{"kind":"expression","expression":{"expr_id":"2184","doc_id":"2184","label":"Mutual Funds (Amendment) Law, 2019","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/bill\/2019\/13\/eng@2019-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/bill\/2019\/13\", \"expression\": \"\/akn\/ky\/bill\/2019\/13\/eng@2019-01-01\", \"manifestation\": \"\/akn\/ky\/bill\/2019\/13\/eng@2019-01-01.pdf\"}, \"pdf\": {\"md5\": \"b6882db9a69ff72613ed00d0d6098e87\", \"path\": \"\/Users\/q\/kyleg-data\/working\/BILLS\/2019\/2019-0013\/2019-0013.pdf\", \"pages\": 13, \"filename\": \"2019-0013.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 2809, \"paragraph_count\": 12, \"text_char_count\": 17818}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": null, \"doc\": null, \"bill\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"MONEY SERVICES (AMENDMENT) BILL, A BILL FOR A LAW TO AMEND THE MONEY SERVICES LAW (2010 REVISION) TO STRENGTHEN THE REGULATION AND SUPERVISION OF THE MONEY SERVICES BUSINESS SECTOR BY THE CAYMAN ISLANDS MONETARY AUTHORITY; TO REQUIRE THAT A LICENSEE MAINTAINS AN ACCOUNT IN SUPPORT OF TRANSACTIONS CARRIED OUT BY A LICENSEE; AND FOR INCIDENTAL AND CONNECTED PURPOSES. Introduced PUBLISHING DETAILS Sponsoring Ministry\/Portfolio: Ministry of Financial Services and Home Affairs (FSHA) Money Services (Amendment) Bill, 2019 Objects and Reasons Introduced Memorandum of OBJECTS AND REASONS The Money Services (Amendment) Bill seeks to amend the Money Services Law (2010 Revision) (the \u201cprincipal Law\u201d) to strengthen the regulation and supervision of the money services business sector by the Cayman Island Monetary Authority (\u201cthe Authority\u201d). Clause 1 provides for the short title. Clause 2 seeks to provide for amendments to definitions in the principal Law. Clause 3 seeks to amend section 3 of the principal Law to exclude from the application of the Law a person who the Authority determines is not providing a service within the meaning of \u201cmoney services business\u201d. Clause 4 seeks to amend section 5 of the principal Law to empower the Authority to grant a licence subject to conditions that the Authority may impose at the time of licensing, or any time thereafter, based on the nature, risk and scale of the business. Clause 5 seeks to amend the principal Law by inserting a new section 5A. The new section makes it a requirement that every licensee maintains at least one account approved by the Authority or enters into an arrangement approved by the Authority by which means the money services business transactions are carried out. Clause 6 seeks to amend the principal Law by inserting a new section 6A. The new section provides for the limitation on the issuing or transferring of shares totaling more than ten per cent of the authorized share capital of a licensee (where the licensee is a company) without the approval of the Authority. Clause 7 seeks to amend the principal Law by inserting a new section 8A. The new section provides for the licensee\u2019s compliance with the Anti-Money Regulations (2018 Revision) and any rules, statements of principle or guidance prescribed by the Authority. The new section also provides that a licensee shall monitor the compliance of sub-agents (if any) with those rules, statements of principle or guidance. Clause 8 seeks to repeal and replace section 11 of the principal Law. The new section 11 provides that the Authority may require the licensee to obtain an auditor\u2019s report on the anti-money laundering systems and procedures in place for compliance with the AntiMoney Laundering Regulations (2018 Revision). Clause 9 seeks to insert a new section 14A that provides for the obligations placed on auditors by the legislation. An auditor in the course of carrying out an audit of the accounts of a licensee who is informed or suspects that the licensee is, among other Objects and Reasons Money Services (Amendment) Bill, 2019 Introduced things, carrying on business in contravention of the principal Law, is required to immediately notify the authority of the information or suspicion. Clause 10 seeks to repeal section 31 of the principal Law. Clause 11 seeks to provide for the compliance of licensees and sub-agents with the provisions relating to anti-money laundering procedures under the new section 8A. Licensees and their sub-agents are not required to comply with those provisions until three months after the commencement of this Law. Money Services (Amendment) Bill, 2019 Arrangement of Clauses Introduced MONEY SERVICES (AMENDMENT) BILL, 2019 Arrangement of Clauses Clause 1. 