Banking (Amendment) Act, 2018

BANKING (AMENDMENT) BILL, 2018
[TERRITORY]
NO. [ ] OF [ ]
AN ACT to amend the Banking Act, [2015], [No. ] of [ ] [Gazetted……………… ] [BE IT ENACTED by the Queen’s Most Excellent Majesty, by and with the advice and consent of the House of Assembly [and the Senate of [Territory], and by the authority of same, as follows:]

Short Title
This Act may be cited as the Banking (Amendment) Act, 2018.
Interpretation
In this Act, “principal Act” means the Banking Act, [No. of 2015].
Amendment of section 2 - Interpretation
Section 2 of the principal Act is amended—
(a) in subsection (1):
(i) in the definition of “affiliate” by deleting paragraph (e) and substituting the following paragraph:
“(e) a company which:
(i) has the same beneficial owner; or
(ii) shares common management, and has any interlinked business with F,”; (ii) in the definition of “banking business” by deleting “frequent” in sub-paragraph (a)(ii);

(iii) by inserting immediately after the definition of “borrower group” the following definition:
““branch” means “any office or place of business of a licensed financial institution, other than the principal office where a licensed financial institution carries on any banking business and which facilitates the - (a) acceptance of deposits and other repayable funds; or (b) issuing and administering means of payment including credit cards, travellers’ cheques, bankers’ drafts, and electronic money, but does not include automatic banking machines and bureaus de exchange”; (iv) by inserting immediately after the definition of “business of a financial nature” the following definition:
“CARICOM national” means a national of a member state of the Caribbean Community including the CARICOM Single Market and Economy established by
Article 2 of the Revised Treaty of Chaguaramas signed at Nassau, The Bahamas
on 5th July 2001”;
(v) by deleting the definition of “capital base”; (vi) in the definition of “exposure”, in paragraph (a), by inserting “or any other asset recognized by the Central Bank as an exposure” after the word “acceptance”; (vii) in the definition of “financial group” by deleting “conduct” and substituting “carry on”; (viii) in the definition of “large exposure” by deleting “the capital base” and substituting “tier 1 capital”;

(ix) in the definition of “licensed financial holding company” by inserting immediately after “Act” the following:
“and includes a former licensed financial holding company”; (x) by deleting the definition of “licensed financial institution” and substituting the following definition:
““licensed financial institution” means a person or incorporated entity licensed to carry on banking business and includes a former licensed financial institution”; (xi) in paragraph (a) of the definition of “officer” by inserting “branch manager, country manager” after “vice-president”; (xii) in paragraph (b) of the definition of “officer” by deleting “by-laws” and substituting “bye-laws”; (xiii) by inserting immediately after the definition of “officer” the following definition:
““outsource” means to enter into a contractual arrangement with a third-party service provider, where the service provider manages functions, business activities, processes or products that are, or could be undertaken by the licensed financial institution”; (xiv) by deleting the definition of “place of business” and substituting the following definition:
““place of business” means a physical location, site, structure, or other similar facility, through which a licensed financial institution or licensed financial holding company transacts its affairs or carries on business”;

(xv) by deleting the definition of “relative” and substituting the following definition:
““relative” means a spouse, son, daughter, stepson, stepdaughter, adopted son, adopted daughter, brother, sister, father or mother”; (xvi) by inserting immediately after the definition of “significant shareholder” the following definition:
““spouse” includes:
(a) a woman who, for a period of not less than five years, has cohabited with a man as if she were in law his wife; and (b) a man who, for a period of not less than five years, has cohabited with a woman as if he were in law her husband”; (xvii) by inserting immediately after the definition of “subsidiary” the following definition:
““tier 1 capital” means the total of:
(a) paid-up share capital, statutory reserve fund, share premium account, retained earnings and any other capital account approved by the Central Bank, in the case of local licensed financial institutions, or (b) such other capital account or similar measure as approved by the Central Bank, in the case of a licensed branch of a foreign financial institution, less any amount by which that total has been impaired in either case”; (b) in subsection (2):
(i) in sub-paragraph (a)(iv) by deleting “an employee or” and substituting “a business”; and (ii) in sub-paragraph (b)(iii) by deleting “or employee”;

