Financial Institutions (Non-Banking) Act

Link to law: http://laws.gov.ag/acts/chapters/cap-169.pdf
Published: 1985

Financial Institutions (Non-Banking) (CAP. 169 1

CHAPTER 169

THE FINANCIAL INSTITUTIONS
(NON-BANKING) ACT

Arrangement of Sections
Section

1. Short title.

Part I

Preliminary

2. Interpretation.
3. Restriction on the use of certain titles.

Part I1

Licensing of Financial Institutions

Licencing of financial institutions.
Application for licence.
Approval and issue of licence.
Renewal of licence.
Licence fees to form part of the Consolidated Fund.
Restriction on carrying on business of a financial

institution.
Provisional licence.
Revocation of licence.

Part 111

Directors and Officials of Financial Institutions

12. Persons debarred from management.
13. Restriction on voting power of director.
14. No officer or employee to act as insurance agent.

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2 CAP. 169) Financial Institutions (Non-Banking)

Part IV

Prohibitions

15. Prohibition as regards activities of financial institutions.
16. Advertisement.

Part V

Liquid Reserves, Reserve Account, Maximum Liability;
Control

17. Reserve requirements of financial institutions.
18. Power of Accountant-General to require information.
19. Selective credit control.
20. Minister to fix the maximum of working balance.
21. Proportion of local assets to liabilities in Antigua and

Barbuda.
22. Maximum liability.
23. Preference to securities, and fixing of ratio.

Part VI

Inspection of Financial Institutions

24. Appointment and powers of Inspector.
25. Assistants to the Inspector.
26. Restriction on power to borrow.
27. Duties of the Inspector.
28. Inspector to report on insolvency.
29. Rules as to proceedings in Court.
30. Disclosure of information prohibited.
31. Investigations on behalf of depositors.

Part VII

General

32. Submission of periodical statements to Minister.
33. Publication of inactive accounts.
34. Publication of audited balance sheet.
35. Supply of information of financial position to Minister.

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Financial Institutions (Non-Banking) (CAP. 169 3

Part VIII

Offences and Exemptions

36. Offences.
37. Exemption.
38. Application for exemption.

Part IX

Miscellaneous

39. Regulatioils.
SCHEDULE.

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Finalzcial Institutions (Non-Banking) (CAP. 169 5

I'INANCIAL INSTITUTIONS (NON-BANKING)

An Act to make provision for the licensing and
rsguilation of the business of financial institutions other than
c-ommercial banks and for matters connected therewith.

(1st November, 1985.)

1 . This Act may be cited as the Financial Institutions short title.
(Non-Banking) Act.

Part I

Preliminary

2. In this Act-

"advertisement" includes every form of advertising,
whether in a publication, or by display of notices,
or by means of circulars or other documents, or
by an exhibition of photographs or cinematograph
films, or by way of sound broadcasting or television,
and references to the issue of an advertisement shall
be construed accordingly;

"business of banking" means the business of receiving
deposits of money from the public on current
account or deposit account which may be
withdrawn on demand, by cheque, draft or order,
and generally the undertaking of any business
appertaining to the business of commercial banking
including the performance of the functions and
duties of a trustee, administrator, executor or
attorney;

"business of a financial nature" means the collection
of funds in the form of deposits, shares, loans,
premiums, and the investment of such funds in
loans, shares or other securities, and includes the
performance of the functions and duties of a trustee,
administrator, executor or attorney but does not
otherwise include the business of commercial
banking;

Interpretation.

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6 CAP. 169) Financial Institutions (Non-Banking)

"commercial bank" or "bank" means any domestic
cap.40. or foreign company licensed under the Banking Act

to carry on the business of banking;

"financial institution" means a company licensed under
this Act to carry on business of a financial nature
and includes a finance house, a trust company
which solicits business of a financial nature from
the public, a development bank, a merchant bank,
a mortgage bank, a unit trust, a confirming house,
and such other institution as the Minister may from
time to time with the approval of Cabinet prescribe;

"Inspector" means the Inspector of Financial
Institutions appointed under section 24 and includes
any person appointed to act temporarily in place
of the Inspector;

"licence" means a licence issued under this Act.

