Banks and Trust Companies Regulation Act


Published: 2000-12-29

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Banks and Trust Companies Regulation Act
BANKS AND TRUST COMPANIES REGULATION [CH.316 – 1





LRO 1/2010 STATUTE LAW OF THE BAHAMAS

BANKS AND TRUST COMPANIES REGULATION

CHAPTER 316

BANKS AND TRUST COMPANIES REGULATION

LIST OF AUTHORISED PAGES

1 – 8B LRO 1/2010
9 – 30 LRO 1/2008
31 – 34 LRO 1/2010


ARRANGEMENT OF SECTIONS
SECTION

1. Short title.
2. Interpretation.
3. Licence required to carry on banking business or trust business.
3A. Stand-alone Money Transmission Business.
3B. Application.
3C. Non-applicable provisions.
4. Application shall be made to the Governor.
5. Approval of Governor.
6. Shares, etc., not to be issued or transferred without approval.
7. Use of the word “bank”, etc.
8. Yearly statements to be published.
9. Governor may call for further information.
10. Failure to comply with the requirements of section 8.
11. The Governor may require financial statement, etc., of licensee.
12. Appointment of auditor.
13. Power and duties of the Inspector.
14. Inspection by foreign supervisory authority.
15. Appointed body to conduct inspection.
16. Confidentiality of reports of Inspector and Supervisory

Authority.
17. Rules for inspection and supervision of banks.
18. Powers of the Governor.
19. Preservation of confidentiality.
20. Transfer to bank of unclaimed balances.
21. Charges for account to be by agreement.
22. Power of search.
23. Attorney-General’s fiat.
24. Regulations.

CH.316 – 2] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2010

25. No derogation.
26. Appeal.
27. Fees.
28. Repeal.
29. Savings.


FIRST SCHEDULE — Rules of Inspection and Supervision of Banks.
SECOND SCHEDULE — Repealed.
THIRD SCHEDULE — Fees.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 3





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CHAPTER 316

BANKS AND TRUST COMPANIES REGULATION

An Act to make fresh provisions to regulate banks
and trust companies within The Bahamas; and for
connected purposes.

[Commencement 29th December, 2000]
1. This Act may be cited as the Banks and Trust

Companies Regulation Act.
2. In this Act —
“authorised agent” means a person designated by a

bank or trust company under the provisions of
section 4;

“Bahamas Agent” means a Registered Representative
who provides administrative services to a private
trust company under a service agreement;

“bank” means any person carrying on banking
business;

“banking business” means —
(i) the business of accepting deposits of money

which may be withdrawn or repaid on demand
or after a fixed period or after notice and
employing those deposits in whole or in part by
lending or otherwise investing them for the
account and at the risk of the person accepting
them; and

(ii) without limiting the generality of the foregoing,
includes the provision of money transmission
services,

and “banker” shall be construed accordingly;
“Board of Directors” means the Board of Directors of

the Central Bank provided for by subsection (4)
of section 3 of the Central Bank of the Bahamas
Act;

“Central Bank” means the Central Bank of The
Bahamas established pursuant to section 3 of the
Central Bank of The Bahamas Act;

38 of 2000
S.I. 128/2001
1 of 2003
S.I. 48/2004
24 of 2006
21 of 2007
1 of 2008

Short title.

Interpretation.

24 of 2006.

1 of 2008, s. 2.

Ch. 351.

Ch. 351.

CH.316 – 4] BANKS AND TRUST COMPANIES REGULATION





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“company” means a company incorporated either
under the laws of The Bahamas or under the laws
of any other country or place;

“Designated Person” means the individual or
individuals (whether living or deceased)
described as such within a Designating
Instrument provided that if more than one
Designated Person is described as such each
Designated Person must be related to a
Designated Person so described by consanguinity
or some other family relationship;

“Designating Instrument” means an instrument in the
form specified in the First Schedule to the Banks
and Trust Companies (Private Trust Companies)
Regulations;

“Governor” means the person appointed as Governor
under paragraph 1 of the Schedule to the Central
Bank of The Bahamas Act;

“Inspector” means the office of Inspector of Banks
and Trust Companies established under
section 13;

“licence” means a licence granted under section 4 or
deemed to be so granted in accordance with that
section;

“licensee” means any person holding a licence under
the provisions of this Act and for the purposes of
this Act “licensee” includes the branches or
subsidiaries of a licensee operating outside of The
Bahamas;

“Minister” means the Minister of Finance;
“Money Transmission Agent” means any person

carrying on money transmission business on
behalf of a Money Transmission Service
Provider;

“Money Transmission Business” means the business
of accepting cash, cheques, other monetary
instruments or other stores of value in one
location and the payment of a corresponding sum
in cash or other form to a beneficiary in another
location by means of a communication, message,
transfer or through a clearing network to which
the money transfer business belongs and “money

24 of 2006, s. 2.

24 of 2006, s. 2.


Ch. 316, Sub.
Leg.

Ch. 351.

1 of 2008, s. 2.

1 of 2008, s. 2.

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transmission services” shall be construed
accordingly;

“Money Transmission Service Provider” means any
person carrying on a money transmission
business;

“other family relationships” means personal
relationship between two persons —

(a) by marriage or former marriage; or
(b) which exists if —

(i) one is the child of the other, natural or
adopted, legitimate or illegitimate; or

(ii) one is regarded by the other as his
child;

“Private Trust Company” means a company
incorporated under the provisions of the
Companies Act, or the International Business
Companies Act, which by its Memorandum and
Articles of Association —

(a) acts as trustee only for a trust or trusts
created or to be created by or at the
direction of a Designated Person or
Designated Persons or an individual or
individuals who are related by
consanguinity or other family

relationships to the Designated Person
described within the Designating
Instrument or, if there is more than one
Designated Person so described, to a
Designated Person, which Designated
Person or Designated Persons need not be
named in such company’s Memorandum
and / or Articles of Association;

(b) is required to have a Registered
Representative; and

(c) is not the subject of a notice of withdrawal
made under section 4(7);

“Registered Representative” means a licensee or a
Financial and Corporate Service Provider
approved by the Governor, which provides to a
private trust company, the services of a —

(i) secretary;
(ii) director;

1 of 2008, s. 2.

24 of 2006, s. 2.

24 of 2006, s. 2.

Ch. 308.

Ch. 309.

24 of 2006, s. 2.

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(iii) Bahamas Agent,
and is resident in The Bahamas.

“Supervisory Authority” in relation to a country or
territory outside The Bahamas means a foreign
entity charged with the responsibility of
conducting consolidated supervision of banking
and trust business by organisations licensed in its
home country;

“trust business” means the business of acting as
trustee, executor or administrator;

“trust company” means any company carrying on trust
business.

