Money Services Bill Passed
On Wednesday (2 December 2009), the Legislative Assembly passed the Money Services (Amendment) Bill, 2009. The bill becomes law once it is gazetted.
The effect of the amending legislation, coupled with associated Regulations that Cabinet passed on Tuesday (1 December 2009), will be to:
- increase the annual licence fee payable by money services businesses to $10,000;
- introduce an annual fee of $1,000 for each additional subsidiary, branch, agency or representative office that a money services business operates; and
- introduce a new transaction fee payable to Government, equal to 2% of the gross amount transferred overseas by a money services business on behalf of its customers. However, such a fee cannot exceed $10 per transaction.
Financial Secretary the Hon. Kenneth Jefferson, JP, said, "Government made a deliberate decision to limit the fee to a maximum of $10 recognising that the majority of persons transferring funds overseas are lower-paid employees."
The Money Services Law makes it clear that banks, building societies and co-operative societies do not fall within its ambit. Hence, wire transfers, drafts and overnight funds in the banking system are not subject to the new transaction fee, he explained.