Bank of Jamaica Act

BANK OF JAMAICA I
THE BANK OF JAMAICA ACT
ARRANGEMENT OF SECTlONS
PART 1. Preliminary
Short title.
Interpretation.
PART 11. Constitution
Establishment of Bank of Jamaica.
Place of business.
General objects of Bank.
Board of Directors.
Power to appoint officers, agents and servants.
PART 111. Capital and Reserve
Capital of the Bank.
General Reserve Fund.
PART IV. Currency, Coinage and Legal Tender
Currency of the Island.
Parity of the Jamaica dollar.
Sole right to issue notes and coins.
Exemption from stamp duty on notes.
Denominations and forms of notes and coins.
Legal tender.
Demonetization of notes and coins. , [Repealed by Act I5 of 1992.1 Contracts, etc., to be in currency. Functions of Bank in relation to currency. [Repealed by Act I5 of 1992.1 2 1. Revenue assets in relation to currency issue.
22. Power of Minister to make regulations.
I
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BANK OF JAMICA
PART IVA. Dealings in Foreign Currency
Foreign currency transactions.
Ministerial directions to certain classes of persons. Exemption. Offences. punishmint without prosecution of offences in connection with directions. Fees.
PART 1VB. Money Transfers and Remittances
Money transfer and remittance agency or agent.
PART V. Banking
Powers of the Bank.
Restrictions on business of the Bank.
Minimum discount and re-discount rates.
Bank as bankers' banker. -.
Clearance and settlement systems and facilities.
Reserve requirements. speci;l deposits by commercial bank and financial institution. , . Power to vary liquid assets requirements. , Power of Bank to require info,mation . from . commercial banks and specified financial institutions. ' [Repealed by Act IS of 1992.1 , . Local assets ratio. Credit controls over specified financial institutions or commercial banks. [Repealed by Act IS of 1992.1 Power of Bank to fix maximum foreign.currency balances.
PART VA. Supervision and Examination of Banks and
Specified Financial Institutions.
Supervisory Department
Appointment to Supervisory Dephent.
Disclosure of interest in the Bank.
, -.
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BANK OF JAM ICA
Secrecy of authorized officer.
Indemnity.
Regulations.
PART V I. Relations with the Government
Power of Bank to act as banker to the Government, public corporations and local authorities. Advances to the Government. Limitation on power of Bank to purchase securities issued or guaranteed by the Government. Management of the public debt. Power of Bank to act as Registrar for loans to local authorities. Power of Bank to act as agent for theGovernment. Power of Minister to give general directions.
PART VIA. Depository of securities
Depository of securities and other instruments.
PART VII. Accounts and Reports
Bank's financial year.
Accounts and audit.
Reports.
PART VIII. General
Power to make by-laws.
[Deleted by Act 28 of 2003, S. 2.1 Secrecy.
Verifying false statement, account or list.
Transmitting false statement.
Trial of offences.
Service of notice.
PART IX. Transitional Provisions
Transitional.
SCHEDULE
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Law IS of 1984.
' ' THE BANK OF JAMAICA ACT 32 of 1960. 4 or 1985, . . +. Acts 8 of 1989. 37of1964. 32of1991, 31 of 1966, 11 of 1992 7 of 1969 Seh.. . a Sch., [I st ~ctobe;, 1960. ] I 2 of 1971, 22 of 1971. 18 of 1973. 44 of 1975. 33 of 1976. 10 of 1977. 17 of 1978. 21 of 1978,
PART I. Preliminary

1. This Act may be cited as the Bank of Jamaica Act.
2. In this Act unless the context otherwise requires￾Short tide.
   Interpreta￾tion.
   "approved foreign currency" 'means any foreign currency 1811973 declared ,by 'order of the Minister after consultation S. 2. with the Bank to'be an'approved foreign currency; "approved money transfer and remittance agency or agent" inoolr means a company which is approved by the Minister to S. 2. carry on the business of transferring or transmitting money or any representation of monetary value, by any means fiom or to Jqaica; "authorized dealer" means, in relation to any foreign 1111s02 currency, a person for the time being authorized by an Sch order of the Minister to act for the purposes of this Act as an authorized dealer in relation to that foreign cur￾rency or foreign currency instruments; ' "authorized officer" means the Supervisor, Deputy Super- l,ll~z visor or any other person authorized to perform func- s &a). , tions on behalf,of the Supervisor or the Deputy Super￾visor under this Act; "Bank" means the Bank of Jamaica established under this Act; "Board" means the Board of Directors of the Bank appoin￾ted under section 6; [The inclusion of this page is authorized by L.N. 92d20121

1111992
Sch.
1111992
Sch.
1111992
Sch. i511992
S. 2 (d).
1 BANK OF JAMAICA
I "commercial bank" means a company duly licensed in accordance with.the provisions of the Banking Act, to 1 carry on banking business; ; "Commonwealth" means the Commonwealth as defined in . . section 2 of the Jamaican ~ationalit~ Act; ! "Deputy Governor" means a Deputy Governor of the Bank - appointed pursuant to section 6; ' "Deputy Supervisor" means the Deputy Supervisor of Banks and Financial Institutions appointed under sec￾tion 34B; "financial year" means the financial year of the Bank; "foreign currency" means any currency other than Jamaican currency; and any reference to foreign currency except s,o far as the context otherwise requires, includes a refer￾ence to any right to receive foreign currency in respect of any credit or balance at a bank; , LLforeign currency instrument" means an instrument de￾nominated in or giving a right to foreign currency; "foreign se'curities" includes shares, stock, bonds, notes (other' than promissorjr notes)' debentures & debenture stock on which capital 'monies and dividends are I payable in foreign currency; "functions" includes duties and powers and all activities I necessary to give effect ,to the objects specified in
section 5;
"Governor" means the Governor of the Bank appointed pursuant to section 6; r "notes" and "coins" mean respectively notes and coins of the currency of the Island; "overseas regulatory authority" means an authority which exercises functions similar to that of the Bank or the I i Financial Services Commission, in a .country outside Jamaica; [The inclusion of this page is .authorized by L.N. 92d20121

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"perfom", in relation to hctions, includes exercise, and grammatical variations of the expression shall be con￾strued accordingly; "prudential criteria" means criteria and standards estab- 211995 lished under this Act for the purpose of setting outside S. *. limits and constraints on commercial banks and speci￾fied institutions for the protection of depositors, share￾holders and potential shareholders and for ensuring the safety and soundness of the financial system;' "Senior Deputy Governor" means a Senior Deputy Gover- ,51,992 nor of the Bank appointed pursuant to section 6; s 2 (e). "~'~ecified hnancial institution" means a person or under- 1511992 taking (not.being a commercial bank)- s. 2 (0. (a) who is licensed under the Financial Institutions Act; or (b) whose business includes the granting of loans or 'other credit facilities or the accepting of deposits and who is declared by the Minister by notice in the Gazette to be a specified finan￾cial'institution for the purposes of this Act; "Supervisor" means the Supervisor of Banks and Financial 1511992 Institutions appointed under section 34B; s. 2 (g). "Supervisory Department" ineans'the Department of Super- 1511992 vision of Banks and Financial Institutions established s. 2 (g). under Part VA;
PART 11. Constitution
3.-31) There is hereby established for the purposes of this Establish￾a Act a Bank to be known as the Bank of Jamaica. ment of Bank of Jamaica. (2) The Bank shall be a body corporate having perpe￾tual succession and a common seal and, subject to the provisions of this Act, with power to acquire, hold and dispose of land and other property of whatever kind and to enter into contracts and to do all things necessary for the purposes of its functions. [The inclusion of this page is authorized by L.N. 92cl2012]

