L.R.O. 1/2012
LAWS OF GUYANA
FINANCIAL INSTITUTIONS ACT
CHAPTER 85:03
Act
1 of 1995
Amended by
9 of 1996
21 of 1998
22 of 2004
7 of 2006



Current Authorised Pages
Pages
(inclusive)
Authorised
by L.R.O.
1 – 92 ... 1/2012





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Index
of
Subsidiary Legislation
Page
Financial Institutions Notices 89
(Gaz. 20/3/1996)(Gaz. 20/3/1996)
Financial Institutions Regulations 89
(Reg. 4/1996)
Conversion of a Financial Institution into a Public Company
(GNCB Trust Corporation) Order
(O.24/1998)
92






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CHAPTER 85:03
FINANCIAL INSTITUTIONS ACT
ARRANGEMENT OF SECTIONS
SECTION
PART I
PRELIMINARY
1. Short title.
2. Interpretation
PART II
LICENSING OF FINANCIAL INSTITUTIONS
3. Necessity for licence to carry on banking and financial business.
4. Licensing of existing institutions.
5. Application for licence.
6. Issue of licence.
7. Capital.
8. Use of name; prohibited advertising.
9. Acquisition of control of financial institutions.
10. Investigation of unlawful banking business.
11. Revocation of licence and appeal.
12. Approval of fundamental changes.
PART III
RESTRICTIONS ON BANKING AND FINANCIAL ACTIVITIES
13. Payment of dividends; purchase of shares.
14. Restriction of certain financial activities.
15. Restriction on depository institution activities.
16. Penalty.
17. Financial activities of depository institutions.
18. Transitional provisions for certain transactions.
19. Financial or trust business.

PART IV
RESERVE FUNDS AND LIQUID ASSETS
20. Maintenance of reserve fund.
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SECTION
21. Minimum holdings of liquid assets.
PART V
AUDITING AND REPORTING
22. Audits of financial institutions.
23. Duties of auditors.
24. Exhibition and publication of audited balance sheet by licensed
financial institution.
25. Reports of condition and income; other reports.
PART VI
DIRECTORS AND OFFICERS
26. Director and officer qualifications.
27. Duties of directors and officers.
28. Conflicts of interest.
29. False and misleading statements; obstruction.
30. Management compliance duties.
30A. Offences committed by director.
PART VII
SUPERVISION OF LICENSED FINANCIAL INSTITUTIONS
31. Inspections of licensed financial institutions.
32. Special inspections.
33. Power to issue orders, directions and monetary penalties.
33A. Bank may take control.
33B. Powers of directors and officers suspended.
33C. Expiration of control.
33D. Bank may request winding-up.
33E. Requirement to relinquish control.
33F. Application of Provisions.

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SECTION
PART VIII
INSOLVENCY AND WINDING UP
34. Accepting deposits while insolvent.
35. Appointment of administrator or liquidator.
36. Voluntary winding up.
37. Voluntary winding up; cessation of operations.
38. Voluntary winding up; notice to depositors.
39. Voluntary winding up; claims of creditors.
40. Voluntary winding up; creditor distributions.
41. Voluntary winding up; insufficient assets.
42. Seizure of licensed financial institutions.
43. Notice of possession.
44. Involuntary winding up; appeal.
45. Involuntary winding up; Bank’s powers.
46. Involuntary winding up; validity of encumbrances.
47. Involuntary winding up; validity of writs.
48. Procedures upon seizure.
49. Compulsory liquidation.
50. Reorganisation.
51. Reorganisation; rejection by depositors and creditors.
52. Compulsory liquidation; powers and duties of Bank.
53. Compulsory liquidation; claims.
54. Compulsory liquidation; objections.
55. Compulsory liquidation; priority of claims.
56. Compulsory liquidation; remaining assets.
57. Compulsory liquidation; unclaimed property.
58. Compulsory liquidation; final accounting.
PART IX
MISCELLANEOUS
59. Declaration of bank holidays.
60. Prosecutions.
61. Regulations and notices.
62. Wilful refusal to produce documents.
63. Confidentiality of customer information.
64. Immunity.
__________________________
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CHAPTER 85:03
FINANCIAL INSTITUTIONS ACT
1 of 1995 An Act to make new provisions to regulate the business of
banking and other financial business.
[29TH MAY, 1995]
Short title.
Interpretation.
[7 of 2006]
c. 75:01

c. 85:02
1. This Act may be cited as the Financial Institutions
Act.
2. (1) In this Act —
“Administration” means the Co-operate Finance
Administration established under section 3 of the Co-
operative Financial Institutions Act.
“affiliated person” in relation to another person means any
person who controls, is controlled by, or is under
common control with, the first person;
“applicant” means any person seeking to conduct a banking
or financial business in Guyana;
“assigned capital” has the same meaning as in section 7(2)(b);
“bank” means a company licensed under this Act to carry on
a banking business in Guyana, provided that where such
a company is a foreign company, the expression shall,
except as otherwise expressly provided, refer to the
branch or branches in Guyana through which that
company carries on banking business;

“the Bank” means the Bank of Guyana established under the
Bank of Guyana Act;
“banking business” means the business of accepting deposits
including demand deposits in any currency, and the use
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of such funds for loans, advances, extensions of credit,
guarantees, investments or other activities authorised by
law;
“borrower group” means—
(a) a family group comprising an individual
and his spouse, parents, children, brothers
or sisters where each member of the group is
substantially dependent upon the same
income sources;
(b) a company in which the family group
indicated in paragraph (a) has controlling
interest;
(c) a group of companies which has a common
controlling interest;
(d) a group of persons in which the credit
worthiness, ability to generate funds or the
future viability of each, depends on one or
other member of the group;
(e) a group of persons in which one member has
power directly or indirectly to control the
other members;
(f) any other group of persons which is
prescribed by the Bank;
“branch” means an office or place of business other than its
principal place of business, where a licensed financial
institution carries out all or any part of its business with
the public, provided, however, that “branch” also
includes a place of business outside of Guyana of a
locally incorporated licensed financial institution;
“capital base” means the total of paid-up share capital,
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statutory reserve fund, share premium account and
retained earnings and any other capital account
approved by the Bank, in the case of locally incorporated
licensed financial institutions, or the total of assigned
capital, statutory reserve fund maintained in Guyana,
and any other capital account approved by the Bank in
the case of branches of licensed financial institutions
which are incorporated outside of Guyana less any
amount by which that total has been impaired in either
case;
“company” means a company registered or incorporated in
Guyana under the law for the time being in force relating
to companies and includes a co-operative institution;
“a company that is a national of a Member State” means a
company or other legal entity constituted in a Member
State in conformity with the laws thereof and which that
Member State regards as belonging to it, provided that
such body corporate had been formed for gainful
purpose and has its registered office and central
administration, and carries on substantial activity within
the Caribbean Community and is substantially owned
and effectively controlled by a person who –
(a) is a citizen of a Member State; or
(b) has a connection with a Member State of a
kind which entitles him to be regarded as
belonging to or, if it be so expressed, as
being a native or resident of the State for the
purposes of the laws thereof relating to
immigration;
For the purposes of this definition a company or other legal
entity is –
(i) substantially owned if more than fifty
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c. 75:01
percent of the entity interest of the
company is beneficially owned by
nationals mentioned in paragraph (a)
or (b);
(ii) effectively controlled if the nationals
mentioned in paragraph (a) or (b)
have the power to name a majority of
its directors or otherwise legally to
direct its action;
“control” means the power, directly or indirectly, to
direct the management or policies of a company, or to
vote twenty-five percent or more of any class of shares of
such company;
“co-operative institution” means a co-operative financial
institution established under the Co-operative Financial
Institutions Act;
“Court” means the High Court;
“demand deposit” means any deposit which is payable on
demand of the depositor;
“deposit” means any sum of money paid on terms—
(a) under which it will be repaid, with or
without interest or a premium, and either
on demand or at a time or in
circumstances agreed by or on behalf of the
person making the payment and the person
receiving it;
(b) which are not referable to the provision or
property or services or to the giving of
security, and for the purposes of this
paragraph, money is paid on terms which
are referable to the provision of property or
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services or to the giving of security if, and
only if—
(i) it is paid by way of advance or part
payment for the sale, hire or other
provision of property or services of
any kind and is repayable only in the
event that the property or services is
or are not in fact sold, hired or
otherwise provided;
(ii) it is paid by way of security for
payment for the provision of property
or services of any kind provided or to
be provided by the person by whom
or on whose behalf the money is
accepted; or
(iii) it is paid by way of security for the
delivery up or return of any property,
whether in a particular state of repair
or otherwise;
“financial business” means—
(a) being engaged in the business of
receiving deposits from the public
other than demand deposits, or
receiving funds from the public
through the obtaining of loans,
advances or extensions of credit,
through the issuance of debt
obligations, shares or securities, or
through similar means, and the re-
lending or investment of those
deposits or funds in loans, advances,
receivables, debt obligations, shares
or securities of any kind, or the
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c. 88:01
making of leases to finance the
acquisition or use of movable or
immovable property; or
(b) holding oneself out to the public as
being engaged in the business of a
lending institution, finance company,
factor, discount house, leasing
company, trust company, merchant
bank, securities or loan broker,
underwriter or dealer, unit trust or
any such business specified in sub-
paragraph (i) but does not include a
banking business or an insurance
business;
“financial institution” means a bank doing banking business
or company other than a bank engaged in a financial
business; but does not include a cooperative society
registered under the Co-operative Societies Act or the
Guyana Co-operative Agricultural and Industrial
Development Bank;
“foreign company” means a company organised or
incorporated under the laws of a country other than
Guyana, and includes such company doing business in
Guyana under the law for the time being in force relating
to companies;
“Governor” means the Governor of the Bank of Guyana;
“licence” means a licence issued under section 6 authorising
the conduct of a banking or financial business in Guyana;
“licensed financial institution” means a company to which a
licence is issued under this Act;
“Member State” has the same meaning assigned to it in the
Revised Treaty of Chaguaramas establishing the
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Caribbean Community (CARICOM), including the
(CARICOM) Single Market and Economy signed at
Nassau, The Bahamas, on 5th July, 2001;
“officer” in relation to a company means—
(i) the chairman or deputy chairman of
the board of directors, or president or
vice-president;
(ii) the managing director, the
general manager, comptroller, the
secretary or the treasurer;
(iii) any other individual who holds the
title or office or who performs any
function similar to those normally
performed by the holder of the offices
specified in sub- paragraph (i) or (ii);
“net profits “ means all net earnings from current operations,
plus actual recoveries on loans and investments
previously written off, less required transfers to surplus
or other funds for the payment of dividends or interest
on, or the retirement of, any stock or debt obligation, all
taxes owed and payable, capitalised organisational
expenses, and any transfers to the reserve fund required
under section 20;
“person” means any individual or company, and includes any
group of persons or companies acting in concert;
“subsidiary” means any company owned or controlled by
another company;
“trust business” means the acceptance of funds in the capacity
of trustee, guardian, administrator, executor or similar
fiduciary capacity.
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c. 75:01

Necessity for
licence to carry
on banking and
financial
business.
(2) With respect to any bank or company, engaged
in a financial business, to which the law for the time being in
force relating to companies, the Co-operative Financial
Institutions Act, or any other law applies, in the case of any
conflict between this Act and such other Act or law, the
provisions of this Act shall prevail over such other Act or law,
unless otherwise expressly provided in this Act or other such
Act or law.
PART II
LICENSING OF FINANCIAL INSTITUTIONS
3. (1) No banking business shall be transacted in
Guyana except by a company which is in possession of a valid
licence granted by the Bank authorising it to carry on a
banking business in Guyana.
(2) No financial business shall be transacted in
Guyana except by a company which is in possession of a valid
licence granted to it by the Bank authorising it to conduct a
financial business in Guyana:
Provided that a company licensed to conduct a
banking business may also be authorised to conduct a
financial business subject to the provisions of this Act.
(3) No licensed financial institution shall open a
new branch or alter the location of an existing branch without
the written permission of the Bank.
(4) Any person who contravenes subsection (1) or
(2) shall be liable upon summary conviction to a fine of not
more than two million dollars and imprisonment for not more
than one year.
(5) Any person who contravenes subsection (3)
shall be liable on summary conviction to a fine of not more
than one hundred thousand dollars for each day during
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Licensing of
existing
institutions.
which the offence continues.
(6) The Bank may, upon written notice delivered
to such company, direct any bank or financial institution
which contravenes subsection (1) or (2) to cease conducting
such banking or financial business or may take over the
affairs of such bank or financial institution and appoint itself
or any person specified in section 35 as liquidator thereof, and
wind up such bank’s or financial institution’s affairs, as
provided in this Act.
(7) The Bank, after consultation with the Minister,
may by regulations further prescribe those activities
constituting a financial business and requiring the holding of
a licence under this Act.
(8) The Bank may make regulations for financial
institutions which do not accept deposits or funds from the
public taking into account the type of business conducted by
such institutions.
4. (1) A company carrying on a banking business in
Guyana on the appointed date shall be deemed to have been
issued a licence under section 6 and shall satisfy the
minimum capital requirements in accordance with section 7.

