Licence needed for SVC’s

The Cayman Islands Monetary Authority is advising the public that companies or individuals wishing to issue and/or sell multiple purpose stored value cards must be licensed and regulated by CIMA.

CIMA has been approached by members of the public, including some existing money services licensees, regarding the introduction of SVC’s in the Cayman Islands. SVC’s provide a service whereby funds can be “uploaded” onto a SVC for the purpose of point-of-sale transactions and/or ATM withdrawals by the holder of the SVC. These cards have been gaining prominence in the international financial community. CIMA has determined that these cards are a means by which money transmission, as defined by the Money Services Law (2003 Revision), occurs. Therefore, companies offering this product are subject to licensing and regulation by CIMA.

This decision is also in accordance with the Monetary Authority Law (2003 Revision), which obligates CIMA to regulate and supervise financial business carried on in or from the Cayman Islands, and which requires the Authority to promote and enhance market confidence, consumer protection and the reputation of the islands as a financial centre.

Note that the licensing requirement does not relate to phone cards or other single use cards issued by merchants. Merchants should contact CIMA If in doubt as to whether licensing is required as well as for specific guidance on applying to be licensed.

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