2. 3. 4. 5.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Insertion of section 6A - shares not to be issued or transferred without approval of 7. 8. 9. 10.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Money Services (Amendment) Bill, 2019 Clause 1 Introduced MONEY SERVICES (AMENDMENT) BILL, 2019 A BILL FOR A LAW TO AMEND THE MONEY SERVICES LAW (2010 REVISION) TO STRENGTHEN THE REGULATION AND SUPERVISION OF THE MONEY SERVICES BUSINESS SECTOR BY THE CAYMAN ISLANDS MONETARY AUTHORITY; TO REQUIRE THAT A LICENSEE MAINTAINS AN ACCOUNT IN SUPPORT OF TRANSACTIONS CARRIED OUT BY A LICENSEE; AND FOR INCIDENTAL AND CONNECTED PURPOSES. ENACTED by the Legislature of the Cayman Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title 1. This Law may be cited as the Money Services (Amendment) Law, 2019.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Amendment of section 2 of the Money Services Law (2010 Revision) - definitions 2. The Money Services Law (2010 Revision), in this Law referred to as the \u201cprincipal Law\u201d, is amended in section 2 as follows \u2014 (a) by deleting the definition of \u201cmoney services business\u201d and substituting the following definition  \u2014 \u201cmoney services business\u201d means the business of providing, in or from within the Islands, any of the following services  \u2014 (a) money transmission; (b) cheque cashing; Clause 3 Money Services (Amendment) Bill, 2019 Introduced (c) currency exchange; (d) the issuance, sale or redemption of money orders or traveller\u2019s cheques; and (e) such other services as the Cabinet may specify by notice published in the Gazette;\u201d; (b) in the definition of \u201cnet worth\u201d, by deleting the words \u201cby the Authority.\u201d and substituting the words \u201cby the Authority; and\u201d; (c) by inserting after the definition of \u201cnet worth\u201d the following definition  \u2014 \u201c \u201csub-agent\u201d means a person who provides any of the services specified in paragraphs (a) to (e) in the definition of \u201cmoney services business\u201d on behalf of a licensee pursuant to  \u2014 (a) a contract between the sub-agent and the licensee; or (b) an arrangement between the sub-agent and the licensee;\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Amendment of section 3 - extent of the Law 3. The principal Law is amended in section 3 by repealing subsection (1) and substituting the following subsection \u2014 \u201c(1) This Law does not apply to \u2014 (a) a person who the Authority determines is not providing a service under paragraph (a) of the definition of \u201cmoney services business\u201d; or (b) any of the following persons  \u2014 (i) a person licensed under the Banks and Trust Companies Law (2018 Revision) to carry on money services business in conjunction with other business; (ii) a building society licensed under the Building Societies Law (2014 Revision); or (iii) a cooperative society registered under the Cooperative Societies Law (2001 Revision) and carrying on money services business, unless the licensed person, building society or cooperative society is operating as an agent or franchise holder of a money services business.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Amendment of section 5 - application for, and grant of, licence 4. The principal Law is amended in section 5 as follows \u2014 (a) in subsection (1), by deleting the words \u201cmay make application\u201d and substituting the words \u201cshall make an application\u201d; Money Services (Amendment) Bill, 2019 Clause 5 Introduced (b) in subsection (3), by deleting the words \u201c, if any, as the Authority may consider necessary or desirable\u201d and substituting the words \u201cat the time of licensing or any time thereafter as the Authority may consider appropriate having regard to the nature, risk and scale of the business\u201d; and (c) in subsection (9), by deleting the words \u201cand there shall be payable\u201d and substituting the words \u201cand, except where the Authority waives the surcharge, there shall be payable\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Insertion of section 5A - requirement for account or arrangement approved by Authority 5. The principal Law is amended by inserting after section 5 the following section \u2014 5A. \u201cRequirement for account or arrangement approved by Authority 5A. Every licensee shall \u2014 (a) maintain at least one account as approved by the Authority; or (b) enter into an arrangement as agreed by the Authority,C. through which its money services business transactions are to be conducted.