(c) by inserting the following subsection:
“(3) In this Act, for the purposes of the payment of licence fees, a reference to a local financial institution includes a foreign financial institution that is a CARICOM national.”
4. Amendment of section 3 – Requirement for Licence
Section 3 of the principal Act is amended in paragraph (5)(a) by deleting “financial institution”
and substituting “corporation”.
5. Amendment of section 4 - Examination of books of persons carrying on banking
business without a licence
Section 4 of the principal Act is amended—
(a) in subsection (2), by deleting “conduct” and substituting “carrying on”; and (b) by deleting subsection (4) and substituting the following subsection:
“A police officer who accompanies an officer in whose name an order has been granted under subsection (2) may in the case of resistance break open a door and remove an impediment or obstruction to the entry, search or seizure.”
6. Amendment of section 5 – Appointment of receiver for failure to hold licence
Section 5 of the principal Act is deleted and the following section is substituted -
“Notwithstanding subsection 3(5), if a person is found under subsection 4(2) to be carrying on banking business without a licence, the Central Bank may appoint a receiver for the person under paragraph 138(1)(b).”

Amendment of section 7 - Application for licence
Section 7 of the principal Act is amended—
(a) in paragraph (1)(e) by deleting “holding company” and substituting “group”; and (b) in sub-section (2), by inserting “or subsidiary” after “branch”.
Amendment of section 14 - Revocation of licence
Section 14 of the principal Act is amended in paragraph (1)(j) by deleting “conduct” and
substituting “carry on”.
Amendment of section 19 - Authorisation of location and approval of new business
premises
Section 19 of the principal Act is amended in subsections (7), (8) and (9) by deleting “electronic
banking system” and substituting “automatic banking machine”.
Amendment of section 42 – Revocation of licence of financial holding company
Section 42 of the principal Act is amended in paragraph (1)(f) by deleting “conduct” and
substituting “carry on”.
Amendment of Part V – FINANCIAL REQUIREMENTS AND LIMITATIONS
Part V is amended by inserting immediately before section 44, the following section-
“44A. Definition of specified assets
In this Part “specified assets” means freely transferable assets free from any charge, lien or encumbrance and includes:
(a) notes and coins which are legal tender in the Currency Union and such foreign notes and coins as the Central Bank may specify;

(b) balances at the Central Bank;
(c) net balances at licensed financial institutions in the Currency Union but where the balances are negative they will be subtracted from the specified assets; (d) treasury bills and other securities issued or guaranteed by a Participating Government and securities issued by a statutory corporation wholly owned by a Participating Government and approved by the Central Bank; (e) bills of exchange and promissory notes eligible for rediscount by the Central Bank and warehouse warrants or their equivalent securing possession of goods against which the Central Bank may grant advances, within the limits and in accordance with the evaluation fixed by the Central Bank; (f) net balances at licensed financial institutions in the monetary areas as the Central Bank may approve and the Central Bank may provide for the treatment to be accorded the balance or any portion in respect of the head office of a licensed financial institution organised abroad, and where any balances are negative they will be subtracted from specified assets; (g) money at call in monetary areas approved by the Central Bank under paragraph (f), bills of exchange bearing at least two good signatures drawn on and payable at any place in the approved monetary areas, and treasury bills issued by the government of a country in any approved monetary areas and maturing within one hundred and eighty days.”
12. Amendment of section 44 – Minimum paid-up or assigned capital
Section 44 of the principal Act is amended by—
(a) deleting “[Territory]” in subsections (1) and (2) and paragraph (3)(a) and substituting “the Currency Union”; and