BANK OF JAMAICA
Place of business.
. General objects of
Bank.
I Board of
Directors.
: 0511992
S. 4 (a).
(3) The Bank may sue and be sued in its corporate dame and may for all purposes be described by that name. (4) The seal of the Bank shall be authenticated by the signature of the Governor, the Sehior Deputy Governor or a Deputy Governor and one other director authorized to act in that behalf and shall be judicially and officially noticed. (5) All documents, other than those required by law to be under seal, made by .and all decisions of the Board may be signified under the hand of the Governor, the Senior Deputy Governor or any director or officer authorized to act in that behalf. , 4. The Bank shall have its principal place of business in Kingston and may maintain such branches, agencies and corres￾pondents (whether in Jamaica or elsewhere) as the Board may \hi& necessary.~
5. The principal objects of the Bank shall be to issue and
redeem notes and coins, to keep and administer the external reserves of Jamaica, to influence the volume and conditions of supply of credit so as to promote'the .fullest expansion in production, trade and employment, consistent with the mainte￾nance of monetary stability in Jamaica and the external value of the currency, to foster the development of money and capital markets in Jamaica and to act as banker to the Government. 6.-(1) There shall be a Board of Directors of the Bank which, subject to the provisions of this Act, shall be responsible for the policy and the general administration of the affairs of the Bank. (2) The Board shall consist of the following directors- (a) the Governor and the Senior Deputy Governor; 1 (b) the Financial Secretary or the person for the time being exercising the hctions of that ofice; and (c) subject to subsection (3), six other directors appointed by the Minister by instrument in writing. (3) The Minister may on the recommendation of the-Board, by instrument in writing appoint a Senior Deputy Go-vernor and one or more persons to be Deputy Governors; [The inclusion of this page is authorized by L.N. 92d20121 .. . .

BANK OF JAMAICA and where the Minister deems fit, he may in the same or a subsequent instrument further appoint one or more such Deputy Governors to be directors so, however, that any such appointment shall be left out of account in determining the number of directors that may be appointed pursuant to subsection (2). (4) The Governor, or, in his absence, the Senior ~~~~'l,~ Deputy Governor, or, in the absence of the Governor and 15/1992 the Senior Deputy Governor, a Deputy Governor designated S 4 (C). by the Minister, shall be in charge of the day to day man￾agement and operations of the Bank and shall be answerable 3711964 to the Board for his acts and decisions. S. 4 (b). (5) No action, suit, prosecution or other proceedings shall be brought or instituted personally against any director in respect of any act done bona fide in pursuance or execution or intended execution of this Act. (6) Where any director is exempt from liability by reason only of the provisions of subsection (5) the Bank shall be liable to the extent that it would be if that director were a servant or agent of the Bank. (7) The provisions of the Schedule shall have effect fchfde. as to the tenure of office of the directors and the operations of the Board and otherwise in relation thereto. (8) The Governor, Senior Deputy Governor and islmz Deputy Governors shall be appointed by the Minister by S. 4 (e). instrument in writing for a period not exceeding fire years on such terms and conditions as may be specified and- (a) shall be fully employed in the service of the Bank for that period; (b) shall be eligible for reappointment; and (c) while holding office, shall not, without the permis￾sion of the Minister and the Board, occupy any other office of employment whether remunerated or not. - - inoludbD Of fi ts h Uhl'hd by L.N. 95/1997j

10
Power to appoinl ancers, agcnts and IcCYantA 15/1992 8 5 (1). lBl1973 S. 4. 15/19SQ S. 5 (b). lJ/1992 s. 5 (b). 15/1992 S. 5 (b). ChpiUl of the Bank. BANK OF JAMAICA 7.-(1) Subject to subsection (2), the Bank may appoint and employ at such remuneration and on such terms and conditions as it thinks fit, such officers, agents and servants as the Board considers necessary for the due performance of the functions of the Bank. (2) An annual salary exceeding the prescribed rate shall not be assigned to any post without the prior approval of the Minister; and no appointment to any post to which an annual salary exceeding the prescribed rate is assigned shall be made without the prior approval of the Minister. (3) The Governor-General may, subject to such conditions as he may impose, approve of the appointment of any public officer in the service of Jamaica to any office with the Bank and any public officer so appointed shall, in relation to pension, gratuity or other allowance, and to other rights as a public officer, be treated as continuing in the service of the Government. (4) In subsection (2) the prescribed rate means a rate of two hundred thousand dollars per annum or such hlgher rate as the Minister may, by order, prescribe. (5) The Bank may, with the approval of the Mis￾ter, make regulations establishing schemes for pensions, gratuities and other retiring benefits in respect of the offi￾cers and servants of the Bank and such regulations may include provisions for the grant of benefits to the depend￾ants or the legal personal representatives of such officers and servants. (6) The Bank may provide for trainii of such employees of the Bank or other persons as appear to the Board to be suitable for training in the subjects of money and banking, statistics, finance and such other subjects as the Board considers necessary.
PART 111. Capiid and Reserve
8.-(1) The authorized capital of the Bank shall be two million dollars. iaclndon of WE cbla Sa amtho+iesd by L.N. 951199'11

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.

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(3) An order made under subsection (1) shdl be subject to negative resolution. 3111%6 S. 2. 12.--(I) Subject to section 14, the Bank shdl have the sole sole riel right and authority to issue notes and coins in the Island. to issue notes and wins (2) No person other than the Bank shall issue in Jamaica 1y,973 notes or coins, or my documents or tokens payable to bearer 1511992 ,o on demand, having the appearance of, or purporting to be, or S.9(b). which are likely to pass as or be conked with notes or coins issued by the Bank. (3) Any person who contravenes subsection (2) shall be ~snw guilty of & offence and liable-- s. 9 @). (a) on summary conviction in a Resident Magistrate's Court to a fme not exding fifty thousand dollars or to imprisonment for a term not exceeding two years or to both such fine and imprisonment; (6) on conviction in a Circuit Court to a fine or to imprison￾ment for a term not exceeding five years or to both such fine and imprisonment.
13. Notes issued by the u2lnk sbll be exempt from the pay- Exempti~n
ment of stamp duties. fmm stamp duty on notcs.
14.-4%) The Minister may after consultation with the hamin* Bank- tions and forms of notes and (a) approve, subject to subsection (2), the denominations, wins. form md design of notes and coins to be issued by the l"1973 Bank; S. 8 (a). (b) by order determine the standard weight and com￾position of coins to Be issued by the Bank and the amount of remedy (or variation from the standard weight and composition) which may be allowed in the making of such coins. (Tk fdmh el (bb page b rotholtrcd by LN. tu/sottl