3. (1) No banking business shall be carried on from
within The Bahamas whether or not such business is
carried on in The Bahamas except by a person who is in
possession of a valid licence granted by the Governor
authorising him to carry on such business.

(2) No trust company shall carry on trust business
from within The Bahamas whether or not such business is
carried on in The Bahamas unless it is in possession of a
valid licence granted by the Governor authorising it to
carry on such business.

(3) No person shall be a Registered Representative
(whether or not such business is carried on in or from
within The Bahamas) unless that person is —

(a) in possession of a valid licence granted by the
Governor pursuant to section 3(2) of this Act; or

(b) a licensee under the Financial and Corporate
Service Providers Act, who has obtained the prior
approval of the Governor to carry on such
business.

(4) The Governor may by Regulation exempt any
specified person or class of persons, or any specified class
or part of any class of banking or trust business from the
provisions of subsections (1) and (2) of section 3, or of any
regulations made pursuant to this Act, subject to such
terms and conditions as may, in the Governor’s opinion, be
appropriate.

(5) Subject to subsection (4), the provisions of this
Act shall, unless the context otherwise requires, apply

Licence required
to carry on
banking business
or trust business.

24 of 2006, s. 3.

Ch. 369.

Exemption.
24 of 2006, s. 3.

24 of 2006, s. 3.

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mutatis mutandis to Private Trust Companies and to
Registered Representatives.

(6) For the avoidance of doubt, the Governor may
impose any of the sanctions set out in section 18 (l)(b), (c),
(d), (e), (f) and (g) of this Act, against a Private Trust
Company or a Registered Representative where, in the
opinion of the Governor, the Private Trust Company or a
Registered Representative is, whether in The Bahamas or
elsewhere —

(a) contravening any of the provisions of this or any
other Act or of any order or regulations made
under this Act, or any term or condition subject to
which an approval pursuant to subsection 3(3), or
an exemption pursuant to subsection 3(4), was
granted; or

(b) contravening or failing to comply with a direction
of the Governor; or

(c) carrying on its business in a manner that is
detrimental to the reputation of The Bahamas.

(7) Every person who contravenes the provisions of
this section or of section 3A shall be guilty of an offence
and shall be liable on summary conviction to a fine not
exceeding one hundred thousand dollars or to
imprisonment for a term not exceeding five years or to
both such fine and imprisonment and in the case of a
continuing offence to a fine not exceeding two thousand
five hundred dollars for each day during which the offence
continues.

3A. Any person, other than a bank or trust company
licensed under this Act, who desires to carry on the
business of providing money transmission services as —

(a) a Money Transmission Service Provider shall
submit an application to the Governor for a
licence to carry on such services, in such form,
and shall furnish the Governor with such
information as he may require;

(b) a Money Transmission Agent shall, subject to
such terms and conditions as the Governor may
require, register with the Central Bank.

3B. The provisions of this Act shall, unless the
context otherwise requires, apply mutatis mutandis to
Money Transmission Service Providers.

24 of 2006, s. 3.

1 of 2008, s. 3.

Stand-alone
Money
Transmission
Businesses.
1 of 2008, s. 4.

Application.
1 of 2008, s. 4.

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3C. The provisions of sections 4, 5, 8, 10(a), 14, 15,
17, 20 and 21 shall not apply to Money Transmission
Service Providers.

4. (1) Any person desirous of carrying on banking
business and any company desirous of carrying on trust
business from within The Bahamas shall make application
to the Governor for the grant of a licence.

(2) Every application made pursuant to subsection
(1) shall be in writing and shall contain such information
and particulars and shall be accompanied by such
references as may be prescribed and the Governor shall
consider the following factors —

(a) that the applicant is a fit and proper person or
company to carry on banking business or trust
business, as the case may be;

(b) the nature and sufficiency of the financial
resources of the applicant to provide continuing
financial support for the bank or trust company,
as the case may be;

(c) the soundness and feasibility of the business plan;
(d) the business record and experience of the

applicant;
(e) whether those who will operate the bank or trust

company will do so responsibly and whether such
persons have the character, competence and
experience for operating a bank or trust company,
as the case may be; and

(f) the best interests of the financial system in The
Bahamas,

and, if satisfied, may grant a licence to such person or
company subject to such terms and conditions, if any, as
the Governor may deem necessary:

Provided that the Governor shall in every case in
which application is made pursuant to subsection (1)
advise the Minister of his decision to either grant or refuse
the grant of such licence.

(3) Whenever he considers it to be in the public
interest, the Governor may refuse to grant a licence.

Non-applicable
provisions.
1 of 2008, s. 4.

Application shall
be made to the
Governor.

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(4) A licence shall not be granted to any bank or trust
company having its head office or its registered office
outside The Bahamas unless —

(a) such bank or trust company designates and
notifies to the Governor —
(i) a principal office in The Bahamas;
(ii) by name one of its officers who is to be the

bank’s or trust company’s authorised agent
in The Bahamas; and

(iii) by name another of its officers who in the
absence or inability of the officer named
under subparagraph (ii) is to be the bank’s or
trust company’s authorised agent in The
Bahamas;

(b) the Governor is satisfied that the bank or trust
company is subject to adequate consolidated
supervision by the Supervisory Authority and that
the Supervisory Authority makes no objection to
the establishment of the branch or subsidiary in
The Bahamas;

(c) the Supervisory Authority is permitted to
examine, wherever they are kept, the books of the
bank or trust company;

(d) there are no constraints on internal and external
audits imposed by the Supervisory Authority;

(e) the Supervisory Authority is informed where the
bank or trust company will be managed;

(f) the Supervisory Authority has agreed to inform
the Governor as soon as reasonably possible of
any circumstances that arise which may seriously
jeopardise the interests of creditors of the bank or
trust company.

(5) It shall be a condition of every licence granted to
a bank or trust company to which subsection (4) applies,
that the bank or trust company shall forthwith notify the
Governor in writing of any change of —

(a) its principal office in The Bahamas; or
(b) either or both of the officers designated pursuant

to paragraph (a)(ii) or (iii) of subsection (4).

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(6) In respect of a licence granted under subsection
(2), the Governor may at any time —

(a) make the licence subject to such conditions or
limitations that are consistent with this Act and













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that relate to the business of the bank or trust
company as the Governor considers necessary;

(b) amend or revoke any authorisation contained in
the licence or any condition or limitation to which
the licence is subject:

Provided that before taking any action under
paragraph (a) or (b) the Governor shall provide the bank or
trust company with an opportunity to make representation
regarding any proposed action.

(7) The Governor may, by notice in writing,
withdraw —

(a) any approval granted pursuant to section 3(3); or
(b) any exemption granted pursuant to section 3(4):

Provided that before withdrawing such approval or
exemption, the Governor shall afford the Registered
Representative an opportunity to make written
representations regarding any proposed action within such
time as may be specified in the notice, but not being a
period of less than seven days.

