What is a Money Services Business?

According to the Money Services Act (2010 Revision), a money services business is defined as:

1. A business primarily engaged in providing one or more of the following services:
   • Money transfers
   • Cheque cashing
   • Currency exchange
   • Issuing, selling, or redeeming money orders or travellers cheques
   • Any other service specified by the Governor in Council through a notice in the Gazette
2. Operating as an agent or franchise holder for a business providing any of the services mentioned above.

Oversight of Money Services Businesses

The Money Services Act (2010 Revision) mandates that all money services businesses must be licensed and are subject to regulation by the Monetary Authority. The ongoing supervision of these businesses is managed by the Banking Supervision Division.

Compliance Requirements

Institutions offering the aforementioned services in the Cayman Islands must:

1. Obtain a license in accordance with the licensing requirements.
2. Meet the minimum net worth requirements as established by the Act.
3. Have a minimum of two directors.
4. Receive written approval from the Authority before appointing any directors or officers (Note: The Authority may refuse approval if the individual is not deemed fit and proper).
5. Comply with the Money Laundering Regulations.
6. Submit quarterly returns as required by Cmrai.
7. Provide Cmrai with annual audited financial statements.