\u201d. 6. Insertion of section 6A - shares not to be issued or transferred without approval of Authority 6. The principal Law is amended by inserting after section 6 the following section \u2014 \u201cShares not to be issued or transferred without approval of Authority 6A. (1) Shares totaling more than ten per cent of the authorized share capital of a company that is a licensee under this Law shall not be issued, and issued shares totaling more than ten per cent of the issued share capital or total voting rights of a company that is a licensee under this Law shall not be transferred or disposed of in any manner, without the prior written approval of the Authority. (2) The licensee shall provide the information under subsection (1) to the Authority within such period of time as the Authority may require, in order that the Authority may assess whether a person acquiring control or ownership of such shares or voting rights in the licensee is a fit and proper person to have such control or ownership. (3) The Authority may exempt a licensee whose shares, or that of its parent body (if any), are publicly traded on a stock exchange recognized by the Authority from the requirements under subsection (1) and any such exemption shall be subject to  \u2014 Clause 7 Money Services (Amendment) Bill, 2019 Introduced (a) a condition that the licensee shall, as soon as reasonably practicable, notify the Authority in writing of  \u2014 (i) any change in control of the licensee; (ii) the acquisition by any person or group of persons of shares representing more than ten per cent of the licensee\u2019s issued share capital or total voting rights; or (iii) the acquisition by any person or group of persons of shares representing more than ten per cent of the issued share capital or total voting rights of the licensee\u2019s parent company; (b) a condition that the licensee shall, as soon as reasonably practicable, provide such information to the Authority, within such period of time as the Authority may require, for the purpose of assessing whether persons acquiring control or ownership of the licensee in the circumstances set out in paragraph (a) are fit and proper persons to have such control or ownership; and (c) such terms and conditions as the Authority may consider necessary. (4) In subsection (1), the reference to shares being transferred or disposed of includes the transfer or disposal of  \u2014 (a) the legal interest in the shares; and (b) any beneficial interest in the shares. (5) For the avoidance of doubt, the references in this section to shares totaling more than ten per cent include cumulative acquisition of shares or voting rights which may be less than ten per cent but which amount to more than ten per cent of the authorized share capital of a company.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Insertion of section 8A - compliance with anti-money laundering procedures 7. The principal Law is amended by inserting after section 8 the following section \u2014 8A. \u201cCompliance with anti-money laundering procedures 8A. (1) A licensee and any sub-agent of the licensee shall, in respect of the money services business, take such steps as may be necessary to comply with the Anti-Money Laundering Regulations (2018 Revision) and such rules or statements of principle or guidance as may be prescribed by the Authority that are consistent with antimoney laundering procedures and the combatting of terrorist financing. Money Services (Amendment) Bill, 2019 Clause 8 Introduced (2) A licensee shall monitor the compliance of the licensee\u2019s sub-agent, if any, with the prescribed rules or statements of principle or guidance under subsection (1) and may be required by the Authority to provide a report on the compliance in such form and subject to such conditions as may be prescribed. (3) The report under subsection (2) shall be subject to such conditions as the Authority may consider necessary. (4) A licensee and the licensee\u2019s sub-agent, if any, shall comply with the Authority where the Authority requires specified information or documents in accordance with section 34(8) of the Monetary Authority Law (2018 Revision).\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Repeal and substitution of section 11 - auditor's certificate 8. The principal Law is amended by repealing section 11 and substituting the following section \u2014 \u201cAuditor\u2019s report 11. The Authority may at the expense of the licensee, require the licensee to obtain an auditor\u2019s report on the licensee\u2019s anti-money laundering systems and procedures for compliance with the Anti-Money Laundering Regulations (2018 Revision).