(8) Whenever the Governor shall withdraw any
approval or exemption under subsection (7) he may cause
notice of such action to be published in the Gazette.

(9) Notwithstanding anything to the contrary in any
trust instrument, where the Governor is satisfied that in the
interests of a trust it is necessary for all or any of the trusts
for which the company is acting as trustee to be transferred
to a new trustee for administration by such trustee, the
Governor may petition the court for that purpose.

(10) Wherever the Governor takes action pursuant to
subsection (9), the court may, after hearing representations
from the Governor or any other person appearing to the
court to be affected, order the transfer of any such trust to a
new trustee, and may make such supplemental or incidental
orders or give such directions, as the court thinks fit.

5. A licensee incorporated or registered in The
Bahamas shall not without the prior written approval of the
Governor establish, outside of The Bahamas, a subsidiary,
branch, agency or representative office.

24 of 2006, s. 4.

24 of 2006, s. 4.

24 of 2006, s. 4.

24 of 2006, s. 4.

Approval of
Governor.

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6. (1) No shares in a company or certificates of
deposit or any other securities of such company which is a
licensee under this Act shall be issued and no issued shares
shall be transferred or disposed of in any manner without
the prior approval of the Governor:

Provided that the Governor may exempt any licensee
or group or class of licensees from the provision of this
section subject to such terms and conditions if any as the
Governor may deem necessary.

(2) All dividends of the shareholders of a bank or
trust company shall be paid out of the profits and not out of
the subscribed capital of the bank or trust company.

7. (1) Except with the approval of the Governor no
person, other than a licensee acting under and in
accordance with the terms of his licence, shall —

(a) use or continue to use the words “bank”, “trust”,
“trust company”, “trust corporation”, “savings” or
“savings and loan” or any of their derivatives
either in English or in any other language, in the
description or title under which such person is
carrying on business from within The Bahamas
whether or not such business is carried on in The
Bahamas;

(b) make, or continue to make, whether directly or
indirectly, any representation in any bill-head,
letter, letter-head, circular, paper, notice or
advertisement or by any other means whatsoever,
whether similar to the foregoing or not, that such
person is carrying on banking business or trust
business or is authorised by the law of The
Bahamas to carry on such respective business;

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

(2) Except with the approval of the Governor —
(a) the Registrar General shall not register a

company; and
(b) no company if already registered immediately

before the twenty-fifth day of November, 1968,
shall be entitled to remain registered on or after
that date,

with a name which contains the words “bank”, “trust”,
“trust company”, “trust corporation”, “savings” or “savings

Shares, etc., not
to be issued or
transferred
without
approval.

Use of the word
“bank”, etc.,

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and loan” or any of their derivatives either in English or in
any other language.

(3) Before giving his approval under subsection (1)
or subsection (2) the Governor may require of any person
such references and such other information and particulars
as may be prescribed.

(4) Whenever he considers it to be in the public
interest the Governor may withdraw any approval given
under subsection (1).

(5) The Governor may refuse to grant a licence to a
bank or a trust company, or if such bank or trust company
is already in possession of a licence, he may revoke such
licence, if in his opinion such bank or trust company is
carrying on or intending to carry on banking or trust
business, as the case may be, under a name which —

(a) is identical with that of any company, firm or
business house whether within The Bahamas or
not or which so nearly resembles that name as to
be calculated to deceive;

(b) is calculated to suggest, falsely, the patronage of
or connection with some person or authority
whether within The Bahamas or not; or

(c) is calculated to suggest, falsely, that such bank or
trust company has a special status in relation to or
derived from the Government of The Bahamas or
has the official backing of or acts on behalf of the
said Government or of any department or official
thereof or is recognised in The Bahamas as a
national or central bank or trust company.

(6) Every person who contravenes the provisions of
this section shall be guilty of an offence and shall be liable
on summary conviction to a fine not exceeding fifty
thousand dollars or to a term of imprisonment not
exceeding one year or to both such fine and imprisonment
and in the case of a continuing offence to a fine not
exceeding one thousand dollars for each day during which
the offence continues.

(7) Where it appears to the Governor —
(a) that a company has contravened any prohibition

contained in subsection (1), and that no other
effective means exists of dealing with the
company in relation to the contravention; or

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(b) that a company is disentitled to remain registered
by reason of being in breach of paragraph (b) of
subsection (2),

then in either such case he may direct the Registrar General
to give notice in writing to the company requiring it to
show cause within thirty days why it should not be struck
off the register of companies; and the Registrar General
shall serve such notice accordingly, specifying the
contravention or breach complained of, by causing the
same to be delivered personally or sent by prepaid
registered post to the secretary of the company at its
registered office; and in the case of a notice sent by post it
shall be deemed to have been served on the fifth day after
the posting of the registered envelope or packet containing
the same.

(8) If any company fails within thirty days of the
service of a notice under the provisions of subsection (7) to
show cause why it should not be struck off the register or
to satisfy the Governor that the contravention or breach
complained of has been discontinued and will not be
repeated, then the Governor may in writing direct the
Registrar General to strike the company off the register;
and the Registrar General shall act accordingly and
thereupon the company shall be dissolved.

(9) Upon the removal of a company pursuant to this
section the provisions of section 271(4) to 274 (inclusive)
of the Companies Act shall have effect in relation to such
company as they have effect in relation to any company
removed from the register pursuant to that Act.

8. (1) Every licensee shall, within four months of
the end of its financial year, publish in the Gazette a true
and full yearly statement of its accounts and the auditor of
the licensee shall certify that such statement is properly
drawn up so as to exhibit a true and correct view of the
state of the licensee’s affairs as shown by the books of the
licensee, and the auditor of the licensee shall have the right
of access at all times to the books, accounts and vouchers
of the licensee; provided that the Governor may, if he sees
fit, exempt any licensee from the provisions of this section.

(2) Such statement shall be signed by the manager or
by such other person or officer of the licensee as may from
time to time be authorised by the licensee to sign such
statement on behalf of the licensee; and the correctness

Ch. 308.

Yearly
statements to be
published.

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thereof shall be declared to in such manner and by such
persons as the Governor may direct.

(3) Such statements shall be in such form and contain
such particulars as the Governor may from time to time
direct.

9. A licensee shall from time to time, if required by
the Governor, furnish to the Governor a special return and
such further information as the Governor may reasonably
see fit to call for.

10. If any licensee —
(a) fails to comply with the requirements of section 8

within a period of four months of the end of its
financial year; or

(b) fails to comply with the requirements of section 9
for forty-two days after the date appointed by the
Governor under section 9 for so doing,

the licensee or person so in default shall be liable to a
penalty of two hundred and fifty dollars for every day of
such default:

Provided that the Governor may extend the time for
sending such return for such further period not exceeding
sixty days as he thinks expedient.