(b) inserting after subsection (4) the following subsection:
“(5) The Central Bank may approve the holding of assigned capital in the form of specified assets.”
13. Amendment of section 45 – Maintenance of reserve fund
Section 45 of the principal Act is amended by—
(a) deleting subsection (2) and substituting the following subsection:
“(2) A licensed financial institution or licensed financial holding company shall not declare, credit or pay any dividend or make any other transfer from profits if the declaration, credit, payment or transfer would result in:
(a) an impairment of the capital required under section 44; (b) inadequate and inappropriate forms of liquidity contrary to section 48;or (c) negative retained earnings or accumulated deficit”; and (b) inserting after subsection (2) the following subsections:
“(3) Subject to subsections (4) and (5) a licensed financial institution or licensed financial holding company shall not, except with prior written approval of the Central Bank, declare, credit or pay any dividend or make any other transfer from profits if the licensed financial institution or licensed financial holding company realises a net loss for that financial year. (4) A licensed financial institution or licensed financial holding company shall seek the approval of the Central Bank under subsection (3) at least fifteen days before the intended declaration, credit, payment or transfer. (5) The Central Bank may grant approval under subsection (3) on terms and conditions the Central Bank deems fit.”.

Amendment of section 49 – Limit on exposures
Section 49 of the principal Act is amended by deleting “capital base” in subsections (1) and (6)
and substituting “tier 1 capital”.
Amendment of section 50 - Restrictions on exposures to related parties
Section 50 of the principal Act is amended in subsection (4) by deleting “the capital base” and
substituting “tier 1 capital”.
Amendment of section 51 - Restrictions on lending to employees
Section 51 is amended by—
(a) deleting subsection (3) and substituting the following subsection:
“(3) A licensed financial institution shall not, except with the prior written approval of the Central Bank, grant or permit to be outstanding to its employees any unsecured advances or credit facilities which in the aggregate amount for any one employee exceeds the annual remuneration of such employee.”; and (b) deleting subsection (4) and substituting the following subsection:
“(4) The Central Bank may grant approval under subsection (3) on terms and conditions the Central Bank deems fit.”
Amendment of section 53 - Prohibition on engaging or investing in trade and
outsourcing
Section 53 of the principal Act is amended—
(a) in subsection (2) by deleting “conduct” and substituting “carry on”; and (b) by deleting “the capital base” wherever it appears and substituting “tier 1 capital”.
Amendment of section 54 - Financial subsidiaries permitted
Section 54 of the principal Act is amended by—
(a) inserting after subsection (1) the following subsection:
“(1A) A licensed financial institution shall not own a subsidiary company that does not engage solely in permissible activities.” (b) inserting after subsection (4) the following subsection:
“(5) For the purposes of this section “permissible activities” includes business of a financial nature and any other activities that the Central Bank may determine”; and (c) deleting “the capital base” wherever it appears and substituting “tier 1 capital”.
Amendment of section 55 - Restrictions on investments in real property
Section 55 of the principal Act is amended by—
(a) deleting subsection (1) and substituting the following subsection:
“(1) A licensed financial institution shall not directly or indirectly, except with the prior approval of the Central Bank, purchase, acquire or lease real or immovable property unless it is necessary for the purpose of carrying on its business as a licensed financial institution including provision for future expansion and housing its officers and employees.”; (b) deleting subsection (2) and substituting the following subsection:
“(2) If a licensed financial institution holds any real or immovable property held or leased by it before the commencement of this Act for purposes other than for carrying on its business as a licensed financial institution, the licensed financial institution shall comply with this section within a period of three years or a further period as may be determined by the Central Bank.”; and

(c) inserting the following subsection :
“(4) The Central Bank may grant approval to a licensed financial institution under subsection (1) on terms and conditions the Central Bank may deem fit.”
20. Amendment of section 57 – Maintenance of specified assets
Section 57 is amended by repealing subsection (7).
21. Amendment of section 60 - Appointment of external auditor
Section 60 of the principal Act is amended—
(a) in subsection (2) by:
(i) deleting “six” and substituting “nine”; and (ii) deleting “three” and substituting “six”; and (b) by deleting subsection (3) and substituting the following subsection:
“(3) A person who has served the maximum period under section 60(2) may not be re-appointed as the external auditor until after a period of five years has elapsed since the last appointment.”
22. Amendment of section 69 - Audited financial statements
Section 69 of the principal Act is amended by deleting subsection (5) and substituting the
following subsection-
“(5) Subject to section 91, if a licensed financial institution or a licensed financial holding company fails to comply with the requirements of:
(a) subsection (1) within six months of the end of its financial year; or (b) subsections (2) to (4), it is liable to a penalty of fifty thousand dollars and three thousand dollars for every day of the default.”