Restriction on
the use of certain . 3. Except with the approval of the Minister, a financial
titles. institution shall not be licensed under this Act if its name

or description includes the words "bank", "central bank"
or "reserve bank".

Part I1

Licensing of Financial Institutions
Licensing of 4. (1) No person other than a company incorporated
financial
institutions. or registered under the Companies Act shall be licensed under

this Act to carry on the business of a financial institution.

( 2 ) The Minister may with the approval of Cabinet
make such regulations as he may deem expedient to regulate
the establishment of branches of financial institutions licensed
under this Act.

Application for 5 . Every application for a licence to carry on the
licence. business of a financial institution shall be made to the Minister

on the prescribed form and shall be accompanied by-

(a) a statement which shall contain the name and
description of the applicant, the address of its registered

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Financial Institutions (Non-Banking) (CAP. 169 7

office in Antigua and Barbuda, and the name, address
and nationality of each director;

(6) a certified copy of its memorandum and articles
of association together with a certified copy of its
certificate of incorporation or registration as the case
may be;

(c) in the case of an applicant who has been
carrying on business of a financial nature prior to the
coming into operation of this Act, a copy of its Profit
and Loss Account, and Balance Sheet and the auditor's
report thereon for the three consecutive years
immediately preceding its application, except that where
such applicant has been functioning for less than three
years, a copy of its Profit and Loss Account and Balance
Sheet and the auditor's report thereon for each year it
has been in operation;

(6) such proof as the Minister may require that
the company has a minimum authorised share capital
of one million dollars of which eight hundred thousand
dollars or more is paid up in cash;

( e ) such other information as the Minister may
require.

6. (1) The Minister may upon being satisfied that the 2,"f";;i,",",d,e.
provisions of this Act and regulations made thereunder have
berri complied with, and with the consent of the Cabinet,
within ninety days from the date of the application approve
01' thc application.

( 2 ) Where the Minister has given his approval under
?iul~scction ( I ) , he shall issue a licence to the applicant in
x11c.h form as may be prescribed, and the licence shall take
rflcct on such date as is specified in the licence.

(3) A licence issued under subsection (2) or renewed
crndcr section 7 (1) may contain such conditions relating to
the* class or classes of business that may be carried on by
thc financial institution as may be specified by the Minister
with the approval of Cabinet.

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(4) Subject to subsection (5), a licence fee of twenty
thousand dollars shall be payable upon the issue of a licence
under subsection (2).

(5) A licence issued under this section shall be valid
up to the end of the year in which it is issued, save that
where a licence is issued for the first time after the first quarter
in any year, the licence fee payable shall be calculated on
a pro rata basis of the fee then payable.

(6) The Minister shall upon the issue of a licence, cause
the particulars of that licence to be published in the Gazette.

Renewal of
licence.

7. (1) An application for the renewal of a licence shall
be made at the end of every year and if the Minister is
satisfied that all the provisions of this Act and regulations
made thereunder have been complied with; he shall renew
the licence upon the payment of a renewal fee of twenty
thousand dollars.

(2) The Minister may by order from year to year with
the approval of Cabinet, vary the fees mentioned in section
6(4) and subsection (1) of this section. Such order shall be
laid before Parliament for a period of thirty days and shall
be subject to negative resolution of the House.

(3) For the purpose of section 6(5) and of this section
" year" shall be construed to mean calendar year.

Licence fees to
form part of the

8. All licence fees paid under this Act shall be credited
Consolidated to the general revenue of the Government and shall form
Fund. part of the Consolidated Fund.

Restriction on
carrying on

9. (1) Where a company carries on business of a
business of a financial nature without a licence issued under this Act the
financial
institution.

directors of such a company are guilty of an offence, and
on summary conviction are subject to a fine of twenty
thousand dollars and imprisonment for two years.

(2) Where a company carries on business of a financial
nature without a licence issued under this Act it is guilty
of an offence and is liable on summary conviction to a fine
of one hundred thousand dollars.

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Financial Institutions (Non-Banking) (CAP. 169 9

(3) A director convicted of an offence under
subsection (1) is liable to an additional penalty of five
thousand dollars for every day that the offence continues.