11. The Governor, in relation to a licensee which is
or appears to become unable to meet its obligation or
which in the opinion of the Governor is carrying on
business in a manner detrimental to the public’s interest or
to the interest of creditors or depositors of such licensee,
may by instrument in writing require the manager or
authorised agent of such licensee to supply within such
reasonable time as may be specified in the instrument —

(a) the financial statement of that licensee as of a
date determined by the Governor audited by an
auditor who shall be a chartered accountant or a
certified public accountant approved of by the
Governor; and

(b) such other information relating to the licensee as
may be so specified,

and any person who contravenes the requirements of such
an instrument or who in response to such an instrument
knowingly or wilfully supplies false information to the
Governor shall be guilty of an offence and shall be liable

Governor may
call for further
information.

Failure to
comply with the
requirements of
section 8.

1 of 2003.

The Governor
may require
financial
statement, etc., of
licensee.

1 of 2003.

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on summary conviction to a fine not exceeding one
hundred thousand dollars or to imprisonment for a term not
exceeding two years or to both such fine and
imprisonment.

12. The appointment of the auditors of a licensee
shall be subject to the approval of the Governor:

Provided that the Governor may at any time withdraw
such approval and require the replacement of an auditor, by
notice in writing delivered to the usual place of business of
the auditor and licensee.

13. (1) There is hereby established within the Central
Bank of The Bahamas the Office of Inspector of Banks and
Trust Companies and the functions of that office shall be
performed by such person as the Governor considers
suitable for the purpose of performing the powers and
duties assigned to such Inspector under this Act.

(2) It shall be the duty of the Inspector —
(a) to maintain a general review of bank and trust

company practice in The Bahamas;
(b) whenever he thinks fit and when required by the

Governor to conduct on-site examinations and
off-site supervision of the business of the licensee
for the purpose of satisfying himself that the
provisions of this Act or the Financial
Transactions Reporting Act are being complied
with, that the licensee is in sound financial
position and, after the conclusion of each
examination or supervision, to report to the
Governor, or in such cases where the Inspector is
unable to conduct such examination or
supervision, to appoint an auditor, at the expense
of the licensee, to conduct such examination or
supervision and to report thereon to the Governor;
and the Governor may assess charges to recover
the cost of such examination or supervision;

(c) to examine and to report on the several returns
delivered to the Governor pursuant to section 8 of
this Act;

(d) to examine and make recommendations to the
Governor with respect to applications for
licences;

(e) to examine, by way of receipt of regular returns
or in such other manner as he thinks necessary the

Appointment of
auditor.

Power and duties
of the Inspector.

Ch. 368.

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affairs or business of any licensee carrying on
business in or from within The Bahamas for the
purpose of satisfying himself that the Act is being
complied with and that the licensee is in a sound
financial position;

(f) to inspect and supervise banks and trust
companies in accordance with the Rules for
Inspection and Supervision set out in the First
Schedule.

(3) In the performance of his functions under this Act
and subject to the provisions of section 19, the Inspector
shall be entitled at all reasonable times —

(a) to have access to such books, records, vouchers,
documents, cash and securities of any licensee;

(b) to call upon the manager or any officer
designated by the manager of any licensee for
such information or explanation;

(c) to call upon the auditors of any licensee for such
auditor’s reports, working papers, information or
explanation;

(d) to require that the auditor of a bank report to the
Inspector on the extent of the procedures of the
auditor in the examination of the annual financial
statements and may require that the auditors
enlarge the scope of that examination or direct
that any other particular procedure be performed
in any particular case;

(e) to require that the auditor make a particular
examination relating to the adequacy of the
procedures adopted by the bank for the safety of
its creditors and shareholders, or any other
examination as considered necessary by the
Inspector,

as the Inspector may reasonably require for the purpose of
enabling him to perform his functions under this Act.

(4) The Inspector with the approval of the Governor
may in writing authorise any other person to assist the
Inspector in the performance of his functions under this
Act.

(5) No duty of confidentiality to which an auditor of
a licensee may be subject shall be regarded as having been
breached by reason of his communicating in good faith to

CH.316 – 16] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2008

the Inspector, pursuant to paragraphs (a), (b) and (c) of
subsection (3), any information or opinion which is
relevant to the Inspector’s functions and responsibilities
under this Act.

(6) Where any person —
(a) fails to comply with any requirement made by the

Inspector, pursuant to subsection (3), within the
period determined by the Inspector or within such
further period as the Inspector may determine, it
shall be presumed, in the absence of satisfactory
evidence being furnished by the licensee
justifying such a failure to comply with such
requirement, that the licensee concerned has been
carrying on business in contravention of the terms
of its licence with effect from the date of such
failure;

(b) knowingly or intentionally supplies false or
misleading information to the Inspector or any
person authorised to assist the Inspector;

(c) as an auditor of a licensee in the performance of
an audit, grossly violates the duties of such
auditor as set out in subsection (1) of section 8; or
makes untrue statements in an audit report or
omits essential facts or fails to request pertinent
information from the licensee or fails to report his
findings to the Inspector; or

(d) perpetrates a fraud or a crime which involves the
making of misrepresentations in advertising or
otherwise or using the domicile of The Bahamas
for such purposes,

he shall be guilty of an offence and shall be liable on
summary conviction to a fine not exceeding one hundred
thousand dollars or to a term of imprisonment not
exceeding five years or to both such fine and imprisonment
and in the case of a continuing offence to a fine not
exceeding two thousand dollars for each day during which
the offence continues.

(7) No civil or criminal liability shall attach to the
Inspector, or any person duly authorized by the Inspector
under subsection (4), for an act done in good faith in the
discharge or purported discharge of such person’s
functions under this Act.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 17





LRO 1/2008 STATUTE LAW OF THE BAHAMAS

(8) The Board of Directors may indemnify the
Governor and the Governor may indemnify the Inspector
or any person duly authorised by the Inspector under
subsection (4), against the cost of defending their actions
while so discharging their functions.

14. (1) A Supervisory Authority which is responsible
for regulating a bank or trust company with a branch or
subsidiary incorporated inside The Bahamas may upon
written notification to and approval by the Inspector,
conduct an inspection, under conditions of confidentiality,
and subject to the conditions set out in subsection (2),
solely for purposes of consolidated supervision, of the
books and accounts of any branch or subsidiary of that
bank or trust company in The Bahamas and may gather
only such information as is necessary for the performance
of consolidated supervision of any branch or subsidiary of
that bank or trust company in The Bahamas, being
information as to whether such branch or subsidiary of that
bank or trust company as a constituent of the banking
group —

(a) is adequately organized;
(b) has adequate risk management systems and

appropriately identifies, limits and monitors risks
inherent in that bank’s business activities;

(c) is managed by persons who are fit and proper for
the conduct of business activities;

(d) complies with capital-adequacy and risk-
diversification requirements on a consolidated
basis; and

(e) correctly complies with its reporting duties to the
Supervisory Authority.