\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Insertion of section 14A - obligations of auditors 9. The principal Law is amended by inserting after section 14 the following section  \u2014 \u201cObligations of auditors 14A. (1) Where an auditor, in the course of carrying out an audit of the accounts of a licensee, obtains information or suspects that the licensee is  \u2014 (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or is winding up its business voluntarily in a manner that is prejudicial to its investors or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business without compliance with  \u2014 Clause 9 Money Services (Amendment) Bill, 2019 Introduced (i) this Law or any regulations made hereunder; (ii) the Monetary Authority Law (2018 Revision); (iii) the Anti-Money Laundering Regulations (2018 Revision); or (iv) a condition of the licence, the auditor shall immediately give the Authority written notice of the information or suspicion and, in the case of suspicion, the reason for that suspicion. (2) Without prejudice to subsection (8), where it appears to the Authority that an auditor has failed to comply with subsection (1), the Authority may disqualify the auditor from being an auditor of a licensee and the Authority may remove any disqualification imposed under this subsection if it is satisfied that the auditor in question will comply with subsection (1) in the future. (3) A licensee shall not appoint as an auditor a person who is disqualified under subsection (2). (4) Where the Authority has granted approval of an auditor under this Law, the approval may be revoked by the Authority if it is of the opinion that the auditor is not sufficiently competent to carry out an audit of the accounts of a licensee or that the auditor is incapable of carrying out the audit objectively. (5) No person carrying out or charged with the carrying out of any duty, obligation or function under this section shall be liable to any other person for anything done or omitted to be done in respect of the discharge or purported discharge of that duty, obligation or function unless it is shown that the act or omission was in bad faith. (6) A reference in this section to an auditor carrying out an audit of the accounts of a licensee includes an auditor who was engaged to carry out such audit or who was in the course of carrying out such an audit but resigned before carrying out or completing the audit or whose contract to carry out or complete the audit was otherwise terminated. (7) Nothing in subsection (1) shall impose on an auditor carrying out an audit of the accounts of a licensee an obligation to do anything that the person would not otherwise be required to do in accordance with generally accepted auditing standards, other than the obligation to provide notice and reasons to the Authority. (8) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars.\u201d. Money Services (Amendment) Bill, 2019 Clause 10 Introduced\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Repeal of section 31 10. The principal Law is amended by repealing section 31. 11. Transitional 11. Notwithstanding any provision to the contrary in this Law, a licensee and any of the sub-agents through whom a licensee conducts money services business is not required to comply with the provisions under section 8A, as enacted by section 7 of this Law, until ninety days after the commencement of this Law. Passed by the Legislative Assembly the         day of                           , 2019. 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The new\nsection makes it a requirement that every licensee maintains at least one account\napproved by the Authority or enters into an arrangement approved by the Authority by\nwhich means the money services business transactions are carried out.\nClause 6 seeks to amend the principal Law by inserting a new section 6A. The new\nsection provides for the limitation on the issuing or transferring of shares totaling more\nthan ten per cent of the authorized share capital of a licensee (where the licensee is a\ncompany) without the approval of the Authority.\nClause 7 seeks to amend the principal Law by inserting a new section 8A. The new\nsection provides for the licensee\u2019s compliance with the Anti-Money Regulations (2018\nRevision) and any rules, statements of principle or guidance prescribed by the Authority.