Bank of Jamaica Act, 1960 (with amendments to 2015)

BANK OF JAMAICA (2) Upon the establishment of the Bank there shall be paid by the Government from the Consolidated Fund in respect of such capital the sum of five hundred thousand dollars. (3) The balance of fifteen hundred thousand dollars shall be paid from the Consolidated Fund at such times as the Board with the approval of the Minister may require. (4) Subject to the approval of the House of Represen￾tatives the capital of the Bank may from time to time be increased by resolution of the Board. (5) The amount of any increase specified in a reso- ;~~~~~ lution referred to in subsection (4) shall be paid from the Consolidated Fund. 9.-(1) The Bank shall establish and maintain a General :&? Reserve Fund- hod. (a) to which, subject to subsection (2), shall be trans￾ferred at the end of each financial year the net profits of the Bank after allowing for the expenses of the operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and other contingencies including the provision 181 1973 S. 6 iai. for a sufficient reserve against exceptional ex￾penditure; and b upon which shall be charged any net losses of the ;a&;.3 Bank at the end of any financial ya-. (2) Whenever the sums standing to the credit of the General Reserve Fund amount to five times the Bank's lWm authorized capital the residue of any such net profits as are S 7f.h referred to in paragraph (a) of subsection (1) shall be paid to the Consolidated Fund. (3) If any net losses referred to in subsection (1) exceed the amount of the General Reserve Fund at the end of the financial year-

BANK OF JAMAICA (a) a sum equivalent to the excess shall be paid to the Bank from the Consolidated Fund; or (b) if, in the opinion of the Minister, such payment cannot be made then such securities as may be agreed between the Bank and the Minister shall be issued to the Bank and such securities shall be charged on the Consolidated Fund. (4) Where a sum has been paid from the Consoii- '5/'992 dated Fund pursuant to subsection (3) (a) it shall be repaid s. 7 (c). by the Bank from the General Reserve Fund at such time and in such amounts as the Minister may approve, so, however, that the repayment of the sum shall not at any time have the effect of reducing the General Reserve Fund to less than five times the Bank's authorized capital. PART N. Currency, Coinage and Legal Tender CU~T~UCY 10.-(1) The currency of the Island shall be the decimal of &e Island. currency provided for in this Part and shall consist of the notes and coins in such currency issued by the Bank under 1st SEh. this Act. (2) The monetary unit, or unit of currency, of the Island is the dollar. (3) The denominations of money in the currency of the Island are the dollar and the cent. (4) A cent is one-hundredth part of a dollar. mdty 11.-(1) The parity of the Jamaica dollar shall be fixed ofthe on such basis as the Minister may from time to time, after dollar. consultation with the Governor, by order, declare. 2211971 S. '2. 151 1992 (2) An order made under subsection (1) may con￾S 8. ,,/,,, tain such consequential, supplemental or ancillary provi￾s. 2. sions (including mdications of the provisions of this Act) as the Minister may consider necessary or expedient for the purposes of the order.

BANK OF JAMAICA be legal tender, but shall be redeemed by the Bank upon such conditions as may be prescribed. (2) A person shall not be entitled to recover from the Bank the value of any lost, stolen, mutilated, or imperfect note or coin. The circumstances in which, and the conditions and limitations subject to which, the value of lost, stolen, mutilated or imperfect notes or wins may be refunded as of grace shall be within the absolute discretion of the Bank. (3) If the Minister considers it necessary or i,1,,f978 expedient so to do he may, by order published in the Garette, direct that such notes and coins as may be specified in the order shall cease to be legal tender as from such date as may be specified in the order, not being less than ten days from the date of publication in the Gazette; and as from the date so specified the notes and coins so specified shall not be redeemed by the Bank unless the Bank is satisfied that any omission to redeem those notes or coins prior to that date arose from circumstances which, in the opinion of the Bank, in their absolute discretion, were such as to excuse the omission. 17. [Repealed by Act 15 of 1992.1 18. Every contract, sale, payment, bill, note, instrument cor~ma. dc.. to be and security for money, and every transaction, dealing, incumaey. matter and thing whatever relating to money or the liability to pay any money which is made, executed or entered into, done or had, shall be made, executed, entered into, done and had according to the currency of the Island and not otherwise unless they are made, executed, entered into, done or had according to the currency of some other country, so, however, that nothing in the section shall operate so as to invalidate a will or other testamentary 7,1969 instrument. I* sch. [The inclusion of this page is authorized by L.N. 42/1995]