(2) Any branch or subsidiary of a bank or trust
company to which subsection (1) applies shall, subject to
the conditions set out below, permit the Supervisory
Authority at all reasonable times, to conduct its inspection
under subsection (1) where —

(a) the Supervisory Authority has obtained the prior
written approval of the Inspector;

(b) the Supervisory Authority is prohibited by its
domestic laws from divulging information
obtained in the course of the inspection to any
other person or where the Supervisory authority
has given such written undertaking, as the

Inspection by
foreign
supervisory
authority.

CH.316 – 18] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2008

Inspector may require, as to the confidentiality of
the information obtained;

(c) the Supervisory Authority has given to the
Inspector a written undertaking to comply with
the provisions of this Act and any condition
imposed by the Inspector under this section;

(d) the Supervisory Authority has given to the
Inspector a written undertaking to use the
information obtained exclusively for the purpose
of consolidated supervision;

(e) the Supervisory Authority has given to the
Inspector a written undertaking that it shall not
transmit information obtained during the course
of its inspection to any other authorities or bodies
without the written consent of the Inspector;

(f) the Supervisory Authority agrees to subsequently
report to the Inspector on the general results of
the inspection.

(3) Where information concerning criminal or penal
matters comes to the attention of the Supervisory Authority
in the course of an inspection, and the Supervisory
Authority wishes to convey such information to any person
or entity in the Supervisory Authority’s home country, or
elsewhere, the Supervisory Authority shall not, without
first obtaining the consent in writing of the Inspector,
divulge such information to any person or entity in the
home country of the Supervisory Authority or elsewhere:

Provided that in all cases, the Supervisory Authority
shall inform the Inspector of any information concerning
criminal or penal matters which come to the Supervisory
Authority’s attention in the course of an inspection.

(4) The Supervisory Authority, in carrying out an
inspection under subsection (1), shall not have access to
information relating to the assets under management or
deposit operations of individual customers of a licensee:

Provided however, that where the Supervisory
Authority during an inspection within The Bahamas wishes
to gain access to information, which directly or indirectly
relates to assets under management or deposit operations of
any individual customer for the purpose of assessing any
risks and addressing any specific supervisory concerns, the
Supervisory Authority shall inform the Inspector and the
Inspector shall gather the information himself and shall,

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 19





LRO 1/2008 STATUTE LAW OF THE BAHAMAS

upon being satisfied that the information meets the
requirements set out in this subsection, transmit it to the
Supervisory Authority requesting it.

(5) The Inspector or any authorized agent of the
Inspector may, whenever the Inspector thinks fit or upon
the request of a licensee accompany a Supervisory
Authority during its inspection within The Bahamas of a
licensee, pursuant to this section.

15. (1) A Supervisory Authority may, with the prior
written approval of the Inspector, appoint another body to
conduct the inspection referred to in subsection (1) of
section 14 and in such event the provisions of this section
and subsections (1), (2), (3), (4) and (5) of section 14 shall
apply to the appointed body in the same way as they apply
to the Supervisory Authority.

(2) The Inspector may, at any time after granting
approval for an inspection under this section require the
Supervisory Authority to comply with such other
conditions as the Inspector may determine.

16. (1) Any person who has, by any means, access to
a report or other information or document produced by the
Inspector or a Supervisory Authority upon examination or
inspection of a licensee under section 13 or 14, by reason
of his acting in any of the following capacities —

(a) director, officer, employee or agent of any
licensee or former licensee;

(b) counsel and attorney, consultant or auditor of The
Central Bank or as an employee or agent of such
counsel and attorney, consultant or auditor;

(c) counsel and attorney, consultant, auditor,
accountant, receiver or liquidator of any licensee
or former licensee or as an employee or agent of
such counsel and attorney, consultant, auditor,
accountant, receiver or liquidator;

(d) auditor of any customer of any licensee or former
licensee or as an employee or agent of such
auditor,

shall not communicate the report or other information or
document or any part thereof to any person other than a
director, officer, employee or agent of the licensee without
the prior written permission of the Inspector.

Appointed body
to conduct
inspection.

Confidentiality
of reports of
Inspector and
Supervisory
Authority.

CH.316 – 20] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2008

(2) The Inspector may grant permission under
subsection (1) subject to such conditions as may be
determined by the Inspector.

(3) If any person receives a report or any part of a
report or other information or document referred to in
subsection (1), knowing or having reasonable grounds to
believe, that such report or other information or document
or part thereof was communicated to him in contravention
of this section, that person shall be guilty of an offence
unless he proves —

(a) that the report or other information or document
or part thereof, as the case may be, was
communicated to him contrary to his intention;
and

(b) where the communication was effected in any
written form, that he has conveyed or has taken
reasonable steps to convey the report or other
information or document or part thereof, as the
case may be, to the Inspector.

(4) Any person guilty of an offence under this section
shall be liable on summary conviction to a fine not
exceeding twenty-five thousand dollars or to imprisonment
for a term not exceeding two years or to both such fine and
imprisonment.

17. The rules set out in the First Schedule shall be
observed by the Inspector for the purpose of supervising
banks and trust companies and their operations so as to
ensure the preservation of the soundness and efficiency of
the banking system.

18. (1) The Governor may —
(a) by order, revoke the licence of a licensee —

(i) if, in the opinion of the Governor, the
licensee is carrying on its business in a
manner detrimental to the public interest or
to the interests of its depositors or other
creditors or is either in The Bahamas or
elsewhere contravening the provisions of this
or any other Act or of any order or
regulations made under this Act, or any term
or condition subject to which the licence was
issued;

(ii) if the licensee has ceased to carry on banking
business or trust business; or

Rules for
inspection and
supervision of
banks.
First Schedule.

Powers of the
Governor.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 21





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(iii) if the licensee becomes bankrupt or goes into
liquidation or is wound up or otherwise
dissolved;

and he shall subsequently advise the Minister of his
decision;

(b) apply to the Supreme Court for an order
compelling the licensee to comply with the
direction, cease the contravention or to do
anything required to be done where the
licensee —
(i) is contravening or has failed to comply with

a direction of the Governor;
(ii) is contravening the Act; or
(iii) has omitted to do anything under the Act that

is required to be done by the bank or trust
company;

(c) impose, amend or vary conditions upon the
licence;

(d) require the substitution of any director or officer
of the licensee;

(e) at the expense of the licensee, appoint a person to
advise the licensee on the proper conduct of its
affairs and to report to the Governor thereon
within three months of the date of his
appointment;

(f) at the expense of the licensee, appoint a receiver
to assume control of the licensee’s affairs in the
interest of creditors who will have all the powers
of a receiver under the Companies Act; and

(g) require such action to be taken by the licensee as
the Governor considers necessary.