(4) A company carrying on business of a financial nature
convicted of an offence under subsection (2) is liable to a
fine of ten thousand dollars for every day that the offence
continues.

10. (1) A company which has been carrying on P r ~ ~ i s i ~ n a l
licence.

business of a financial nature before the date of commence-
ment of this Act shall be deemed to be provisionally licensed
on that date.

(2) A financial institution to which this section applies
shall within ninety days of the date of the commencement
of' this Act apply for a licence in accordance with the
procedure laid down in section 5.

( 3 ) Where a financial institution fails to comply with
subsection (2), such failure is an offence under section 9.

(4) Where a company to which this section applies has
been refused a licence such refusal has the effect of an order
of revocation and is regarded as an order for the purposes
of section 1 1.

1 . (1) The Minister at any time with the approval Revocation of
of Cabinet may by order published in the Gazette revoke a liCenCe'
licence for any contravention of this Act or any regulations
or order made thereunder.

(2) Before an order is made under subsection (I), the
Minister shall give to the financial institution notice in writing
of his intention so to do, specifying therein the grounds on
which he proposes to make an order, and shall require the
financial institution to submit to him within thirty days of
the date of the notice a written statement of any objection
to the making of the order and thereafter the Minister shall
advise the financial institution of his decision.

(3) Where any financial institution is aggrieved by an
order made under subsection (I), such financial institution
may appeal to a judge of the High Court in Chambers setting

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forth the grounds of appeal within fourteen days of the
publication of the order in the Gazette, and the Court may
after considering the grounds of appeal vary, reverse or
confirm such order.

( 4 ) Where the Minister-

(a) proposes to make an order of revocation under
subsection (1); or

(6 ) is of the opinion that a company is carrying
on business of a financial nature without being licensed
under this Act,

he may direct the Inspector to occupy the premises and to
assume control of all or any portion of the assets of the
financial institution or the company as the case may be for
the purpose of safeguarding the interest of depositors,
creditors and shareholders of the institution or the company
as the case may be until the appeal is determined or the
company has been duly licensed as the case may be.

(5) The Minister may with the approval of Cabinet
prescribe the powers of and the procedure to be followed
by the Inspector where he acts under subsection (4 ) .

Part 111

Directors and Officials of Financial Institutions

Persons debarred
from

12. (1) No person may without express authorisation
management. from the Minister act or continue to act as a director, or

be concerned in the management of a financial institution
if such a person-

(a) was a director of or was engaged in the manage-
ment of a financial institution or a commercial bank
which had been wound-up by the Court;

(6 ) has been adjudged a bankrupt under the
Bankruptcy Act;

(G) was at any time within seven years prior to the
coming into effect of this Act, convicted of any offence
involving dishonesty and has not received a full pardon
in respect of that offence; or

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Financial Institutions (Non-Banking) (CAP. 169 11

(6) was convicted of an offence under section 9(1)
of this Act.

(2) Any person who contravenes the provisions of this
section is guilty of an offence and is liable on summary
conviction to a fine of five thousand dollars and to imprison-
ment for one year.

( 3 ) A financial institution in which a person referred
r o in subsection ( 2 ) acts as a director or in the management
of which such person is concerned is guilty of an offence
and is liable on summary conviction to a fine of fifteen
thousand dollars.

(4) A person convicted of an offence under subsection
( 2 ) is liable to an additional penalty of five hundred dollars
for every day that he continues to commit the offence.

(5) A financial institution convicted of an offence under
subsection ( 3 ) is liable to a fine of five thousand dollars for
cvery day that the offence continues.

13. (1) No director of a financial institution shall be ~ ; ; t $ ~ w ~ o f
present or shall vote on a resolution of the board of directors director.
of that institution when a loan or an advance to or by-

(a) him or his associate, or

(6) a company of which he or his associate is an
employee, or in which he or his associate owns not less
than ten per cent of the paid up share capital,

is being considered.

(2) In this section "associate7', in relation to a director
of a financial institution means-

( a ) the wife, husband, son or daughter of that
director; or

(6) any person who is an employee or partner of
that director;

and for purposes of this section, "son" includes a stepson,
and "daughter" includes a step-daughter.

