Pooling of Monies for Remittance (2017-10-17)

Summary

This is a short public notice issued by the Cayman Islands Monetary Authority (CIMA) reminding the public that the practice of pooling monies for the purpose of remittance qualifies as "money services business" under the Money Services Law (2010 Revision). CIMA clarifies that anyone engaging in this activity must first obtain a licence under section 5 of that Law.

The notice does not introduce new rules but restates existing licensing requirements and the criminal penalties for non-compliance.

• Licensing requirement: Anyone pooling monies for remittance must obtain a licence under section 5 of the Money Services Law (2010 Revision) before engaging in this activity.
• Offence: Conducting money services business (including pooling monies for remittance) without a licence is an offence.
• Fine: The offence carries a fine of up to ten thousand dollars.
• Imprisonment: The offence also carries imprisonment for up to one year.
• Continuing offence: An additional daily fine of one thousand dollars applies for continuing offences.

The notice applies to any person or business pooling monies for remittance purposes in or from the Cayman Islands, and directs enquiries to CIMA's Banking Supervision Division.

Key obligations

• Any person or entity pooling monies for remittance must first obtain a licence under section 5 of the Money Services Law (2010 Revision) before carrying on this activity.

Applies to

money services businesses, persons pooling monies for remittance