(2) Whenever the Governor is of the opinion that any
action under subsection (1)(a)(i) and (b) should be taken
against a licensee, he may forthwith suspend the licence of
such licensee and before taking such action the Governor
shall give that licensee notice in writing of his intention so
to do setting out in such notice the grounds on which he
proposes to act and shall afford the licensee within such
time as may be specified therein, not being less than seven
days, an opportunity of submitting to him a written

Ch. 308.

CH.316 – 22] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2008

statement of objection to such action, and thereafter the
Governor shall advise the licensee of his decision.

(3) Whenever the Governor shall suspend a licence
under subsection (2) he may cause notice of such
suspension to be published in the Gazette.

(4) Any suspension of a licence under subsection (2)
shall be for a period of ninety days, or until the Governor
takes action under subsection (1)(a)(i) or (b) or until the
Governor notifies the licensee that the suspension is
removed, whichever period is the shorter.

(5) Where the Governor suspends or revokes a
licence under this section, he may apply to the Supreme
Court for an order that the licensee be forthwith wound up
by the court in which case the provisions of the Ch. 308.
Companies Act relating to the winding up of a company by
the court shall, mutatis mutandis, apply.

(6) The Governor may, in any case in which a
licensee or person who has at any time been a licensee is
being wound up voluntarily, apply to the Supreme Court if
he considers that the winding up is not being conducted in
the best interests of its depositors, the beneficiaries of any
trust or other creditors, and the court shall make such order
as it shall consider appropriate in the winding up of the
licensee.

19. (1) No person who has acquired information in
his capacity as —

(a) director, officer, employee or agent of any
licensee or former licensee;

(b) counsel and attorney, consultant or auditor of the
Central Bank or as an employee or agent of such
counsel and attorney, consultant or auditor;

(c) counsel and attorney, consultant, auditor,
accountant, receiver or liquidator of any licensee
or former licensee or as an employee or agent of
such counsel and attorney, consultant, auditor,
accountant, receiver or liquidator;

(d) auditor of any customer of any licensee or former
licensee or as an employee or agent of such
auditor;

(e) the Inspector under the provisions of this Act;
(f) a Supervisory Authority or as a director, officer,

employee or agent of a Supervisory Authority,

Ch. 308.

Preservation of
confidentiality.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 23





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shall, without the express or implied consent of the
customer concerned, disclose to any person any such
information relating to the identity, assets, liabilities,
transactions or accounts of a customer of a licensee or
relating to any application by any person under the
provisions of this Act, as the case may be, except —

(i) for the purpose of the performance of his
duties or the exercise of his functions under
this Act, if any;

(ii) for the purpose of the performance of his
duties within the scope of his employment;

(iii) when a licensee is lawfully required to make
disclosure by any court of competent
jurisdiction within The Bahamas, or under
the provisions of any law of The Bahamas;

(iv) for the purpose of enabling or assisting the
Governor to exercise any functions conferred
upon him by any written law;

(v) to a person with a view to the institution of,
or for the purpose of —

(A) criminal proceedings;

(B) disciplinary proceedings,
whether within or outside The
Bahamas, relating to the
exercise by a counsel and
attorney, auditor, accountant,
valuer or actuary of his
professional duties; or

(C) disciplinary proceedings relating
to the discharge by a public
officer or a member or employee
of the Central Bank of his
duties.

(2) Subsection (1) shall not apply in any case where
in accordance with such conditions as the Inspector may
determine, information of such class or classes as the
Inspector may from time to time approve, is transmitted
from a licensee to the head office, a branch or subsidiary of
that licensee outside of The Bahamas, solely for the
purposes of carrying out collation, synthesis or processing
of information on behalf of the licensee.

CH.316 – 24] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2008

(3) In any civil proceedings where information is
likely to be disclosed in relation to a customer’s bank
account, those proceedings may, if the court, of its own
motion or on the application of a party to the proceedings,
so orders, be held in camera and the information shall be
confidential as between the court and the parties thereto.

(4) No person shall publish the name, address or
photograph of any parties to those civil proceedings as are
referred to in subsection (3) or any information likely to
lead to the identification of the parties thereto either during
the currency of the proceedings or after they have been
terminated.

(5) The Governor may, subject to the provisions of
section 14(2), provide information on the beneficial
owners, directors, officers and operations of a licensee
(including any report produced by the Inspector pursuant to
any inspection or examination of the licensee) to the
Supervisory Authority which is responsible for regulating
the head office of the licensee for the purpose of
consolidated supervision of the licensee by the Supervisory
Authority.

(6) To facilitate regulatory cooperation within The
Bahamas, the Governor or any director, officer, employee,
agent or advisor of the Bank may cooperate with any other
domestic regulatory authority, including, by sharing
information on the beneficial owners, directors, officers
and operations of a licensee and any of its affiliates, or any
other information acquired in the discharge of functions
and duties under this or any other Act, where the Governor
considers that such cooperation or information may be
relevant to the functions of such other regulatory authority,
or as a necessary part of a framework for consolidated
supervision, oversight or regulation of the financial
services sector.

(7) Nothing contained in this section shall —
(a) prejudice or derogate from the rights and duties

subsisting at common law between a licensee and
its customer;

(b) prevent a licensee from providing upon a
legitimate business request in the normal course
of business a general credit rating with respect to
a customer; or

(c) prevent the Inspector from sharing information
relating to the identity, assets, liabilities,

21 of 2007, s. 2.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 25





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transactions or accounts of a customer of a
licensee with the Financial Intelligence Unit
where he believes that a suspicious transaction
was not reported as required under the Financial
Transactions Reporting Act.

(8) Every person who contravenes the provisions of
subsection (1) shall be guilty of an offence and shall be
liable on summary conviction to a fine not exceeding
twenty-five thousand dollars or to a term of imprisonment
not exceeding two years or to both such fine and
imprisonment.

20. (1) Where a liability exists by reason of a deposit
account at a bank in The Bahamas in respect of which no
transaction has taken place, or no statement of account has
been requested or no written acknowledgement has been
received from the customer, during a period of seven
years —

(a) in the case of a deposit made for a fixed period,
from the day on which the fixed period
terminated; and

(b) in the case of any other deposit, from the date on
which the last customer initiated transaction
occurred or a statement of account was requested
or acknowledged by the customer, whichever is
the later,

the bank shall pay to the Central Bank an amount equal to
the amount owing by the bank in respect of the account and
payment accordingly discharges the bank from all liability
in respect of the account.