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1811973
S. 8 (c).
-1 lemdzr.
71 1969
1st Sch.
!kmonetize oion of notes and coins.
(2) The power of the Minister under paragraph (a) of subsection (1) shall be exercised on the recommendation of the Bank, so, however, that where on any occasion the Minister disagrees with a recommendation of the Bank he shall require the Bank to reconsider that recommendation and may, if a recornendation acceptable to him is not there￾after hished by the Bank, exercise the power aforesaid on that occasion otherwise than on the recommendation of the Bank. 15.+1) Subject to the provisions of subsection (2) and of
section 16, a tender of payment of money-
(a) if made in notes, shall be legal tender for the payment of any amount; and (b) if made in coins, shall be legal tender for the payment of an amount not exceeding the face value of a maximum of fifty wins in any combination of denbminations. (c) [Deleted by Act I5 oPf2009, §. 2.1 (4 [Deleted by Act I5 oPf2009, §.2] . (e) [Deleted by Act I5 aPf2009,S 2.1 (2) A win that is bent, mutilated or defaced, or that has been reduced ixi weight otherwise than by abrasion QhPougk ordinary use shJ1 not be legal tender. a 16.-41) The Bank sMl have power on giving three months' notice in the Gazette to call in my notes and coins on payment of the face value thereof and any such notes or coins with respect to which a notice has been given under this section shall, on the expiration of the notice, cease to Ilbe ldshm cP thb page b ~mtbeobcd by LN. lWLOlll

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 are denominated in a currency other than the currency of Jamaica; V) any other foreign assets which are denominated in currencies which are readily convertible into gold or any approved foreign currency; (g) Special Drawing Rights allocated to Jamaica pursuant to section 1 of Article XXI of the Fund Agreement. (4) For the purposes of this section- (a) the value of coins in circulation shall be such portion, not less than seventy-five per centum, of the value of coins issued by the Bank and not redeemed, as the Minister shall specify by order; (b) "Fund Agreement" has the meaning assigned to it in
section 2 of the Bretton Woods Agreements Act.
22. The Minister, aRer consultation with the Bank, may make Power qf
regulations- Ministet to make rygu- (a) prescribing anything required to be prescribed lations. under this Part or paragraph (b) of section 30; (b) with respect to any matter relative to currency and coinage not provided for in this Act.
PART IVA. Dealings in Foreign Currency 1 111993
Sch.
22A.-(1) Except as provided in subsections (2) and (3), any :uy'Ep person may buy, sell, borrow or lend foreign currency or foreign trans￾currency instruments. actions. (2) No person shall carry on the business of buying, selling, borrowing or lending foreign currency or foreign currency instruments in Jamaica unless he is an authorized dealer. (3) It shall be unlawful for any person to buy, sell, borrow or lend foreign currency or foreign currency instruments in a transaction involving the payment of Jamaican currency, [The inclusion of this page is authorized by L.N. 11 1/2005]

18 BANK OF JMICA unless the payment is made to or, as the case may be, by an authorized dealer. Ministerial dire,ions ,, 22B.41) Persons belonging to the following class&s, that is certain classes to say￾of persons (a) authorized dealers; I (h) persons to whom any powers of the ~inidter under this Act are delegated; I (c) companies licensed under the Financial ir/stitutions Act; (4 insurance companies; I (e) credit unions; V) societies registered under the Building Societies Act; (h) managers and trustees of unit trust schemes register￾ed under the Unit Trusts Act; I (g) persons who, with the approval of the (i) persons who operate or manage superan$uation or pension funds; I Minister, (i) approved money transfer and remittance dgents and agencies, operate exchange bureaux; 211995 s. 3(b). shall not acquire foreign assets except in accordance lwith such directions as may from time to time be given to them, respectively by the Minister as respects the acq isition of foreign assets. J I (2) Reference in subsection (1) to the acq foreign assets includes a reference to the acquisition assets pursuant to an arrangement under which suchassets are exchanged for Jamaican currency or for other assets 1 located in Jamaica. I (3) Any directions given under subsection (11)- I (a) may be either general or special; I I (b) may be revoked or varied by subsequent directions; and ~ [The inclusion of this page is authorized by L.N. 11112005)

BANK OF JAMAICA 19
(c) shall be given to such persons and in such manner as the Minister thinks appropriate, and if so given, shall be valid for all purposes. (4) Notwithstanding paragraph (c) of subsection (3), a person shall not, by virtue of any direction given by the Minister under this Act, be convicted of an offence against this Part or Part 1/2004i IVB, unless the direction was served on him or he knew or S.3(b)J avoided getting to know, of the giving thereof, so, however, that where reasonable steps were taken for the purpose of bringing the purport of the direction to his notice, it shall be for him to show that he neither knew nor avoided getting to know, of the giving thereof. (5) The Minister may, to such extent and subject to such restrictions and conditions as he may think proper, delegate to the Bank of Jamaica any of his powers under this Part or Part IVB 1/2004, and references in this Part or Part IVB shall be construed S. 3(W accordingly. (6) Any documents stating that any direction is given under any of the provisions of this Part or Part IVB by the moo41 Minister, and purporting to be signed on his behalf, shall be S. 3(b)1 evidence of the facts stated in the document. (7) In this section "foreign assets" includes- (a) foreign currency; (b) foreign currency instruments; (c) real estate situated outside of Jamaica; (4 foreign securities; I (e) any other assets located outside of Jamaica. I 22C. The Minister may by order exempt any person or class of ~xem$ion. persons from any obligation or prohibition imposed under or ~ pursuant to any provision of this Part or Part IVB and such l/zooq S. 4. ' exemption may be either absolute or conditional. - [The inclusion of this page is authorized by L.N. 11 1/2005]

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Punishment without pro￾secution of offences in connection with directions. 211995 s. 3(c). 112004 S. 5(a). 22D.-(1) Any person who contravenes any provision of this
Part or Part IVB or fails to comply with any req irement
imposed by or under this Part or Part IVB shall be guil y of an offence and shall be liable￾4 (a) on summary conviction in a Resident Ma istrate's Court to a fine not exceeding fifty thousan dollars d" or to imprisonment for a term not exceedling one year or to both such fine and imprisonment; 1 I (b) on conviction before a Circuit Court to a me not exceeding one hundred thousand dollars o to im￾prisonment for a term not exceeding five ears or to both such fine and imprisonment. 1 (2) Where an offence is committed under 4his Part or Part IVB the Court may, if it thinks fit- I (a) in relation to an offence involving currency or foreign currency foreign currency or foreign as the case may be, to be forfeited; and (b) impose a larger fine not exceeding three t'mes the amount or value of the currency or instru ent, as the case may be. 1 ~ (3) No proceedings for an offence punishab e under this Part or Part IVB shall be instituted, except by or with the consent of the Director of Public Prosecutions. I I (4) Subsection (3) shall not be construed as the issue or execution of a warrant for the any person in respect of such an offence or the offence. in custody or on bail of any person charged 22E.-(1) This section shall apply to any offen+ under
section 22D (I), being an offence- I
(a) committed by a person who with the appro Minister, operates an exchange bureau or transfer and remittance agency or as a and remittance agent; and [The inclusion of this page is authorized by L.N. 11 1/2005]

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(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 JAMAICA
6') with the approval of the Minister grant loans 1~11973 S. 13 (e). and advances for fixed periods to, or subscribe to, 3,119, hold and sell the shares of any corporation which S.lO(d). with the approval of or under the authority of the Government is established for the purpose of promoting the development of a money market or securities market in Jamaica or of improving the financial machinery for the financing of economic development; (k) do any other banking business incidental or an￾cillary to or consequential upon the performance of its functions; (0 in relation to the exercise of its borrowing powers under paragraph (i) issue debentures, bonds or other appropriate instruments and may establish a sinking fund for the redemption of any such in￾struments; (m) make loans and advances for fixed periods to As(;% persons who are in the whole-time service of the Bank for the purpose of facilitating the acquisition by them of housing or motor vehicles; ~1992 S. 13 (el. (n) make arrangements or enter into an agreement with 15/1992 any bank, financial institution, confirming house s. '3(e). or government agency outside Jamaica for facili￾tating transactions supported by letters of credit, on behalf of local importers or exporters, as the case may be; (0) negotiate and maintain lines of credit from finan- 151K~92 cia1 institutions outside Jamaica; s I3 (8). (p) issue standby letters of credit. 1511992 S. 13 (c).
2441) Except as authorized by this Act the Bank shall :gFz
not- business of the Bank. (a) engage in any trade; 1511992 S. 14(b). ~ ~ -- ~ ~ -~ ir~CIush d Uh pap is an(horizcd by LN, 951 1997

