Class 8 - Money Transmission Services

Money Transmission Services

Money Transmission Service Providers

A licence to carry on the Class 8 regulated activity of Money Transmission Services permits a business operating in or from the Isle of Man (within certain criteria and with specified exclusions) to:

• operate a bureau de change;
• provide and execute payment services either directly or as an agent;
• provide cheque cashing services;

Full details of regulated activities, exclusions and exemptions from licensing may be found in the Money Transmission Services handbook. A licenceholder must comply with any licence conditions that have been imposed by the Commission and which are shown on the licence.

Class 8 (2) – payment services – Payment Service Providers – including excluded and exempt

This sub-class has been amended by the Regulated Activities Order 2011 (as amended). The regulated activity has been expanded from transmission of money to the provision and execution of payment services. Payment services are in essence electronic payments to third parties where these are not incidental to other (regulated or unregulated) business.

However, when considering whether an activity is licensable, exempt or excluded, reference should be made to the appropriate.

Further information can be found in the Commission's news release of 24 November.

Transitional Provision

Existing payment service providers must apply for a licence by the 31st March 2011 and they are exempted until the application and any appeal has been determined. Anyone wishing to commence payment services after 1 January 2011 must be in possession of a relevant financial services licence prior to commencing that activity.

The Money Transmission Services handbook also contains links to other legislation relating to licenceholders, including the Financial Services Rule Book which contains the detailed rules to be complied with by licenceholders. Guidance on rules and on other regulatory matters may also be found in the handbook.

The Commission’s General Licensing Policy provides guidance for licenceholders. A licenceholder and its key staff are required to be fit and proper persons. The Commission’s licensing policy is to apply a test of fitness and propriety in the key areas of integrity, competence and solvency.

Licenceholders should also note the requirements of anti money laundering legislation and handbook.