\nThe new section also provides that a licensee shall monitor the compliance of sub-agents\n(if any) with those rules, statements of principle or guidance.\nClause 8 seeks to repeal and replace section 11 of the principal Law. The new section 11\nprovides that the Authority may require the licensee to obtain an auditor\u2019s report on the\nanti-money laundering systems and procedures in place for compliance with the AntiMoney Laundering Regulations (2018 Revision).\nClause 9 seeks to insert a new section 14A that provides for the obligations placed on\nauditors by the legislation. An auditor in the course of carrying out an audit of the\naccounts of a licensee who is informed or suspects that the licensee is, among other\n\nObjects and Reasons\nMoney Services (Amendment) Bill, 2019\n\nPage 4\nIntroduced\nc\n\nthings, carrying on business in contravention of the principal Law, is required to\nimmediately notify the authority of the information or suspicion.\nClause 10 seeks to repeal section 31 of the principal Law.\nClause 11 seeks to provide for the compliance of licensees and sub-agents with the\nprovisions relating to anti-money laundering procedures under the new section 8A.\nLicensees and their sub-agents are not required to comply with those provisions until\nthree months after the commencement of this Law.\n\nMoney Services (Amendment) Bill, 2019\nArrangement of Clauses\n\nc\nIntroduced\nPage 5\n\nCAYMAN ISLANDS\n\nMONEY SERVICES (AMENDMENT) BILL, 2019\n\nArrangement of Clauses\nClause\nPage\n1.\nShort title ...................................................................................................................................7\n2.\nAmendment of section 2 of the Money Services Law (2010 Revision) - definitions .....................7\n3.\nAmendment of section 3 - extent of the Law ..............................................................................8\n4.\nAmendment of section 5 - application for, and grant of, licence ..................................................8\n5.\nInsertion of section 5A - requirement for account or arrangement approved by Authority ...........9\n6.\nInsertion of section 6A - shares not to be issued or transferred without approval of\nAuthority ....................................................................................................................................9\n7.\nInsertion of section 8A - compliance with anti-money laundering procedures ........................... 10\n8.\nRepeal and substitution of section 11 - auditor's certificate ...................................................... 11\n9.\nInsertion of section 14A - obligations of auditors ...................................................................... 11\n10.\nRepeal of section 31 ................................................................................................................ 13\n11.\nTransitional .............................................................................................................................. 13\n\nMoney Services (Amendment) Bill, 2019\nClause 1\n\nc\nIntroduced\nPage 7\n\nCAYMAN ISLANDS\n\nMONEY SERVICES (AMENDMENT) BILL, 2019\n\nA BILL FOR A LAW TO AMEND THE MONEY SERVICES LAW (2010 REVISION) TO\nSTRENGTHEN THE REGULATION AND SUPERVISION OF THE MONEY SERVICES\nBUSINESS SECTOR BY THE CAYMAN ISLANDS MONETARY AUTHORITY; TO\nREQUIRE THAT A LICENSEE MAINTAINS AN ACCOUNT IN SUPPORT OF\nTRANSACTIONS CARRIED OUT BY A LICENSEE; AND FOR INCIDENTAL AND\nCONNECTED PURPOSES.\nENACTED by the Legislature of the Cayman Islands.\n1.\nShort title\n1.\nThis Law may be cited as the Money Services (Amendment) Law, 2019.\n2.\nAmendment of section 2 of the Money Services Law (2010 Revision) -\ndefinitions\n2.\nThe Money Services Law (2010 Revision), in this Law referred to as the \u201cprincipal\nLaw\u201d, is amended in section 2 as follows \u2014\n(a) by deleting the definition of \u201cmoney services business\u201d and substituting\nthe following definition  \u2014\n\u201cmoney services business\u201d means the business of providing, in or\nfrom within the Islands, any of the following services  \u2014\n(a)\nmoney transmission;\n(b) cheque cashing;\n\nClause 3\nMoney Services (Amendment) Bill, 2019\n\nPage 8\nIntroduced\nc\n\n(c)\ncurrency exchange;\n(d) the issuance, sale or redemption of money orders or traveller\u2019s\ncheques; and\n(e)\nsuch other services as the Cabinet may specify by notice\npublished in the Gazette;\u201d;\n(b) in the definition of \u201cnet worth\u201d, by deleting the words \u201cby the\nAuthority.