BANK OF JAMAICA
1011977
5 6
IS/ 19%
S. 14(a).
1511992
S. 14(b). hfinimum dmount and re-discount rates Bank as bankers' banker. (b) purchase the shares of any other bank or of any other company or grant loans on the security of any shares in any bank or company; (c) lend money or make advances other than on any such security as is specified in paragraph (f) of
section 23 or for the purposes prescribed in para￾graphs (j) and (m) of that section except that where
the security for a debt due to the Bank has or is likely to become in the opinion of the Board inadequate, the Bank may secure itself on any land the property of the debtor and may acquire such land which shall, however, be resold at the earliest suitable opportunity; (4 accept for discount, or as guarantee for an advance made by the Bank, bills or notes signed by any director, officer or employee of the Bank; (e) make loans or advances without security; (f) purchase, acquire or lease real property except in accordance with paragraph (c) and except so far as the Board considers necessary or expedient for the provision or future provision of business premises for the Bank and its agencies and of residences for the Governor, Senior Deputy Gov￾ernors, Deputy Governors, officers and employees of the Bank. (2) The Bank may, with the approval of the Board, grant to persons who are in the whole-time service of the Bank, credit facilities of such amount and on such terms as the Board may, from time to time, approve.
25. The Bank shall from time to time Iix and announce
its minimum rates for discounts and re-discounts.
26. The Bank may act as banker to commercial banks in
Jamaica and as agent and correspondent to banks abroad.

BANK OF JAM ICA 25
27.-(1) The Bank may promote establishment of clearing clearance and settlement systems and provide facilities for the clearance ~~'~~~~- and settlement of transactions between financial institutions and terns and also act as the central counter-party of a system and provide g!:::
liquidity or payment guarantees to individual systems or partici- s. 30 pants. (2) In order to ensure overall stability of :he financial system, the Bank shall exercise oversight powers over the national payments system, including securities settlement sys￾tems, for the purpose of preventing or controlling systemic risk.

• '. . ,
  . .
  , (3) In exercise of its oversight powers, the Bank shall have power to issue directions to individual systems or parti￾cipants, as well as general or individual standards and guidelines, to undertake all necessary audit and inspections and to impose penalties for breaches of the applicable laws and regulations. . , ,.. (4) In subsection (1) - "central counter-party" means a, partnership, agency, asso￾ciation, body corporate or other entity in a payment or securities clearing and . settlement system which is interposed between the participants, and which acts as the exclusive counter-party of these entities with regard to their transfer orders; "clearing and settlement system" or "system" means a system or arrangement for the clearing or settlement of￾I [lie inclusion of this page is authorized by, L.N. 92c/2012]

I
I ' I
I t 26 BANK OF JAMICA
I
1
.(a) payment obligations or payment messages in which- I 1 I (i) there are at least three participants, at leasi one j 1 of which is the Bank or a bank; 1 I I - (ii) clearing or settlement is in Jamaican currency or , a other currencies as determined by the Bank; and I ' I (iii) the payment obligations that arise from clearing within the system or arrangement are ultimately I settled through adjustments to the account or accounts of one or more of the participants at the bank; . I \ I (b) securities and derivatives transactions, foreign exchange I transactions or other transactions, where the system or I arrangement also clears or settles payment obligations arising from those transactions. 1 , I Reserve 128.-(1) Subject to subsection (2) the Bank may from time to require￾ments tibe by notice published in the Gazette vary the percentage, of 1511922 prescribed liabilities which￾S. 15 (a). I l a 't I (a) commercial banks are required to maintain with the I I Bank as a minimum cash reserve under section 14 of the I j Banking Act; ~ 8 i f I - [The inclusion of this page is authorized by L.N. 92d20121 I 1 I

BANK OF JAM ICA 26.01
(b) specified financial institutions are required to maintain with the bank as a minimum cash reserve under section 14 of the Financial Institutions Act, so, however, that a percentage prescribed pursuant to this sub￾section shall not be less than five nor more than twenty-five per centum. (2) Where any such percentage is to be increased- (a) the increase shall be so effected as not to exceed two percentage points in any one period of thirty days; and (b) it shall be the duty of the Bank to give all commercial 1511992 S. I5 (b). banks or, as the case may be, specified financial insti- 1711978 tutions at least fifteen days' notice of the date on which s. 2. the increase is to take effect. (3) A notice under subsection (1) may make different 1811973 S. IS. provisions as respects different types of prescribed liabilities ,,,,, specified in the notice, so, however, that if any such notice pres- s. 2. cribes marginal cash reserve requirements for increases in speci￾fied prescribed liabilities such requirements shall, not exceed one hundred per centum of the increase in such liabilities. (3A) Without prejudice to the generality of subsection (3), 1511992 a notice under subse'ction (1) varying minimum cash reserves S. 15 (c). may require that where a portion of the prescribed liabilities in foreign currency then such percentage of the prescribed liabilities so payable as is specified in the notice shall be held in foreign currency so, however, that the percentage so specified shall not be less than five nor more than twenty-five per centum. [The inclusion of this page is authorized by L.N. 92c/2012]

26.02 BANK OF JAMAICA
I
1811973 (4) In subsection (3) "marginal cash reserve .require￾s. 441197s 15. ments" means in relation to any increases in specified prescribed s. 2. liabilities, such percentage of the increase as is required to be maintained with the Bank for the purposes of section 14 of the 1511992 Banking Act or, as the case may be, section 14 of the Financial I S.I5(d). Institutions Act. special 28A.+1) Without prejudice to the provisions of section 28, deposits by commercial and subject to subsection (2) of this section, the Bank may, with bank and the approval in writing of the Minister, require- specified financial instimion. 1511992 (a) a commercial bank; and S. 16. I (b) a specified financial institution, to maintain with the Bank in the form of a deposit (in this section referred to as a "special deposit") an amount not exceeding twknty-five per centurn of the amount of the prescribed liabilities of such bank or such specified financial institution. I I (2) A commercial bank or specified financial institu￾I tion may comply, in whole or part, with a requirement made pursuant to subsection(1) by investments in the form of - . (a) Treasury bills issued by the Government of Jamaica; , (b) certificates of deposit issued by the Bank; or . . ' I . , I (c) such other form of securities as the Bank may approve. (3) Interest at such rate as the Minister may, by order, determine, shall be paid by the Bank on the .amount of any "special deposit referred to.in subsection (1). ' r. *. (4) The power conferred by subsection (1) may be I exercised - [The ioclusion of this page is authoiired' by L.N. 92d20 121 -' I

BAA7K OF JAMAICA
(a) either in relation to all cases to which the power extends, or in relation to all those cases subject to specified excepiions, or in relation to any speci￾fied cases or classes of case; (b) so as to make, as respects the cases in relation to which it is exercised- (i) the full provision to which the power extends 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 differ￾ent provisions for different cases or classes of case, or different provisions as respects the same case or class of case for different purposes; (iii) any such provision either unconditionally or subject to any specified condition. (5) Where a bank or a specified financial institu￾tion on any day fails to comply with a requirement made pursuant to subsection (11, that bank or specified financial institution shall pay to the Bank in respect of that day 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 the special deposit in respect of that bank or specified financial institu￾tion falls short of the amount stated in the requirement as aforesaid. 29.41) Subject to subsection (2), the Bank may from !;;-to time to time by notice published in the Gazette vary the per- lisu~d centage of prescribed liabilities which- loset? require￾ments. (a) commercial banks are required to maintain with 37/1%4 the Bank as liquid assets under section 15 of the y*,::,, Banking Act; s. 16 (a). 1511992 (6) specified financial institutions are required to main- S. IT@).

