Money Transmission Services Handbook

Class 8 - Money Transmission Services Handbook - Link to Register of licenceholders

Contents

1. Introduction

The Money Transmission Services handbook is produced to provide licenceholders (those who are licensed by the Isle of Man Financial Services Authority (“the Authority”) to conduct Money Transmission Services in or from the Isle of Man), potential licenceholders and other interested parties with easy access to the legislation and guidance relating to Money Transmission Services.

The handbook is only produced in an on-line format. However, copies of all statutory documents (original, un-amended, legislation) may be obtained from the Tynwald Library, by quoting the SD number shown at the top of each document.

In case of any query, please contact the Bankingand Money Transmission Services team at the Authority, on +44 (0)1624 689320.

2. Legislation

2.1 The Primary legislation governing Money Transmission Services in or from the Isle of Man is the Financial Services Act 2008

The Secondary legislation is made under powers contained in the Financial Services Act 2008. It can be found on a central table here. Where these regulations and regulatory codes have been amended after they were made, the “as amended” version is shown.

3. Guidance applicable to Money Transmission Services

Guidance and forms which relate to Money Transmission Services:

• Application form for a Financial Services Licence
• Licenceholder contact sheet
• MSB Notification form (de minimis turnover exemption)
• Annual Statistical Return - class 8(1) 8(2)(b) and 8(3)
• Forms and Returns page
• Proforma subordinated loan agreement (N.B. This proforma agreement has been prepared specifically for use by applicants for and holders of a financial services licence under the Financial Services Act 2008. If you are not an applicant or licenceholder, you should not copy, circulate or in any other way use or rely on the wording contained in the agreement. Applicants and licenceholders may copy the proforma but must not rely on the wording of the proforma and should take their own legal advice as to the appropriateness of the wording and the document in their own circumstances.)

3.1 Class 8(4) - issue of electronic money (e-money)

The Licensing Policy (at paragraph 2.7.5) requires that an e-money issuer is locally incorporated.

Part 3 of the Rule Book requires e-money issuers to segregate customers’ money (“the e-money float”) from the licenceholder’s own funds.

Part 6 of the Rule Book requires that:

• Any funds received by a licenceholder from a client must be exchanged for e-money without delay;

• A licenceholder must, if requested to do so, redeem any e-money it has issued if the request is from a person who lawfully holds the e-money; and

• Licenceholders must not issue e-money through agents.

4. Guidance applicable to all licensable sectors/activities

Guidance on matters generic to all the Authority's licensable activities/ categories of business can be found here.