Amendment of section 80 - Failure to comply with remedial actions
Section 80 of the principal Act is deleted and the following section is substituted-
“(80) (1) A licensed financial institution or an affiliate of a licensed financial institution that fails to comply with a requirement or prohibition the Central Bank imposes on the licensed financial institution under this
Part, is liable to a penalty of one hundred thousand dollars and a further
penalty of ten thousand dollars for each day of the default.
(2) A director, officer, employee or significant shareholder of a licensed financial institution who fails to comply with a requirement or prohibition the Central Bank imposes on the director, officer, employee or significant shareholder under this Part, is liable to a penalty of fifty thousand dollars and to a further penalty of five thousand dollars for each day of the default.”
Amendment of section 88 - Notification of removal of directors and officers
Section 88 of the principal Act is deleted and the following section is substituted-
“88 (1) If an action under this Part requires the removal of a director or officer of a licensed financial institution, the Central Bank shall serve on the licensed financial institution and on the director or officer concerned written notice of the intended removal. (2) The licensed financial institution and the director or officer served with a notice under subsection (1) may, within fourteen days commencing from the day after which the notice is served, make written representations and a request for face to face representation to the Central Bank.

(3) If the Central Bank receives a request for a face to face representation under subsection (2), the face to face representation shall take place within fourteen days of receipt of the request. (4) The Central Bank shall take the representations into account in deciding whether to remove the director or officer. (5) If the Central Bank is of the opinion that the public interest may be prejudiced by the director or officer continuing to exercise the powers or carry out the duties and functions of that office during the period for making representations specified in subsections (2) and (3), the Central Bank may make an order suspending the director or officer and the suspension shall not extend beyond the period for making representations. (6) If the Central Bank decides to remove the director or officer, the Central Bank shall, within seven days of the written or face to face representation notify the director or officer and the licensed financial institution of the removal order made under this Part. (7) The director or officer ceases to hold office on the date the removal order is made or a later date specified in the removal order. (8) If the director, officer or licensed financial institution is aggrieved by the decision of the Central Bank under subsection (6), the director, officer or the licensed financial institution may, within fourteen days of the decision, appeal to the High Court but the appeal shall not operate as a stay of the decision under this section unless the High Court directs otherwise.

Amendment of section 89 - Submission of returns and production of information
as required by the Central Bank
Section 89 of the principal Act is amended in paragraph (3)(c) by deleting “the capital base” and
substituting “tier 1 capital”.
Amendment of section 92 - Disclosure of basis for charges and fees
Section 92 of the principal Act is amended by inserting “to the Central Bank” after “made”.
Amendment of section 97 - Minimum criteria for determining whether a person
is fit and proper
Section 97 of the principal Act is amended in subsection (2) by inserting the following paragraph-
“(i) whether the person is a director or officer of, or directly or indirectly concerned in the management of a corporation locally or abroad, that is compounding with or suspending payments to its creditors.”
Amendment of section 101 - Notification to Central Bank of appointment of
officers and directors
Section 101 of the principal Act is deleted and the following section is substituted-
“101. (1) A licensed financial institution or licensed financial holding company shall give written notice to the Central Bank of the proposed appointment or election of a director or officer at least sixty days prior to the appointment or election of the director or officer. (2) On receipt of the notice under subsection (1) the Central Bank shall conduct an investigation to determine whether the proposed director or officer satisfies the fit and proper criteria in section 97.