• -. -- - --- - - -- -.
  t'l8b inclusion of tbia is autaorizsd by LN. 95119971

BANK OF JAMAICA tain with the Bank as liquid assets under section 15 of the Financial Institutions Act, so, however, that a percentage prescribed pursuant to this subsection sha!l not be less than fifteen nor more than fifty per centum or; subject to subsections (1~) and UB), such other percentage as the Minister may specify by order subject to affirmative resolution. (1~) An order made under subsection (1) shall, subject to revocation or amendment, remain in force for a period of ninety days or such longer period as may be sanctioned under subsection (1~). (1~) The House of Representatives and the Senate may from time to time by resolution sanction the extension of an order made under subsection (1~) for such period not exceeding ninety days as may be specified in the resolution. (2) Where any such percentage is to be increased- (a) the increase shall be so effected as not to exceed five percentage points in any one period of thirty days; and (b) it shall be the duty of the Bank to give to all commercial banks or, as the case may he, specitied financial institutions at least fifteen days' notice of the date on which the increase is to take effect. 32jlr)i (2~) Until other provision is made pursuant to sub￾s. ?(a). section (I), the percentage of prescribed liabilities which a commercial bank is required to maintain as liquid assets shall, with effect from the 23rd of December, 1991, be the percentage maintained by that bank on the 20th of November, 1991. IS! 1~3 (3) A notice under subsection (1) may make different S. 16(b). ,,,,, provisions as respects different types of prescribed liabilities S. 3. specified in the notice, so, however, that if any such notice prescribes marginal liquid assets requirements for increases in specified prescribed liabilities such requirements shall not

• . - - --- -- [The inclusion of thispge 13 autharkd by L.N. '95i 1%7]

BANK OF IAMAlCA 29 exceed one hundred per centum of the increase in such liabilities. (3.4) Without prejudice to the generality of subsec- ?/,I7:; tion (3), a notice under subsection (1) varying minimum liquid assets may require that where a portion of the liquid assets is payable in foreign currency then such percentage of the liquid assets so payable as is specified in the notice shall be held in foreign currency, so, however, that the percentage so specified shall not be less than fifteen nor more than fifty per centum. (4) In subsection (3) "marginal liquid assets require￾ments" means in relation to any increase in specified pre￾scribed liabilities, such percentage of the increase as is re- 4411~75 quired to be maintained as liquid assets for the purposes of S. 3.
section 15 of the Banking Act or, as the case may be,
section 15 of the Financial Institutions Act. lS(1992
S. 17 (d).
(5) The power conferred by subsection (1) may be WW~ 2 ?(b) 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 in relation to which it is exercised- (i) the full provision to which the power extends 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 merent provisions as respects the same case or class of case for different purposes; (iii) any such provision either unconditionally or subject to any specified condition. me rnclusion of this pge IF mtho~ized by 1 N 95119971

BANK OF JAMAICA
Power of
Bank lo require informa￾tion Irom commercial banks and spccilied finaocial institutions 1811973 S. 17. 1511W S. 18. 211995 S. 5 @). 30.-(I) The Bank may- (a) require any commercial bank or specified financial institution to furnish, within such time and in such form as the Bank thinks necessary, such information as the Bank thinks requisite for the purpose of ascertaining whether that bank or speci￾fied financial institution is complying with the provisions of section 14 or 15 of the Banking Act, or section 14 or 15 of the Financial Institutions Act, or section 28,28A or 29 of this Act; (b) require any commercial bank or specified financial institution to furnish, within such time and in such form as the Bank thinks necessary, such informa￾tion of any prescribed class as the Bank considers requisite for the proper discharge of its functions and responsibilities; (c) require any person mentioned in section 22B (1) to furnish, within such time and in such form as the Bank thinks necessary, such information as the Barrk thinks requisite for the purpose of ascer￾taining whether that person is complying with the provisions of section 22B. (2) Any person who fails to furnish information in accordance with a requirement made under paragraph (a), (b) or (c) of subsection (1) shall- (a) be guilty of an offence and liable on summary con￾viction in a Resident Magistrate's Court to a fine not exceeding one hundred and fifty thousand dollars; and (b) if the offence is continued after conviction, be guilty of a further offence and liable on summary conviction in a Resident Magistrate's Court to a fine not exceeding five thousand dollars for every day during which the offence is so continued. ~loclndonofth&pagaisapilthorircdbyLN.95/1%7l

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

BANK OF JAMAICA 33 that day exceeds the amount specified in the notice. 1511992 S. 21 (d) (3). 33A. [Repealed by Act 15 of 1992.1 34.-(1) The Bank may from time to time- Power of Bank to fix rnaxi- (a) by instrument in writing fix, or prescribe the ,, manner of determination of, the maximum amount ,ft$eE",, of the working balances which commercial banks $)yYz and specified financial institutions may hold in s. 19. 1511992 foreign currencies generally or in any specified S. 23 (a). foreign currency or currencies; (b) require commercial banks and specified financial L:li:g), institutions to exchange with the Bank all or any specified part of the surpluses in excess of such maximum amount for an equivalent amount of Jamaican currency. (2) The Bank may by instrument in writing and subject to such terms and conditions as it may deem fit, permit any commercial bank or specified financial institu- ;sJ;;f tion to hold working balances in any specified foreign cur￾rency in excess of such maximum amount fixed or deter￾mined for such currency under subsection (1). (3) In ascertaining whether the working balances of any commercial bank or specified financial institution in any 151 1992 foreign currency or currencies are in excess of the maximum S. 23 (b). amount fixed or determined under subsection (11 there may be deducted from such balances the liabilities in foreign currencies into which such currency or currencies are convertible.
PART VA. Supervision and Examination of Banks and gxy
Specified Financial Institutions
34A.-(1) There shall be established for the purposes of %=",p this Act, a department in the Bank to be called the Depart- -t. ment of Supervision of Banks and Financial Institutions. (2) The Department shall be charged with the inclusion of tbia mge is auI3orizcd by LN. 951 1997

34 BANK OF IAMAICA supervision and periodic examination of all commercial banks and specified financial institutions. Appoint ment to 34B.41) For the purposes of section 34A the Board, with Supervisory the approval of the Minister, shall appoint- Dcmrtment. (a) fit and proper persons to be the Supervisor and Deputy Supervisor, respectively; (b) such other officers and employees as may be neces￾sary for the efficient operation of the Supervisory Department. (2) The Deputy Supervisor shall, subject to any directions from the Supervisor- (a) be responsible for the general administration of the Supervisory Department; and (b) perform such duties relating to the supervision and examination of commercial banks and specified financial institutions as may be assigned to him by the Supervisor. (3) The Supervisor, Deputy Supervisor and any officer appointed pursuant to subsection (1) (b) shall be fully employed in the service of the Bank and, while holding office, shall not, without the permission of the Minister, occupy another office of employment whether remunerated or not. (4) The Supenisor with the approval of the Min￾ister may, where the circumstances so warrant, in writing authorize any other person to assist the Supervisor and the Deputy Supervisor in the performance of their functions under this Act. D'"'O'ur~ 34C.41) Wh- of interest in the bank. (a) any authorized officer; or (b) any person being considered for appointment pur￾suant to section 34B (1) and (41, is a shareholder (whether directly or indirectly) in any com-

