Money Services Businesses Regulations (2020 Revision)

Summary

This is the consolidated 2020 Revision of the Money Services Businesses Regulations, made under the Cayman Islands Money Services Law. It sets out the practical requirements for obtaining and holding a money services business licence: what information an applicant must submit, the prescribed form of licence, the applicable fees, and ongoing reporting duties licensees owe to the Cayman Islands Monetary Authority (CIMA) regarding their sub-agents.

The regulations apply to persons and companies applying for, or already holding, a money services business licence, as well as their sub-agents.

• First Schedule: Lists extensive due-diligence and disclosure items an applicant must provide: ownership and control details, financial references, business plans, director/officer character references, auditor details, transaction account information, and, where relevant, confirmation that a foreign regulator is aware of the application.
• Second Schedule: Provides the standard licence form, which includes a condition that the licensee must notify CIMA of any change in the information supplied in its application.
• Third Schedule: Sets out fees: a $1,000 application fee, a $10,000 annual fee, and a $1,000 annual fee for each subsidiary, branch, agency or representative office.

Beyond licensing, the regulations impose ongoing obligations on licensees relating to sub-agents.

• Licensees must report specified details about each sub-agent to CIMA, covering identity, compliance assessment, banking relationships, and risk assessment.
• Licensees must supply further information before entering into a sub-agent arrangement.
• Licensees must cooperate with any independent assessment of a sub-agent that CIMA may require, at the licensee's expense.

The document is a revision consolidating earlier amendments (2001, 2009, 2019) and does not itself introduce new substantive changes beyond what is already in force.

Key obligations

• An applicant for a money services business licence must submit all the information and supporting documents specified in the First Schedule (ownership/control details, financial references, business plan, director/officer information, auditor details, transaction account and arrangement details, etc.).
• A licensee must forthwith notify CIMA of any change in the information supplied in its licence application (condition stated on the licence form).
• A licensee must pay the prescribed fees: a $1,000 application fee, a $10,000 annual fee, and a $1,000 annual fee for each subsidiary, branch, agency or representative office.
• A licensee must provide CIMA with a report on each sub-agent covering the sub-agent's name and address, the licensee's assessment of the sub-agent's compliance with applicable laws, institutions holding the sub-agent's transaction accounts, a risk assessment report, and any further information CIMA requires to assess the sub-agent's risks.
• Before entering into a contract or arrangement with a sub-agent, a licensee must provide CIMA with specified information about the sub-agent, including account type, settlement/reporting systems, record-keeping systems, internal controls, training plan, compliance procedures, and (if the sub-agent is a company) ownership/control and First Schedule paragraph 8 information.
• An applicant who also proposes to engage a sub-agent must, in addition to the First Schedule information, provide the sub-agent information required under regulation 8(1) at the application stage.
• A licensee must, if required by CIMA, arrange and pay for an independent assessment of a sub-agent, in accordance with terms of reference agreed or determined by CIMA.

Applies to

money services businesses, licensees under the Money Services Law, applicants for a money services business licence, sub-agents of licensees

Related documents

• Money Services Businesses Regulations (2026 Revision) replaces this document
• Money Services Businesses (Amendment) Regulations, 2024 (SL 70 of 2024) amends this document