Pooling of Monetary Resources (2017-10-17)

Summary

This is a public notice issued by the Cayman Islands Monetary Authority (CIMA) reminding the public that pooling monies together for the purpose of remittance amounts to carrying on "money services business" under the Money Services Law (2010 Revision). Anyone engaging in this activity must first obtain a licence under that Law.

• Legal basis: The notice quotes sections 4(1) and 4(2) of the Money Services Law (2010 Revision), which make it a criminal offence to carry on money services business without a licence.
• Penalties: On summary conviction, the offence is punishable by a fine of up to ten thousand dollars and imprisonment for up to one year, with an additional daily fine of one thousand dollars for continuing offences.

The notice is informational and warning in nature, directing anyone with questions to contact CIMA's Banking Supervision Division for clarification. It does not introduce new rules but restates existing licensing requirements and penalties as a compliance reminder.

Key obligations

• Any person or business pooling monies for the purpose of remittance must obtain a licence under the Money Services Law (2010 Revision) before carrying on such money services business.

Applies to

money services businesses, persons carrying on money services business (including pooling of monies for remittance)