BANK OF JAMAICA 35 mercial bank or specified financial institution he shall notify the Minister thereof in writing. (2) The Minister may, if he thinks fit upon receipt of a notice referred to in subsection (I), in writing require the officer or person concerned to dispose of any shares held by him in any commercial bank or specified financial institution or of any interest in such shares within such time as the Minister may specify. 34D.-(1) An authorized officer and any other person Semecyof authorized pursuant to section 34B (4) to give assistance shall >:y not- (a) disclose information regarding the operations of any lomol commercial hank or specified financial institution to S. 2. any person other than- (i) the Minister or his nominee; (ii) the Governor, Senior Deputy Governor or Deputy Governors; (iii) any officer of the Supervisory Department; (iv) the Chief Executive Officer of the Jamaica Deposit Insurance Corporation, the Executive Director of the Financial Services Commission, the Financial Secretary or his nominee or the zo zoos Solicitor General, to facilitate coordination s. 3(8). among financial regulatory agencies; (v) any Supervisory authorities in a country in which a branch, subsidiary or representative office of a commercial bank or specified financial institution is located; (b) disclose other than for the purposes of this Act, the Banking Act, or the Financial Institutions Act, any information regarding the affairs of a customer of a commercial bank or specified financial institution, obtained in consequence of the performance of duties under this Act. [The inclusion or this page Is authorized by L.N. IUOAl20061

BANK OF JAMAICA
(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and shall be liable on summary conviction in a Resident Magistrate's Court to a fine not exceeding three million dollars or to imprisonment for a term not exceeding two years, or on conviction in the Supreme Court to a fine or imprisonment. (3) Subject to subsection (5), the Bank may disclose to an overseas regulatory authority information necessary to enable that authority to exercise regulatory functions including the conduct of civil or administrative investigations and proceedings to enforce laws, regulations and rules administered by that authority. (4) The Bank may decline to exercise its powers under subsection (3) unless the overseas regulatory authority under￾takes to make such contribution towards the costs of the exercise as the Bank considers appropriate. (5) Nothing in subsection (3) authorizes a disclosure by the Bank unless- (a) the Bank has satisfied itself that the overseas regulatory authority is subject to adequate legal restrictions on further disclosures, including the provision to the Bank of- (i) an undertaking of confidentiality on the part of the authority; or (ii) an undertaking by the authority not to disclose the information provided without the consent of the Bank; (b) the Bank is satisfied that the assistance requested by the overseas regulatory authority is required for the purposes of that authority's regulatory functions, including the conduct of civil or administrative investi￾gations or proceedings to enforce laws administered by the authority; and lThe inrluaiun of this page is authorized by L.N. I8OAiZOO6l

BANK OF JAMAICA
(c) the Bank is satisfied that information provided following the exercise of its powers under subsection (3) will not be used- (i) in criminal proceedings; or (ii) in civil or administrative proceedings, against the person providing the information (6) Where, in the opinion of the Bank, it appears 2%' necessary in relation to any request for assistance received from an overseas regulatory authority to invoke the jurisdiction of a Supreme Court Judge, the Bank shall- (a) immediately notify the Attorney General of the par￾ticulars of the request; and (b) send him copies of all documents relating to the request, and the Attorney General shall be entitled to appear or take part in any proceedings in Jamaica, or in any appeal from such proceedings, arising directly or indirectly from any such request. (7) Where pursuant to subsection (3), the Bank T$5 properly supplies information to a requesting party, the information supplied shall be deemed to be legally and lawhlly given under this Act; and every person liable to be proceeded against on the ground that such information was unauthorized or unlawfully given, or was otherwise acting illegally or improperly, for any such reason only, is hereby acquitted, freed, discharged and indemnified as against all persons whatsoever and whomsoever, from liability arising from the supply of that information. (The inelu~lon of this page ir authorlmrl by L.N. 180N20061

36.02 BANK OF.JAMAICA
Indcrnnm
2 1995
34E. No liability is incurred by the Bank or any person s 6 specified in paragraphs (a) to (4 as a result of anything done by him bonn ,fi& in the exercise of any power, or the per￾formance of any function or duty, conferred or imposed by or under this Act, that is to say- (a) an authorized officer; (h) the Minister; (c) any person appointed pursuant to section 34B (4); Second
Schedule.
(4 any person appointed by the Minister pursuant to regulations made under this Act or pursuant to paragraph 1 (4) of Part D of the Second Schedule to the Banking Act or the Financial Institutions Act, as the case may be, to perform hnctions and duties in connection with the temporary management of a commercial bank or specified financial institution. Re~'"tionS 211995 34F.-(1) The Minister may, in accordance with the S. 6. recommendations of the Bank, make regulations prescrib￾ing prudential criteria and minimum solvency standards to be complied with by commercial banks and specified financial institutions. (2) Without prejudice to the generality of subsection (I), regulations made under that subsection may include provisions in relation to- (a) minimum capital requirements; (b) requirements for ensuring capital adequacy and the required capital ratios; (c) the building of reserves from profits; (4 limitations on the acquisition of fixed assets; (e) the maintenance of cash reserves and liquid assets; fl the submission of returns to the Supervisor at prescribed intervals and publication of accounts on a regular basis; [The Lnelu~lon of this page la authorized by L.N. 180A110061

HANK OF JAMAICA
(g) restrictions on-
(i) loans to directors, ofticers and connected persons; (ii) large exposures to single persons and groups; (iii) the volume of equity investments which may be held in the investment portfolio of a commercial bank or specified financial institution; (h) requirements for loan loss reserves; (i) the transfer of control of specified financial institutions; (i) matters regarding the making of contact with auditors by the Bank; (k) the establishment of branches abroad by specified financial institutions; (I) the treatment of- (i) credit facilities; (ii) assets and investments; (iii) interest; (iv) new financial instruments; (m) reporting requirements for large exposures and large deposits; (n) the measurement of capital consequent on investment of specified financial institutions in a subsidiary or affiliate; (0) the qualification required by auditors of specified l7/2oo2 s. 2 (a). financial institutions and'the Frequency and scope of audits; (p) measures for the assessment and control of market risks 17n0M s, 2 (a). by commercial banks and specified financial institutions; IThr lnclwion of thtr page is aulhorimd by L.N. 180AIL0061

36.04 BANK OF JAMAICA
17 2002 (q) the carrying out of investment activities by commercial s 2 (a$ banks and specified financial institutions, whether such activity is carried out on the institution's own account or on behalf of its customers; (I.) the imposition of penalties for breaches of the regulations; (s) the taking of such steps as the Minister considers necessary where the Minister has reasonable cause to 0 believe that a specified financial institution is or appears likely to become unable to meet its obligations. (3) Regulations made under this section shall be subject to affirmative resolution. (4) 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 in relation to which it is exercised- (i) the full provision to which the power extends 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 C) purposes; (iii) any such provision either unconditionally or subject to any specified,condition. 17iznoz (5) Notwithstanding section 29 of the Interpretation S.2(b). Act, regulations made under this section may provide for the [The lneludon of this page I8 aulharlzed by L.N. 180A12006l

