Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the CIMA licence, including banking and payment rails.
Get a payment license in the Cayman Islands.
The Cayman Islands run one licence for payment business: the money services business licence under the Money Services Act (2024 Revision), covering money transmission, cheque cashing, currency exchange and the issuance, sale or redemption of money orders or traveller's cheques. Section 6(1) fixes net worth at not less than $30,000 - the KYD 100,000 figure that circulates in advisory summaries is not in the statute. Neither the Act nor the Money Services Businesses Regulations (2026 Revision) contains a client-money segregation, trust, insurance or guarantee rule. The Cayman Islands Monetary Authority publishes no statutory clock but expects four to six weeks from a complete application. Five licensees hold the permission and three of them are active.
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The Cayman Islands in brief
One licence, a $30,000 floor, and a statute that says nothing about client money.
The Money Services Act (2024 Revision) is short and does one job. Section 2 defines money services business as money transmission, cheque cashing, currency exchange, and the issuance, sale or redemption of money orders or traveller's cheques - a single undifferentiated licence over all of it, with no Class A and Class B split and no e-money or payment institution regime underneath. Section 6(1) sets the entry price: the Cayman Islands Monetary Authority shall not grant a licence to a person whose net worth is less than thirty thousand dollars or its equivalent in other currencies. That figure travels badly. The KYD 100,000 number repeated across advisory summaries is not in the Act; section 6(2) makes the $30,000 net worth a standing condition of every licence and section 6(3) lets the authority require an increase in paid-up capital where it thinks the business needs one. Section 5(5) requires a place of business the authority approves as the principal office in the Islands, and section 17(1) a minimum of two directors, each appointment approved under section 17(2).
Two things a founder should hear early. The Act and the Money Services Businesses Regulations (2026 Revision) contain no client-money rule at all - no segregation, no trust, no insurance, no guarantee; Schedule 1 asks only which depository institution holds the applicant's transaction accounts. And section 30A(1) charges every licensee a transaction fee into the revenues of the Islands of 2% of the gross amount transferred overseas, up to a maximum of ten dollars for each transaction, which is a real line item in a remittance model. Fees are CI$2,500 to apply and CI$20,000 a year, with CI$1,000 for each subsidiary, branch, agency or representative office, due by 15 January. The Act sets no decision period; the authority's own FAQ says approximately four to six weeks from a complete application. Five money services businesses hold licences and three of them are active. Virtual asset service providers moved from registration to licensing on 1 April 2025 for custody and trading-platform services.
The Money Services Act (2024 Revision) gives one licence over money transmission, cheque cashing, currency exchange and money orders under section 2. Section 6(1) sets net worth at not less than $30,000, and section 6(2) keeps it a condition of the licence. The KYD 100,000 figure in circulation is not in the Act.
No segregation, trust, insurance or guarantee rule for customer money exists in the Act or the Regulations. Section 30A charges 2% on overseas transfers, capped at $10 a transaction. CI$2,500 to apply, CI$20,000 a year. Five licensees, three active. Four to six weeks from a complete file.
The routes
Money services business - or the virtual asset licence beside it.
There is one payment licence in the Cayman Islands and one adjacent regime for virtual assets, which moved from registration to licensing in April 2025. We fix the route first, then build once.
One money services licence - plus the VASP route since April 2025.
01 - MONEY SERVICES BUSINESS
Money services business licence
One licence under section 5 of the Money Services Act (2024 Revision) covering money transmission, cheque cashing, currency exchange and money orders or traveller's cheques, granted on net worth of not less than $30,000 and an approved principal office in the Islands.
One licence under section 5 of the Money Services Act (2024 Revision) covering money transmission, cheque cashing, currency exchange and money orders or traveller's cheques, granted on net worth of not less than $30,000 and an approved principal office in the Islands.
- ✓Money transmission, cheque cashing, currency exchange
- ✓Money orders and traveller's cheques (s. 2)
- ✓Net worth not less than $30,000 (s. 6(1))
- ✓Approved principal office in the Islands (s. 5(5))
- ✓Two directors, appointments approved (s. 17)
- ✓CI$2,500 to apply · CI$20,000 a year · CI$1,000 a branch
02 - VIRTUAL ASSETS
VASP - licensing since April 2025Virtual asset service provider
The parallel regime under the Virtual Asset (Service Providers) Act (2024 Revision) - registration since 2020, and a licence for virtual asset custody and trading platform services from 1 April 2025, with ninety days for existing registered persons to apply.
VASP: registration from 2020, licensing for custody and trading platforms from 1 April 2025; KYD 1,000 to register, KYD 5,000 to apply.