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CAP. 169) Financial Institutions (Nan-Banking)

NO officer or 14. NO officer or employee of a financial institution
employee to act
as insurance shall-
agent.

(a) act as an agent for any insurance company or
for any person in the placing of insurance; or

(b) exercise any undue influence upon a borrower
to place insurance in any particular insurance company
as security for a loan granted by the financial institution.

Part IV

Prohibitions
Prohibition as 15. (1) Subject as provided in this section, a financial
regards activities
of financial institution shall not-
institutions.

(a ) engage in the taking of deposits with maturities
of less than one year;

( 6 ) grant loans for periods of less than one year;

(c) engage in any trade except so far as may be
necessary in the ordinary course of business operations
and services including the satisfaction of debts due to
it and the due performance of its function as a trustee,
executor, administrator or attorney;

(a') acquire land except so far as may be necessary
for-

(i) the purpose of conducting its business or
housing its offices or employees;

( i i) the satisfaction of debts due to it, and the due
performance of its function as a trustee,
executor, administrator or attorney;

( e ) acquire or deal in its own shares or lend money
or make advances on the security of its own shares;

V) beneficially hold any land acquired in the course
of the satisfaction of debts due to it for a period exceeding
three years, but shall forthwith on the expiry of that
period sell or otherwise dispose of the land absolutely
so that the financial institution has no direct or indirect
control or interest therein, except by way of security;

@) grant unsecured credit facilities, the principal
sum of which exceeds five per cent of its paid up capital
and reserve fund, to any company, firm or corporation

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Financial Institutions (Non-Banking) (CAP. 169 13

in which the financial institution its manager or director
has an interest equivalent to ten per cent of the paid
up capital of the borrowing company, firm or
corporation;

(h ) grant unsecured credit facilities to any of its
officers or employees exceeding the amount of two years
emoluments of such officer or employee or five per cent
of its paid up capital, whichever is the less;

(i) grant unsecured credit facilities to any one
person exceeding in the aggregate ten per cent of its
paid up capital and reserve fund;

@ pay any dividend on its shares, until all its
capitalised expenditure (including preliminary expenses,
organisation expenses, share selling commission and
brokerage) not represented by tangible assets are
completely written off.

(k) grant secured credit facilities to any one person
exceeding ten per cent of its loan portfolio;

( I ) solicit funds by way of deposit with any-induce-
ment other than the rate of interest offered on such
deposits.

(2) (a) Paragraph (6) of subsection (1) shall not apply
to confirming houses.

(6) Paragraphs (a) and (6) of subsection (1) do not
apply to merchant banks where deposits are taken by
or loans granted to other financial institutions, banks,
insurance companies, the Social Security Board, or any
other institution which the Minister may with the
approval of Cabinet direct.

(6) Notwithstanding paragraph (a) of subsection (1)
and paragraph (6) of this subsection, a merchant bank
may accept deposits from sources outside Antigua and
Barbuda with maturities of any duration.

(3) The Minister may direct that the time specified in
paragraph V) of subsection (1) for the sale or disposal of land
be extended for a further period not exceeding three years.

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(4) Nothing in this section shall prohibit a financial
institution from providing in accordance with any scheme
for the time being in force, money for the purchase by trustees
of fully paid up shares in that financial institution, to be
held by or for the benefit of employees of the financial
institution, including any director holding a salaried
employment or office.

Advertisement. 16. (1) No person other than a financial institution
licensed under this Act shall issue or cause to be issued any
advertisement inviting the public to deposit money with that
person or institution or with some other person or institution.

(2) For the purpose of this section-

(a) an advertisement issued by any person by way
of display or exhibition in a public place shall be treated
as issued by him on every day on which he causes or
permits it to be displayed or exhibited;

(b) an advertisement issued by any person on behalf
of or on the order of another person shall be treated
as an advertisement issued by that other person;

(c) an advertisement inviting deposits with a person
specified in the advertisement shall be presumed, unless
the contrary is proved, to have been issued by that
person.

(3) An advertisement issued under this section shall be
in such form and shall contain such particulars as may be
prescribed by the Minister.

(4) Any person who contravenes this section shall be
liable on summary conviction to a fine not exceeding five
thousand dollars or to imprisonment for a term not exceeding
twelve months.