(2) Any company carrying on a financial business
in Guyana on the appointed date which proposes to continue
in financial business shall be permitted to conduct such
business, for a period of one year thereafter, on making
application within three months after the appointed date to
the Bank for the issue of a licence to carry on such business.
(3) A company carrying on a financial business in
Guyana on the appointed date which has submitted an
application under subsection (2) may be granted a provisional
licence by the Bank upon submission to the Bank of an
acceptable plan specifying the measures through which it
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Application for
licence.
shall satisfy the minimum capital requirements prescribed in
section 7 and the provisional licence shall be valid until such
time as a final licence is granted or refused but shall not be
valid for longer than the period provided in section 7(5) for
the satisfaction of the minimum capital requirement.
(4) The Bank may, in issuing a provisional licence,
impose such conditions thereon as the Bank deems necessary
including –
(a) restrictions on the declaration of
dividends;
(b) restrictions on the acceptance of
deposits or other types of funds from
the public;
(c) restrictions on the extension of credit
facilities, or
(d) any other conditions which the Bank
deems necessary or appropriate in the
public interest.
(5) Upon the issue of a provisional licence to any
financial institution in subsection (2), such institution shall be
treated, and may conduct business, as a licensed financial
institution in accordance with the provisions of this Act.
(6) A company carrying on banking or financial
business in Guyana on the appointed day which does not
propose to continue in such business shall within three
months thereof submit to the Bank a plan specifying the
measures, and the time within which, not being more than
one year from the appointed date, it shall cease carrying on
such business.
5. (1) Prior to conducting a banking or financial
business in Guyana, an applicant shall submit to the Bank an
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application, together with an application fee of twenty-five
thousand dollars, for a licence in such form, and having due
regard to the types of banking or financial business the
applicant proposes to conduct, containing such information
as the Bank may require including—
(a) the name, permanent address and
nationality of the applicant or, in the
case of an applicant group, each
member of the applicant group;
(b) the proposed memorandum and
articles of association of the applicant;
(c) the applicant’s proposed home office
address, and the address of every
proposed branch;
(d) the name, permanent address and
nationality of every person who
owns, or proposes to subscribe to,
more than ten percent of any class of
shares to be issued by the applicant;
(e) the name, permanent address and
nationality of every proposed director
and officer;
(f) the amount of the applicant’s
proposed capital;
(g) a full description of the types of
deposit-taking, lending and other
financial business the applicant
proposes to conduct;
(h) a detailed business plan or plan of
operation, with projections, for at
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least the first three years of
operations;
(i) if available, financial statements for
the last two years of operations
audited in accordance with the
requirements of the law for the time
being in force regarding the audit of
the accounts of companies or, in the
case of a foreign company, in
accordance with accepted auditing
standards of that company’s country
of incorporation; and
(j) such additional information as the
Bank may require.
(2) In the case of an application from a foreign
company, that company may submit to the Bank the
information required to be submitted by such company under
the law for the time being in force regarding the audit of the
accounts of companies, plus such other information as the
Bank may require.
(3) The Bank may refuse to accept an application
which does not contain all of the information specified in
subsection (1) or (2) by providing written notice to the
applicant of such refusal.
(4) The Bank may specify the form and content of
any application submitted under this section and such
specification may differentiate among classes of financial
institutions with respect to the form and content of such
application.
(5) Upon acceptance of an application under
subsection (1) or (2), the Bank shall conduct such
investigation and inquiries it deems necessary to determine
whether the applicant is fit and proper to be granted a licence
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Issue of licence.
under this Act, and in conducting such investigation and
enquiries, the Bank shall consider the background, experience
and integrity of the applicant, the financial resources and
history of the applicant, the proposed management of the
applicant, the adequacy of its capital, the effects on
competition among financial institutions which the
applicant’s activities might have, and such other matters as
the Bank deems appropriate.
(6) The Bank may by notice published in the
Gazette vary the application fee prescribed in subsection (1).
6. (1) Within the time provided under subsection (4),
the Bank taking into consideration the specified factors in
section 5(5), shall review the application submitted under
section 5 to determine whether the applicant satisfies the
requirements of this Act for the issue of a licence, but no
licence shall be issued to any applicant unless the applicant’s
capital satisfies the minimum capital requirements of section
7 and the Bank is satisfied that the applicant will be able to
operate in compliance with the requirements of this Act.
(2) Upon a determination that the applicant
satisfies the requirements of this Act, the Bank, after
consultation with the Minister, may issue a licence specifying
the banking or financial business the applicant is authorised
to conduct, and publish in the Gazette and a newspaper of
general circulation in Guyana notice of the issue of such
licence.
(3) If the Bank determines that the applicant does
not satisfy the requirements of this Act, the Bank, after
consultation with the Minister, shall inform the applicant in
writing of its refusal to grant a licence.
(4) The Bank shall act upon any application within
one hundred and twenty days of its acceptance or, in the case
of an application from a foreign company, one hundred and
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eighty days of its acceptance. The time limits provided in this
section may be extended by the Bank for an additional period
not exceeding ninety days upon written notice to the
applicant requesting further information or stating that
further information is needed to review the application.
(5) The Bank may, in issuing a licence, impose any
condition on the licence, or the operations of the licensed
institution, it deems necessary or appropriate in the public
interest.
(6) In the case of approval of any application for a
licence to conduct a financial or trust business, the Bank shall
expressly indicate in any such licence issued that the licensed
financial institution is authorised to conduct a financial or
trust business.

(7) Every licensed financial institution shall, upon
the issue of a licence to carry on a banking or financial
business, pay to the Bank the fee provided for in subsection
(8).

(8) Every licensed financial institution shall pay to
the Bank a fee of—

(a) five hundred thousand dollars for
each place of business in the City of
Georgetown, the town of New
Amsterdam, the town of Linden, the
town of Rose Hall, the town of
Corriverton and the town of Anna
Regina;
(b) two hundred and fifty thousand
dollars for each place of business
situated elsewhere than as
mentioned in paragraph (a),
and so long as the licence is not revoked, the bank shall, not
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c.88:01
later than the 1st February in every year, pay to the Bank the
fee prescribed as aforesaid.

(9) The fee payable by a licensed financial
institution under subsection (8), shall be in lieu of any tax
payable by that institution under section 20 (1) (c) of the Tax
Act in respect of the occupation of any building by the
institution.
(10) All fees paid to the Bank under this section
shall be paid by the Bank into a Consolidated Fund.
(11) Upon the issue of a licence to any applicant,
the Bank forthwith shall transmit certified copies thereof to
the Registrar of Companies, to the licensed financial
institution for its head office and each of its branches, and if
the applicant is a co-operative institution, one certified copy
to the Administration. The licensed financial institution shall
at all times prominently display for viewing by the public a
certified copy of its licence at its head office and each branch
where it conducts business.
(12) The Bank may, by notice in the Gazette, upon
at least thirty days’ notice, vary the fees prescribed in
subsection (8) either generally or in relation to any licensed
financial institution
(13) No company other than a bank which is
licensed to carry on a financial business shall—
(a) accept any deposits or funds from the
public repayable on demand or in less
than thirty days by cheque, draft or
order drawn on the licensed financial
institution, or in any other manner,
and shall so inform the depositor or
lender at the time the deposits or
funds are accepted;
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Capital.
[7 of 2006]
(b) repay any deposits or funds taken
from the public within thirty days
from the date on which the deposits
or funds were accepted:
Provided that this subsection shall not apply to
deposits or funds obtained from other financial institutions.
7. (1) No financial institution which is incorporated in
Guyana or is a company that is a national of a Member
State shall be granted, or shall hold, a licence under this Act
unless its fully paid-up capital, unimpaired at all times during
the period when its licence is in force, is not less than two
hundred and fifty million dollars in the case of a financial
institution which accepts deposits of any type.
(2) No financial institution which is a foreign
company, not being a company that is a national of a Member
State shall be granted, or shall hold, a licence under this Act
unless—
(a) its capital is not less than an amount
equivalent to two and one half billion
dollars; and
(b) such financial institution assigns to
the Bank, at all times when its licence
is in force, capital for its branch or
branches in Guyana of not less than
two hundred and fifty million dollars
in the case of a financial institution
which accepts deposits of any type
and such a licensed financial
institution may satisfy all or part of its
assigned capital requirements by any
of the following means-
(i) keeping such capital on deposit
with the Bank in a non-interest
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bearing account;
(ii) keeping such capital on deposit
with a correspondent bank
approved by the Bank;

(iii) investing in foreign
government securities accept-
able to the Bank;
(iv) purchasing for its own account
and maintaining within
Guyana marketable obligations
issued by the Government of
Guyana; or
(v) providing capital in such other
fashion as the Bank may
permit.
(3) The Bank may by notice published in the
Gazette specify such minimum capital requirements as it
deems necessary for any financial institution which does not
take deposits of any type, taking into account the types of
business it conducts.
(4) The Bank also may require every licensed
financial institution to maintain a capital base in an amount
not less than that percentage of the financial institution’s total
assets, contingencies and off balance sheet commitments as
the Bank may specify, taking into account the types of
banking or financial business which the financial institution
conducts and such other factors as the Bank deems necessary.
In determining the total assets, contingencies and off balance
sheet commitments of a financial institution under this
subsection, the Bank may elect to require the calculation of
such assets, contingencies and off balance sheet commitments
on a risk-weighted basis to reflect the credit or other risks of
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Use of name;
prohibited
advertising
such assets or classes of assets, contingencies and off balance
sheet commitments. In making such an election, however, the
Bank shall, to the maximum extent feasible, conform to
accepted standards of international banking supervision
relating to risk-based capital requirements.
(5) Notwithstanding subsections (1), (2) and (3),
the Bank, upon at least thirty days’ notice, may vary the limits
of the capital requirements specified in subsection (1), (2) or
(3), either generally or in relation to any licensed financial
institution:
Provided, that in no case may the Bank decrease the
limits of the capital requirements specified in subsection (1) or
(2) below the minimum dollar levels specified therein.
8. (1) No person other than a licensed financial
institution shall 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
indicating the carrying on of banking business or financial
business, in the name, description or title under which such
person is carrying on business in Guyana, or make any
representation to such effect in any manner whatsoever for
the purpose of indicating that such person is carrying on
banking business or financial business in Guyana.
(2) Subsection (1) shall not apply to any association
formed by banks for the purpose of representing the common
interests of the members of such association, or other entities
expressly permitted by the Bank.
(3) No person other than a licensed financial
institution shall advertise, publicise or otherwise make any
representation in any bill head, letter paper, circular,
newspaper, radio or television advertisement, or other
communication, or in any other name whatsoever, that
such person is carrying on a banking or financial business in
Guyana or is accepting deposits of any kind or in any other
LAWS OF GUYANA
24 Cap. 85:03 Financial Institutions
L.R.O. 1/2012

Acquisition of
control of
financial
institutions.
[9 of 1996]
manner whatsoever.
(4) No licensed financial institution shall describe
its business in its title, in any bill head, letter paper, circular,
newspaper, radio or television advertisement, or other
communication, in a manner that is false, misleading, or
inaccurately describes or represents the business in which it is
engaged.
(5) Every financial institution which is a bank shall
use as part of its description or title the word “bank” or one of
its derivatives.
(6) Any person who acts in contravention of this
section shall be liable on summary conviction to a fine of one
hundred thousand dollars for every day during which the
offence continues.
9. (1) No person may, without the prior written
approval of the Bank, acquire control of any licensed financial
institution.
(2) Any person seeking to acquire control of a
licensed financial institution shall submit to the Bank an
application in such form and containing such information,
including the following, as the Bank may specify—
(a) the identity, address, nationality,
personal history, business
background and experience of each
person by whom or on whose behalf
the acquisition is to be made
(hereinafter the “acquiring person”);
(b) the financial history of each acquiring
person, including a statement of
assets and. liabilities;

LAWS OF GUYANA
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L.R.O. 1/2012
(c) the terms and conditions of the
proposed acquisition, and the
identity, source and amount of
funds or other consideration to be
used in making the acquisition;
(d) any plans or proposals which the
acquiring person may have to make
regarding any significant change in
the business, corporate structure, or
management of the licensed financial
institution, including any plans to
liquidate, merge or reorganise the
licensed financial institution;
(e) any arrangements with respect to the
solicitation of, or recommendations
to, stockholders for the purpose of
assisting in the acquisition; and
(f) such other information as the Bank
shall specify.
(3) Upon acceptance of any application under this
section, the Bank shall determine whether the acquiring
person is fit and proper to acquire control of a licensed
financial institution, making such investigations and
inquiries it deems necessary concerning, and shall consider,
the background, experience and integrity of the acquiring
person; the financial resources and history of the acquiring
person; the financial condition and capitalisation of the
licensed financial institution proposed to be acquired; the
completeness and truthfulness of the information submitted
by the acquiring person; and such other matters as it deems
appropriate.
(4) In acting on any application under this section,
the Bank shall take action within ninety days of the
acceptance thereof but may, upon written notice to the
LAWS OF GUYANA
26 Cap. 85:03 Financial Institutions
L.R.O. 1/2012
acquiring person that further investigation or inquiry is
needed, extend such time for an additional sixty days.