(2) Where a bank has paid to the Central Bank an
amount in respect of an account, it shall keep all signature
cards, signing authorities and records relating to the
account or microfilm or electronically stored copies thereof
until notified by the Central Bank that they are no longer
required.

(3) In this section “deposit account” includes deposit
accounts of gold and silver bullion.

21. No bank shall directly or indirectly charge or
receive any sum of money for the establishment,
maintenance or service of an account unless such charge is
made by express and specific agreement between the bank
and the customer.

Ch. 368.

Transfer to Bank
of unclaimed
balances.

Charges for
account to be by
agreement.

CH.316 – 26] BANKS AND TRUST COMPANIES REGULATION





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22. (1)If a Magistrate is satisfied by information on
oath given by the Inspector or by a person authorised under
section 13(4) to assist the Inspector either —

(a) that a licence has been suspended; or
(b) that there is reasonable ground for suspecting that

an offence against this Act has been or is being
committed and that evidence of the commission
of the offence is to be found at any premises
specified in the information or in any vehicle,
vessel or aircraft so specified; or

(c) that any books, records, vouchers, documents,
cash or securities which ought to have been
produced under section 13(3) and have not been
produced are to be found at any such premises or
in any such vehicle, vessel or aircraft,

he may grant a search warrant authorising the Inspector or
such person authorised under section 13(4) or any police
officer together with any other person named in the warrant
and any other police officers, to enter the premises
specified in the information or, as the case may be, any
premises upon which the vehicle, vessel or aircraft so
specified may be, at any time within one month from the
date of the warrant, and to search the premises or, as the
case may be, the vehicle, vessel or aircraft.

(2) The person authorised by any such warrant as
aforesaid to search any premises or any vehicle, vessel or
aircraft may search every person who is found in or whom
he has reasonable ground to believe to have recently left or
to be about to enter those premises or that vehicle, vessel
or aircraft, as the case may be, and may seize any books,
records, vouchers, documents, cash or securities found in
the premises or in the vehicle, vessel or aircraft which he
has reasonable ground for believing to be evidence of the
commission of any offence against this Act or any such
books, records, vouchers, documents, cash or securities
found in the premises or in the vehicle, vessel or aircraft
which he has reasonable ground for believing ought to
have been produced under section 13(3):

Provided that no female shall, in pursuance of any
warrant issued under this subsection, be searched except by
a female.

(3) Where by virtue of this section a person has any
power to enter any premises he may use such force as is

Power of search.

S.I. 128/2001.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 27





LRO 1/2008 STATUTE LAW OF THE BAHAMAS

reasonably necessary for the purpose of exercising that
power.

(4) Every person who shall obstruct the Inspector or
any other person in the exercise of any powers conferred
on him by virtue of this section shall be guilty of an
offence and shall be liable on summary conviction to a fine
not exceeding one thousand dollars or to imprisonment for
a term not exceeding three months or to both such fine and
imprisonment.

23. (1) No prosecution in respect of any offence
committed under this Act shall be instituted except by or
with consent of the Attorney-General.

(2) Any penalty incurred under this Act shall be paid
to the Central Bank.

24. The Governor may make regulations for all or
any of the following purposes —

(a) to prescribe the information, particulars and
references which may be prescribed under section
4(2) and section 7(3);

(b) to establish fines not exceeding five thousand
dollars for failure to comply with any regulation;

(c) generally for carrying out the purposes or
provisions of this Act into effect.

25. (1) The provisions of this Act shall have effect in
addition to and not in derogation of any other provisions
having the force of law in the Bahamas.

(2) This Act shall not apply to the Post Office
Savings Bank.

26. (1) An appeal shall lie to the Supreme Court from
any decision of the Governor —

(a) revoking a licence under section 4(6), section
7(5) or section 18;

(b) withdrawing any approval under section 7(4);
(c) requiring a licensee to take certain steps which

the Governor may specify under section 18.

(2) An appeal against the decision of the Governor
shall be on motion and the appellant within twenty-one
days after the day on which the Governor has given his
decision shall serve on the Attorney-General a notice in
writing signed by the appellant or his counsel and attorney

Attorney-
General’s fiat.

Regulations.

S.I. 128/2001.

S.I. 128/2001.

No derogation.

Appeal.

CH.316 – 28] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2008

of his intention to appeal and of the general ground for his
appeal:

Provided that any person aggrieved by the decision of
the Governor may upon notice to the Attorney-General
apply to the Supreme Court for leave to extend the time
within which the notice of appeal prescribed by this section
may be served, and the Supreme Court upon the hearing of
such application may extend the time prescribed in this
section as it deems fit.

(3) The Attorney-General shall upon receiving the
notice of appeal transmit to the Registrar of the Supreme
Court without delay a copy of the Governor’s decision and
all papers relating to the appeal:

Provided that the Attorney-General shall not be
compelled to disclose any information if he considers that
the public interest would suffer by such disclosure.

(4) The Registrar shall set the appeal down for
hearing on such day, and shall cause notice of the same to
be published in such manner, as the Supreme Court may
direct.

(5) At the hearing of the appeal the appellant shall,
before going into the case, state all the grounds of appeal
on which he intends to rely and shall not, unless by leave
of the Supreme Court, go into any matters not raised by
such statement.

(6) The Supreme Court may adjourn the hearing of
the appeal and may upon hearing thereof confirm, reverse,
vary or modify the decision of the Governor or remit the
matter with the opinion of the Supreme Court thereon to
the Governor.

(7) An appeal against a decision of the Governor
shall not have the effect of suspending the execution of
such decision.

27. (1) The provisions of the Third Schedule shall
have effect for the payment of fees in respect of the matters
mentioned in that Schedule, and all such fees shall be
payable to the Treasurer.

(2) All fees paid pursuant to subsection (1) and the
Third Schedule shall be placed in the Consolidated Fund.

(3) The Minister may by regulations vary the fees
prescribed in the Third Schedule, so, however, that any
such regulations which increase the amount of any fees

Third Schedule.

Fees.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 29





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payable under this Act shall be exempt from the provisions
of section 32 of the Interpretation and General Clauses Act
but instead be subject to affirmative resolution of both
Chambers of Parliament.

(4) In subsection (3) the expression “affirmative
resolution of both Chambers of Parliament” in relation to
regulations means that the regulations are not to come into
operation unless and until affirmed by a resolution of each
of those Chambers.

(5) If any person fails to comply with any
requirement of subsection (1) and the Third Schedule, he,
or, where such person is a company, the company and
every director, manager, secretary or other officer of the
company who knowingly and wilfully authorises or
permits the default, shall on summary conviction be liable,
for every day during which the default continues, to a fine
not exceeding one thousand dollars.

