CIMA Notice - Foreign Currency Exchange (2020-11-11)

Summary

This is a public notice issued by the Cayman Islands Monetary Authority (CIMA) warning that some businesses and individuals are exchanging foreign currency in the Cayman Islands without holding the required money services business (MSB) licence. CIMA reminds the public that currency exchange falls within the statutory definition of 'money services business' under section 2 of the Money Services Law (2020 Revision).

• Money services business includes: currency exchange, money transmission, cheque cashing, and issuance, sale or redemption of money orders or traveller's cheques.

The notice restates that under section 4(1) of the Money Services Law, carrying on money services business without first obtaining a licence under section 5 is a criminal offence. It does not create new rules but serves as a compliance reminder and enforcement warning directed at unlicensed currency exchange operators, and invites queries to be sent to CIMA's banking division.

The notice applies to any person or business engaged in currency exchange (and other MSB activities) in or from the Cayman Islands, signalling that such activity requires an MSB licence and that unlicensed operation risks prosecution.

Key obligations

• Any person or business carrying on foreign currency exchange (or other money services business activities) in or from the Cayman Islands must first obtain a money services business licence from CIMA under section 5 of the Money Services Law before conducting such activity.

Applies to

money services businesses, currency exchange businesses, unlicensed persons/businesses conducting currency exchange