- ✓Registration for the wider VASP activities
- ✓Licensing for custody and trading platforms from 1 April 2025
- ✓Registration application KYD 1,000 · licence application KYD 5,000
- ✓Custody licence KYD 30,000 · trading platform KYD 100,000
- ✓Local-company rates at one tenth of the standard fee
- ✓Annual renewals tiered by prior-year revenue
Costs and timelines are confirmed for your case before any work begins. Government fees for financial services rose on 1 January 2026; the current fee schedule, the transaction fee under section 30A and Cayman substance are itemised in your quote.
Why the Cayman Islands
The cheapest entry in the region, and a supervisor with five files.
Cayman asks for $30,000 of net worth and answers in four to six weeks. What it does not do is protect customer money by statute, which is the trade you are making.
✓
Thirty thousand dollars, in the Act
Section 6(1) prints the number, and section 6(2) makes it a continuing condition. Advisory summaries quoting KYD 100,000 are repeating a figure the statute does not contain.The lowest floor in the region.
✓
One licence over four activities
Money transmission, cheque cashing, currency exchange and money orders or traveller's cheques all sit inside section 2. Adding an activity does not mean adding a licence.Four activities under section 2.
✓
Four to six weeks
The authority's own FAQ gives that range from a complete application. There is no statutory clock behind it, so the completeness of the first filing is what decides the date.The authority's own expectation.
✓
No direct taxes at all
No income tax, no company or corporation tax, no inheritance tax, no capital gains or gift tax, no property taxes. Government revenue comes from stamp duty and customs duty.None at all, on anything.
✓
Five licensees, three active
The authority publishes the count itself. A supervisor with that caseload reads the file rather than triages it, which cuts both ways at question time.Three of them currently active.
✓
A virtual asset track alongside
Custody and trading platform services became licensable on 1 April 2025 under the Virtual Asset (Service Providers) Act, with fee tiers that fall to a tenth for local companies.Licensing since 1 April 2025.
How it compares
How the Cayman Islands differ from the other Caribbean routes.
Cayman is the cheapest and fastest of the four on paper, and the thinnest on customer protection. The honest comparison is below.
Cayman Islands vs other jurisdictions
| Feature |  Cayman Islands | Other jurisdictions |
|---|---|---|
| Capital | Net worth $30,000 (s. 6(1)) | B$100,000 in The Bahamas |
| Client money | No rule in the Act or Regulations | Custodian account in The Bahamas · segregated in the BVI |
| Decision period | Four to six weeks, no statutory clock | 45 days in The Bahamas |
| Annual fee | CI$20,000 · CI$1,000 a branch | $10,000 in The Bahamas · $6,460 in Bermuda |
Capital
Cayman IslandsNet worth $30,000 (s. 6(1))
Other jurisdictionsB$100,000 in The Bahamas
Client money
Cayman IslandsNo rule in the Act or Regulations
Other jurisdictionsCustodian account in The Bahamas · segregated in the BVI
Decision period
Cayman IslandsFour to six weeks, no statutory clock
Other jurisdictions45 days in The Bahamas
Annual fee
Cayman IslandsCI$20,000 · CI$1,000 a branch
Other jurisdictions$10,000 in The Bahamas · $6,460 in Bermuda
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Cayman Islands | Money services business (CIMA) | No direct taxes | Net worth $30,000 · 4-6 weeks |
 British Virgin Islands | Financing and money services (FSC) | No CIT · payroll 10-14% | Seven classes · s. 19C segregation |
 Bermuda | Money service business (BMA) | 15% above EUR 750M | No client money held (s. 11(3)) |
 The Bahamas | Payment institution (central bank) | No CIT · VAT 10% | B$100,000 · 45-day decision |
Cayman IslandsLicense typeMoney services business (CIMA)
TaxationNo direct taxes
RequirementsNet worth $30,000 · 4-6 weeks
British Virgin IslandsLicense typeFinancing and money services (FSC)
TaxationNo CIT · payroll 10-14%
RequirementsSeven classes · s. 19C segregation
BermudaLicense typeMoney service business (BMA)
Taxation15% above EUR 750M
RequirementsNo client money held (s. 11(3))
The BahamasLicense typePayment institution (central bank)
TaxationNo CIT · VAT 10%
RequirementsB$100,000 · 45-day decision
Before you apply
Requirements for the CIMA licence.Requirements for the licence.
The Act sets the net worth, the office and the board; regulation 3 and Schedule 1 set the paperwork. The checklist below is what a passing file contains.
01
A company with a place of business the authority approves as the principal office in the Islands for that money services business, under section 5(5).
02
Net worth of not less than $30,000, maintained as a condition of the licence under section 6(2), with the authority free to require an increase in paid-up capital under section 6(3).