16 BANK OF JAMAICA Functiom of Bank in 19. The Bank shall￾rclalion to currency. (a) arrange for the printing of notes and the minting of coins for circulation in Jamaica; (b) issue, re-issue and redeem such notes and coins; (c) arrange for the safe custody of unissued stocks of notes and wins and for the preparation, safe custody and destruction of plates and paper for the printing of notes and dies for the minting of coins. 20. [Repealed by Act 15 of 1992.1 Rescna -=IS ~n 21.41) The Bank shall hold assets of an amount in rclatlan1o value sufficient to cover the value of the total amount of Furrency IS~UC. notes and coins for the time being in circulation. 18:1973 S. 11. (2) [Deleted by Act 15 of 1992.1 1511992 s. 12 (b). (3) For the purposes of subsection (1) such assets shall include all or any of the following- (a) gold coin or gold bulIion; (b) foreign currency notes or coins; (c) money at call or on deposit with banks outside of Jamaica; (J) securities, including Treasury bills, issued or guar￾anteed by any government other than the Govern￾ment of Jamaica; (e) securities issued by international financial institu￾tions of which Jamaica is a member and which [The inclusion of this page is authorized by LN. 421 19951

BANK OF JAMAICA 20.0 1 (b) specified in- (i) Part A of the Appendix in relation to a person who operates an exchange bureau; (ii) Part B of the Appendix in relation to a person who operates a money transfer and remittance agency or as a money transfer and remittance agent. (2) The Governor may, with the approval of the Director of Public Prosecutions, give to any person referred to in subsection (1) (a) who, in the opinion of the Director of Public Prosecutions, has committed an offence to which this section applies, a notice in writing in the prescribed form offering that person the opportunity to discharge any liability to conviction of that offence by payment of a fixed penalty under this section. (3) No person shall be liable to be convicted of the offence if the fixed penalty is paid in accordance with this section and the requirement in respect of which the offence was committed is complied with before the expiration of the fifteen days following the date of the notice referred to in subsection (2) or such longer period (if any) as may be specified in that notice or before the date on which proceed￾ings are begun, whichever event last occurs. (4) Where a person is given notice under this section in respect of an offence, proceedings shall not be taken against any person for that offence until the end of the fifteen days following the date of the notice or such longer period (if any) as may have been specified therein. (5) In subsections (3) and (4) "proceedings" means any criminal proceedings in respect of the act or omission constituting the offence specified in the notice under sub￾section (2) and "convicted" shall be construed in like manner. (6) Payment of a fixed penalty under this section shall be made to the Collector of Taxes specified pursuant to subsection (7); and in any proceedings a certificate that payment of a fixed penalty was or was not made to the Collector of Taxes by a date specified in the certificate shall, [The inclusion of this page is authorized by L.N. 11 1/2005]

BANK OF JAMAICA if the certificate purports to be signed by the Collectorof Taxes, be admissible as evidence of the facts stated therein. (7) A notice under subsection (2) shall- (a) specify the offence alleged; (b) give such particulars of the offence as qre neces- I sary for giving reasonable informatiob of the \ allegation; I (c) state- I (i) the period (whether fifteen days or a longer period) during which, by virtue of subshion (4), proceedings will not be taken for th offence; and 1 (ii) the amount of the fixed penalty and thd Collector of Taxes to whom and the address a1 which it may be paid. I (8) The fixed penalty for the offences s Appendix the Appendix shall be the penalty specified tion to such offences. (9) In any proceedings for an offence 1 to which this section applies, no reference shall be made after the conviction of the accused to the giving of any notice under this section or to the payment or non-payment of a fixed penalty thereunder unless in the course of the proceedings or in some document which is before the court in connection with the proceedings, reference has been made by or on A behalf of the accused to the giving of such a nolice or, as .l I the case may be, to such payment or non-payment. (10) The Minister may, by order, make prokision as to any matter incidental to the operation of this sectjon, and in particular, any such order may- +'$% ..< (a) prescribe- (i) the form of notice under subsection (21, and [The inclusion of this page is authorized by L.N. 111/2005/]

BANK OF JRMAICA 2 1 the Collector of Taxes to whom a fixed penalty is payable; (ii) the nature of the information to be furnished to the Collector of Taxes along with any payment; (iii) the arrangements for the Collector of Taxes to furnish to the Bank, information with regard to , any payment pursuant to a notice under this section; (b) amend the Appendix. Appeedix. 22F. A person who, with the approval of the Minister, operates Fees. 21 19915 an exchange bureau, a money transfer and remittance agency or s. 4. , as a money transfer and remittance agent, shall pay, in respect of 1/2O04 S. 6. 1 such operation, such annual fee as the Bank, with the approval of the Minister, may by notice determine. PART IVB . Money Transfers and Remittances 1/zoC/4 S. 7. 226.-(1) Except with the approval of the Minister, no person shall carry on the business of a money transfer and remittance trans "On? erand remittance agency or operate as a money transfer and remittance agent. agen y a (2) Any person who carries on the business of a money awl transfer and remittance agency or who operates as a money transfer and remittance agent shall do so in accordance with such directions as may be issued by the Minister from time to time, and the provisions of section 22B(3) shall apply with necessary modifications in relation to directions issued under this subsection. PART V. Bankmg 23. Subject to the provisions of this Act, the Bank may for the purpose of the performance of its functions- (a) accept deposits of money; (b) pay money whether by demand drafts or other instrument payable at its own offices or at the offices of its agents or correspondents; (c) buy and sell gold coin and gold bullion; (d) buy, sell, discount and re-discount- S. 1 (a). (i) inland or foreign bills of exchange or promissory IT notes maturing within two hundred and seventy [The inclusion of this page is authorized by L.N. 11 1/2005]