(5) The Bank may refuse to accept an application
which does not contain all the information required under
subsection (2).
(6) The Bank may further define the terms used in
this section or specify further procedures for its
implementation.
(7) The Bank may, upon due inquiry and
investigation, deem any persons, borrower group or group of
related persons, to be one person for purposes of this section.
(8) Any person who acquires or retains control of a
licensed financial institution in contravention of this section
shall be liable on summary conviction to a fine of one
hundred thousand dollars for every day the offence
continues.
(9) Notwithstanding anything in this Act or in any
other written law, where a person who acquires control of a
licensed financial institution is no longer a fit and proper
person, he shall be notified by the Bank of this fact and he
shall be required to take such steps as may be specified by the
Bank to dispose of such shares as shall cause him to cease to
have control of the licensed financial institution.
(10) In determining whether a person is a fit and
proper person to hold any particular position, regard shall be
had to his probity, to his competence and soundness of
judgement for fulfilling the responsibilities of that position, to
the diligence with which he is fulfilling or likely to fulfil those
responsibilities and to whether the interests of depositors or
potential depositors of the licensee are, or are likely to be, in
any way threatened by his holding that position.

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(11) Without prejudice to the generality of the
provisions of subsection (10), regard may be had to the
previous conduct and activities in business or financial
matters of the person in question and, in particular, to any
evidence that he has—
(a) committed an offence involving
fraud or other dishonesty or
violence;
(b) contravened any provision made by
or under an enactment appearing to
the Bank to be designed for
protecting members of the public
against financial loss due to
dishonesty, incompetence or
malpractice by persons concerned
in the provision of banking,
insurance, investment or other
financial services or the management
of companies or against financial loss
due to the conduct of discharged or
undischarged bankrupts;
(c) engaged in any business practices
appearing to the Bank to be deceitful
or oppressive or otherwise improper
(whether unlawful or not) or which
otherwise reflect discredit on his
method of conducting business;
(d) a record which leads the Bank to
believe that the person carried out an
act of impropriety in the handling of
banking business;
(e) engaged in or been associated with
any other business practices or
otherwise conducted himself in such a
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Investigation
of unlawful
banking
business.

Revocation of
licence and
appeal.
way as to cast doubt on his
competence and soundness of
judgment.
(12) No person who owns or has acquired control
of a licensed financial institution which accepts deposits shall
be allowed to acquire control of another such licensed
financial institution.
(13) No person shall be allowed to acquire shares,
directly or indirectly through related persons, in one or more
licensed financial institution incorporated in Guyana and
which accepts deposits, in excess of twenty percent of the
total paid-up capital of all such licensed financial institutions,
except for the purpose of participating in the capital
expansion of the licensed financial institution in which such
person has acquired control.
10. (1) Where the Bank has reason to believe that any
person is conducting a banking or financial business in
Guyana without a valid licence, or has acquired control of a
licensed financial institution without prior approval of the
Bank, it may, by notice in writing, request that person to
produce to the Bank any books, accounts, financial statements
or other records of any kind to determine whether such
person is conducting such business or has acquired such
control.
(2) Any person who refuses to comply with any notice
delivered under subsection (1) within five days of the
delivery thereof shall be liable on summary conviction to a
fine of ten thousand dollars for every day during which the
offence continues.
11. (1) The Bank may, after consultation with the
Minister, issue to any licensed financial institution a notice of
its intention to revoke the licence of that institution if –

LAWS OF GUYANA
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(a) the financial institution fails to pay
the fee prescribed for the licence
within the time specified in section
6(8);
(b) the financial institution ceases to carry
on a banking or financial business in
Guyana or goes into liquidation or is
wound up or otherwise dissolved;
(c) the financial institution fails to
comply with any of the provisions of
this Act or any other Act to which it is
subject, or fails to comply
satisfactorily with any order or
direction issued by the Bank under
section 33 after having been given a
reasonable time to do so;

(d) the holder of the licence fails to
commence operations within a period
of six months following the issue of a
licence under this Act; or
(e) the financial institution fails to
comply with any condition of its
licence.
(2) Any written notice delivered to the licensed
financial institution under subsection (1) shall include a
detailed statement of the Bank’s reasons therefor and shall be
delivered at least fourteen days prior to the taking by the
Bank of any further action on the notice and shall invite the
licensed financial institution to give any reason why the
licence should not be revoked.
(3) Any notice delivered under subsection (1) as to
which the Bank is of the opinion that the licensed financial
institution has given no sufficient reason why the licence
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Approval of
fundamental
changes.
should not be revoked or an appeal is not timely taken under
this section shall become final, and the licence of the
institution to which the notice was delivered shall be revoked
by the Bank, within such time as may be specified in the
notice.

(4) A licensed financial institution may appeal to
the Court against any notice delivered to it under subsection
(1) within fourteen days of the delivery thereof and such
appeal shall be heard by a Judge in Chambers who may
confirm or set aside the notice of revocation of the licence, and
his decision shall be final.
(5) An appeal made under subsection (4) shall not
act to stay any of the measures taken by the Bank in
accordance with this section.
(6) Upon revocation of a licence, the licensed
financial institution forthwith shall surrender to the Bank
every copy of the licence that is on display in its head office
and each branch of the institution. The Bank shall publish in
the Gazette and a newspaper of general circulation in Guyana
notification of the revocation of any licence after the
revocation has become final.
12. (1) Without the approval of the Bank, no licensed
financial institution may—
(a) enter into any merger or
amalgamation with any other
company;
(b) transfer the whole or a substantial
part of its assets or liabilities in
Guyana;
(c) engage in any type of banking or
financial business not specified in its
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L.R.O. 1/2012


Payment of
dividends,
purchase of
shares.
licence;.
(d) take any action to reduce or impair, in
any respect, its capital or assigned
capital, as the case may be;
(e) change its title or name or amend its
memorandum or articles of
association; or
(f) relocate its head office.
(2) Any action taken under subparagraph (1)(a), (b)
or (c) shall be evaluated by the Bank using the criteria for the
issue of a licence under section 6.
(3) A licensed financial institution shall give the
Bank at least sixty days’ advance written notice of the closing
of any branch.
PART III
RESTRICTIONS ON BANKING AND FINANCIAL
ACTIVITIES
13. (1) No licensed financial institution shall declare,
credit or pay any dividend, or make any transfer from profits,
whenever such payment or transfer would result in an
impairment of its capital or assigned capital, as the case may
be.
(2) Unless thirty days notice is given to the Bank
by a licensed financial institution, no licensed financial
institution shall declare, credit or pay any dividend, or make
any transfer from profits, where the total of all such dividends
or transfers declared, credited or paid during any one year
exceeds the total of its net profits for that year plus the
retained net profits for the preceding year.

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Restriction on
certain
financial
activities.
[22 of 2004]
(3) Notwithstanding subsection (2), a licensed
financial institution may, with the approval of the Bank, pay
dividends in the form of fully paid-up and unimpaired capital
shares to the extent that there is available capital, surplus and
retained earnings available to support such share dividends.
(4) Every licensed financial institution shall give
the Bank at least fourteen days’ written notice in advance of
the declaration of any dividend.
(5) No licensed financial institution may
repurchase its own shares without the prior written approval
of the Bank.
(6) Without the approval of the Bank, no licensed
financial institution whose paid-up or assigned capital is less
than two hundred and fifty million dollars, shall declare,
credit or pay any dividend, or make any transfer from profits,
and every such licensed financial institution shall give the
Bank at least thirty days advance written notice of its
intention to declare, credit or pay any dividend, or make any
transfer from profits.
14. (1) A licensed financial institution shall not grant
to any person, or borrower group, any loan, advance,
financial guarantee, or other extension of credit, or incur any
other liability on behalf of such person or borrower group, so that the total value of the loans, advances, financial
guarantees or other extensions of credit, and other liabilities is
at any time, in respect of such person, more than twenty-five
percent of its capital base, or in respect of such borrower
group, more than forty per cent of its capital base, and where
any portion of the total value of loans, advances, financial
guarantees or other extensions of credit or other liabilities is
unsecured, that portion shall not exceed ten per cent of its
capital base in the case of a person or twenty per cent of its
capital base in case of a borrower group:

LAWS OF GUYANA
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L.R.O. 1/2012
Provided that the preceding limitation shall not apply
to—
(a) a loan, advance or other extension of
credit between branches of a licensed
financial institution;
(b) a loan, advance or other extension of
credit to the Government of Guyana
or to any public sector enterprise, the
repayment of which is fully
guaranteed by the Government of
Guyana;
(c) a loan, advance or other extension of
credit which as regards—
(i) a person with respect to the
portion thereof which exceeds
twenty-five percent; or
(ii) a borrower group with respect to
the portion thereof which
exceeds forty percent,
of the licensed financial institution’s fully paid-
up and unimpaired capital, is fully collateralised
by deposits with the financial institution, or by
obligations of the Government of Guyana;
(d) a loan, advance or other extension of
credit which is fully guaranteed by
the International Bank for
Reconstruction and Development, the
Inter-American Development Bank, or
other similar multilateral lending
organisations; or
(e) such other loans as may be
determined by the Bank.
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34 Cap. 85:03 Financial Institutions
L.R.O. 1/2012
(2) (a) No licensed financial institution shall
grant any loan, advance or other
extension of credit against the security
of its own shares.
(b) No licensed financial institution shall
make a loan, advance or other
extension of credit in any amount to
any person for the purpose of
purchasing shares in the licensed
financial institution, or its parent
company, or in any of its subsidiaries
or affiliates except where such loan,
advance or other extension of credit is
fully collateralised by deposits with
the financial institution, or by
obligations of the Government of
Guyana.

(3) No licensed financial institution shall grant or
permit to be outstanding unsecured loans, advances or other
extensions of credit of a total amount in excess of two percent
of its capital base to any one of the following classes of
persons, nor allow such loans, advances or facilities to all
such persons to exceed, in the aggregate ten percent of its
capital base—
(a) to any one of its officers or directors
whether such advances or facilities
are obtained by its directors jointly or
severally;
(b) to any person which is affiliated with
the officer or director, in which the
officer or director owns equity capital
or otherwise has a beneficial interest
of ten percent or more, or of which the
officer or director is a guarantor;
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Restriction on
depository
institution
(c) to any person which holds twenty per
cent or more of the paid-up capital of
the licensed financial institution; or
(d) to any other classes of persons
specified by the Bank to be related to
a licensed financial institution.
(4) No licensed financial institution shall grant or
permit to be outstanding to its officials and employees,
unsecured loans, advances or other extensions of credit
which, in a total amount for any one official or employee,
exceed two years’ emoluments of such official or
employee, other than loans, advances or credit facilities
extended exclusively for the purpose of acquiring a principal
residence.
(5) Every licensed financial institution shall submit
in writing to the Bank on a quarterly basis a list of the
following transactions –
(a) every loan, advance, guarantee or
other extension of credit, or liability
made to or incurred on behalf of any
person, or group of related persons,
which in respect of such person, or
group of related persons, exceeds
twenty per cent of the financial
institution’s capital base; and
(b) every transaction referred to in
subsections (3) and (4).
(6) The Bank may by notice further define the
terms used in this section.
15. (1) A licensed financial institution which takes
deposits shall not engage, whether on its own account or on a
LAWS OF GUYANA
36 Cap. 85:03 Financial Institutions
L.R.O. 1/2012
activities.


Penalty.

Financial
activities of
depository
institutions.
commission basis, in the wholesale or retail trade, including
the import or export trade, except in the course of the
satisfaction of debts due to it and the due performance of its
functions as a trustee, executor or administrator or as attorney
for any such person.
(2) A licensed financial institution which takes
deposits may acquire or hold in the aggregate fifty per cent of
its capital base in the share capital of any commercial,
agricultural, industrial or other undertaking but such
shareholding shall not in respect of any one such undertaking
exceed twenty five percent of the licensed financial
institution’s capital base.
(3) A licensed financial institution which takes
deposits shall not purchase, acquire, own, lease or otherwise
hold immovable property except as may be necessary for the
purpose of conducting its business, housing its staff or
providing recreational facilities for its employees:
Provided that the licensed financial institution may
acquire immovable property for the satisfaction of debts due
to it and for the due performance of its function as a trustee,
executor or administrator or as attorney for any such person,
but such property shall, however, be resold within such time
as may be specified by the Bank.
16. Where a licensed financial institution contravenes
any of the provisions of section 14 or 15, and fails to avail
itself of the provisions of section 18 the financial institution
shall be liable on summary conviction to a fine of one million
dollars.
17. (1) The Bank may require any licensed financial
institution which takes deposits and which engages in a
financial business to conduct such financial business in such
a manner, and under such terms and conditions, as it
deems necessary to protect the interests of depositors, prevent
LAWS OF GUYANA
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L.R.O. 1/2012
conflicts of interest, and reduce any risk which such financial
business may pose to the institution and the financial services
sector.
(2) Without limiting the generality of the
foregoing, the Bank may take one or more of the following
steps—
(a) require a given type of financial
business to be conducted only
through a subsidiary or affiliated
company of the financial institution;
(b) require that any investments in, or
loans, advances or other extensions of
credit to, such subsidiary or affiliate
of the financial institution be
deducted from its capital for purposes
of section 7;
(c) prohibit or restrict loans, advances or
other extensions of credit by the
financial institution to such subsidiary
or affiliate;
(d) prohibit or restrict the financial
institution from purchasing or
guaranteeing any obligations or
securities issued or underwritten by
the subsidiary or affiliate;
(e) prohibit or restrict the financial
institution and such subsidiary or
affiliate from having officers or
directors in common; or
(f) require or prohibit such other actions
as the Bank deems necessary in
relation to the licensed financial
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38 Cap. 85:03 Financial Institutions
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Transitional
provisions for
certain
transactions.