\u201d and substituting the words \u201cby the Authority; and\u201d;\n(c)\nby inserting after the definition of \u201cnet worth\u201d the following\ndefinition  \u2014\n\u201c \u201csub-agent\u201d means a person who provides any of the services specified\nin paragraphs (a) to (e) in the definition of \u201cmoney services business\u201d on\nbehalf of a licensee pursuant to  \u2014\n(a) a contract between the sub-agent and the licensee; or\n(b) an arrangement between the sub-agent and the licensee;\u201d.\n3.\nAmendment of section 3 - extent of the Law\n3.\nThe principal Law is amended in section 3 by repealing subsection (1) and\nsubstituting the following subsection \u2014\n\u201c(1) This Law does not apply to \u2014\n(a)\na person who the Authority determines is not providing a\nservice under paragraph (a) of the definition of \u201cmoney\nservices business\u201d; or\n(b) any of the following persons  \u2014\n(i)\na person licensed under the Banks and Trust Companies\nLaw (2018 Revision) to carry on money services business\nin conjunction with other business;\n(ii) a building society licensed under the Building Societies\nLaw (2014 Revision); or\n(iii) a cooperative society registered under the Cooperative\nSocieties Law (2001 Revision) and carrying on money\nservices business,\n\nunless the licensed person, building society or cooperative\nsociety is operating as an agent or franchise holder of a money\nservices business.\u201d.\n4.\nAmendment of section 5 - application for, and grant of, licence\n4.\nThe principal Law is amended in section 5 as follows \u2014\n(a)\nin subsection (1), by deleting the words \u201cmay make application\u201d and\nsubstituting the words \u201cshall make an application\u201d;\n\nMoney Services (Amendment) Bill, 2019\nClause 5\n\nc\nIntroduced\nPage 9\n\n(b) in subsection (3), by deleting the words \u201c, if any, as the Authority may\nconsider necessary or desirable\u201d and substituting the words \u201cat the time\nof licensing or any time thereafter as the Authority may consider\nappropriate having regard to the nature, risk and scale of the business\u201d;\nand\n(c)\nin subsection (9), by deleting the words \u201cand there shall be payable\u201d and\nsubstituting the words \u201cand, except where the Authority waives the\nsurcharge, there shall be payable\u201d.\n5.\nInsertion of section 5A - requirement for account or arrangement approved\nby Authority\n5.\nThe principal Law is amended by inserting after section 5 the following section \u2014\n5A.\n\u201cRequirement for account or arrangement approved by Authority\n5A. Every licensee shall \u2014\n(a)\nmaintain at least one account as approved by the Authority; or\n(b) enter into an arrangement as agreed by the Authority,C.\nthrough which its money services business transactions are to be\nconducted.\u201d.\n6.\nInsertion of section 6A - shares not to be issued or transferred without\napproval of Authority\n6.\nThe principal Law is amended by inserting after section 6 the following section \u2014\n\u201cShares not to be issued or transferred without approval of Authority\n6A. (1) Shares totaling more than ten per cent of the authorized share\ncapital of a company that is a licensee under this Law shall not be\nissued, and issued shares totaling more than ten per cent of the\nissued share capital or total voting rights of a company that is a\nlicensee under this Law shall not be transferred or disposed of in\nany manner, without the prior written approval of the Authority.\n(2) The licensee shall provide the information under subsection (1) to\nthe Authority within such period of time as the Authority may\nrequire, in order that the Authority may assess whether a person\nacquiring control or ownership of such shares or voting rights in the\nlicensee is a fit and proper person to have such control or\nownership.