BANK OF JAMAICA 37 imposition of penalties on summary conviction in a Resident Magistrate's Court not exceeding a fine of two million dollars or to imprisonment for a term not exceeding two years or to both such fine and imTrisonment.
PART VI. Relations with the Government
35.--(I) The Bank may act as banker to the Government and shall be entrusted with such Government banking business in *bankerto Jamaica and abroad as may be assigned to it by the Minister. (2) The Bank may act as banker to any public ~~~,"~Ons corporation or local authority and may be entrusted with such authorities. banking business in relation to any such corporation or authority d5:', and on such terms and conditions as may be agreed between the 1511992 Bank and that corporation or authority. S. 25 (b). (3) In subsection (2)- 1511992 S. 25 (b). "public corporation" means- (a) a statutory body or authority; (b) a company registered under the Companies Act, being a company in which the Government or an agency of Government, whether by the holding of shares or by other financial input, is in a position to influence the policy of the company; "local ,authority" means- (a) in relation to the parishes of Kingston and St. Andrew, the Council of the Kingston and St. Andrew Corporation as constituted under the Kingston and St, Andrew Corporation Act; (b) in relation to any other parish, the Parish Council of that parish. 36.-31) The Bank may in any financial year make temporary Advances to advances to the Government which shall- the Government (a) not exceed in the aggregate thirty per centurn of the 3311976 estimated revenue of Jamaica for that financial year; S. 2. and (b) be repaid not later than three months after the end of that financial year. [The inclusion of this page is authorized by L.N. 88i20031

BANK OF JAMAlCA
(2) Where such advances are not duly repaid the power of the Bank to grant hrther advances in any subsequent financial year shall not be exercisable unless and until the outstanding advances have been repaid. 10 1977 (3) For the purpose of this section and section 37 s. 7. "financial year" means the financial year of the Government. Limitationon 37. The Bank shall not in any financial year purchase or power of Bank topurchase otherwise acquire, on a primary issue, securities issued or "cu"tie"uaranteed by the Government of a nominal value exceeding issued or g-teedbv forty per centzrm of the estimated expenditure of the heGovm- Government in that financial year, or such other percentage as mat. 10,1977 the House of Representatives may from time to time by S. 8. 15 1992 resolution approve. S. 26. Managemed 38. The Bank shall, at the request c-f the Minister and subject ofthe public debt. to such terms and conditions as may be agreed between the Minister and the Bank, act as agent for the Government in the payment of interest and principal and generally in respect of the management of the public debt of Jamaica. Power of Bank 39. Where regulations made under the Loans (Local to act as Authorities) Act provide for a Registrar in relation to registered loanstolocal stock issued pursuant to that Act, the Bank may, at the request of authorities. 37/19, the Minister perform the fbnctions of such Registrar. S. 14. Power of Bank 40. The Bank may act generally as agent for the Government toactasagent where it can do so appropriately and consistently with its for the (;ovmt, fbnctions under this Act.
41. The Minister may from time to time aRer consultation
Power of
Minister to with the Governor give to the Bank in writing such directions of givegeneral a general nature as appear to the Minister to be necessary in the directions. public interest, including without prejudice to the generality of the foregoing provisions directions to review the state of credit in any sector of the economy and either to make recommendations for improving the supply of credit or to take steps to foster the provision of credit to that sector of the economy. [The idosion of this page is authorized by L.N. 88120031

BANK OF JAMAICA 39
PART VIA. Depository of Securities
41A.41) The Bank may establish, operate or participate in, Depository a depository of securities or other instruments. of securities and other instruments. (2) For the purposes of subsection (I), the Bank ,,,,,, may- S. 3. (a) enter into agreements with depositories of securities or of other instruments and carry out transactions under the terms of those agreements as may be necessary for the settlement of transactions between members of those depositories and the members of any depository operated by the Bank; and (b) make rules &d guidelines for the operation of the depository. (3) Any depository of securities or other instruments operated by the Bank-without legislative authority before the date of commencement of the ~overnment Securities Demateri- >alization Act is hereby declared to have been validly and lafilly operated and the Bank and all officers and agents thereof are hereby indemnified from any legal action arising due to the establishment of, operation of, and participation in such depository.
PART VII. Accounts and Reports
42. The financial year of the Bank shall erid on the thirty- ~ank's
first day of December. tinancial year.
43.41) The accounts of the Bank shall be audited by Accounts auditors appointed annually by the Board with the approval of and audit. the Minister. (2) Without prejudice to the provisions of subsection (1) the Minister may at any time require the Auditor-General to examine and report on the accounts of the Bank as a whole or any aspect of the Bank's operations and the Bank shall provide the Auditor-General with all necessary and proper facilities for such an examination. .. *. . [The inclusion .of this page is authorized by L.N. 92c/2012]

BANK OF JAMAICA
I
Reports. I 44.41) The Bank shall, within three months after the end of ! each financial year, cause to be made and transmit to the I Minister- (a) a report dealing generally with the operations of the Bank during the last preceding financial year; and (b) a copy~of the annual statement of accounts of the Bank certified by the auditors. , I (2) The Minister shall -as soon as possible after their receipt- I (a) cause a copy of the report together with the annual statement of accounts and the auditors' report thereon to be laid before each House of Parliament; and 4 I (b) cause a copy of the annual statement of accounts to I be published in the Gazette; 1 3711964 S. 15. (3) The Bank shall as soon as practicable after the close I of business on the second and fourth Wednesday in each month cause to be made and published in the Gazette and transmit to I the Minister a statement showing its assets and liabilities -at the close of business on that day. Power to ,45. The Board may with the approval of the Minister make ) make by-laws. under the seal of the Bank by-laws for the good order and management of the Bank. ! I -
146. [Deleted by Act 28 of 2003, S. 2.1
Secrecy. . , 47.41) Except in so far as may be necessary for the due performance of his functions under this Act, every officer $Id servant of the Bank shall preserve and aid ypreserving secrecy with regard to all matters relating to $he affairs of .any commercial bank, or of. any customer of any such bank, that may come to his knowledge in the course of his duties; and any such ofhcer or servant who communicates any such matter to any person other than the Board or an officer [The inclusion of this page is authorized by L.N. 92?12] 1

BANK OF JAMICA 41 of the Bank authorized in that behalf by the Governor or suffers or permits any unauthorized person to have access . to any books, papers or other records relating to any comer￾cia1 bank, or to any customer of any such bank, shall be guilty of an offence and shall be liable on conviction thereof to a fine of three million dollars or to imprisonment'with or without hard 1511992 labour for a term'not exceeding two years. ' S. 28(a). 7/2005 • (2) No officer or servant of the Bank shall be S. 4. required to produce sin any court any book or document or -to divulge or communicate to any court any matter or thing coming under his notice in the performance of his duties under this Act, except on the direction of the court or in so far as may be necessary for the purpose of carrying into effect the provisions of this Act. (3) Every officer and servant of the Bank and every ,511992 auditor of the Bank- s 28 (b). (a) shall preserve and aid in preserving secrecy with regard to all matters relating to the- affairs of the . Bank that may come,to his knowledge in the course of his duties; and ' (b) shall not communicate any such matter to . any person other than a person authorized in that behalf by the Minister or the Governor. (4) Any officer, servant or auditor of the Bank who contravenes subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding three million dollars or to imprisonment for a term not exceeding two 7noos years. . , S. 4.
48. Any director, officer or auditor of the Bank who Verifying
false state- verifies any statement, account or report required to be ,,,, furnished to the Minister pursuant to this Act, or who is accountor concerned with delivering or transmitting the same to the "St. Minister, knowing the same to be false in a material 1511992 particular shall be guilty of an offence and liable- s 29(a). [The inclusion of this page is authori~al 'by L.N. 92c/2012]