Financial or
trust business.
institution or its subsidiary.
18. (1) Any financial institution which becomes a
licensed financial institution under this Act on the appointed
date, which entered into any transaction, which on such date
violates the provisions of section 14 or 15 shall, within three
months of such date, submit in writing to the Bank a
statement of each such transaction, and the financial
institution’s plan for terminating the transaction or otherwise
bringing itself into compliance with this Act.
(2) Each transaction referred to in subsection (1)
shall be liquidated in full within four years of the appointed
date, which period may, upon good cause shown to the Bank,
be extended by the Bank for not more than one year at a time,
but no extensions with respect to any one transaction shall
exceed, in the aggregate, three years.
(3) Nothing in section 14 or 15 shall be construed
as preventing a licensed financial institution from enforcing
any transaction referred to therein against any person who is
a party thereto or against whom it could have been otherwise
enforced.
19. (1) The Bank may specify procedures,
specifically governing the operations of licensed financial
institutions engaged in a financial or trust business, taking
into account the nature of the business in which such financial
institutions engage, including procedures relating to –
(a) permissible investments for
licensed financial institutions
conducting a financial or trust
business;
(b) minimum liquidity requirements;
(c) bonding and deposit requirements
LAWS OF GUYANA
Financial Institutions Cap. 85:03 39
L.R.O. 1/2012
with respect to the conduct of a trust
business;
(d) books, records and other accounts to
be maintained by such financial
institutions; and
(e) requirements for the collective
investment of funds held in a
fiduciary capacity.
(2) No licensed financial institution which engages
in a trust business shall—
(a) commingle, in any respect, any assets
or funds held in a fiduciary capacity
with the general assets of the
institution;
(b) commingle the assets or funds of
separate accounts held in a fiduciary
capacity, other than as permitted
under paragraph (1)(e),
(c) accept deposits in any department or
division of the financial institution
which conducts a trust business; or
(d) make any loan or extension of credit
of any funds held in a fiduciary
capacity to any officer, director or
employee of the financial institution.
(3) Any person who contravenes, or causes the
contravention of, subsection (2) shall be liable on summary
conviction to a fine of one hundred thousand dollars and
imprisonment for not more than two years.
(4) Unless authorised under other applicable laws,
an order of any court of competent jurisdiction, or the
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Maintenance
of reserve
fund.
instrument creating the trust relationship, no licensed
financial institution shall engage as fiduciary in any
transaction in which the financial institution has such a
financial interest as might affect the best judgment of the
institution in engaging in such transaction.
PART IV
RESERVE FUNDS AND LIQUID ASSETS
20. (1) Every licensed financial institution which takes
deposits shall maintain a reserve fund and shall, out of its net
profits of each year and before any dividend is declared,
credited or paid, or before profits are remitted to the Head
Office, transfer to the fund a sum equal to not less than fifteen
percent of such profits whenever the amount of the reserve
fund is less than the paid-up capital or assigned capital of the
licensed financial institution.
(2) Where—
(a) the amount at the credit of the reserve
fund of a licensed financial institution
exceeds its paid-up capital or
assigned capital, as the case may be;
and

(b) the licensed financial institution
intends to reduce its reserve fund,
the licensed financial institution shall, in writing, inform the
Bank accordingly and apply in writing to the Bank for
permission to reduce its reserve fund in accordance with
subsection (3) by an amount not exceeding the amount of the
excess as aforesaid.
(3) The reduction referred to in subsection (2) may
be effected by the issue by the licensed financial institution of
bonus shares or by the redemption of preference shares or
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Minimum
holdings of
liquid assets.
both.
21. (1) Every licensed financial institution which takes
deposits shall at all times maintain a minimum level of liquid
assets as defined in subsection (3), in such an amount as may
be required by the bank.
(2) The minimum amount shall relate to such
liabilities as may be specified by the Bank in relation to each
licensed financial institution.
(3) For the purposes of this section, “liquid assets”
means any of the following—
(a) notes and coins which are legal tender
in Guyana;
(b) balances held at the Bank;
(c) demand or time deposits or other
balances at any other licensed
financial institution in Guyana after
deducting therefrom balances owed
to any other licensed financial
institution in Guyana;
(d) balances at any financial institution
outside Guyana and money at call
outside Guyana after deducting
therefrom balances owed to such
financial institution, provided that
such balances and money at call
represent convertible currencies;
(e) treasury bills or other marketable debt
obligations of the Government of
Guyana, or any foreign government,
with a remaining maturity of not
more than three months;
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42 Cap. 85:03 Financial Institutions
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c. 85:02

Audits of
financial
institutions.
c. 73:01
(f) bills of exchange, promissory notes
and other credit instruments eligible
for re-discount with the Bank under
the Bank of Guyana Act; and
(g) marketable obligations of public
sector enterprises as may be specified
by the Bank.
(4) Any licensed financial institution which fails to
comply with any requirements of this section shall be liable to
a penalty which shall be determined by the Bank and such
penalty shall be established in relation to the current rate of
interest on treasury bills of the Government of Guyana with a
maturity of three months and any determination of, or change
in, the penalty by the Bank shall take effect only after the
expiration of thirty days’ prior written notice to the licensed
financial institution of the intention of the Bank to take such
action.
PART V
AUDITING AND REPORTING
22. (1) Subject to the provisions of section 33 of the
Financial Administration and Audit Act (which mandates the
audit of public corporations and certain other corporate
bodies by the Auditor General), every licensed financial
institution shall appoint annually an auditor who—
(a) is able and qualified to perform audits
of companies incorporated under the
law, for the time being in force
relating to companies, in accordance
with the requirements thereof; and
(b) has knowledge and experience in the
audits of financial institutions
LAWS OF GUYANA
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L.R.O. 1/2012
satisfactory to the directors of the
licensed financial institution and the
Bank.
(2) Upon good cause shown to the Bank, a licensed
financial institution which is a foreign company may appoint
an auditor not qualified to perform audits of Guyanese
companies under the law for the time being in force relating
to companies, if such auditor—
(a) is professionally qualified as such
under the laws of the country in
which the foreign institution is
incorporated;
(b) satisfies criteria for professional
qualifications and independence at
least comparable to those applicable
to auditors of Guyanese companies
under the law for the time being in
force relating to companies; and
(c) has knowledge and experience in the
audit of financial institutions
satisfactory to the foreign company’s
directors and the Bank.
(3) Notwithstanding the provisions of subsections
(1) and (2), no person having financial relationships with a
licensed financial institution other than as a depositor, and no
director, officer, employee or agent of a licensed financial
institution, shall be appointed or act as an auditor for that
institution under this section.
(4) Upon the appointment of an auditor as
specified in subsection (1) or (2), the licensed financial
institution forthwith shall give written notice to the Bank of
such appointment. The Bank, if it has valid reason to believe
that the auditor is not qualified for appointment under
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Duties of
auditors.
subsection (1) or (2), may disapprove the appointment and
notify in writing the financial institution whereupon the
institution shall promptly remove that auditor and appoint
another who is qualified to be appointed.
(5) If the licensed financial institution does not or is
unable to appoint an auditor qualified under this section, the
Bank, notwithstanding the provisions of the law for the time
being in force relating to companies, shall have the power to
appoint an auditor for the institution.
(6) A licensed financial institution, immediately
upon the resignation or termination of appointment of an
auditor for any reason, forthwith shall —
(a) notify in writing the Bank thereof and
the reasons therefor; and
(b) appoint another auditor in
conformity with the requirements of
this section.
23. (1) The duties of an auditor appointed under this
Part shall include the following—
(a) to make a full review of the
licensed financial institution’s records
and accounts, and to make to the shareholders of the licensed financial
institution a report on the annual
balance sheet, profit and loss
statement and accounts, and state in
that report whether, in the auditor’s
opinion, such balance sheet, profit
and loss statement and accounts are
full and fair and properly drawn up,
whether they exhibit a true and fair
statement of the affairs of the
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institution in accordance with
auditing and accounting standards,
and requirements as to format and
content, specified by the Bank, and in
any case in which the auditor has
called for information or explanation
from the directors, officers or agents
of the institution, whether a
satisfactory response was received;
(b) to make a full review of the financial
institution’s internal control structure,
information and loan classification
and reserving systems, and
procedures for financial reporting,
and make a full and fair report of the
same to the directors of the
institution; and
(c) to make a full review of the financial
institution’s procedures for
compliance with the requirements of
this Act, and make a full and fair
report of the same to the directors of
the institution.
(2) In the case of a foreign company which is a
licensed financial institution, the reviews and reports required
under subsection (1) shall refer to the branch or branches of
that financial institution conducting business in Guyana.
(3) Prior to making its reviews and reports under
subsection (1), the auditor for the licensed financial institution
shall obtain from the institution a copy of the most recent
report of inspection for that institution prepared by the Bank,
and any order, directions or other action taken by the Bank
under section 33.
(4) The reports required under subsection (1) shall
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be delivered to the licensed financial institution and the Bank
not later than one hundred and twenty days after the close of
the institution’s financial year and thereafter the report
required under subsection (1)(a) shall be delivered to
shareholders within thirty days of its delivery to such
institution, but the aforesaid periods may be extended by the
Bank for ninety additional days upon good cause shown to
the Bank.
(5) If, during the course of any review required
under this section, any auditor learns of any fact, transaction,
action or course of conduct which –
(a) may pose a substantial risk to the
condition of the financial institution;
(b) may result in a significant loss to
the financial institution;
(c) otherwise may seriously prejudice the
interests of the financial institution’s
depositors; or
(d) is a violation of any law or direction
of the Bank, the auditor shall, as soon
as possible, report such matter to the
directors of the financial institution
and the Bank.
(6) Upon request by the Bank, the auditor shall
make available to the Bank any documents or management
letters relating to any audit performed under this section.
(7) No auditor performing his duties under this
section shall be liable to any person in any action in tort or
contract for any act done or not done, or any statement or
report made or not made, in good faith and in the exercise of
reasonable professional judgment.
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Exhibition and
publication of
audited
balance sheet
by licensed
financial
institution.

Reports of
condition and
income; other
reports.
24. (1) Not later than twenty days after the receipt of
the reports required under section 23(1) each licensed
financial institution shall publish in a newspaper of general
circulation in Guyana, and exhibit thereafter in a conspicuous
position in each of its offices and branches in Guyana and
forward to the Bank, copies of its balance sheet and income
statement certified by its auditors under section 23 and
bearing on its face the certificate of an auditor qualified under
section 22 together with the full and correct names of the
directors of the licensed financial institution.

(2) Any licensed financial institution which fails to
comply with the requirements of this section, or publishes a
report which is inaccurate or false and misleading in any
material respect, shall be liable on summary conviction to a
fine of not more than two hundred thousand dollars.