Part V

Liquid Reserves, Reserve Account, Maximum
Liability; Control

Reserve
requirements of

17. (1) Every financial institution shall hold and
financial maintain-
institutions

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Financial Institutions (Non-Banking) (CAP. 169 15

( a ) an account with the Acccountant-General to be
known as a reserve account which shall bear a ratio to
the total devosit liabilities of that institution in such form
and to such extent as the Minister may fix by Order
published in the Gazette.

( b ) a reserve fund into which no less than ten per
cent of the net profit of the institution after deduction
of taxes shall be transferred each year until the amount
standing to the credit of the reserve fund is equal at
least to the paid up capital of that institution.

(2) For the purposes of this section, the Minister may
by notice published in the Gazette-

( a ) define the classes of deposit liabilities;

(b) prescribe different ratios in respect of each class
of deposit liabilities;

(c) when in the opinion of the Minister special
monetary conditions so warrant, fix additional reserve
account ratios in respect of increases in total deposit
liabilities.

(3) For purposes of determining the amount of the
reserve account required to be maintained by any financial
institution during a period of one week-

( a ) the amount of the deposit liabilities of such
financial institution shall be the average of its deposit
liabilities at the close of business on Wednesday in each
of the four preceding consecutive weeks ending with the
last Wednesday but one;

( b ) the amount of the reserve account of such
financial institution with the Accountant-General shall
be the average amount of such balance at the close of
business on each day of the current week.

(4) Subject to subsection ( 5 ) , whenever any financial
institution fails to maintain the amount in the reserve account
required to be maintained under this section, the Accountant-
General shall notify such financial institution of the deficiency,
and the financial institution shall pay to the Accountant-
General interest on the amount of the deficiency at such rate,
not in excess of one-thirtieth of one per cent per day, as the

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Power of
Accountant-
General to
require
information.

Accountant-General may fix by notice published in the
Gazette.

(5) If any financial institution fails to maintain the
amount in the reserve account required by this section for
longer than a period of one week, the Accountant-General
may require such financial institution to pay additional
interest not in excess of twice the amount of interest fixed
in accordance with subsection (4).

18. The Accountant-General may require any
financial institution to furnish within such time and in such
form as the Accountant-General determines such information
as the Accountant-General may consider necessary to ensure
that the minimum reserve account requirement is or has been
complied with.

Selective credit 19. (1) In order to determine what steps, if any, are
control.

necessary to be taken to encourage the expansion of credit
in any or all sectors of the economy, the Minister shall from
time to time consult with the financial institutions.

(2) The Minister may, after consultation with the
financial institutions, and with the approval of the Cabinet
impose controls upon which credit may be made available
to all or any sectors of the economy, when in his judgment,
the imposition of such controls is necessary to restrict or
prevent an undue expansion of credit.

(3) The imposition of any controls under the provisions
of subsection (2) shall be by notice published in the Gazette,
and the provisions of any such notice shall take effect on
or after the date of publication as may be stated in the notice
and shall apply uniformly to all financial institutions.

Minister to fix
the maximum of

20. (1) The Minister may, from time to time,
working balance. (a) prescribe the manner of determination of the

maximum balances which financial institutions may hold
in foreign currencies generally or in any specified
currency or currencies;

(6) require such financial institutions to sell all or
any specified part of the surpluses in excess of such max-
imum amount.

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Financial Institutions (Non-Banking) (CAP. 169 17

(2) The Minister may permit any financial institution
to hold working balances in any specified foreign currency
in excess of the maximum amount fixed or determined for
such currency under subsection (1).

(3) In ascertaining whether the working balances of any
financial institution in any foreign currency are in excess
of the maximum amount fixed or determined as hereinbefore
provided, there may be deducted from such balances the net
liabilities of that financial institution in currencies into which
such currency is convertible.

2 1. The Minister may, by notice published in the Proportion of
local assets to Gazette, determine the minimum ratio that after the expiration liabilities in

of six months from the date of service of the notice, Antigua Antigua and
Barbuda. and Barbuda assets held by financial institutions will bear

to their respective liabilities in Antigua and Barbuda; but
any variation of such ratio shall not exceed ten percentage
points in any one period of six months.