\n(3) The Authority may exempt a licensee whose shares, or that of its\nparent body (if any), are publicly traded on a stock exchange\nrecognized by the Authority from the requirements under\nsubsection (1) and any such exemption shall be subject to  \u2014\n\nClause 7\nMoney Services (Amendment) Bill, 2019\n\nPage 10\nIntroduced\nc\n\n(a)\na condition that the licensee shall, as soon as reasonably\npracticable, notify the Authority in writing of  \u2014\n(i)\nany change in control of the licensee;\n(ii) the acquisition by any person or group of persons of\nshares representing more than ten per cent of the\nlicensee\u2019s issued share capital or total voting rights; or\n(iii) the acquisition by any person or group of persons of\nshares representing more than ten per cent of the issued\nshare capital or total voting rights of the licensee\u2019s parent\ncompany;\n(b) a condition that the licensee shall, as soon as reasonably\npracticable, provide such information to the Authority, within\nsuch period of time as the Authority may require, for the\npurpose of assessing whether persons acquiring control or\nownership of the licensee in the circumstances set out in\nparagraph (a) are fit and proper persons to have such control\nor ownership; and\n(c)\nsuch terms and conditions as the Authority may consider\nnecessary.\n(4) In subsection (1), the reference to shares being transferred or\ndisposed of includes the transfer or disposal of  \u2014\n(a)\nthe legal interest in the shares; and\n(b) any beneficial interest in the shares.\n(5) For the avoidance of doubt, the references in this section to shares\ntotaling more than ten per cent include cumulative acquisition of\nshares or voting rights which may be less than ten per cent but\nwhich amount to more than ten per cent of the authorized share\ncapital of a company.\u201d.\n7.\nInsertion of section 8A - compliance with anti-money laundering\nprocedures\n7.\nThe principal Law is amended by inserting after section 8 the following section \u2014\n8A.\n\u201cCompliance with anti-money laundering procedures\n8A. (1)\nA licensee and any sub-agent of the licensee shall, in respect of the\nmoney services business, take such steps as may be necessary to\ncomply with the Anti-Money Laundering Regulations (2018\nRevision) and such rules or statements of principle or guidance as\nmay be prescribed by the Authority that are consistent with antimoney laundering procedures and the combatting of terrorist\nfinancing.\n\nMoney Services (Amendment) Bill, 2019\nClause 8\n\nc\nIntroduced\nPage 11\n\n(2) A licensee shall monitor the compliance of the licensee\u2019s sub-agent,\nif any, with the prescribed rules or statements of principle or\nguidance under subsection (1) and may be required by the Authority\nto provide a report on the compliance in such form and subject to\nsuch conditions as may be prescribed.\n(3) The report under subsection (2) shall be subject to such conditions\nas the Authority may consider necessary.\n(4) A licensee and the licensee\u2019s sub-agent, if any, shall comply with\nthe Authority where the Authority requires specified information or\ndocuments in accordance with section 34(8) of the Monetary\nAuthority Law (2018 Revision).\u201d.\n8.\nRepeal and substitution of section 11 - auditor's certificate\n8.\nThe principal Law is amended by repealing section 11 and substituting the\nfollowing section \u2014\n      \u201cAuditor\u2019s report\n11. The Authority may at the expense of the licensee, require the licensee to\nobtain an auditor\u2019s report on the licensee\u2019s anti-money laundering\nsystems and procedures for compliance with the Anti-Money Laundering\nRegulations (2018 Revision).\u201d.\n9.\nInsertion of section 14A - obligations of auditors\n9.\nThe principal Law is amended by inserting after section 14 the following section  \u2014\n       \u201cObligations of auditors\n14A. (1) Where an auditor, in the course of carrying out an audit of the\naccounts of a licensee, obtains information or suspects that the\nlicensee is  \u2014\n(a) unable or likely to become unable to meet its obligations as\nthey fall due;\n(b) carrying on or attempting to carry on business or is winding up\nits business voluntarily in a manner that is prejudicial to its\ninvestors or creditors;\n(c) carrying on or attempting to carry on business without keeping\nany or sufficient accounting records to allow its accounts to be\nproperly audited;\n(d) carrying on or attempting to carry on business in a fraudulent\nor criminal manner; or\n(e) carrying on or attempting to carry on business without\ncompliance with  \u2014\n\nClause 9\nMoney Services (Amendment) Bill, 2019\n\nPage 12\nIntroduced\nc\n\n(i)\nthis Law or any regulations made hereunder;\n(ii)\nthe Monetary Authority Law (2018 Revision);\n(iii)\nthe Anti-Money Laundering Regulations (2018\nRevision); or\n(iv)\na condition of the licence,\n\nthe auditor shall immediately give the Authority written notice of the\ninformation or suspicion and, in the case of suspicion, the reason for that\nsuspicion.