Banks and Trust Companies (Foreign Currency Position) Regulations, 2005

MINISTRY OF FINANCE

S.I. No. 21 of 2005

THE BANKS AND TRUST COMPANIES
REGULATION ACT
(CHAPTER 316)

THE BANKS AND TRUST COMPANIES
(FOREIGN CURRENCY POSITION)
REGULATIONS, 2005

The Governor of the Central Bank of The Bahamas in exercise of the powers conferred by section 24 of the Banks and Trust Companies Regulation Act, makes the following regulations –

Citation. 1. These Regulations may be cited as the Banks and Trust Companies (Foreign Currency Position) Regulations, 2005.

Interpretation. 2. In these Regulations -

Ch. 321. "Central Bank" means the Central Bank of The Bahamas established pursuant to section 3 of the Central Bank of The Bahamas Act

"licensee" means any Bank or Trust company which is incorporated in The Bahamas and which holds a licence granted under section 4 of the Act;

Ch. 316. "the Act" means the Banks and Trust Companies Regulation Act.

Foreign currency 3. The larger of the sum of net short or long positions position. in all foreign currencies, including all outstanding spot and forward foreign exchange contracts, all on and off balance sheet assets and liabilities of a licensee at the appropriate spot exchange rates, shall not exceed ten percent of the licensee's capital base.

Notification 4. On becoming aware of a contravention of regulation 3, a to Inspector. licensee shall immediately notify the Inspector of that contravention and provide him with such particulars of that contravention in such form as the Inspector shall determine.

Remedial 5. The Inspector may, by notice in writing served on a action. licensee, require the licensee to take such remedial action as he considers appropriate for the purpose of having the licensee comply with regulation 3.

Variation of 6. The Inspector may, by notice in writing served on a foreign currency licensee, vary the limit specified in regulation 3 in relation to that licensee. limit.

Fine. 7. The Governor may impose a fine not exceeding five thousand dollars where a licensee fails to comply with the provisions of these Regulations.

Made this 13th day of April, 2005.

Signed
JULIAN FRANCIS
Governor of the Central Bank of The Bahamas