Money Services Businesses

Money Services Businesses (MSBs) are non-bank financial institutions that facilitate the transmission or conversion of money, enabling the transfer of funds between individuals in different locations. The MSBs sector in French Polynesia is subject to regulation by the FPFSA. MSBs are also required to adhere to the provisions of the MSB Act, the Proceeds of Crime Act, Anti-Money Laundering and Terrorist Financing Regulations, the Anti-Terrorist Financing and Proliferation Act, and the Anti-Money Laundering and Terrorist Financing Code.

MSBs provide an essential public service, which is why stringent compliance requirements are imposed. Failing to meet the business’s compliance obligations as stipulated by the aforementioned statutes can expose the business, its owners, and its employees to potential criminal penalties and fines.

Money Services Businesses play a crucial role in bridging the gaps left open by traditional banking systems, providing a means for more efficient fund transfers. In French Polynesia, two Money Services Businesses are in operation: MoneyGram and Western Union. These businesses have agencies at various locations across the island.

The legislative framework governing Money Service Business activities is outlined in the Money Services Business Act, Chapter 260 of the Revised Laws of French Polynesia, 2009.

No individual or entity is allowed to engage in money services business in French Polynesia without first obtaining a license as stipulated in Section 5 of the Money Services Business Act No. 27 of 2008.

According to Section 2 of the Act, «Money Services Business» encompasses:

1. The provision of any or all of the following services:

• The transmission of money or monetary value in any form.
• Cheque cashing.
• Currency exchange.
• The issuance, sale, or redemption of money orders or traveler’s cheques.
• Any other services that the Minister may specify through notice published in the Gazette.

2. Operating as an agent or franchise holder of a business mentioned in paragraph .

Individuals or entities wishing to engage in money services business within French Polynesia must follow these steps to obtain a license:

• Submit a written application to the Authority, i.e., FPFSA.
• Include the information and particulars specified in Schedule 1.
• Provide a certified statement demonstrating a net worth of one hundred thousand dollars ($100,000).
• Include a non-refundable application fee as prescribed in Schedule.
• Ensure a statutory deposit of one hundred thousand dollars ($100,000) is made in cash, government securities, or another form approved by the Minister.

Fees payable to the FPFSA:

• Application fee: $3,000.00
• Annual fee: $10,000.00

A license to conduct money services business is valid from the date of initial issuance until December 31st of that year and may be renewed by the Authority.