03
At least two directors at all times under section 17(1), each appointment approved by the authority under section 17(2).
04
Evidence of professional qualifications for at least two active directors, with character references and police certificates for owners and officers.
05
Incorporation evidence, owners and controllers, and financial statements for every shareholder above 10%, as Schedule 1 to the Regulations requires.
06
An appointed auditor and at least three business references, one of them from a bank.
07
A detailed business plan with financial projections, the management structure and the internal control systems.
08
The depository institution holding the applicant's transaction accounts named in the application - the Act asks for the name and nothing more, so any client-money protection you offer is a commercial choice you document yourself.
09
Sub-agent arrangements disclosed before they are made under regulation 8, with the ongoing compliance and risk reporting regulation 6 requires.
10
Budget for the section 30A transaction fee of 2% of gross amounts transferred overseas, capped at ten dollars a transaction, and for the CI$20,000 annual fee due by 15 January.
01
Approved principal office in the Islands (s. 5(5)).
02
Net worth not less than $30,000 (s. 6(1)).
03
Two directors, appointments approved (s. 17).
04
Qualifications for two active directors.
05
Owners, controllers, shareholders above 10%.
06
Auditor and three business references.
07
Business plan, projections, internal controls.
08
Transaction accounts and depository named.
09
Sub-agents disclosed under regulation 8.
10
Budget the 2% transfer fee and CI$20,000.
Reflects the Money Services Act (2024 Revision), the Money Services Businesses Regulations (2026 Revision), the CIMA fee schedule updated 1 January 2026 and the Virtual Asset (Service Providers) Act (2024 Revision), as of 2026.Money Services Act (2024 Revision); Money Services Businesses Regulations (2026 Revision); CIMA fee schedule of 1 January 2026.
How it works
From first call to the CIMA licence.
01
Route and strategy
Money services business, virtual asset registration or a VASP licence; the activity list under section 2 - route and budget fixed in writing.MSB or VASP - in writing.
02
Company and net worth
Cayman company formed, two directors identified for approval, net worth of not less than $30,000 evidenced.Formed, directors named, $30,000 shown.
03
The application file
Schedule 1 assembled: owners, controllers, shareholders above 10%, references, police certificates, auditor, business plan and internal controls.Schedule 1 pack complete.
04
CIMA review
The authority's expectation is four to six weeks from a complete application; question rounds answered - plan on four to seven months end to end.4-6 weeks from complete; 4-7 months real.
05
Licence and launch
Licence granted, annual fee calendar set for 15 January, sub-agent reporting started and the section 30A transaction fee built into pricing.Fees by 15 January; sub-agents reported.
Quick facts
RegulatorCayman Islands Monetary Authority
LawMoney Services Act (2024 Revision)
LicenceMoney services business · VASP
Net worthNot less than $30,000
Decision4-6 weeks from a complete file
FeesCI$2,500 apply · CI$20,000 a year
Transfer fee2% overseas · $10 cap per transaction
TaxNo direct taxes
There is no statutory decision period, so the four-to-six-week expectation only applies once the application is complete. An appeal against a CIMA decision runs on a twenty-one-day notice under section 27(3).
Your Cayman desk
Run from our Caribbean desk.
Prifinance - Caribbean desk
London · coordinating Cayman mandates
7 Bell Yard, London
01
Cayman company formation
The company, the two approved directors and the net worth of not less than $30,000 evidenced before the file goes in.Company, two directors, $30,000 net worth.
02
The CIMA file
Schedule 1 in full - owners and controllers, shareholders above 10% with financial statements, police certificates, references, business plan and internal controls.Schedule 1 answered in order.
03
Principal office and banking
The approved principal office in the Islands, the transaction accounts named in the application, and the sub-agent disclosures under regulation 8.Principal office; accounts named.
04
Client money by contract
The Act imposes no segregation duty, so where your model needs one we build it into the account structure and the customer terms.No statutory duty - we draft one.
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Good to know
Taxation of payment companies in the Cayman Islands.
No direct taxes of any kind, indirect revenue from stamp duty and customs duty, and an economic substance regime with real penalties behind its reporting deadline.
No direct taxes
The government's own page is explicit: no income tax, no company or corporation tax, no inheritance tax, no capital gains or gift tax. There are no property taxes or rates either.Income, corporate, gains, gift: none.
Stamp duty 7.5%
Charged in most areas on the value of real estate at sale. A 1% fee is payable on mortgages of less than CI$300,000. Government revenue is indirect, and customs duty carries the rest.On real estate at sale.
No VAT, no withholding
There is no value added tax and no dividend withholding tax. Outbound distributions leave the Islands without a Cayman charge on them.And no dividend withholding.