(3) On completion of its investigation, the Central Bank shall inform the licensed financial institution or licensed financial holding company in writing that:
(a) the requirements of section 97 have been satisfied and it has no objections to the proposed appointment or election of the director or officer; or (b) the requirements of section 97 have not been satisfied, the manner in which the requirements have not been met and that it objects to the appointment. (4) Despite subsection (1), if prior notification of the appointment or election of a director or officer of a licensed financial institution or licensed financial holding company is not possible, the licensed financial institution or licensed financial holding company:
(a) may appoint or elect the director or officer, conditional on the Central Bank’s confirmation under subsection (3) that the director or officer satisfies the requirements of section 97; and (b) shall within five days of the appointment or election give written notice to the Central Bank of the conditional appointment or election of the director or officer specifying the reasons for the appointment or election of the director or officer without prior approval. (5) If the Central Bank receives a notice under subsection (4) and is not satisfied that a director or officer meets the requirements of section 97, the Central Bank:
(a) shall direct the removal of the director or officer; and (b) may notify in writing the person whose removal is required by serving on the person a copy of the direction under paragraph (a).”

Amendment of section 103 - Removal and disqualification of director or officer
Section 103 of the principal Act is amended—
(a) in paragraph (1)(a) by deleting “two-thirds of”; (b) by deleting subsection (2) and substituting the following subsection:
“(2) Subject to subsection (2A) and prudential standards issued by the Central Bank, a person who:
(a) has been declared bankrupt;
(b) has been sentenced for an offence involving, a term of imprisonment exceeding six months or sentenced to imprisonment in default of the payment of a fine; (c) has been a director or officer of a company which has been wound up by a court or has been placed in receivership; (d) has been a director or officer of, or directly or indirectly concerned in the management of a former licensed financial institution or body corporate locally or abroad, the licence of which has been revoked shall not, without the prior approval of the Central Bank, act or continue to act as a director or officer of, or be directly or indirectly concerned in any way in the management of any licensed financial institution or licensed financial holding company;” and (c) by inserting the following subsection:
“(2A) Paragraph (2)(d) does not apply if the revocation of the licence was due to:
(a) its amalgamation with another licensed financial institution or licensed financial holding company or other company; or (b) its voluntary winding up.”
Amendment of section 104 - Right to make representation
Section 104 of the Act is deleted and the following section is substituted-
“104. (1) A licensed financial institution or licensed financial holding company to which a direction is given and a person who is served a copy of the direction under subsection 101(5) or subsection 103(4) may, within fourteen days commencing from the day after which the direction is given, make written representations and a request for a face to face representation to the Central Bank. (2) If the Central Bank receives a request for a face to face representation under subsection (1), the face to face representation shall take place within fourteen days of receipt of the request. (3) The Central Bank shall take the representations into account in deciding whether to confirm the direction.”
Amendment of section 105 - Notice of confirmed removal
Section 105 of the principal Act is deleted and the following section is substituted-
“105. (1) If the Central Bank decides to confirm the direction it shall, with seven days of the written or face to face representation as the case may be, serve written notice of the confirmation on the licensed financial institution or the licensed financial holding company and the person whose removal is required. (2) If the licensed financial institution, the licensed financial holding company or the person whose removal is required is aggrieved by the decision of the Central Bank under subsection (1), the licensed financial institution, the licensed financial holding company or the person whose removal is required may, within fourteen days of the decision, appeal to the High Court, but the appeal shall not operate as a stay of the decision under this section unless the High Court directs otherwise.”
Amendment of section 107 - Effective date of removal
Section 107 of the principal Act is amended by deleting “subsection (2)” and substituting
“subsection (5)”.
Amendment of section 108 - Failure to comply with a direction
Section 108 of the principal Act is amended by deleting “subsection (2)” and substituting
“subsection (5)”.
Amendment of section 109 - Failure to comply with section 103
Section 109 of the principal Act is deleted and the following section is substituted-
“109(1) A licensed financial institution which fails to comply with section 103 is liable to a penalty of one hundred thousand dollars and ten thousand dollars for each day of the default. (2) A director or officer of a licensed financial institution who fails to comply with section 103 is liable to a penalty of fifty thousand dollars and five thousand dollars for each day of the default.”
Amendment of section 131 - Capital increase by existing shareholders
Section 131 of the principal Act is amended in paragraph (1)(b) by deleting “three” and
substituting “ten”.
Amendment of section 137 - Termination of official administration
Section 137 of the principal Act is amended by deleting paragraph (2)(b) and substituting the
following paragraph-
“(b) the licensed financial institution or licensed financial holding company cannot be rehabilitated and the Central Bank issues a decision to commence receivership and liquidation proceedings under Part X.”
Amendment of section 138 - Grounds of receivership
Section 138 of the principal Act is amended by deleting subsection (1) and substituting the
following subsection-
“(1) The Central Bank may appoint a receiver for:
(a) a licensed financial institution or licensed financial holding company if:
(i) it is insolvent;
(ii) it is not viable;
(iii) its capital is impaired or its condition is otherwise unsound; (iv) it has experienced substantial dissipation of assets or earnings due to any of the grounds for action by the Central Bank under subsection 75(1); (v) it or its directors, officers, employees, or significant shareholders wilfully violate or fail to comply with an order or direction of the Central Bank under sections 75 to 87; (vi) its business is being conducted in an unlawful or imprudent manner; (vii) the continuation of its activities is detrimental to the interests of its depositors; (viii) it conceals or refuses to submit any of its records or its operations for examination as provided for in section 74, or has otherwise obstructed such examination; (ix) its licence has been revoked in accordance with sections 14 or 76; (x) official administration is terminated pursuant to paragraph 137(2)(b); (xi) it is a bridge financial institution and its designation as a bridge financial institution terminates pursuant to sub-paragraph 186(3)(a) or the Central Bank initiates receivership pursuant to subsection 186(5); or

