Section 2Part 1 — Preliminary
Definitions
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2. In this Law — “advisory functions” means the functions of the Authority specified in section 6(1)(d); “anti-money laundering regulations” means regulations made under section 145 or section 201 of the Proceeds of Crime Law (2020 Revision); “Authority” means the Cayman Islands Monetary Authority referred to in section 5; “bank” means a person carrying on a banking business and licensed as such in the Islands or elsewhere; “board” means the board of directors established under section 11; “breach” includes a contravention and, in relation to a prescribed provision, includes allowing or not allowing a prescribed state of affairs to exist and engaging or not engaging in prescribed conduct; Section 2 Monetary Authority Law (2020 Revision) Page 8 Revised as at 31st December, 2019 c “building society” means a society incorporated under the Building Societies Law (2020 Revision); “civil and administrative investigations and proceedings” mean proceedings in any court of law in the jurisdiction of an overseas regulatory authority and investigations undertaken by the overseas regulatory authority preliminary to bringing such proceedings; “Class “A” bank” means a bank which is the holder of a licence under section 6(5)(a) of the Banks and Trust Companies Law (2020 Revision); “co-operative functions” means the functions of the Authority specified in section 6(1)(c); “credit union” means a cooperative society registered under the Cooperative Societies Law (2020 Revision) and having as its objects —
the promotion of thrift among the members of the society by the accumulation of their savings;
the creation of sources of credit for the benefit of the members of the society at a fair and reasonable rate of interest;
the use and control of the members savings for their mutual benefit; and
the training and education of the members in the wise use of money and in the management of their financial affairs; “cross border supervision” means supervision in relation to an entity located in the Islands but which is regulated by an overseas regulatory authority in another territory or country; “currency notes” and “coins” mean, respectively, the currency notes and coins issued under this Law; “Currency Reserve” means the reserve established under section 32; “demand liabilities” means the total value of —
amounts standing to the credit of any accounts opened for any local banks or for the Government of the Islands; and
(i) currency notes in circulation; and circulation, other than such currency notes and coins as are no longer legal tender and in respect of which a transfer to the general revenue of the Islands has been made under section 29(3); “director” means a director of the Authority appointed under section 12; “external assets” means assets denominated in a currency other than the Cayman dollar and representing a claim on a non-resident of the Islands; Monetary Authority Law (2020 Revision) Section 2 c Revised as at 31st December, 2019 Page 9 “financial services business” means business regulated under any regulatory law; “financial year” means the financial year of the Authority as defined in section 39; “fine”, other than for a provision the breach of which is an offence, means an administrative fine under section 42A(1); “General Reserve” means the reserve established under section 8; “head office” means the head office of the Authority established under section 5(4); “licensee” means a person holding a licence under the regulatory laws, and includes a building society and a credit union; “local bank” means any bank or branch thereof authorised to transact business as such in the Islands; “Management Committee” means the committee established under section 16(1); “managing director” means the managing director of the Authority appointed under section 13; “monetary functions” means the functions of the Authority specified in section 6(1)(a); “money laundering” has the meaning given by section 144(10) of the Proceeds of Crime Law (2020 Revision); “money services business” means —
an amount not less than ten per cent of the nominal value of coins in
the business of providing (as a principal business) any or all of the following services —
money transmission; cheques; and
cheque cashing;
currency exchange;
the issuance, sale or redemption of money orders or travellers
such other services as the Cabinet may specify by notice published in the Gazette; or
the business of operating as an agent or franchise holder of a business mentioned in paragraph (a), and any question as to whether the provision of a service is the principal business of any person shall be determined by the Authority; “overseas regulatory authority” means an authority which, in a country or territory outside the Islands, exercises functions corresponding to —
any of the regulatory functions of the Authority; or Section 2A Monetary Authority Law (2020 Revision) Page 10 Revised as at 31st December, 2019 c
any additional functions as may be specified in regulations including the conduct of civil and administrative investigations and proceedings to enforce laws, regulations and rules administered by that authority; “prescribed provision” means a provision for which the Authority may impose an administrative fine under section 42A(1); “private sector association” means an association specified in Schedule 3; “public officer” has the meaning assigned to it by section 124(1) of the Cayman Islands Constitution Order 2009 [UKSI 2009/1379]; “regulatory functions” means the functions of the Authority, specified in section 6(1)(b) or, in relation to an overseas regulatory authority, functions corresponding to the functions of the Authority, specified in section 6(1)(b); “regulatory handbook” means the handbook issued by the board under section 48; “regulatory laws” means any one or more of the following Laws and Regulations made under them —
Banks and Trust Companies Law (2020 Revision);
Building Societies Law (2020 Revision);
Companies Management Law (2018 Revision);
Cooperative Societies Law (2020 Revision); (da) Development Bank Law (2018 Revision);
Insurance Law, 2010 [Law 32 of 2010];
Money Services Law (2020 Revision);
Mutual Funds Law (2020 Revision); (ga) Directors Registration and Licensing Law, 2014, [Law 10 of 2014]; and
Securities Investment Business Law (2020 Revision), and any other laws that may be prescribed by the Cabinet by regulations made under section 46; and “relevant financial business” has the meaning given by section 2 of the Proceeds of Crime Law (2020 Revision); and “rules” means rules issued and gazetted under section 34 or 42G. 2A. References to Law include regulations and rules 2A. In this Law, a reference to this Law or a provision of this Law, includes, if the context permits, a reference to regulations made and rules issued under this Law or the provision. Monetary Authority Law (2020 Revision) Section 3 c Revised as at 31st December, 2019 Page 11