25. (1) Every licensed financial institution shall
deliver to the Bank within such period as may be specified in
such form as the Bank may from time to time approve,
periodic statements of its –
(a) assets and liabilities;
(b) loans and advances;
(c) earnings and expenses; and
(d) such other data as the Bank may
deem necessary to carry out the
purposes of this Act.
(2) The Bank may publish or require publication in
a newspaper of general circulation in Guyana information
under subsection (1), in such form as may be approved by the
Bank:
Provided that no information in respect of the affairs
of a particular customer of a licensed financial institution
shall be so published.
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Director and
officer
qualifications.
c. 75:01
(3) Any licensed financial institution which fails to
comply with the requirements of this section, or which
submits any report which is inaccurate or false or misleading
in any material respect, shall be liable upon summary
conviction to a fine of not more than one hundred and
seventy-five thousand dollars for each day the offence
continues.
PART VI
DIRECTORS AND OFFICERS
26. (1) Notwithstanding anything in the law relating
to companies for the time being in force or the Co-operative
Financial Institutions Act, no person shall be a first director of
a new licensed financial institution and no person shall be
elected or appointed a director or officer of a licensed
financial institution if the person—
(a) has contravened any provision made
by or under an enactment appearing
to the Bank to be designed for
protecting members of the public
against financial loss due to
dishonesty, incompetence or
malpractice by persons concerned
in the provision of banking,
investment or other financial services
or the management of companies or
against financial loss due to the
conduct of discharged or
undischarged bankrupts;
(b) has been convicted or a felony or of
any offence involving fraud,
dishonesty or breach of trust;
(c) has been found mentally incompetent
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to manage his affairs and has not
recovered from such condition;
(d) is more than two months delinquent,
without adequate cause as
determined by the Bank in its sole
discretion, with respect to any loan,
extension of credit, guarantee or other
obligation to that person by any
licensed financial institution for which
that person is liable;
(e) is under suspension or removal from
office by order or direction of the
Bank pursuant to this Act;
(f) has engaged in any business practices
appearing to the Bank to be deceitful
or oppressive or otherwise improper
(whether lawful or not) or which
otherwise reflect discredit on his
method of conducting business;
(g) has an employment record which
leads the Bank to believe that the
person carried out an act of
impropriety in the handling of his
employer’s business;
(h) has engaged in or been associated
with any other business practices or
otherwise conducted himself in such a
way as to cast doubt on his
competence and soundness of
judgment;
(i) is an undischarged bankrupt; or
(j) is not a fit and proper person in
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Duties of
directors and
officers.
accordance with section 27.
(2) Any person who is a director or officer of a
licensed financial institution shall forthwith cease to hold
office upon—

(a) becoming bankrupt, suspending
payments or compounding or
proposing a compromise with that
person’s creditors generally;
(b) being convicted of a felony or any
offence involving fraud, dishonesty or
breach of trust;
(c) being declared mentally incompetent
in any official proceeding under the
laws of Guyana or elsewhere; or
(d) being suspended or removed from
office by order of the Bank pursuant
to this Act.
(3) No person who has been a director or officer of,
or directly or indirectly concerned in, the management of, a
licensed financial institution, the licence of which has been
revoked, shall, without the approval of the Bank, act or
continue to act as a director or officer or be directly concerned
in the management of any licensed financial institution.
(4) Any person who contravenes this section shall
be liable on summary conviction to a fine of not more than
two hundred thousand dollars and to imprisonment for not
more than two years.

27. (1) Every director or officer of a licensed financial
institution, in exercising the powers and discharging the
duties of his office, shall—
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Conflicts of
interests.
(a) be a fit and proper person to hold the
particular position which he holds;
(b) act honest1y and in good faith with a
view to the best interests of the
financial institution; and
(c) exercise the care, diligence and skill
that a reasonably prudent person
would exercise in comparable
circumstances.
(2) In determining whether a person is a fit and
proper person under subsection (1), regard shall be had to his
probity, to his competence and soundness of judgment for
fulfilling the responsibilities of that position, to the diligence
with which he is fulfilling or is likely to fulfill those
responsibilities and to whether the interests of depositors or
potential depositors of licensed financial institutions are, or
are likely to be, in any way threatened by his holding that
position.
28. (1) A director or officer of a licensed financial
institution who—
(a) is a party to a material loan, contract
or transaction, or a proposed material
loan, contract or transaction with the
financial institution; or
(b) is a director or officer of, or has a
material interest in or a material
relation to, any person who is a party
to a material loan, contract or
transaction, or a proposed material
loan, contract or transaction with the
financial institution,

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shall disclose in writing to the financial institution the nature
and extent of the material interest or relation.
(2) The disclosure required by subsection (1) shall
be made by the director or officer when the matter or
proposed contract comes or ought reasonably to come to the
attention of the director or officer.
(3) A general notice in writing to the board of
directors by a director or officer, disclosing at the time such
person assumes or is appointed to his office and from time to
time (but in no event less than annually) every material
commercial, financial, agricultural, industrial or other
business or family interest that such person has at the time,
and stating that the person is to be regarded as interested in
any material contract between the financial institution and
any person named in the disclosure, shall be a sufficient
declaration of material interest in relation to any such
contract.
(4) A director who has a material interest or a
material relation within the scope of subsection (1) or (3) shall
leave any meeting at which the matter is discussed, and shall
refrain from voting on any matter related thereto which
becomes the subject of action by the board of directors of the
licensed financial institution, provided that such an interest, if
so disclosed, shall not disqualify the interested person for
purposes of constituting a quorum.
(5) For the purposes of subsections (1) and (3), an
interest shall be material if it is material with reference to the
wealth, business, or family interests of the person with the
interest, and a person has a material interest in any company
of which the person is, directly or indirectly, a shareholder or
equity holder with a ten percent or more interest in such
company, or a director or officer thereof.
(6) Where a director or officer fails to disclose a
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False and
misleading
statements;
obstruction.
[22 of 2004]
material conflict of interest in accordance with this section -
(a) the Court may, on the application of
the licensed financial institution, a
shareholder or the Bank, nullify or set
aside the loan, contract or transaction
on such terms as it thinks fit; and
(b) the Bank may, by written order,
suspend the director or officer from
office for any period not exceeding
one year.
(7) A director or officer who contravenes
subsection (1) or (3) shall be liable on summary conviction to
a fine of not more than two hundred thousand dollars and
imprisonment for not more than one year.

29. (1) A director, officer, employee or agent of a
licensed financial institution who—
(i) with intent to deceive—
(a) makes any false or misleading
statement or entry; or
(b) omits any statement or entry
that should be made,
in any book, account. report or statement of the financial
institution; or
(ii) obstructs or endeavors to obstruct—
(a) the proper performance by an
auditor of his duties in
accordance with the provisions
of this Act; or

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Management
compliance
duties.
[22 of 2004]

Offences
committed by
director.
[22 of 2004]
(b) a lawful inspection of the
financial institution by a duly
authorised inspector appointed
by the Bank under section 31or
32,
shall be liable on summary conviction to a fine of not more
than five hundred thousand dollars and imprisonment for a
term not exceeding three years.
(2) Any director, officer, employee, representative
or agent of a licensed financial institution, or other person
conducting business on its behalf, who knowingly accepts
false information from any person for the purpose of that
person securing a loan, advance or other extension of credit
shall be guilty of an offence and shall be liable upon summary
conviction to a fine of not more than five hundred thousand
dollars and imprisonment for a term not exceeding three
years.
30. The Bank may, by written order suspend from
office for any period not exceeding one year any director,
officer or other person concerned in the management of a
licensed financial institution who fails to take all reasonable
steps to secure compliance by the financial institution with
the requirement of this Act or any direction of the Bank:
Provided that before a person is suspended he shall be given
a reasonable opportunity of being heard in his defence.
30A. Any director, officer or other person concerned
in the management of a licensed financial institution –
(a) who is found guilty of an offence
under this Act shall in addition to any
other specified penalty restore in full
to the licensed financial institution the
amount of any resulting financial loss
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Inspections of
licensed
financial
institutions.
to the institution;
(b) who is suspended for non-compliance
under section 30 shall restore in full to
the licensed financial institution the
amount of any resulting financial loss
to the institution.
PART VII
SUPERVISION OF LICENSED FINANCIAL
INSTITUTIONS
31. (1) The Bank is responsible for the supervision
of licensed financial institutions.
(2) In the performance of his duties under this
Part an authorised officer of the Bank shall be entitled at all
reasonable times—
(a) to have access to all books, records
and documents in the possession or
control of any director, manager,
officer or employee of any licensed
financial institution;
(b) to require any director, manager,
officer, auditor or employee of any
licensed financial institution to
furnish such information or to
produce such books, records or
documents as are in his possession or
control that relate to the operations of
the licensed financial institution and
may be reasonably required for the
performance of those duties.
(3) The Bank shall have the power to request
information from and to conduct inspections of every licensed
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financial institution or any holding company, subsidiary or
other affiliate of the licensed financial institution as often as
the Bank shall deem necessary so as to ascertain the business,
managerial and financial relationships between each licensed
financial institution and its affiliates, and the effect of such
relationships on the financial condition and operations of the
licensed financial institution and on the basis of the
information received or the findings of the inspection the
Bank may require the licensed financial institution to sever its
relationship with such holding company, subsidiary or other
affiliate.
(4) The Bank may, in the discharge of its functions
under this section, appoint inspectors who in making the
inspection of a licensed financial institution, or any holding
company, subsidiary or other affiliate of the licensed financial
institution, shall have the power to make a thorough
inspection of all the affairs of such institution, company,
subsidiary or affiliate and require the production of any
books, records, accounts, writings and documents of any kind
and shall prepare a report detailing the findings and
conclusions of each inspection in such form as the Bank may
determine.
(5) Every licensed financial institution, or any
holding company, subsidiary or other affiliate thereof, and
every director, officer, employee or agent of such institution,
company, subsidiary or affiliate, shall be required to produce
for the inspection of any inspector appointed by the Bank
such books, records, accounts, writings and documents of any
kind and supply the inspector with such other information as
may be required by such inspector in the performance of the
duties specified in subsections (1), (2), and (3).
(6) Any information received by a director,
inspector or employee of the Bank concerning the affairs of
the financial institution, any holding company, subsidiary or
other affiliate thereof or those of any customers of the
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financial institution, in the performance of the duties specified
in subsections (1), (2), and (3) shall not be disclosed, to any
person other than—
(a) such officers of the Bank as the
Governor may designate to receive
such information.
(b) the banking supervisors of a foreign
country for their lawful supervisory
or regulatory purposes;

(c) the financial institution’s auditors
appointed under section 22; or

(d) in the case of information on a
customer’s affairs, for any purpose
other than the purposes of this Act or
when lawfully required to do so by
any court or under any law:
Provided, that the Bank shall have the authority to
publish, in such manner and at such intervals as it may
specify, aggregate or comparative data relating to the assets
and liabilities of licensed financial institutions.
(7) Any licensed financial institution, any holding
company, subsidiary or other affiliate thereof, or any director,
officer, employee or agent of such financial institution,
company, subsidiary or affiliate, who contravenes subsection
(5) or obstructs or impedes the performance by any inspector
appointed by the Bank of the duties specified in
subsections (1) and (2), shall be liable on conviction on
indictment to a fine of not more than two million dollars and
imprisonment of not more than seven years.
(8) Any director, inspector or employee who
contravenes subsection (6) shall be liable to disciplinary action
or dismissal, and on summary conviction to a fine of not more
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Special
inspections.
than two hundred thousand dollars and imprisonment for not
more than eighteen months.
(9) The Bank may inspect the affairs of any foreign
company, registered in Guyana under the law for the time
being in force relating to companies, which is a licensed
financial institution, in accordance with the powers and
functions specified in subsections (1), (2), and (3) but nothing
in this section shall be construed as authorising the inspection
of the business affairs conducted outside of Guyana of any
foreign company which is a licensed financial institution
without the permission or consent of the banking authorities
of the country responsible for the supervision of that
institution.
(10) The banking authorities responsible for the
supervision of a foreign company which is a licensed financial
institution may inspect the branch or branches of that
institution located in Guyana upon giving notice thereof to
the Bank.

(11) Where an inspection is conducted by the Bank
or by an inspector appointed by the Bank under this section,
the Bank may charge such fees and costs as may be necessary
to defray the costs of the inspection, and the Bank shall
submit a report of the inspection to the licensed financial
institution within a reasonable period.
32. (1) The Bank may appoint one or more persons
whom it deems to be qualified to conduct a special inspection
of the affairs of a licensed financial institution where—
(a) the Bank has reason to believe
that the licensed financial institution
is conducting its business in an unsafe
and unsound manner, is in violation
of the provisions of this Act or any
regulation, order or direction issued
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Power to issue
orders,
directions and
monetary
penalties
thereunder, or has insufficient assets
to satisfy its outstanding liabilities or
may be unable to satisfy its
obligations as they come due.
(b) a licensed financial institution informs
the Bank that there is a serious risk
that it may become insolvent or be
unable to satisfy its obligations as
they come due;
(c) at the request of the Administration,
in the case of a co-operative
institution licensed under this Act; or
(d) the Bank determines that such an
inspection is necessary in the public
interest.
(2) The Bank, in the case of any inspection
conducted under subsection (1), may charge the fees and costs
of such inspection to the financial institution being inspected
and require the payment of such fees and costs by the
financial institution.
(3) The Bank may remunerate the person
conducting the inspection referred to in subsection (1) in
such manner and in such amounts as it may deem necessary
without regard to the provisions of any law governing the
remuneration of Bank employees, employees of the
Government or any public entity.
33. (1) Where, in the opinion of the Bank, a licensed
financial institution, or any affiliate, director, officer,
employee or agent thereof, in conducting the business of the
financial institution, is committing or pursuing or is about to
commit or pursue any act or course of conduct that is an
unsafe or unsound practice or a violation of any law,
regulation, order, direction, notice or condition imposed in
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writing by the Bank, the Bank may direct the financial
institution or person concerned, as the case may be, to—
(a) cease doing the act or pursuing the
course of conduct; or
(b) perform such acts as, in the opinion of
the Bank, are necessary to rectify the
situation and in particular, but
without limiting the generality of the
foregoing, the Bank may -
(i) require the financial
institution to refrain from
adopting or pursuing a
particular course of action or to
restrict the scope of its business
in a particular way;
(ii) impose any limitation on the
financial institution’s
acceptance of deposits, the
granting of credit or the making
of investments;
(iii) prohibit the financial
institution from soliciting
deposits either generally or
from persons who are not
already depositors;
(iv) prohibit the financial institution
from entering into any other
transaction or class of
transaction;
(v) require the revision of any
contract to which the financial
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institution is a party, or order
the financial institution to make
restitution or recompense to
any person aggrieved by its
actions; or
(vi) require the suspension or
removal from office of any
director, officer or other person.
(2) Where any licensed financial institution fails to
satisfy the requirements of section 7 pertaining to capital, or
the requirements of section 20 pertaining to reserves, the Bank
may, by written order or direction to the financial institution,
require such institution to take any of the following measures
–
(a) submit a plan to the Bank specifying
the measures the financial institution
shall take to restore its capital or
reserves and the time frame for
implementation of the plan;
(b) increase its capital or reserves;