(b) a person who is found under subsection 4(2) to be carrying on banking business without a licence.”
38. Insertion of Section 138A
The principal Act is amended by inserting the following section- “Receivership and compulsory liquidation in respect of a person under section 138(1)(b) “138A The provisions of subsection 138(2) and section 139 to section 157 shall apply to a person under paragraph 138(1)(b) with the necessary modifications .”
39. Amendment of section 140 - Commencement and notice of receivership
Section 140 of the principal Act is amended—
(a) in subsection (1), by deleting “and revocation of licence”. (b) in subsection (3), by deleting “revocation of the licence and”; and (c) by deleting subsection (4) and substituting the following subsection:
“(4) The notice shall also specify that:
(a) authorisations of persons to engage the financial responsibility of the licensed financial institution or licensed financial holding company have been cancelled; and (b) persons who previously had authorisation to give instructions on behalf of the licensed financial institution or licensed financial holding company with respect to payment or transfer of the licensed financial institution’s or licensed financial holding company’s assets or assets managed by the licensed

financial institution or licensed financial holding company are no longer so authorised.”
40. Amendment of section 147 - Avoidance of pre-receivership transfers
Section 147 of the principal Act is amended in paragraph (1)(g) by deleting “one hundred” and
substituting “two hundred”.
41. Amendment of section 168 - Report, publication and disposal of abandoned
property
Section 168 of the principal Act is amended in subsection (1) by deleting “ninety days” and
substituting “three months”.
42. Amendment of section 169 - Abandoned property to vest in the [Crown][State]
Section 169 of the principal Act is deleted and the following section is substituted-
“(1) Any abandoned property paid into the custody of the Central Bank under subsection 168(1) shall vest in the [Crown]/[State] fifteen years from the date on which it was paid into the custody of the Central Bank. (2) Any abandoned property paid into the custody of the Central Bank prior to the commencement of this Act shall vest in the [Crown]/[State] fifteen years from the date of commencement of this Act.”
43. Amendment of section 174 - Failure to file report or to pay property
Section 174 of the principal Act is deleted and the following section is substituted-
“174. A licensed financial institution or licensed financial holding company which fails to comply with subsections 168(1) and 168(4) and subsection 170(2) is liable to a penalty of five thousand dollars and for a further penalty of one thousand dollars for each day of default.”

