursuant to the Money Services Law (2010 Revision) for the purposes of assessing the policies and procedures in place for the institution with regards to Money Laundering in order to determine its compliance with the relevant legislation. The objective of the inspection is to assess the business' operational controls and compliance with internal policies, legislation and regulatory requirements relating to customer due diligence and money laundering.