Cayman Islands Monetary Authority Updates Reporting Requirements for Money Services Businesses

November 17th | 2020

The Cayman Islands Monetary Authority (CIMA) recently updated its reporting requirements for money services businesses, including the threshold for reporting pursuant to its 2020 Anti-money laundering regulations. In particular, the definition of “threshold transaction” means a transaction:

involving a transfer of funds within, into or out of the Islands, where the total amount of money transferred exceeds three thousand five hundred [$3,500] United States dollar--

  • (a) in a single transaction; or

  • (b) in the aggregate where there is more than one transfer of funds within, into or out of the Islands by the same sender or receiver, within a period of one month[.]

In this context, “transfer of funds” tracks its statutory definition, which means any “transaction carried out on behalf of a payer through a payment service provider by electronic means, with a view to making funds available to a payee at a payment service provider, irrespective of whether the payer and the payee are the same person.”

CIMA’s reporting regime also requires money services businesses to file quarterly reports, in the format specified by CIMA, no later than the last business day of the month following the end of each reporting quarter.

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