22. No financial institution shall incur in Antigua and Maximum
liability.

Barbuda deposit liabilities of an amount exceeding twenty
times the sum of its paid up capital and reserve fund.

23. (1) il financial institution shall so conduct its Preference to
securities, and

business as to ensure that in the placing of its liquid assets fixing rat;o,
preference is at all times given to short-dated instruments
originating in Antigua and Barbuda.

(2) The Minister may fix the percentage which the liquid
assets of a financial institution should bear to its respective
total deposit liabilities and the percentage which its respective
liquid assets originating in Antigua and Barbuda should bear
to the total of its liquid assets.

Part VI

Inspection of Financial Institutions

24. For the purposes of this Act an examiner *:;::;to;tcnt and
appointed by the Eastern Caribbean Central Bank under ~n,pector .
the Banking Act shall be the Inspector of financial institu-
tions and he shall subject to the provisions of this Act, have
such powers and perform such functions in relation to finan-
cial institutions as he is authorised to do under the Banking
Act in relation to banks.

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Assistants to the
Inspector.

25. Persons who may be appointed under the Banking
Act to assist an examiner in the performance of his duties
under that Act shall assist the Inspector in the performance
of his functions under this Act.

Restriction on 26. A person holding the position of Inspector or any
power to borrow.

other person appointed as an examiner under the Banking
Act shall not borrow money from a financial institution unless
he first obtains the permission of the Minister so to do.

Duties of the
Inspector.

27. (1) The Inspector shall-
(a) examine all applications for licences and make

recommendations thereon to the Minister;

(6) make or cause to be made such examinations
and enquiry into the affairs or business of each financial
institution as he may deem to be necessary or expedient
for the purpose of satisfying himself that the provisions
of this Act are being observed and that the financial
institution is in a sound financial condition;

(c) at the conclusion of each examination and
enquiry, report thereon to the Minister; and

(4 subject to the direction of the Minister take and
maintain such steps or proceedings as are necessary for
the winding up of any financial institution or for the
appointment of a receiver thereof.

(2) In the performance of his duties under this Act, the
Inspector shall at all reasonable times have the right of access
to all books, records, vouchers, documents and securities of
any financial institution, and to call upon any director, officer,
auditor or employee of any such institution for any infor-
mation, explanation or for both such information and
explanation as he may deem necessary for the performance
of his duties.

(3) Any person who fails to comply with a request made
pursuant to subsection (2) by the Inspector or by any other
person authorised by him in writing to make such a request,
shall be guilty of an offence, and shall be liable on summary
conviction to a fine of one thousand dollars and to imprison-
ment for twelve months.

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Financial Institutions (Non-Banking) (CAP. 169 19

28. (1) Where the Inspector is satisfied after Inspectorto
report on examination of the affairs of any financial institution or upon insolvency.

information received from it, that it is insolvent or unlikely
to meet the demands of its depositors or that its continuation
in business is likely to involve a loss to its depositors or
creditors the Inspector shall report such findings to the
Minister.

( 2 ) Where a report is submitted by the Inspector under
subsection ( I ) , the Minister may, after considering all the
relevant facts and circumstances and with the approval of
Cabinet, order the financial institution to suspend business
forthwith and may direct the Inspector to take charge of all
the books, records, and assets of the financial institution and
to take all such measures as may be necessary to prevent
the continuation in business by that institution during the
period of suspension.

(3) Notwithstanding the provisions of any other law,
no action or proceedings may be instituted in any court for
the purpose of securing the enjoining, review or revocation
of any order made or direction given under subsection ( 2 )
or in respect of any loss or damage incurred, or likely to
be or alleged to be incurred by reason of such order or
direction.

( 4 ) An order by the Minister under subsection (2) shall
cease to have effect-

( a ) if the Minister makes an order permitting the
financial institution to resume business either uncon-
ditionally or subject to such conditions as the Minister
may deem necessary in the public interest or in the
interests of the depositors and other creditors of such
financial institutions; or

(6) upon the expiration of a period of thirty days
from the date on which it is made, unless the Minister
causes the Inspector to apply on behalf of the depositors
to the Court for an Order for the winding up of the
financial institution or for the appointment of a receiver
thereof.

