Money Services Businesses (Amendment) Regulations, 2019

Money Services Law (2010 Revision) MONEY SERVICES BUSINESSES (AMENDMENT) REGULATIONS, 2019

PUBLISHING DETAILS

Regulation 1

Money Services Law (2010 Revision) MONEY SERVICES BUSINESSES (AMENDMENT) REGULATIONS, 2019 In exercise of the powers conferred by section 29 of the Money Services Law (2010 Revision) the Cabinet makes the following Regulations — Citation These Regulations may be cited as the Money Services Businesses (Amendment) Regulations, 2019. Insertion of regulations 6, 7 and 8 in the Money Services Businesses Regulations, 2001 - report on licensee's sub-agent, etc. The Money Services Businesses Regulations, 2001 are amended by inserting after regulation 5 the following regulations —

“Report on licensee’s sub-agent A licensee shall provide to the Authority a report on the licensee’s subagent containing the following details — (a) the name and address of the sub-agent; (b) the licensee’s assessment of the sub-agent’s compliance with applicable laws; the name of all institutions with which a transaction account is maintained by the sub-agent;

Regulation 2

(d) the report of a risk assessment of the sub-agent’s operations and arrangements; and (e) information as determined by the Authority that enables the Authority to assess the sub-agent’s inherent risks and control risks. Authority may require independent assessment (1) Notwithstanding regulation 6, the Authority may, at the expense of

a licensee, require the licensee to have an independent assessment of

a sub-agent carried out. (2) An independent assessment under paragraph (1) is subject to the terms of reference agreed to or determined by the Authority. Information from a sub-agent (1) A licensee shall provide to the Authority, where the licensee proposes to enter into a contract or other arrangement with a subagent, the following information regarding the sub-agent — (a) the name and address; (b) the type of account to be used by the sub-agent for money services business transactions; the settlement of remittances and reporting systems; (d) the record-keeping systems; (e) the cash security and other internal control systems; (f) the training plan; (g) the procedures in place to ensure compliance with applicable laws; and (h) where the proposed sub-agent is a company — (i) the ownership and control of the company; and (ii) the information set out in paragraph 8 of the First Schedule. (2) Where a person (“an applicant”) who is desirous of carrying on money services business applies to the Authority for a licence and the applicant also proposes to enter into a contract or other arrangement with another person as a sub-agent, the applicant shall, in addition to providing the information set out in the First Schedule, provide to the Authority the information under paragraph

Regulation 3

Amendment of First Schedule – information to be contained in, and to accompany, an application for the grant of a licence The Money Services Businesses Regulations, 2001 are amended in the First Schedule as follows — (a) by repealing paragraph 6 and substituting the following paragraph — “6. In respect of — (a) the approved transaction account, the name and address of the depository institution at which the transaction account is maintained; and (b) the approved arrangement for the purposes of the money services business, the following — (i) the name and address of the person with whom the licensee proposes to enter into an arrangement; (ii) the details of the arrangement; (iii) the name and address of any other persons involved with the arrangement; (iv) the jurisdiction within which a person under subsubparagraph (iii) operates and the jurisdiction in which the person’s operation is licensed or registered; (v) a statement in writing of whether any of the persons under subsubparagraphs (i) or (iii) are regulated in another jurisdiction; (vi) a statement in writing of whether the arrangement entered into requires approval in another jurisdiction for it to be a valid arrangement; and (vii) the licensee’s risk assessment report.”; and (b) in paragraph 8 as follows — (i) in subparagraph (a), by deleting the word “five” and substituting the word “ten”; and

Regulation 3

(ii) in subparagraph (l), by inserting after the words “its proposed activities” the words “and the name of any person that the applicant proposes to enter into a contract or other arrangement with as a subagent”.

Made in Cabinet the 17th day of December, 2019. Kim Bullings Clerk of the Cabinet