(c) suspend the payment of dividends;
(d) restrict its asset growth;
(e) prohibit transactions with affiliates of
the financial institution; or
(f) restrict the activities of the financial
institution.
(3) Any order or direction given under subsection
(1) or (2) shall be given by notice in writing to the licensed
financial institution and, in the case of any person who is
subject to such order or direction (including but not limited
to an order or direction issued under subsection
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(1)(b)(vi)), also to such person.
(4) Prior to the issue of any order or direction
under subsection (1) or (2), the Bank shall cause to be served
on or delivered to the financial institution or concerned
person a notice containing a statement of the actual or
proposed action or course of conduct constituting an unsafe
or unsound practice or violation, and specifying a time and
place (not less than thirty days after the service or delivery of
the notice) at which a hearing will be held to determine
whether an order or direction should issue. At the hearing,
the Bank shall hear the oral or written views of the financial
institution or concerned person, and consider such evidence
as may be tendered in determining whether the alleged facts
have been satisfactorily established, and if so whether they
establish an actual or potential action or course of conduct
constituting an unsafe or unsound practice or violation, and
upon an affirmative determination, shall issue an order or
direction under this section, a copy of which order or
direction shall promptly be served on the financial institution
or concerned person.
(5) If the Bank determines that the acts or course of
conduct in question may pose a serious risk to the institution;
cause a significant financial loss to the institution or personal
gain to the person who is the subject of the order or direction,
or otherwise seriously prejudice the interests of depositors,
the Bank may issue a summary order or direction which shall
take effect promptly on delivery to the person concerned,
who shall be afforded the opportunity to present his views to
the Bank on whether the order or direction in question should
be removed or varied.

(6) The Bank may impose by written notice to any
licensed financial institution or concerned person subject to
this Act a monetary penalty not to exceed one million, five
hundred thousand dollars in the case of a licensed financial
institution or one million dollars in the case of an individual
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Bank may take
control.
[22 of 2004]
person, if such financial institution or person fails to comply
with any order or direction made by the Bank under this
section. Such penalty shall be determined by the Bank in an
amount it deems necessary, taking into account the gravity of
the conduct, the presence or absence of wrongful intent of the
financial institution or the concerned person, the financial
resources of the financial institution or the concerned
person, and any extenuating or mitigating factors the Bank
wishes to consider and shall be paid within thirty days of the
issue of the notice directly to the Bank.
(7) Within ten days of the issue of an order,
direction or penalty under this section, the financial
institution or the person who is the subject of the order,
direction or penalty may appeal such order, direction or
penalty to the Minister or the Court, but such appeal shall
not stay the effectiveness of the order, direction or penalty
issued under this section.
(8) Any financial institution or person who fails to
comply with any order or direction made by the Bank under
this section, and of which it has received notice in writing, or
fails to pay any penalty as provided in subsection (6), shall
be liable on summary conviction (in addition to payment of
the penalty) to a fine of not more than three million dollars
and imprisonment of not more than two years.
33A. (1) Notwithstanding anything in this Act, where
any of the circumstances described in subsection 2 exist in
respect of a licensed financial institution, the Bank may –
(a) take temporary control, for a period
not exceeding thirty days, of the
assets of the licensed financial
institution and the assets under its
administration; or
(b) take temporary control for a period
not exceeding thirty days of the
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licensed financial institution;
(c) for the purposes of this section, where
the licensed financial institution
concerned is a branch of a foreign
company, the term “assets of the
licensed financial institution” shall
mean the assets in respect of its
business in Guyana, including the
assets referred to in section 21, and
any other asset in Guyana of the
branch of a foreign company, and the
references to taking control of the
licensed financial institution or
similar expressions shall mean the
taking of control of the business in
Guyana of the branch of a foreign
company.
(2) Control by the Bank under subsection (1) may
be taken in respect of a licensed financial institution where –
(i) the licensed financial
institution has failed to pay its
liabilities or, in the opinion of
the Bank, will not be able to
pay its liabilities as they
become due and payable;
(ii) in the opinion of the Bank, a
practice or state of affairs exists
in respect of the licensed
financial institution that may be
materially prejudicial to the
interests of the institution’s
depositors or creditors or the
owners of any assets under the
licensed financial institution
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administration;
(iii) the assets of the licensed
financial institution are not, in
the opinion of the Bank,
sufficient to give adequate
protection to the institution’s
depositors and creditors;
(iv) any asset appearing on the
books or records of the licensed
financial institution or held
under its administration is not,
in the opinion of the Bank,
satisfactorily accounted for;
(v) the capital or assigned capital
of the licensed financial
institution has, in the opinion of
the Bank, reached a level or is
eroding in a manner that may
detrimentally affect its
depositors or creditors; or
(vi) the licensed financial institution
has failed to comply with an
order, direction, notice, or
condition imposed by the Bank.
(3)The Bank shall notify the licensed financial
institution of any action being taken under subsection (1)
and of its right to make written representations to the Bank.
(4) Where, pursuant to subsection (1)(a), the Bank
has temporary control of the assets of a licensed financial
institution referred to in that subsection, the Bank may do all
things necessary or expedient to protect the rights and
interests of the depositors and creditors of the licensed
financial institution.
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Powers of
directors and
officers
suspended.
[22 of 2004]
(5) Where, pursuant to subsection (1)(a), the Bank
has temporary control of the assets of a licensed financial
institution referred to in that subsection –
(a) the financial institution shall not make,
acquire or transfer any loan or make any
purchase, sale or exchange of securities or
any disbursement or transfer of cash of any
kind without the prior approval of the Bank
or representative designated by the Bank;
and
(b) no director, officer or employee of the
financial institution shall have access to any
cash or securities held by the licensed
financial institution unless –
(i) a representative of the Bank
accompanies the director, officer or
employee; or
(ii) the access is previously authorised by
the Bank or the Bank’s representative.
33B. (1) Where the Bank takes control of a licensed
financial institution pursuant to section 33A(1)(b) the
powers, duties, functions, rights and privileges of the
directors and officers responsible for management of that
institution are suspended.
(2) Where the Bank takes control of a licensed
financial institution pursuant to section 33A(1)(b) the Bank
shall manage the business and affairs of the licensed financial
institution and in doing so the Bank –
(a) may perform any of the duties and
functions that the persons referred to
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Expiration of
control.
[22 of 2004]

Bank may
request
winding-up.
[22 of 2004]
in subsection (1) were performing
prior to the taking of control; and
(b) has and may exercise any power,
right or privilege that any such person
had or could have exercised prior to
the taking of control.
(3) Where the Bank takes control of a licensed
financial institution pursuant to section 33A(1)(b)the Bank
may appoint one or more persons to assist in the
management of the licensed financial institution.
(4) All expenses of and incidental to the taking
control of a licensed financial institution shall be paid by the
licensed financial institution in such manner as the Bank may
determine.
33C. Control by the bank under section 33A(1), of a
licensed financial institution or of the assets of a licensed
financial institution expires on the day on which a notice by
the Bank is sent to the directors and officers who conducted
the business and affairs of the financial institution stating that
the Bank is of the opinion that the circumstances leading to
the taking of control by the Bank have been substantially
rectified and that the licensed financial institution can resume
control of its business and affairs.
33D. Where –
(a) the assets of a licensed financial
institution are under the control of the
Bank pursuant to section 33A(1)(a); or
(b) the licensed financial institution is
under the control of the Bank
pursuant to section 33A(1)(b),
the Bank may, at any time before the receipt of a request
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Requirement
to relinquish
control.
[22 of 2004]

Application of
provisions.
[22 of 2004]

Accepting
deposits
while
insolvent.
under section 33E to relinquish control of a licensed financial
institution or of the assets of a licensed financial institution,
apply to the Court for an order deeming the Bank to have
taken possession of the licensed financial institution under
section 42 and for deeming the Bank to have satisfied the
provision of the said section 42 for taking such possession.
33E. Where no action has been taken by the bank
institution or of the assets of a licensed financial institution,
the bank receives from the board of directors of that
institution, or, in the case of a branch of a foreign company,
from its principal officer, a notice in writing requesting the
Bank to relinquish control, the Bank shall, not later than
twelve days after receipt of the notice –
(a) comply with the request, or
(b) apply to the Court for an order under
section 42 as provided for in section
33D.
33F. Where the bank proceeds under section 42 in
either section 33D or 33E the remaining provisions of Part VIII
may in so far as they are applicable in any further
proceedings.
PART VIII
INSOLVENCY AND WININDING UP
34. (1) A licensed financial institution that receives
any deposit while insolvent shall be guilty of an offence and
shall be liable on summary conviction to a fine of not more
than five hundred thousand dollars.
(2) Any director, officer or employee of a licensed
financial institution who knows or, in the proper performance
under section 33B and, also thirty days following the taking of
control by the Bank under section 33A of a licensed financial
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Appointment
of
administrator
or liquidator.
of his duties, should know, of the insolvency of the financial
institution, and who receives, or authorises the acceptance of,
a deposit shall be guilty of an offence and shall be liable, on
summary conviction, to a fine of not more than five hundred
thousand dollars and imprisonment for not more than one
year.
35. (1) Upon the seizure of any licensed financial
institution under this Act, the Bank may, notwithstanding
anything in any written law, appoint any person it deems
suitably qualified to properly carry out the functions of an
administrator or liquidator to perform the responsibilities
assigned to administrators or liquidators under the provisions
of this Act with respect to any licensed financial institution.
Such person shall, subject to the provisions of this Part and,
notwithstanding anything in any written law, have full power
to perform the functions of an administrator or liquidator for
that financial institution without further action of the Bank,
and with such legal rights and protection in law as if he were
appointed by the Court.
(2) Notice of the appointment of such person by
the Bank shall be given to the Court upon the appointment
thereof, and simultaneously published in the Gazette and in a
newspaper of general circulation in Guyana.
(3) The Bank may remunerate any person
appointed to perform the functions of administrator or
liquidator in such manner and in such amounts as it may
deem necessary without regard to the provisions of any law
governing the remuneration of Bank employees, employees of
the Government or any public entity; and may indemnify
such person for the costs of any claims, causes of action,
judgments, orders, fines, amounts paid in settlements
(including attorneys’ fees) actually and reasonably incurred
by such person in the discharge of the functions of
administrator or liquidator if such person acted in good faith
and in a manner consistent with the purposes of this Act.

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Voluntary
winding up.

Voluntary
winding up;
cessation of
(4) The Bank shall have the power to revoke any
appointment under this section at any time upon written
notice to the person so appointed, and that person forthwith
shall cease to act as administrator or liquidator. The Bank
may, not withstanding anything in any written law, elect to
carry out such functions on its own behalf or appoint a
successor to act as administrator or liquidator.
36. (1) Notwithstanding anything in the law for the
time being in force relating to companies, a licensed financial
institution incorporated under such law shall not, except with
the approval of the Bank, pass any resolution for voluntary
winding up.
(2) A licensed financial institution which is a co-
operative institution shall not, except with the approval of
the Bank after consultation with the Administration, pass
any resolution for voluntary winding up.
(3) A licensed financial institution not incorporated
under the law for the time being in force relating to
companies shall not, except with the approval of the Bank,
commence voluntary liquidation subject to this Act or any
other written law.
(4) The Bank shall grant approvals under
subsections (1), (2) and (3) on such terms and conditions as it
may determine and only if it appears to the Bank that the
financial institution is solvent and has sufficient liquid assets
to repay its depositors and other creditors in full and without
delay.
(5) The Bank shall promptly publish in the Gazette
and in a newspaper of general circulation in Guyana any
approval granted under this section.
37. (1) When a licensed financial institution has
received approval of the Bank under section 36 it shall—
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operations.

Voluntary
winding up;
notice to
depositors.


Voluntary
winding up;
claims of
creditors.
(a) immediately surrender its licence to
the Bank, cease to do business and
thereafter exercise its powers only to
the extent necessary to effect its
orderly liquidation;
(b) repay in full its depositors and other
creditors; and
(c) wind up all operations undertaken
prior to the receipt of the approval.
(2) A licensed financial institution that acts in
compliance with subsection (1) shall not be guilty of an
offence under section 34.