(5) When an Order is made by the Minister under
paragraph (a ) of subsection ( 4 ) permitting the resumption

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20 CAP. 169) Financial Institutions (Non-Banking)

of business subject to such conditions as may be specified
in the order, the financial institution may apply to the Court
for an Order to resume business unconditionally, or subject
to such modifications as the Court may deem appropriate.

(6) In an application made under subsection (5) the
Inspector shall be joined as a respondent with the Minister.

(7) In any case where application is made by the
Inspector for the winding up of any financial institution in
accordance with paragraph (b) of subsection (4)-

(a) the financial institution shall not carry on
business during the pendency of the application unless
it is authorised so to do by the Court and except in
accordance with such conditions, if any, as may be
specified by the Court; and

(6 ) the Court, if it is of the opinion after such
enquiry as it may consider necessary that the financial
institution is not insolvent, may permit the institution
to resume business either unconditionally or subject to
such conditions as the Court may consider necessary
in the public interest or in the interests of the depositors
and other creditors thereof.

( 8 ) In any case where an Order of Court is made,
whether in pursuance of an application under this section
or otherwise, for the winding-up of any financial institution,
then notwithstanding the provisions of any other law, the
Inspector or such other person as may be nominated by the
Minister shall be appointed as liquidator for the purposes
of such winding-up.

Rules as to
proceedings in 29. The procedure governing applications made to
Court. the Court under section 28 and for the enforcing of Orders

made thereunder and for all matters incidental thereto shall
be such as is provided for by the Rules of the Supreme Court.

Disclosure of
information

30. (1) An Inspector shall not disclose any informa-
prohibited. tion regarding the operation of any financial institution to

any person other than such person as may be designated
by the Minister.

LAWS OF ANTIGUA AND BAKBUDA

Financial Institutions (Non-Banking) (CAP. 169 2 1

( 2 ) An Inspector shall not disclose the affairs of a
customer of a financial institution other than for the pur-
poses of this Act or of the Eastern Caribbean Central Bank
Act. Cap. 142.

(3) Any person who contravenes any of the provisions
of this section is guilty of an offence and is liable on summary
conviction to a fine of ten thousand dollars and imprison-
ment for twelve months.

3 1. Where in the interest of the depositors of a ~ ~ ~ ~ ; t i O n S On
financial institution it appears desirable to do so, the Minister depositors.
may appoint one or more competent persons to investigate
and report to the Minister on the state and conduct of the
business of the institution concerned, or on any particular
aspect of that business.

Part VII

General

32. (1) Every Gnancial institution shall deliver to the submission of
per~odlcal

Minister within such period as may be specified and in such stat,ments to
form as the Minister may from time to time approve the Minister.
following documents-

( a ) a monthly statement showing its assets and
liabilities;

( b ) a quarterly statement of its loans and advances;
and

(c) a yearly statement showing its earnings and
expenses.

( 2 ) No statement or return shall in any case be required
in respect of the affairs of any particular customer of a
financial institution.

33. ( 1 ) Every financial institution shall within sixty publication of
Inactive accounts.

days after the end of its financial year publish in the Gazette
and a daily newspaper a statement showing all accounts
payable by the financial institution in Antigua and Barbuda
in respect of which during the period of ten years or any
longer period, no transaction has taken place and no

LAWS OF ANTIGUA AND BARBUDA

2 2 CAP. 169) Financial Institutzons (Non-Banking)

statement of account has been requested or acknowledged
by the creditor for a period of at least ten years.

(2) Every statement published under subsection (1) shall
require the person to whom the account is payable or his
legal personal representative to submit a claim to the financial
institution within three months from the date of publication
in the Gazette.

(3) Where any sum included in the statement published
under subsection (1) remains unclaimed for a period of three
months after ~ublication of the statement in the Gazette such
sum shall after deduction therefrom of the cost of publication
be paid to the Accountant-General and credited to the
Consolidated Fund.

(4) Nothing contained in this section shall be deemed
to affect the rights of any depositor to recover a debt due
to him by the financial institution.

