Banking (Amendment) Act 1993

Link to law: http://laws.gov.ag/acts/1993/a1993-21.pdf

No. 21 of 1993. The Banking (Amendment) Act, 1993. 1 ANTIGUA
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BARBUDA

I Assent,

B. T. Carrott,
Governor-General's Deputy.

26th May, 1993.

ANTIGUA AND BARBUDA

No. 21 of 1993.

AN ACT to amend the Banking Act, 1991 (No. 17 of 1991).

[ 10th June, 1993 1

ENACTED by the Parliament of Antigua and Barbuda as
follows:

1. This Act may be cited as the Banking (Amendment) Act, short title.
1993. (No. 17 of 1991)

2. Section 2 of the Banking Act, 1991 (hereinafter referred to section 2 of ~ c t
as the principal Act) is amended - NO. 17 of 1991

amended.

(a) by repealing the definition of "banking business"
and substituting the following:

""banking business" means -

(i) the business of receiving funds
through the acceptance of monetary
deposits which are repayable on
demand or after notice or any simi-
lar operation;

(ii) the business of receiving funds
through the sale or placement of
bonds, certificates, notes or other
securities;

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(iii) the use of such funds, either in
whole or in part, for loans or invest-
ment for the risk of the customer;
and

(iv) any other activity recognised by the
Central Bank as banking practice
and which a financial institution
may additionally be authorised to
do;"; and

(b) in the definition of the word "unsecured" by
inserting after the word "facilities" occurring in
the third line of following:

"against security, any part of such advances
and credit facilities.".

Section 3 of ~ c t 3. Section 3 of the principal Act is repealed and replaced by
No. 17 of 1991 the following:
repealed and
replaced.

"Requirement of 3. (1) A person shall not carry on banking
Licence. business in Antigua and Barbuda without a

licence granted by the Minister.

(2) A bank which, at the commencement of
this Act, holds a valid licence to carry on
banking business in Antigua and Barbuda
shall be deemed to have been granted a li-
cence under section 4.

(3) Notwithstanding the provisions of sub-
section (2) the Minister shall within such
period of the commencement of this Act, as
the Minister, after consultation with the Cen-
tral Bank, may determine, issue to a bank a
new licence certificate under this Act.

(4) Notwithstanding the provisions of sub-
section (I), the Minister, on the recommenda-
tion of the Central Bank shall grant a provi-
sional licence, with effect from the Com-
mencement of this Act, to aperson, other than
a bank, who is carrying on banking business in
Antigua and Barbuda.

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(5) A person, who has been granted a
provisional licence under this section, shall,
within one hundred and twenty days from the
date of the grant of the provisional licence,
apply for a licence under the provisions of
section 4.

(6) If a person fails to apply for a licence
within the period specified in subsection (5)
the provisional licence granted to that person
shall be deemed to have been revoked.

(7) Any person intending to carry on bank-
ing business in Antigua and Barbuda, shall
before commencing such business, apply for
a licence under the provisions of section 4.

@)-Any person who contravenes the provi-
sions of this section commits an offence and
is liable on summary conviction to a fine of
one hundred thousand dollars or to imprison-
ment for a term of five years or to both such
fine and imprisonment; and in the case of a
continuing offence to a further penalty of one
thousand dollars for each day on which the
offence is continuedafterconviction thereof.".

4. Section 4 of the principal Act is amended by inserting after Section 4 of A C ~
subsection (5) the following subsection - NO. 17 of 1991

amended.

"(6) The Minister may, after consultation with the Central
Bank, and by Order published in the Gazette, amend
Schedule 1 .".

5. Section 5 of the principal Act is repealed and replaced by Section 5 of A C ~
the following: NO. 17 of 1991

repealed and
replaced.