38. Within thirty days from the receipt of any
approval under section 36, a notice of voluntary winding up
or liquidation of a licensed financial institution, setting forth
such information as the Bank may prescribe, shall be
published in the Gazette and a newspaper of general
circulation in Guyana and communicated to the public by
such other means as reasonably may be necessary to notify
every depositor or creditor of the financial institution, or
persons otherwise entitled to any funds or property held by
the financial institution as a trustee, fiduciary, lessor of a safe
deposit box, or bailee. The notice also shall be kept displayed
in a conspicuous place in the public part of the financial
institution’s head office and each branch thereof.
39. The approval by the Bank under section 36 for the
voluntary winding up or liquidation of a licensed financial
institution shall not prejudice the rights of a depositor or
other creditor to payment in full of a claim, nor the right of an
owner of funds or other property held by the financial
institution to the return thereof and all lawful claims shall be
paid promptly and all funds and other property held by the
financial institution shall be returned to their rightful owners
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Voluntary
winding up;
creditor
distributions.

Voluntary
winding up;
insufficient
assets.
Seizure of
licensed
financial
institution.
within such maximum period as the Bank may prescribe.
40. When in the judgment of the Bank a licensed
financial institution has discharged all the obligations
referred to under section 39, the remainder of its property
shall be distributed to its rightful owners but no such
distribution shall be made before—
(a) all claims of depositors and other
creditors have been paid in full, or, in
the case of a disputed claim, before
the licensed financial institution has
deposited with the Bank or a
correspondent bank approved by the
Bank funds sufficient, in the opinion
of the Bank, to meet any liability that
may be judicially determined; and
(b) any funds payable to a depositor or
other creditor who has not claimed
them have been deposited with the
Bank or a correspondent bank
approved by the Bank.
41. If the Bank finds that the assets of a licensed
financial institution whose voluntary winding up or
liquidation it has approved will not be sufficient for the full
discharge of all its obligations, or that completion of the winding up or liquidation is unduly delayed, it may, if it
deems fit, take possession as administrator or liquidator of
the financial institution as provided in this Act.
42. The Bank may take possession of any licensed
financial institution if, in the opinion of the Bank—
(a) the capital of the financial institution
is substantially exhausted with no
reasonable prospects of its timely
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Notice of
possession.
restoration;
(b) substantial dissipation of the financial
institution’s assets or earnings has
occurred as a result of violations of
law or regulation, or unsafe and
unsound banking practices;
(c) the financial institution’s assets do not
appear sufficient to satisfy its
depositors, creditors and other
liabilities;
(d) the financial institution appears
unable to meet its obligations and pay
its depositors’ demands in the normal
course of business;
(e) the financial institution wilfully
conceals from the Bank its books,
records or accounts, or refuses to
permit the Bank to inspect its affairs
or otherwise obstructs such
inspection; or

(f) the financial institution engages in
any act, transaction or course of
conduct which is likely to cause
insolvency:
Provided that before the Bank takes possession of any
licensed financial institution the Bank shall give the licensed
financial institution a reasonable opportunity of being heard
why such possession should not be taken.
43. After taking possession of a licensed financial
institution under section 42, the bank shall post in a
conspicuous place in the public part at the financial
institution’s head office and each branch thereof, and publish
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Involuntary
winding up;
appeal.

Involuntary
winding up;
Bank’s
powers.
in the Gazette and a newspaper of general circulation in
Guyana, notice, a copy of which shall be transmitted to the
Registrar of the Court, announcing its action pursuant to this
Act and specifying the time when such possession shall take
effect.

44. Within a period of twenty days after the date on
which the Bank has taken possession of a licensed financial
institution, the institution may institute proceedings in the
Court to have the seizure terminated on the ground that none
of the events specified in section 42 exists or is likely to occur.
45. (1) When the Bank has taken possession of a
licensed financial institution, it, or any person appointed as
administrator under section 35, shall, notwithstanding
anything in any written law, have the full and exclusive
powers to act as administrator of such financial institution
and exercise full power of management and control of the
institution, including, without limiting the generality of the
foregoing, the power to continue or discontinue its
operations; to stop or limit the payment of its debts; to
employ any necessary officers or employees; to execute any
instrument in the name of the financial institution; to initiate,
defend and conduct in its name any action or proceedings to
which the financial institution is or may be a party; and to
terminate possession by restoring the financial institution to
its board of directors or owners, as the case may be.
(2) When the Bank has taken possession of a
licensed financial institution, it shall have the power as
administrator to reorganise the institution in accordance with
the provisions of this Act, or to appoint a person under
section 35 to perform such functions as administrator.
(3) After taking possession of a licensed financial
institution, the Bank shall promptly make an inventory of the
assets and property of the institution and transmit a copy
thereof to the Registrar of the Court.
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Involuntary
winding up;
validity of
encumbrances.
46. When the Bank has taken possession of a licensed
financial institution—
(a) any term, contractual or otherwise, on
the expiration of which a claim or
right, of the institution would expire
or be extinguished, shall be extended
by six months from the date of such
expiration or extinction;
(b) any attachment or lien, except an
attachment or lien existing at least six
months prior to the seizure of the
institution, shall be vacated and no
attachment or lien, except an attachment or lien created by the
Bank in the application of section 45,
shall attach to any of the assets or
property of the financial institution so
long as such possession continues;
(c) any transfer of an asset or property of
the financial institution made after,
or within six months prior to, its
insolvency or seizure by the Bank
with intent to effect a preference shall
be void:
Provided that —
(i) any payment made by the
financial institution to a
creditor in the ordinary course
of business to discharge in
whole or in part a debt or other
liability of the financial
institution to that person, or
(ii) any transfer of an asset or
property by the financial
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Involuntary
winding up;
validity of
writs.

Procedures
upon seizure.
institution to a third party for
valuable consideration at least
equal to the fair value of the
asset or property so transferred,
shall be presumed to be made
not with the intent to effect a
preference.
47. No writ of execution or garnishee order shall be
issued against the assets or property of a financial institution
in possession of the Bank or any administrator or liquidator
48. (1) When the Bank has taken possession of a
licensed financial institution it shall, within ninety days after
the effective date of seizure specified pursuant to section 43
—
(a) close the financial institution and
apply to the Court by petition for an
order for compulsory liquidation
under section 49 if it determines that
there is no reasonable prospect for the
institution’s return to financial
soundness through reorganisation or
otherwise;
(b) commence reorganisation under
section 50 if it determines that there
is a reasonable prospect of restoring
the institution to financial soundness
through such action and submit a
plan thereof to the Court for approval;
or
(c) terminate the seizure if it determines
that none of the grounds for seizure
under section 42 then exists.
appointed under section 35.
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Compulsory
liquidation.
(2) The ninety day period specified in subsection
(1) may be extended by the Court, upon petition by the Bank,
for an additional period of up to ninety days.
49. (1) Compulsory liquidation of a licensed
financial institution may be decreed by the Court only upon
petition by the Bank, or if it rejects a reorganisation plan
submitted under section 50.
(2) Immediately following the Bank’s petition to
the Court, the Bank shall notify each director, shareholder,
other owner, depositor and other creditor of the financial
institution, and every other interested party of such petition
by written notice to such of those for whom the Bank is able
to determine a name and address, by publication in the
Gazette and a newspaper of general circulation in Guyana,
and by other suitable form of public notice. Each person
notified shall have a period of thirty days to file any objection
with the Court.
(3) The Court shall endeavour to render its
decision within a period of thirty days after the end of the
period during which objections to the liquidation were
admissible, whether the Court is in session or not.
(4) After the expiration of the period specified in
subsection (3), the Court shall—
(a) order the compulsory. liquidation and
the appointment of the Bank as
liquidator;
(b) order the reorganisation of the
financial institution under section 50;
or
(c) refuse the application of the Bank and
order the seizure to be terminated.

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Re-
organisation.
(5) The Court is entreated to act within the thirty
days after the expiration of the period specified in subsection
(3), in view of the fiduciary nature and implications of the
proceedings for compulsory liquidation of a licensed financial
institution.
(6) The provisions of subsections (2), (3), (4) and (5)
shall not apply to any compulsory liquidation resulting from
the Court’s rejection of a reorganisation plan under section 50.

50. (1) The Bank, or any person appointed under
section 35 as administrator, may develop a reorganisation
plan to—
(a) reorganise the licensed financial
institution by providing for an
increase in its capital, arranging for
new shareholders, reconstituting its
board of directors or appointing
new officers; or
(b) amalgamate the financial institution
with any other licensed financial
institution operating under the
provisions of this Act.
(2) Upon the development of a reorganisation plan
specified in subsection (1), the Bank or person appointed
under section 35 shall submit a copy of the reorganisation
plan to the Court for approval, and promptly transmit a copy
of the reorganisation plan to each owner or shareholder of the
financial institution. Notice of the submission of such plan
also shall be published at the same time in the Gazette and a
newspaper of general circulation in Guyana so that any
owner or shareholder who is aggrieved by such plan may
appeal to the Court within thirty days of the publication of
notice thereof.
(3) After the expiration of the period specified in
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Reorganisation;
rejection by
depositors and
creditors.
subsection (2), the Court shall, in the public interest in
financial prudence, approve the reorganisation or
amalgamation carried out by the Bank or person appointed
under section 35 or order the compulsory liquidation of the
financial institution and the appointment of the Bank as
liquidator. If the Court does not act within thirty days after
the expiration of such period, the reorganisation plan shall be
deemed approved without further action.
(4) After the Court’s approval of a reorganisation
plan, or if the Court orders such reorganisation in accordance
with section 49(4), the Bank or person appointed under
section 35 shall, after granting a reasonable opportunity of a
hearing to all interested parties, notify each depositor and
other creditor who shall not receive full payment under the
reorganisation plan. If the copy of the reorganisation plan is
not refused in writing within a period of thirty days of the
Court’s approval or order by persons holding at least one-
third of the aggregate amount of deposits and claims and
representing at least one-third of the depositors, or if within
the same period of thirty days the Court does not order a stay
of proceedings, the reorganisation plan shall become final and
the Bank or person appointed under section 35 shall proceed
to carry out the reorganisation plan.
51. When depositors and other creditors refuse a
reorganisation plan under section 50(4), or when in the course
of reorganisation it appears to the Bank or person appointed
under section 35 that circumstances render the plan
inequitable, or changes in its execution desirable, the Bank
may apply to the Court to—
(a) modify the plan; or
(b) order the compulsory liquidation of
the licensed financial institution and
the appointment of the Bank as
liquidator.

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Compulsory
liquidation;
powers and
duties of
Bank.
52. (1) In effecting compulsory liquidation pursuant to
section 49 or 51, the Bank, or any person appointed under
section 35 to act as liquidator, may exercise any of the powers
of the licensed financial institution, whether express or
implied, including—
(a) the sale of any asset of the financial
institution if such value does not
exceed five million dollars;
(b) the creation of a security interest in
any asset of the financial institution in
favour of a creditor who extends new
credit to the institution;
(c) the compromise or release of any
claim if the amount of the claim does
not exceed seven million dollars; and
(d) the payment of any claim, other than a
claim in respect of an obligation
incurred by the Bank or person
appointed under section 35 to act as
liquidator in the exercise of the
powers in liquidation, before the
schedule referred to in section 53(c)
has been approved by the Court.
(2) Within a period of six months after the date of
the decision of the Court ordering compulsory liquidation of
a licensed financial institution, the Bank or person appointed
under section 35 to act as liquidator may terminate—
(a) any employment contract;

(b) any contract for services to which
the financial institution was a party;

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(c) any letter of credit, financial
guarantee or unfunded contractual
lending, financial credit or other
funding commitment issued by the
financial institution; or
(d) any obligation of the financial
institution as a lessee of real property,
provided that a lessor, who shall have
received ninety days’ notice that the
Bank is exercising its discretionary
powers to terminate the lease, shall
have no claim for rent other than rent
accrued up to the date of the
termination of the lease, nor any claim
for damages by reason of such
termination.
(3) As soon as possible after the decision of the
Court ordering compulsory liquidation, the Bank or person
appointed under section 35 to act as liquidator shall take any
necessary steps to terminate all fiduciary functions performed
by the financial institution, return all assets and property held
by the financial institution as a fiduciary to the owner thereof,
and settle its fiduciary accounts.
(4) As soon as possible after the decision of the
Court ordering compulsory liquidation, the Bank or person
appointed under section 35 to act as liquidator shall publish
in a newspaper of general circulation in Guyana notice of
the order of compulsory liquidation, and send by mail, at
the address shown on the financial institution’s books, to all
depositors, other creditors, safe deposit box lessees and
bailors of property held by the financial institution, a
statement of the nature and amount for which their claims
are shown on the financial institution’s books. The
statement shall note that any objection must be filed with the
Bank or person appointed under section 35 before a
specified date not later than sixty days thereafter and shall
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Compulsory
liquidation;
claims.
invite safe deposit box lessees and bailors to withdraw their
assets and property.
(5) Any safe deposits which have not been
withdrawn before the date specified in the statement referred
to in subsection (4) shall be opened in the manner prescribed
by the Bank or person appointed under section 35 to act as
liquidator.

(6) Any unclaimed funds and property held by the
financial institution as a bailee, together with the inventories
pertaining thereto, shall be disposed of by the Bank as
provided in section 57(1).