Amendment of section 178 – Secrecy of information
Section 178 is amended by deleting subparagraph (2)(b) and substituting the following
paragraph-
“(b) a licensed financial institution or a director, officer, secretary, employee, agent, auditor, receiver, official administrator or official liquidator of the licensed financial institution, from providing access to confidential information of the licensed financial institution that is necessary to conduct due diligence in connection with a potential acquisition of assets and liabilities of the licensed financial institution, whether through direct transfer or through a merger or similar corporate transaction.”
Amendment of section 180 - Administrative penalties to be paid to the credit of
Central Bank
Section 180 of the Act is amended by deleting subsection (1) and substituting the following
subsection-
“(1) The penalties imposed under sections 9(3), 19(9), 19(10), 44(4), 56(2), 57(8), 68, 69(5), 80, 96, 109 and 174 shall be paid to the Central Bank.”
Amendment of section 186 – Bridge financial institutions and asset
management vehicles
Section 186 of the principal Act is deleted and the following section is substituted-
“(1) A Participating Government may establish a bridge financial institution for the purpose of acquiring and managing the assets and liabilities of a licensed financial institution that is subject to official administration or receivership under Part IX or Part X for a period of up to twelve months. (2) The Central Bank may grant an extension of the period referred to in subsection (1) for up to four consecutive periods of twelve months each.

(3) The designation of a licensed financial institution as a bridge financial institution shall terminate if:
(a) the period under subsection (1) and any subsequent extensions under subsection (2) expire; (b) the bridge financial institution:
(i) is sold to another person, or licensed financial institution or licensed financial holding company, that is not a bridge financial institution; or (ii) amalgamates with another licensed financial institution that is not a bridge financial institution; or (c) satisfies the capital requirements of sections 44 and 46. (4) Where the designation of a licensed financial institution as a bridge financial institution terminates pursuant to subparagraph (3)(a) the bridge financial institution shall be placed into receivership and liquidated. (5) The Central Bank may initiate receivership of a bridge financial institution in accordance with Part X, prior to the expiration period identified in subparagraph (3)(a). (6) A bridge financial institution established under subsection (1) shall be licensed under this Act and shall be subject to all of the provisions of this Act, except the capital requirements of sections 44 and 46. (7) A Participating Government may establish an asset management company for the purpose of acquiring, managing, and disposing of problem assets of a financial institution pursuant to Part IX or Part X.”

Amendment of section 192 – Repeal and Savings
Section 192 is amended in paragraph 2(a) by inserting “or continued in force” after “made”.
Amendment of Schedule I
Schedule I is deleted and the following schedule is substituted-
“SCHEDULE I
Fees for Licensed Financial Institution
Sections 7(1), 8(5), 9(1), 36(1), 38(2)
Description Non Refundable
Application Fee
Initial
Licence
Fee
Annual
Licence
Fee
Branch - Foreign Financial Institution $20 000 $120 000 $120 000 Local Licensed Financial Institution $20 000 $80 000 $80 000 Licensed Financial Holding Company - Foreign $20 000 $60 000 $60 000 Licensed Financial Holding Company - Local $20 000 $40 000 $40 000 Branch – Local Licensed Financial Institution - - $20 000 Additional Branch – Foreign Financial Institution

- $30 000
  ”

Amendment of Schedule III
Schedule III of the principal Act is deleted and the following schedule is substituted-
“SCHEDULE III
Section 181
Offences in respect of which liability to conviction may be discharged by payment of a fixed penalty Offence Section Fixed penalty Carrying on banking business without a licence 3(5) $250 000 Refusal to make relevant documents available for examination 4(5) $2 500 Use of restricted words, names and practices 16(5) $125 000 Failure to disclose transfer 31(1) $1 000 Failure to disclose acquisition of interest 31(2) $2 500 Failure to disclose and allow access to books and records 74(3) $25 000 Providing information that is false in any material particular 74(4) $25 000 Restriction on advertising likely to mislead the public 93(2) $25 000 Failure to declare related interest 110 $5000 Deceiving statements and obstruction of audit or authorised examination 111 $15 000 Failure of management to comply with the law 112 $7 500 Failure to assist the official administrator 129(5) $7 500 Interference with receivers access to or control over office, books of accounts and other records 145(4) $7 500 “ Passed by the National Assembly this day of 2018.

Banking (Amendment) Act, 2018

Lineage: In force

Similar documents from other regulators