\n(2) Without prejudice to subsection (8), where it appears to the Authority\nthat an auditor has failed to comply with subsection (1), the Authority\nmay disqualify the auditor from being an auditor of a licensee and the\nAuthority may remove any disqualification imposed under this\nsubsection if it is satisfied that the auditor in question will comply with\nsubsection (1) in the future.\n(3) A licensee shall not appoint as an auditor a person who is disqualified\nunder subsection (2).\n(4) Where the Authority has granted approval of an auditor under this Law,\nthe approval may be revoked by the Authority if it is of the opinion that\nthe auditor is not sufficiently competent to carry out an audit of the\naccounts of a licensee or that the auditor is incapable of carrying out the\naudit objectively.\n(5) No person carrying out or charged with the carrying out of any duty,\nobligation or function under this section shall be liable to any other\nperson for anything done or omitted to be done in respect of the\ndischarge or purported discharge of that duty, obligation or function\nunless it is shown that the act or omission was in bad faith.\n(6) A reference in this section to an auditor carrying out an audit of the\naccounts of a licensee includes an auditor who was engaged to carry out\nsuch audit or who was in the course of carrying out such an audit but\nresigned before carrying out or completing the audit or whose contract to\ncarry out or complete the audit was otherwise terminated.\n(7) Nothing in subsection (1) shall impose on an auditor carrying out an\naudit of the accounts of a licensee an obligation to do anything that the\nperson would not otherwise be required to do in accordance with\ngenerally accepted auditing standards, other than the obligation to\nprovide notice and reasons to the Authority.\n(8) A person who contravenes subsection (1) commits an offence and is\nliable on summary conviction to a fine of twenty thousand dollars.\u201d.\n\nMoney Services (Amendment) Bill, 2019\nClause 10\n\nc\nIntroduced\nPage 13\n\n10.\nRepeal of section 31\n10. The principal Law is amended by repealing section 31.\n11.\nTransitional\n11. Notwithstanding any provision to the contrary in this Law, a licensee and any of the\nsub-agents through whom a licensee conducts money services business is not\nrequired to comply with the provisions under section 8A, as enacted by section 7 of\nthis Law, until ninety days after the commencement of this Law.\n\nPassed by the Legislative Assembly the         day of                           , 2019.\n\nSpeaker\n\nClerk of the Legislative Assembly","akn_extracted_at":"2026-06-22 15:41:52.102506+00","cms_id":"2019-0013","law_type":"bill","year":"2019","number":"13","title":"Mutual Funds (Amendment) Law, 2019","status":"bill"},"provenance":{"files":[{"file_id":"6983","expr_id":"2184","kind":"akn_xml","filename":"2019-0013.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/BILLS\/2019\/2019-0013\/2019-0013.akn.xml","content_md5":"5b3f148ad7cc9e5dcbd915665d68b0a5","byte_size":"20187","http_last_modified":null,"fetched_at":"2026-06-22 15:41:52.199453+00"},{"file_id":"4367","expr_id":"2184","kind":"pristine_pdf","filename":"2019-0013.pdf","source_url":"\/cms\/images\/LEGISLATION\/BILLS\/2019\/2019-0013\/2019-0013.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/BILLS\/2019\/2019-0013\/2019-0013.pdf","content_md5":"b6882db9a69ff72613ed00d0d6098e87","byte_size":"603449","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.274945+00"},{"file_id":"4368","expr_id":"2184","kind":"working_pdf","filename":"2019-0013.pdf","source_url":"\/cms\/images\/LEGISLATION\/BILLS\/2019\/2019-0013\/2019-0013.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/BILLS\/2019\/2019-0013\/2019-0013.pdf","content_md5":"b6882db9a69ff72613ed00d0d6098e87","byte_size":"603449","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.274945+00"}],"paragraph_count":3,"latest_history":null},"quality":{"expr_id":"2184","doc_id":"2184","quality_state":"known_issue","quality_score":"55","needs_human_review":"t","deterministic_categories":"{commencement_metadata_problem,duplicate_text,page_header_footer_noise,title_mismatch}","llm_categories":"{}","repair_actions":"{collapse_duplicate_text,strip_page_furniture,verify_commencement_metadata,verify_title_metadata}","finding_severity_counts":"{\"low\": 2, \"high\": 1, \"medium\": 1}","finding_summary":"stored title is not visible in the opening extracted text; repeated line furniture detected: cayman islands x3; introduced x11; money services amendment bill 2019 x12","assessed_at":"2026-06-22 15:29:46.522033+00","updated_at":"2026-06-22 15:29:46.522033+00"}}