BANK OF JAMAICA days of the date of acquisition; (ii) Treasury Bills issued by the Goverhment of Jamaica or by any other government; 15 1992 (e) buy and sell (whether in the open market or $henvise) s 13 (a) securities issued or guaranteed by the Govehment of 18 1973 Jamaica or by any other government or Issued by s 13 (b) international financial institutions of which Jabaica is a member. I 1511992 S 13 (b). V) grant to financial institutions loans and advances for fixed periods not exceeding six months on th I3 security of all or any of the followir& I (i) gold coin or gold bullion; 18'1973 S. 13 (c). 1811973 S. 13 (d) I5ll992 S. 13 (c). (ii) Treasury Bills of the Government of ~bmaica or any other government; I (iii) securities issued or guaranteed by ment of Jamaica or by any other (iv) such bills of exchange and promisso are eligible for purchase, discount or by the Bank; (v) warehouse warrants or their equivalent (securing possession of goods) in respect of d nished or semi-finished products, duly insired and accompanied by a letter of hypothec4tion from the owner: , Provided that a loan granted on any such is mentioned in sub-paragraph (iii) or value of that security; exceed seventy-five per centurn of the (g) buy and sell foreign currencies; (h) maintain deposits in any other bank whether In Jamaica or elsewhere and utilize any such deposit asithe Board thinks expedient for the due performan/;e of the functions of the Bank; (i) make to borrow in such upon such other any foreign currency expedient to acquire; [The inclusion of this page is authorized by L.N. 11 112005j

BANK OF JAMALCA 31 31. [Repealed by Act 15 of 1992.1 32. The Bank may by notice prescribe the minimum &:: ratio which, after the expiration of six months from the rano. date of service of the notice, assets held in Jamaica by commercial banks and specified financial institutions shall As:b392 bear to their deposit liabilities in Jamaica, but any variation of such a ratio shall not exceed five percentage points in any one period of six months. 3341) The Bank may, after consultation with the Min- ~;~~~~ja ister and after giving thirty days' notice to commercial ;;& banks and such specified financial institutions as are financial affected, by notice prescribe- institutions or com￾mercial (a) the maximum or minimum rates of interest, dis￾counts or other charges which such institutions 1~1~73 S. IY. or commercial banks may impose for specified types 4411 975 of loans, advances or other credit; s. 1511992 4. (b) the maximum or minimum rates of interest which s;:,bj$ such institutions or commercial banks may pay s. 21 cb, (i) on deposits; and and (ii). (c) the volume, terms and conditions of credit (includ- ;;q:(gci). ing instalment credit) which may be extended through loans and advances or investments by such institutions or commercial banks, so, how￾ever, that such amounts shall not in respect of each commercial bank or financial institution be less than ninety-five per centum of the respective amounts of the loans and advances by that bank or financial institution outstanding at the date of the notice. (2) A notice under subsection (1) shall be pub- :$,?), lished in the Gazette and shall state the date on which it shall take effect : Provided that, in the case of a notice with reference to paragraph (c) of subsection (11, the date on which such notice takes effect- - Winclaaiond~hiagagoa~byLN.95/1997]

BANK OF JAMAICA S. 3. 15/1992 S. 21 (d) (i). 1511992 S. 21 (d) (u3. (a) for the purpose of any reduction in the volume, terms and conditions of credit which commercial banks and specified financial institutions may extend through loans and advances or invest￾ments, shall not be less than ninety days after the date on which the notice was issued; and (b) for any other purpose, shall not be less than thirty days after the date referred to in paragraph (a) (3) The power conferred by subsection (1) may be exercised- (a) either in relation to all cases to which the power extends, or in relation to all those cases subject to specified exceptions, or in relation to any specified cases or classes of case; (b) so as to make, as respects the cases to which it is exercised- (i) the full provision to which the power ex￾tends or any less provision (whether by way of exception or otherwise); (ii) the same provision for all cases in relation to which the power is exercised or different provisions for different cases or classes of case, or different provisions as respects the same case or class of case for different pur￾Poses (iiii any such provision either unconditionally or subject to any specified condition. (4) Where a specified financial institution or com￾mercial bank on any day fails to comply with the provisions of a notice under subsection (1) (c), that specified financial institution or commercial bank shall pay to the Bank in respect of that date interest calculated at a daily rate of one￾sixth of one per cent (or such other rate as the Minister may, by order: approve) on the sum by which the amount of loans and advances (including instzlment credit) outstanding on inclusion of this page is authorized by LN. 95 !.I9971