"Restriction on 5. (1) No person other than a licensed
use of words financial institution shall. except with the
"Bank", "Financial written consent of the Minister and after
institution" or
their derivatives. consultation with the Central Bank -

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(a) use the words "bank, "financial
institution", "savings" and "loan",
or any of their derivatives or any
mutations thereof in any language,
or any other word indicated the car-
rying on of banking business, in the
name, description or title under
which such person is carrying on
business in Antigua and Barbuda; or
make or continue to make any rep-
resentation to such effect in any
other manner whatsoever for the
purpose of indicating that such per-
son is carrying on banking business
in Antigua and Barbuda;

(b) make or continue to make represen-
tation in any billhead, letter, letter-
head, circular, paper, notice, adver-
tisement or in any other manner
whatsoever that such person is car-
rying on banking business;

(c) in any manner whatsoever solicit or
receive deposits from the public, or
any employee of that person.

(2) Any person who contravenes theprovi-
sions of this section commits an offence and
is liable on summary conviction to a fine of
one hundred thousand dollars or to imprison-
ment for a term of five years or to both such
fine and imprisonment; and in the case of a
continuing offence to a further penalty of one
thousand dollars for each day on which the
offence is continued after conviction thereof."

Section 13 of ~ c t 6. Section 13 of the principal Act is amended -
No. 17 of 1991
amended. (a) in subsection (I), by inserting after the word

"credit" occurring in line one of paragraph (b)
the words "or other financial"; and

(6 ) in subsection (2), by inserting after the word

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"increased" occurring in line two the words "or
varied".

7. Section 14 of the principal Act is amended - Section 14 of ~ c t
No. 17 of 1991

(a) in subsection (1), by deleting the wordand figure amended.

"subsection (2)" occurring in line one, and sub-
stituting the words "this section"; and

(b ) by inserting after subsection (2) the following
subsection:

"(3) Notwithstanding the provisions of sub-
section (I), a foreign financial institution may
apply to the Minister to be exempted from the
requirements of this section."

8. Section 16 of the principal Act is amended - Section 16 of ~ c t
No. 17 of 1991

(a) in subsection (I), by inserting the words "or to amended.

any group of companies or of persons which
group is under the control or influence of one
and the same person or body of persons" after the
word "person" occurring in line one of para-
graph (a) and the words "or group of companies
of persons" after the word "person" where it last
occurs in that paragraph after the words "in
respect of such";

(b) in subsection (2), by substituting the word
"unsecured" for the word "secured occurring in
line one; and

( c ) by repealing and replacing subsection (5) by the
following:

"(5) Any financial institution to which sub-
section (1) is applicable that, prior to the
commencement of this Act, entered into any
transactions incompatible with paragraphs
(a), (b), (c), (d), ( e ) or Cfl of subsection (1)
shall, within twelve months after the com-
mencement of this Act, or within such further
period as the Minister, after consultation with

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the Central Bank may determine, submit a
statement thereof to the Central Bank and
shall, inrespectofsuch transactions,take such
action, and within such reasonable time, as
shall be determined by the Central Bank.".

section 17 of Act 9. Section 17 of the principal Act is amended -
No. 17 of 1991
amended. (a) by repealing subsection (5) and replacing it by

the following -

"(5) The Central Bank may determine the
distribution of amounts required to be held
between different classes of specified assets,
and may also differentiate between classes of
banks, credit institutions and other financial
institutions."

(b) in subsection (7), by substituting the figures
" 180" for the figures " 186" occurring in the last
line of paragraph (g); and

(c) by renumbering subsections (4) and (5) occur-
ring after subsection (7) as subsections (8) and
(9) respectively.

Section 24 of A C ~ 10. Section 24 of the principal Act is amended by repealing
No. 17 of 1991 subsection (2) and by inserting after subsection (1) the follow-
amended. ing-

"(2) The Minister may, after consultation with the
Central Bank, issue an Order to a financial institution as
is necessary, to secure compliance with the provisions of
subsection (1).

"(3) Any financial institution which contravenes sub-
section (1) or an order issued under subsection (2) com-
mits an offence and is liable on summary conviction to a
fine of five thousand dollars for each contravention."

Section 30(1) of 11. Subsection (1) of section 30 of the principal Act is
~ c t NO. 17 of amended in paragraph (a), by inserting after the word "offence"
1991 amended. occurring in the last line, the following:

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"and shall be liable to be proceeded against and punished
accordingly".

12. Section 33 of the principal Act is repealed and replaced by the Section 33 of A C ~
f0u0Whg: No. 17 of 1991

repealed and
replaced.

