The International Corporate and Trust Services Providers (Change of Name and Amendment) Act 2021

JAMAICA

No. 2 - 2021

I assent,

[L.S.]

Sgd. P.C. Allen
Governor-General.

6th day of December 2021

AN ACT to Amend the International Corporate and Trust Services Providers Act to regulate domestic trust service providers and domestic corporate service providers; to change the name of the Act to reflect the foregoing; to incorporate provisions which serve to deter the use of business operations under the Act for the purpose of money laundering, the financing of terrorism and the proliferation of weapons of mass destruction; to require service providers to observe customer due diligence requirements, maintain accurate records and systems of internal controls; and to provide for connected matters.

[24th day of December 2021]

BE IT ENACTED by The Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and House of Representatives of Jamaica, and by the authority of the same, as follows:—

1. This Act may be cited as the International Corporate and Trust Services Providers (Change of Name and Amendment) Act, 2021, Short title and construction.
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The International Corporate and Trust Services Providers [No. ] 9 (Change of Name and Amendment) Act, 2021

manager or person aforesaid;

(h) any company or firm of which any of the persons referred to in sub- paragraph (g) is a director, manager or has control.

(3) For the purposes of subsections (1) and (2), a company is a holding company of any company that is its immediate, intermediate or ultimate subsidiary, whether the holding company holds that other company’s shares on trust or is the beneficial owner of such shares.”.

5. The principal Act is amended by inserting next after section 2, the
   following—

“Application of Act.
2A. This Act applies to an individual, a firm or a company that provides a trust or corporate service as a business.”.

Insertion of new section
2A in principal Act.

6. Section 3 of the principal Act is amended—
   (a) by repealing paragraphs (a) and (b);
   (b) by deleting paragraph (c) and substituting therefor the following—

“(c) protect the interests of entities and service providers through the licensing and supervision of service providers;”; and

Amendment of section 3 of principal
Act.

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16 [No. ] The International Corporate and Trust Services Providers (Change of Name and Amendment) Act, 2021

Amendment of heading to Part IV of principal Act.

20. The heading to Part IV of the principal Act is amended by deleting the word “International”.

Amendment of section 14 of principal Act.

21. Section 14 of the principal Act is amended—
    (a) in the marginal note by deleting the word “international”; (b) in the chapeau, by deleting the words “A licensed international corporate service provider” and substituting therefor the words “A licensed corporate service provider”; and (c) in paragraph (f) by deleting the words “an international corporate service” and substituting therefor the words “a corporate service”.

Amendment of section 15 of principal Act.

22. Section 15 of the principal Act is amended—
    (a) in the marginal note, by deleting the word “international”; (b) in the chapeau to subsection (1)— (i) by deleting the words “A licensed international trust service provider” and substituting therefor the words “A licensed trust service provider”; and (ii) by deleting the words “an international trust” and substituting therefor the words “a trust”; (c) in subsection (1)(e) by deleting the words “an international trust service” and substituting therefor the words “A trust service”; and (d) by inserting next after subsection (2) the following— “(3) Superannuation funds and retirement schemes are excluded from the provisions of this Act.”

Amendment of section 16 of principal Act.

23. Section 16 of the principal Act is amended—
    (a) by deleting the marginal note and substituting therefor the following— “Records and Register to be kept by service provider.”;

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(b) by deleting the chapeau to subsection (1) and substituting therefor the following— “(1) A licensed service provider shall keep or cause to be kept, at its principal office, accurate records in respect of business as a service provider, including constitutive documents, accounting records, a register on each client with prescribed particulars of information and other records on clients, that will—”; (c) by deleting the word “international” wherever it appears; (d) by inserting next after subsection (1) the following as subsections (1A), (1B) and (1C)— “(1A) Where the records of a licensed service provider are kept at a place, other than at the principal office of that service provider (provided that, that other place is in Jamaica), the licensed service provider shall forthwith, notify the Commission of the location of those records. (1B) A licensed trust service provider shall keep or cause to be kept adequate, accurate and current records in respect of the identity of a settlor, a trustee, a protector (if any), an enforcer, a beneficiary or class of beneficiaries and any other person who has ultimate effective control of a trust for which the licensed trust service provider is providing its services under this Act. (1C) Where the licensed service provider is a company, a firm or a trust, that licensed service provider shall keep and maintain, an up-to-date register, in which shall be recorded the following particulars— (a) the name of the company or firm and where the company is a part of a group, the names of the companies within the group;

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(b) the address of the registered office of the company or the principal office of the firm; (c) the names and addresses of the directors of the company or firm; (d) the names and addresses of the shareholders of the company or firm, as the case may be; (e) the number of shares held by each shareholder of the company or firm, as the case may be; and (f) the category of shares issued by the company or firm and the nature of the associated voting rights; (e) in subsection (3) by inserting immediately after the word “have” the word “been”; (f) by inserting next after subsection (3), as amended, the following as subsection (3A)— “(3A) A licensee shall ensure that the records kept in accordance with subsections (1B) and (1C) are retained for at least seven years.”.

Amendment of section 17 of principal Act.

24. Section 17 of the principal Act is amended by deleting subsection (1) and substituting therefor the following—
    “(1) The accounts of every licensee shall be audited annually by an independent auditor who is registered as a public accountant under the Public Accountancy Act and in accordance with generally accepted accounting principles promulgated by the Institute of Chartered Accountants of Jamaica, from time to time.”.

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25. The principal Act is amended by inserting next after section 17, the following as section 17A—
    Insertion of new section 17A in principal Act.

“Principal representative.
17A.—(1) A principal representative who is appointed by a licensee in accordance with section 6(4) shall— (a) in the case of a licensee that is a company, be an officer of the company; (b) in the case of a licensee that is a firm or other entity, be an officer of the firm or other entity, as the case may be; and (c) in the case of a licensee that is a sole proprietorship, be the sole proprietor. (2) Every person appointed as a principal representative of a licensee shall, within thirty days after such appointment, apply to the Commission, in the form and manner as may be determined by the Commission and pay the fee specified in the First Schedule, to be registered as the principal representative of the licensee. (3) A principal representative of a licensee shall, on an annual basis, pay the fee specified in the First Schedule, for the continued validity of his registration as the principal representative of the licensee. (4) The principal representative shall— (a) do all acts, matters and things as are required for the licensee to be in compliance with the provisions of this Act and any regulations made under this Act and any guidelines issued by the Commission; (b) file reports to the Commission, at such times as may be determined by the Commission, relating to the compliance of

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the licensee with the provisions of this Act and any regulations made under this Act and any guidelines issued by the Commission; and (c) pay all fees required to be paid by the licensee under this Act or any regulations made under this Act. (5) Where the Commission is satisfied that a principal representative has failed to carry out the duties of the principal representative under this Act, the Commission may— (a) issue a warning to the principal representative; (b) direct the principal representative to forthwith, or within such other period as may be specified by the Commission, comply with the provisions of this Act; or (c) cancel the registration of the principal representative. (6) The Commission shall notify the licensee and the principal representative, in writing, of any action taken under subsection (5). (7) Upon receipt of a notice under subsection (6) that the Commission has cancelled the registration of a principal representative, the licensee shall terminate the appointment of that person as principal representative and appoint a new principal representative, within seven days of the date of the notice from the Commission. (8) Where a principal representative ceases to hold the position as principal representative, the licensee shall, within seven days of the cessation, notify the Commission, in writing.