Transmitting
I false state￾ment.
1811973
S.22.
1511992
1 S. 29(a).
Trial of offences.
-,
BANK OF JAU4ICA
(a) on summary conviction before a Resident Magis- I \ trate to a fine not exceeding fifty thousand dollars or or to imprisonment with or without hard labour for a term not exceeding two years; (b) on conviction before a Circuit Court to a fine or to imprisonment for a term not exceeding five years or to both such fine and imprisonment. , 49. Any person who transmits or is concerned with trans￾mitting any statement to the Bank pursuant to this Act knowing the same to be false in a material particular shall be guilty of an offence and liable- (a) on summary conviction before a Resident Magis￾trate to a fine not exceeding fifty thousand dollars or to imprisonment with or without hard labour for a term not exceeding two years; (b) on conviction before a Circuit Court to a fine or to imprisonment for a term not exceeding five years or to both such fine and imprisonment.
50. Every offence under this Act may be tried sum￾marily before a Resident Magistrate, so, however, that the
maximum penalty which may be imposed on a person summarily convicted shall be a fine of fifty thousand dollars or imprisonment with or without hard labour for a term of two years. I , Service of ,51. Every notice under this Act by the Bank may be notice. I served by registered post. Translt~onal. 52. All currency notes issued under the Currency Notes Cap. 88 1953 Edtn. Law and Jamaica coins within the meaning of the Currency, (Repealed). Coinage .and Legal Tender Law which have not been called Cap. 89 1953 ~dtn in or demonetized under either of those Laws shall be (Repealed) deemed for all purposes to be notes and coins issued by the Bank under this Act. I [The inclusion of chis page is authorized by L.N. 92d20121

BANK OF JAMAICA 43
SCHEDULE (Section 6)

1. The term of office of every director shall be specified in the Tenureof
   instrument appointing him and- office.
   1011977
   (a) for the Governor, Senior Deputy Governor and Deputy Governors s, 9 (,I. shall not exceed five years; (b) for every other director shall not exceed three years, 1511992 S. 30 (a). but any director retiring on the expiration of his term of office shall, subject to paragraph 2: be eligible for reappointment. Disqualifi- 2. A person may not be appointed or remain a director who- cation of (a) is a member of either House of Parliament; directors. 1511992 (6) is a director, officer or employee of any commercial bank or any S.30(b). specified financial institution; (c) is a member of thc Kingston and St. Andrew Corporation 1811973 or of any Parish Council. S. 24.
2. The Minister rnay appoint any person who might be appointed
   a director to act temporarily in the place of any director who is absent or unable to act. 3711964 S 16(a) 4.-(1) Any director other than the Governor may at any time resign his Res,gndt,oil, office by instrument in writing addressed to the Minister and transmitted through thc Govcrnor and from thc datc of thc rcccipt by tlic Ministcr of such instrument such director shall cease to be a director of the Bank. (2) The Governor rnay at any timc resign his officc by instrument in 3711964 writing addressed to the Minister. s. 16(b).
3. Thc Minister may tcrminatc thc appointment of any pcrson Revocation
   as Governor. Senior Deputy Governor, Deputy Governor or Director if such ofa~poillt￾person- ment 1811973 (a) bccomes of unsound mind or bccomcs pcrmancntly unable s. 24 to perform his functions by reason of ill health: 1511~2 S. 30 (c). (b) becomes bankrupt or compounds with. or suspends paymcnt to. his creditors; (c) is convicted and sentenced to a tern1 of imprisonment or to death. (4 is convictcd of any offcncc involving dishonesty:
   (e) fails to carry out any of the functions conferred or imposed on him under this Act.
4. The names of all members of the Board as first constituted and Yuhl~cation
   well' change in the membership thereof shall be published in the ofnlmbcr￾Gazette. ship. 7.-(1) The Board shall meet as often as they deem necessaxy or expedient for Procedure the due performance of their functions and of the functions of the Bank (but and meet￾not less frequently than ten times in each year) and such meetings shall ings. be held at such places. on such days and at such times as the Governor [The inclusion of this page is authorized by L.N. 11 112005]

44
1511992
S. 30 (d)( i)
1511992
S. 30(d)(ii).
Remunera￾tion of directors.
3711964
S. 16 (b).
211995
S. 7.
112004
S.8(a).
BANK OF JAMAICA determines.
(2) The Governor, or in the event of his absence or inability to act, the Senior Deputy Governor shall preside at the meetings of the Board. (3) The quorum of the Board shall be four directors: including the person presiding pursuant to sub-paragraph (2). and such person shall have a casting vote where the voting is equal. (4) The validity of any proceeding of the Board shall not be affected by any vacancy amongst the directors or by any defect in the appointment of a director.
8. There shall be paid to the Governor and the other directors such
remuneration: if any (whether by way of salaries or travelling or other allowances), as the Minister may determine.
APPENDIX (Section 22E)
Oflences in respect of which liability to conviction may be discharged by payment offxed penalty Offence - Fixed Penalty
PART A

1. Purchase of foreign currency in breach of direc￾tions given under section 22B, by an exchange
   bureau operated in a hotel ... ... $5,000.00
2. Failure to observe limits as to amount of foreign
   currency to be purchased or sold in any one trans￾action ... ... ... ... $10,000.00
3. Failure to display rates at which foreign currency
   is being purchased or sold ... ... $5,000.00
4. Failure to remit foreign currency to the Bank
   in accordance with directions ... ... $ 5,000.00
5. Selling less than the prescribed amount of gross
   purchases of foreign currency to the Bank ... $10,000.00
6. Holding more than three days' gross purchases of
   foreign currency ... ... ... $5,000.00
7. Failure to keep accounts and records in respect
   of the business of the exchange bureau separate and apart from any other business in foreign currency camed on by the operator thereof ... $5,000.00
8. Failure to issue or take receipts ... ... $5,000.00
9. Buying or selling foreign currency at a location
   other than that approved in the authorization ... $10,000.00 [The inclusion of this page is authorized by L.N. 11 1/2005]

BANK OF JAM ICA
APPENDIX, contd.
Offence -
10. Failure to display certificate of authorization ...
11. Failure to keep proper accounts or to make
returns
12. Failure to allow examination of accounts, etc.
13. Failure to alford to an authorized officer
unimpeded access for the purposc of carrying out any inspection authorized by or under the Act ...
PART B

1. Failure to observe limils as to lhe amounl of cash
   accepted for transmission out ol Jamaica ...
2. Failure to keep accounts and records in respect of
   the remittance business, separate and apart from
   any other business camed on ... ......
3. Carrying on the business of a money transfer and
   remittance agent or agency at a location other
   than that approved by the Minister ......
4. Failure to display certificate of authorization ...
5. Failure to keep proper accounts or to make
   returns ... ... ...... ...
6. Failure to allow examination of accounts and
   records ... ... ...... ...
7. Failure to allow an authorized oficer uninipcded
   access for the purpose of carrying out any inspection authorized by or under the Act ... Fixed Pendty 112004 S. 8 (b) [The inclusion of this page is authorized by L.N. 11 1/2005]