"Regulations. 33. The Minister may upon the recommends-
tion of the Central Bank, make such regulations
as may be required from time to time for giving
effect to the provisions of this Act, and, without
limiting the generahty of the foregoing, may
make reguhons respecting -

(a) the reports or other information to be
supplied by persons to whom li-
cences have been granted and any
other matter associated with their
use;

(6) the records to be kept, r e m s and
reports to be made to the Central
Bank or the Mister by persons
who are appointed as auditors un-
der the Act;

(c) thecharacter oftherecords tobekept
by any financial institution and the
form of the report and retums to be
made by the financial institution
and fixing the times when such
repom and returns shall be made;

(d) the forms necessary for the admin-
istration of this Act; and

(e) the penalties that may be imposed
for violations of orders and Regula-
tions made under this Act and may
also prescribe the penalties to be
imposed upon summary convic-
tion, but no such penalty shall ex-
ceed a fine of five thousand dollars
or imprisonmentofatermof twelve
months."

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New Section 33A 13. The principal Act is amended by inserting after section 33
in Act the following section:

No. 17 of 1991.

"Compounding of 33A (1) Subject to this section, the Minis-
offences. ter may upon consultation with the Central

Bank, if he is satisfied that any person has
committed an offence under the Act, or under
any Order or Regulation made under this Act,
compound such offence, by accepting from
the person a sum of money not exceeding five
thousand dollars.

(2) The power conferred by subsection (1)
shall only be exercised where the person
admits that he has committed the offence and
agrees in writing to the offence being dealt
with under this section.

(3) If any proceedings are brought against
any person for an offence under this Act or
under any Order or Regulation made under
this Act, it shall be a defence if the person
proves that the offence with which he is
charged has been compounded under this
section.

(4) Any sum of money received under this
section shall be dealt with as if the sum of
money were a fine imposed by a court.".

Section 38(2) of 14. Subsecbon (2) of section 38 of the principal Act is
A C ~ NO. 17 of amended -
1991 amended.

(a) by substituting for the word "Mnisiter" occurring
in the penultimate line the word "Minister"; and

(b) by substituting for the figures "56" occurring in
the last line the figure "57".

Section 47 of ~ c t 15. Section 47 of the principal Act is amended -
No. 17 of 1991
amended. (a) in paragraph (b), by substituting for the word

'Offical' occurring in line four, the word 'Offi-
cial"; and

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(b) in paragraph (c), by substituting for the word
"voided" occurring in the last line, the word
"void.

16. Section 48 of the principal Act is amended - Sectian 48 of ~ c t
No. 17 of 1991
amended.

(a) by substituting for the word "exception" occur-
ring in line one, the word "execution";

(b) by substituting for the word "Offical" wherever
it occurs, the word "Official"; and

(c) by inseriing the word "prior" after the word
"rendered.

17. Section 49 of the principal Act is amended - Section 49 of ~ c t
No. 17 of 1991
amended.

(a) by repeahng and replacing subsection (2) by the
following:

"(2) The copy of the reorganisation plan shall
be accompanied by a notice stating that if the
reorganisation plan is not refused in writing
within a period of thirty days:

(a) by persons holding at least one third
of the aggregate amount of deposits
and other liabilities in Antigua and
Barbuda,

(b) if the subject of the plan is a local
financial institution by members of
the financial institution owning at
least one third of its issued capital;
or

(c) if within the same period of thirty
days the High Court does not order
a stay of proceedings,

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the Official Liquidator will proceed to carry out
the reorganisation plan."; and

(b) in subsection (3), by inserting the words "shall
be" after the word "notice" occurring in the last
line.

Passed in the House of Representatives Passed the Senate this 17th
this 29th day of April, 1993. day of May, 1993.

C. L. Murray,
Speaker.

William A. Robinson,
Vice-President.

L. A. Dowe, L. A. Dowe,
Clerk to the House of Representatives. Clerk to the Senate.

Printed at the Government Printing Office, Antigua and Barbuda,
by Rupert Charity, Acting Government Printer

-By Authority, 1993.
800-6.93 [Price $4.001
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