53. Within six months after the last day specified in
the notice of compulsory liquidation referred to in section
52(4) for the filing of objection or within such longer period as
may be prescribed by the Court, the Bank or person
appointed under section 35 to act as liquidator shall—
(a) reject any claim if it doubts the
validity thereof;
(b) determine the amount, if any, owing
to each known depositor or other
creditor and the priority class of his
claim under the provisions of this Act;
(c) file with the Court a schedule of the
steps it proposes to take; and
(d) notify each person whose claim has
not been allowed in full and publish
once a week for three consecutive
weeks, in the Gazette and a newspaper
of general circulation in Guyana, a
notice of the date and place where the
schedule referred to in paragraph (c)
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Compulsory
liquidation;
objections.

Compulsory
liquidation;
priority of
claims.
shall be available for inspection, and
the date, not sooner than thirty days
counting from the date of the third
publication of the notice, on which the
Bank shall file the schedule with the
Court.
54. Within thirty days after the filing by the Bank or
person appointed under section 35 to act as liquidator of the
schedule referred to in section 53(c), any depositor, other
creditor, or owner of a licensed financial institution, and any
other interested party, may file an objection to any step
proposed with the Court. Any objection so filed shall be
considered by the Court, upon such notice to the Bank or
person appointed under section 35 and to interested parties as
the Court may specify. If an objection is sustained, the Court
shall direct that an appropriate modification of the schedule
be made. After filing the schedule the Bank or person
appointed under section 35 to act as liquidator may, from
time to time, make partial distribution to the holders of claims
which are undisputed or which have been allowed by the
Court, on condition that a proper reserve is established for the
payment of disputed claims. As soon as possible after all
objections have been decided upon, the Bank or person
appointed under section 35 shall make final distribution.
55. (1) In any compulsory liquidation of a licensed
financial institution there shall be paid by the Bank or person
appointed under section 35 to act as liquidator, in priority to
all other unsecured debts, in the following order—
(a) necessary and reasonable expenses
incurred by the Bank or person
appointed under section 35 in
application of the provisions of this
Part;
(b) unpaid claims for taxes due, whether
payable to the Government or to any
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local governmental authority;
(c) wages and salaries of officers and
employees of the institution for the
three month period preceding the
effective date of seizure;
(d) fees, costs and assessments due to the
Bank;
(e) deposits up to an amount not
exceeding one hundred thousand
dollars to any depositor;
(f) deposits of nationals and residents of
Guyana in excess of one hundred
thousand dollars; and
(g) other deposits.
(2) After payment of all claims filed, with interest
thereon at a rate to be fixed by the Bank or person appointed
under section 35 to act as liquidator, any remaining claims
which were not filed within the time prescribed for the filing
of objections under section 54 shall be paid.
(3) If the amount available for payment for any
class of claims listed under subsection (1) is insufficient to
provide payment in full, the said claims shall abate in equal
proportions.
(4) Notwithstanding the provisions of the law for
the time being in force relating to companies or any other
written law, the debts of a financial institution of the classes
referred to in paragraphs (e), (f) and (g) of subsection (1) shall
have priority over any class of claims of general creditors and
shall have priority among themselves in the order prescribed
under subsection (1).
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Compulsory
liquidation;
remaining
assets.
Compulsory
liquidation;
unclaimed
property.
c. 85:02


Compulsory
liquidation;
final
accounting.
Declaration of
bank holidays.
56. Any assets remaining after all claims have been
paid upon liquidation of a licensed financial institution shall
be distributed among the owners in accordance with their
proportionate rights and interests.

57. (1) Unclaimed funds remaining after the final
distributions referred to in sections 40, 52(6) and 54, which are
not subject to other provisions under this Part, shall be kept
by the Bank or person appointed under section 35 to act as
liquidator for the period of one year, unless claimed by the
owner before the expiration of that period. On the expiration
of the said period any funds remaining unclaimed shall be
paid to the General Reserve Fund established under the Bank
of Guyana Act, and the Bank shall be entitled to a certificate
of receipt of the funds so paid, and such certificate shall be an
effective discharge to it in respect thereof.
(2) Any person claiming to be entitled to any funds
paid into the General Reserve Fund pursuant to subsection (1)
may apply to the Accountant General for payment thereof,
and the Accountant General may make an order for the
payment to that person of the sum due.
(3) Any person who is aggrieved by the decision
of the Accountant General under subsection (2) may appeal
to the Minister.
58. Once all assets of a licensed financial institution
have been distributed pursuant to compulsory liquidation,
the Bank shall render an account to the Court upon approval
of which by the Court, the licence of the institution shall be
revoked and the Bank or person appointed under section 35
to act as liquidator shall be relieved of any further obligation
in connection with the liquidation.
PART IX
MISCELLANEOUS
59. (1) The Governor may, at any time, by order
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c. 19:07
Prosecutions.

Regulations
and notices.

declare any day to be a bank holiday.
(2) No financial institution shall do any business
with the public on any day declared a bank holiday under
subsection (1).
(3) A bank holiday declared under subsection (1)
shall not necessarily be a public holiday and nothing in this
section shall be deemed to affect the Public Holidays Act.
60. A criminal prosecution in respect of any offence
under this Act shall be instituted by the Bank or by any
person duly authorised by the Bank in writing, and with the
consent of the Director of Public Prosecutions.
61. (1) The Bank may make such regulations or orders
or issue such notices, as may be required from time to time for
carrying into effect the provisions of this Act, or to prevent
evasions of the requirements of this Act.
(2) Notwithstanding the provisions of subsection
(1), the Bank, by written notice to a licensed financial
institution or by regulation may specify general or specific
prudential requirements pertaining to –
(a) the maintenance of reserves for bad or
doubtful debts in such amounts as
the Bank deems necessary for the
protection of depositors.
(b) the classification and reporting of
overdrafts, loans, investments and
other assets and contingencies which
are past due, on which interest is
not accruing, where the collection
of principal or interest due is
questionable or, doubtful, or which
otherwise exhibit significant risks of
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collection;
(c) the writing off in whole or in part of
loans, investments or other assets
which are not collectible;
(d) credit concentration, country and
transfer risk exposures;
(e) off balance sheet credit exposures;
(f) funding activities and liquidity
requirements;
(g) electronic funds transfers and large
dollar payments;

(h) interest rate risk management
activities;
(i) foreign exchange risk;
(j) financial relationships with affiliates
and related parties;
(k) securities investment and trading
activities; and

(1) such other matters as may affect
the safety and soundness of the
financial institution’s activities.
(3) The Bank, by regulation or written notice
published in the Gazette, may specify requirements governing
the reporting to the Bank by licensed financial institutions of
currency transactions by customers of such licensed financial
institutions, including requirements relating to cash
transactions, large currency deposits and similar matters.

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Wilful refusal
to produce
documents.
Confidentiality
of customer
information.
Immunity.
62. Any person who wilfully alters, conceals,
withholds or refuses to provide any notice, report, statement,
application or other document which he is required to
produce under this Act shall be liable on summary conviction
to a fine of one hundred thousand dollars and imprisonment
for not more than one year.
63. Any director, officer, employee, representative or
agent of a licensed financial institution, or other person
conducting business for such institution, who discloses any
information concerning the accounts, loans, deposits or
personal or business affairs of any customer acquired in the
course of such person’s affiliation or relationship with the
financial institution, shall be liable upon summary conviction
to a fine of one hundred thousand dollars and imprisonment
for not more than one year:
Provided, that this section shall not apply to
disclosure of any information—
(i) to the Bank;
(ii) in response to a lawful
subpoena or other compulsory
demand issued by or with
the consent of a Court of
competent jurisdiction;
(iii) in response to a lawful
Government request or
demand; or
(iv) with the prior written consent
of the customer.
64. Neither the Governor of the Bank nor any officer
of the Bank shall be liable in damages for anything done or
omitted in the discharge or purported discharge of his
functions under this Act, unless it is shown that the act or
omission was done in bad faith.
_________________
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Ntce. Gaz.
L.S. –
B 20.3.1996

c.85:03
Ntce. Gaz.
L.S. –
B 20.3.1996
c.85:03
SUBSIDIARY LEGISLATION
_________________ MINIMUM CAPITAL FOR NON-DEPOSITORY
FINANCIAL INSTITUTIONS
made under section 7 (3)
In accordance with section 7(3) of the Financial Institutions
Act the Bank of Guyana hereby specifies that the fully paid-
up capital, unimpaired at all times during the period when
its licence is in force, of a company engaged in financial
business which does not accept deposits of any type, receive
repayment funds from twenty or more persons through
borrowing or similar means or conduct trust business, shall
not be less than fifty per cent of its total outstanding
borrowings from a maximum of nineteen persons other than
its parent company licensed financial institutions,
multilateral lending agencies, subsidiaries, affiliated
companies, directors, principal officers and officials, and
controlling shareholders.
________________________
MINIMUM CAPITAL FOR TRUST COMPANIES
made under section 7 (3)
In accordance with section 7(3) of the Financial Institutions
Act the Bank of Guyana hereby specifies that the fully paid-
up capital, unimpaired at all times during the period when
its licence is in force, of a company engaged in trust business
which does not accept deposits of any type, receive
repayment funds from twenty or more persons excluding its
parent company, licensed financial institution, multilateral
lending agencies, subsidiaries, affiliated companies,
directors, principal officers and officials, and controlling
shareholders, through borrowings or similar means shall not
be less than one hundred and twenty-five million dollars.
L.R.O. 1/2012
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Reg. 4/1996 FINANCIAL INSTITUTIONS REGULATIONS
made under section 3(8)
Citation. 1. These Regulations may be cited as the Financial
Institutions Regulations.
Interpretation.

Prohibition on
deposit
acceptance and
borrowing from
twenty or more
persons.

Necessity to
specify
principal
financial
business .

Licensing and
minimum
capital.
2. In these regulations –
“depository financial institution” means a licensed financial
institution which accepts deposits and other
repayable funds from the public;
“non-depository financial institution” means a licensed
financial institution which does not accept deposits
and other repayable funds from the public.
3. A non-depository financial institution shall not
accept deposits of any type and shall not receive repayable
funds through borrowings or similar means from twenty or
more persons, other than licensed financial institutions,
multilateral lending agencies, its parent company,
subsidiaries, affiliated companies, controlling shareholders,
directors, officers, and officials.
4. A non-depository financial institution shall specify
in its application the principal financial business it proposes
to conduct and shall fully describe the type of lending and
borrowing it shall engage in, and shall make no major
change to such business, which may require an amendment
of the licence so issued, without prior approval of the bank.
5. (1) A non-depository financial institution which is
incorporated in Guyana shall not be granted, nor shall it
hold a licence, unless it complies with the licensing
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Necessity of
prior approval
for trust
business.
Minimum
capital for
trust business.

Conduct of
trust business
by depository
financial
institutions.

Conduct of
trust business
by non-
depository
financial
institutions.

Trust
agreements.
guidelines of the Bank and with the minimum capital
requirement specified therefor by the Bank from time to
time by notice in the Gazette.
(2) A non-depository financial institution which is a
foreign company shall not be granted, nor shall it hold a
licence, unless it complies with the licensing guidelines of
the Bank and the total assigned capital for its branch or
branches in Guyana (which may be satisfied in the manner
provided for in section 7(2) (b) of the Act in relation to a
licensed financial institution which accepts deposits) is not
less than the amount specified therefor by the Bank from
time to time by notice in the Gazette.
6. A licensed financial institution, depository or non-
depository, shall not engage in trust business without the
prior written approval of the Bank.
7. A non-depository financial institution shall not be
authorised to engage in trust business unless it complies
with the minimum capital requirement specified therefor by
the Bank from time to time by notice in the Gazette.
8. Trust business shall be conducted by a depository
financial institution through a trust department which shall
be organisationally, operationally, administratively, and
functionally separate and distinct from other departments
and business of the institution.
9. A non-depository financial institution may engage
in trust business as its principal financial business or as an
additional business in which case it shall be
organisationally, operationally, administratively, and
functionally separate and distinct from other departments
and business of the institution.
10. All trust agreements shall be made in writing and
shall not contain features or provisions which shall render
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Collective
investment of
funds.
Separate books
and records.
the transaction as a deposit or borrowing of funds.
11. All schemes for collective investments of funds
held in trust or fiduciary capacity shall be submitted for
evaluation by the Bank sixty days prior to offering.
12. A licensed financial institution authorised to
engage in trust business shall keep adequate books and
records on trust and similar fiduciary accounts which are
separate and distinct from the books and records of its other
business.
________________
O. 24/1998 CONVERSION OF A FINANCIAL
INSTITUTION INTO A PUBLIC COMPANY
(GNCB TRUST CORPORATION) ORDER
made under section 3
Citation. 1. This Order may be cited as the Conversion of a
Financial Institution into a Public Company (GNCB Trust
Corporation) Order.
Conversion
Date. 2. I hereby certify that with effect from 6th January,
1999 the GNCB Trust Corporation shall be deemed to be a
public company limited by shares.
_______________
Conversion of a Financial Institution into a Public Company (GNCB Trust
Corporation) Order