Economic substance
Nine relevant activities under the International Tax Co-operation (Economic Substance) Act (2026 Revision), including fund management and financing and leasing business. Investment fund business is excluded.Nine relevant activities.
The substance test
Core income generating activities in the Islands, direction and management in the Islands, and adequate operating expenditure, physical presence and full-time employees - section 4(2) and 4(3).Direction, presence, expenditure, staff.
Reporting and penalties
Reports fall due within twelve months after the last day of each financial year. A first failure costs $10,000 and a subsequent year after notice $100,000; late reporting runs $5,000 plus $500 for each day.$10,000 then $100,000.
Tax summary
Corporate income taxNone
Income and capital gains taxNone
VATNone
Stamp duty7.5% on most real estate
Overseas transfer fee2% · $10 cap per transaction (s. 30A)
Economic substanceReport within 12 months · $10,000 to $100,000
*Figures as of 2026 per the Cayman Islands Government and CIMA. Treaty and regime positions are assessed per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Cayman company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed money services business.
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Cayman Islands · CIMA
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The Cayman money services licence, answered.
What licence does a payment business need in the Cayman Islands?+
A money services business licence from the Cayman Islands Monetary Authority under section 5 of the Money Services Act (2024 Revision). Section 2 puts money transmission, cheque cashing, currency exchange and the issuance, sale or redemption of money orders or traveller's cheques inside one licence. There is no e-money or payment institution regime.
How much capital is required?+
Section 6(1) says the authority shall not grant a licence to a person whose net worth is less than thirty thousand dollars or its equivalent. CIMA's own licensing page repeats it as CI$30,000. The KYD 100,000 figure circulating in advisory summaries is not in the Act, and we do not quote it.
Are client funds protected by law?+
No. Neither the Money Services Act (2024 Revision) nor the Money Services Businesses Regulations (2026 Revision) contains a segregation, trust, insurance or guarantee provision for customer money. Schedule 1 asks the applicant to name the depository institution holding its transaction accounts, and stops there. Any protection you offer is contractual and you design it.
What is the 2% overseas transfer fee?+
Section 30A(1) requires every licensee to pay into the revenues of the Islands a transaction fee of 2% of the gross amount transferred overseas, up to a maximum of ten dollars for each transaction. It is a per-transaction charge, so it changes the unit economics of a remittance product rather than the annual budget.
How long does CIMA take?+
The Act sets no statutory period. The authority's money services FAQ says that when a complete application has been submitted, the time-frame for processing is approximately four to six weeks. Allow four to seven months from first call, since assembling Schedule 1 is the slow part.
What does the licence cost?+
CI$2,500 to apply under section 5(4), CI$20,000 a year for the licence under section 5(9)(a), and CI$1,000 a year for each subsidiary, branch, agency or representative office under section 5(9)(b). Annual fees are due by 15 January. Government fees for financial services rose on 1 January 2026.
How many licensees are there?+
Five licensed money services businesses, of which three are currently active, on the authority's own count. That is a smaller population than most applicants expect, and it means the file is read closely.
What about virtual assets?+
The Virtual Asset (Service Providers) Act (2024 Revision) ran registration from 2020 and added licensing for virtual asset custody and trading platform services on 1 April 2025, with ninety days for existing registered persons to apply. Fees are KYD 1,000 to register and KYD 5,000 to apply for a licence, with tiered annual renewals.
How are money services businesses taxed?+
There are no direct taxes in the Cayman Islands - no income, corporate, capital gains, inheritance or gift tax, and no property taxes. Stamp duty is 7.5% in most areas on real estate at sale. Economic substance reporting falls due within twelve months of the financial year end.
Why the Cayman Islands rather than the BVI or The Bahamas?+
Cayman has the lowest capital floor at $30,000, one licence instead of seven classes, and a published four-to-six-week expectation. The BVI prints a segregation duty in section 19C and charges as little as $2,000 a year for some classes; The Bahamas prints a forty-five-day decision period and a custodian-account rule. If your product holds customer float, the other two say more about how to hold it.
Which licence?+
Money services business under section 5.
Capital?+
Net worth not less than $30,000.
Is KYD 100,000 right?+
No - that figure is not in the Act.
Client funds?+
No statutory segregation rule at all.
Transfer fee?+
2% overseas, $10 cap (s. 30A).
How long?+
4-6 weeks from a complete application.
Fees?+
CI$2,500 apply; CI$20,000 a year.
Licensees?+
Five, of which three are active.
Taxes?+
No direct taxes; stamp duty 7.5%.
vs BVI / Bahamas?+
Cheapest and fastest; thinnest on client money.
Client notes
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Cayman Islands Monetary Authority or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.