(5) Every financial institution paying any sums to the
Accountant-General under this section shall be indemnified
by the Government for any loss which it may incur as a
result of any such payment.

Publications of
audited balance

34. (1) Every financial institution shall within three
sheet. months after the close of its financial year publish in a

newspaper and exhibit in a conspicuous place in each of its
offices a Profit and Loss Account and Balance Sheet and
the auditor's report thereon.

(2) Every financial institution which fails to comply with
subsection (1) is guilty of an offence and shall be liable on
summary conviction to a fine of five thousand dollars.

Supply of
information of

35. (1) Notwithstanding the provisions of sections 32
financial position and 34, the Minister may in writing require the manager
to Minister. 01- any person in charge of the activities of a financial

institution to supply within such time as may be specified
any information relating to the financial affairs of the
institution.

(2) Any person who fails to comply with the requisition
of the Minister under subsection (1) is guilty of an offence

LAWS OF ANTIGUA AND BARBUDA

Financial Institutions (Non-Banking) (CAP. 169 2 3

and liable on summary conviction to a fine of five thousand
dollars.

Part VIII

Offences and Exemptions

36. (1) Any person who in purported compliance Offences.
with any requirement under this Act or regulations made
thereunder, furnishes any information, provides any
explanation or makes any statement which he knows or has
reasonable cause to believe to be false or misleading in a
material particular, is liable on summary conviction to a fine
of ten thousand dollars and to imprisonment for twelve
months.

(2) In any proceedings for an offence under this Act
it is a defence for the person charged to prove that he took
all reasonable precautions and exercised all due diligence to
avoid the commission of the offence by himself or by any
person under his control.

(3) Without prejudice to subsection (2), in any
proceedings for an offence under section 16 it shall be a
defence for the person charged to prove that he is a person
whose business is to publish or to arrange for the publication
of advertisements, and that he received the advertisement
in the ordinary course of business and did not know and
had no reason to suspect that the publication would constitute
such an offence.

37. (1) The provisions of this Act shall not apply to :z;,"dp,En.
the institutions set out in the Schedule.

(2) The Minister may from time to time by order add
any institution to the list contained in the Schedule and may,
in similar fashion, remove any institution from that list
whether that institution was included in the list as originally
enacted or was added to it by virtue of this subsection.

38. (1) A financial institution may apply to the ~~~'~~~~~~
Minister for exemption from complying with the provisions
of paragraphs (h) , (9 and ( k ) of section 15 (I), of paragraph
(6 ) of section 17 (I), and of section 22, and the Minister

LAWS OF ANTIGUA AND BARBUDA

24 CAP. 169) Financial Institutions (Non-Bankinp)

Regulations.

may after consultation with the Inspector make an order
granting such exemption.

(2) Where subsequent to the making of an order under
subsection (1) the Minister is satisfied that the financial
institution is in a position to comply with paragraph (6) of
section 17 (1) or of section 22, he may, after consultation
with the Inspector terminate or vary such order as he thinks
fit.

(3) Notice of any exemption granted under subsection
(1) or of any termination or variation under subsection (2)
or of any amendment of the Schedule under section 37 (2)
shall be published in the Gazette.

Part IX

Miscellaneous

39. The Minister may from time to time with the
approval of Cabinet make regulations for any matter required
to be prescribed under this Act, and generally for giving effect
to the provisions of this Act.

SCHEDULE Section 37

Cap. 395. 1. The Government Savings Bank constituted under
the Savings Bank Act and any Branch Savings Bank opened
in accordance with that Act.

Cap. 24 2. The Antigua and Barbuda Development Bank
established under the Antigua and Barbuda Development
Bank Act.

Cap. 60 3. Any Society registered under the Building Societies
Act.

Cap. 184. 4. Any Society registered under the Friendly Societies
Act.

Cap. 103. 5. Any undertaking registered under the Co-operative
Societies Act.

LAWS OF ANTIGUA AND BAKBUDA

Financial Institutions (Non-Banking) (CAP. 169 25

6. The State Insurance Corporation established under Cap. 413.
the State Insurance Corporation Act.

7. Any insurance company registered under the Cap. 218.
Insurance Act, to carry on insurance business.
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