Currency Exchange (2017-10-17)

Summary

This is a short public notice issued by the Cayman Islands Monetary Authority (CIMA) on 17 October 2017 reminding the public that currency exchange activity qualifies as "money services business" under Section 2 of the Money Services Law (2010 Revision) and therefore requires a licence. The notice appears against a backdrop of challenges in the money services industry and CIMA's ongoing monitoring of that sector.

• Offence: Carrying on currency exchange business without a licence is a criminal offence under Sections 4(1) and 4(2) of the Money Services Law.
• Penalty: Punishable on summary conviction by a fine of up to CI$10,000, imprisonment for up to one year, and, for continuing offences, an additional fine of CI$1,000 per day the offence continues.
• Scope: The notice does not introduce new rules or amend existing law; it restates existing licensing requirements and penalties to raise public awareness.

Anyone conducting or planning to conduct currency exchange services in or from the Cayman Islands should ensure they hold a valid money services business licence from CIMA, or contact CIMA's Banking Supervision Division for clarification.

Key obligations

• Persons carrying on currency exchange business must first obtain a money services business licence under Section 5 of the Money Services Law (2010 Revision) before commencing such business.

Applies to

money services businesses, currency exchange providers