28. The Banks and Trust Companies Regulation Act
and the Banks Act are hereby repealed.

29. Any licence, authority, approval or exemption
granted under the repealed Act which is in force
immediately before the coming into force of this Act —

(a) shall continue to have effect after the coming into
force of this Act as if granted under this Act;

(b) in the case of a grant for a specific period, shall
remain in force for so much of that period as falls
after the coming into force of this Act.

Ch. 2.

Repeal.

Savings.

CH.316 – 30] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2008

FIRST SCHEDULE (Section 17)

RULES OF INSPECTION AND SUPERVISION OF
BANKS

1. The Inspector shall —
(a) regularly evaluate the condition, solvency and

liquidity of all licensees;
(b) establish appropriate and prudent standards for

conducting safe and sound banking and trust
business;

(c) set prudent and appropriate capital adequacy
requirements not less than those established in the
Basel Capital Accord and its Amendments;

(d) evaluate banks’ policies, practices and procedures
related to the granting of loans and making of
investments and the on-going management of the
loan and investment portfolios;

(e) ensure that banks have management information
systems that enable management to identify
portfolio concentration in line with established
limits;

(f) ensure that banks have in place and use systems
that accurately measure, monitor and adequately
control market and other risks;

(g) ensure that banks establish and adhere to
adequate policies, practices and procedures for
evaluating the quality of assets and the adequacy
of loan-loss provisions and loan-loss reserves;

(h) ensure that banks have in place internal controls
adequate to the nature and scale of their
operations, and adequate policies, practices and
procedures, including strict know-your-customer
rules that promote high ethical and professional
standards, and so prevent the use of the bank for
criminal purposes;

(i) co-operate with inspectors and supervisors in
other jurisdictions to the extent necessary for the
purposes of cross-border supervision consistent
with the policy established by the Basel
Committee for cross-border supervision.

2. In this Part, —

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 31





LRO 1/2010 STATUTE LAW OF THE BAHAMAS

“Basel Capital Accord” or “Basel Committee” means
the committee of banking supervisory authorities
established by central-bank Governors of the
Group of Ten countries in 1975 and its report.


SECOND SCHEDULE


Repealed by 21 of 2007.


THIRD SCHEDULE (Section 27)

FEES
1. Subject to the following paragraphs of this

Schedule, the following shall be the fees under this Act,
that is to say —
Matters in respect of which fee is payable Amount

of fee $
(a) Appointment of a licensee by the Controller of

Exchange as an authorised dealer as defined in
paragraph (1) of regulation 42 of the Exchange
Control Regulations in the case where the
licensee as per its last audited financial
statement —

(i) has assets not exceeding $250 million 300,000
(ii) has assets exceeding $250 million but not

exceeding $500 million 400,000
(iii) has assets exceeding $500 million but not

exceeding $1 billion 800,000
(iv) has assets exceeding $1 billion but not

exceeding $1.5 billion 1,200,000
(v) has assets exceeding $1.5 billion but not

exceeding $2 billion 1,600,000
(vi) has assets exceeding $2 billion 2,500,000
(b) Continuance in being on the first day of January

in any year as a person appointed as mentioned
in subparagraph (a) of this paragraph in the case
where the licensee as per its last audited
financial statement —

(i) has assets not exceeding $250 million 300,000
(ii) has assets exceeding $250 million but not

exceeding $500 million 400,000
(iii) has assets exceeding $500 million but not

exceeding $1 billion 800,000
(iv) has assets exceeding $1 billion but not

exceeding $1.5 billion 1,200,000
(v) has assets exceeding $1.5 billion but not 1,600,000

S.I. 48/2004
24 of 2006
S.I. 16/2006
1 of 2008
S.I. 94/2008

CH.316 – 32] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2010

exceeding $2 billion
(vi) has assets exceeding $2 billion 2,500,000
(c) Appointment of a licensee as authorised agent

for a beneficial owner of investment currency or
foreign currency securities pursuant to the
Exchange Control Regulations in the case
where the licensee as per its last audited
financial statement —

(i) has assets not exceeding $5 million 60,000
(ii) has assets exceeding $5 million but not

exceeding $20 million 100,000
(iii) has assets exceeding $20 million 150,000
(d) Continuance in being on the first day of January

in any year as a person appointed as mentioned
in subparagraph (c) of this paragraph in the case
where the licensee as per its last audited
financial statement —

(i) has assets not exceeding $5 million 60,000
(ii) has assets exceeding $5 million but not

exceeding $20 million 100,000
(iii) has assets exceeding $20 million 150,000
(e) Grant of licence to carry on banking business or

trust business or to carry on both banking
business and trust business without any
limitation on the persons with or for whom such
respective business may be carried on, where
the licensee —
(i) has been declared by the Controller of

Exchange pursuant to the Exchange
Control Regulations to be resident in The
Bahamas; and

(ii) has not been appointed as mentioned in
subparagraph (a) or (c) of this paragraph ...... 35,000

(f) Continuance in being on the first day of January
in any year as a person licensed as mentioned in
subparagraph (e) of this paragraph .................. 35,000

(g) Grant of licence to carry on banking business or
trust business or to carry on both banking
business and trust business without any
limitation on the persons with or for whom such
respective business may be carried on where the
licensee —
(i) has been declared by the Controller of

Exchange pursuant to the Exchange
Control Regulations not to be resident in
The Bahamas; and

(ii) has not been appointed as mentioned in
subparagraph (a) or (c) of this paragraph ..... 35,000

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 33





LRO 1/2010 STATUTE LAW OF THE BAHAMAS


(h) Continuance in being on the first day of January

in any year as a person licensed as mentioned in
subparagraph (g) of this paragraph ....................... 35,000

(i) Grant of licence to carry on banking business
solely with a person specified in the licence......... 15,000

(j) Continuance in being on the first day of January
in any year as a person licensed as mentioned in
subparagraph (i) of this paragraph ........................ 15,000

(k) Grant of licence to carry on banking business
and trust business solely with or for persons
specified in the licence.......................................... 15,000

(l) Continuance in being on the first day of January
in any year as a person licensed as mentioned in
subparagraph (k) of this paragraph ........................ 15,000

(m) Grant of licence solely to carry on the trust
business specified in the licence ........................... 5,000

(n) Continuance in being on the first day of January
in any year as a person licensed as mentioned in
subparagraph (m) of this paragraph ...................... 5,000

(o) Grant of any licence not mentioned in
subparagraph (e), (g), (i), (k) or (m) of this
paragraph .............................................................. 1,000

(p) Continuance in being on the first day of January
in any year as a person licensed as mentioned in
subparagraph (o) of this paragraph ....................... 1,000

(q) On commencement of the business of a private
trust company.................. 5,000

(r) Continuance in being on the first day of January
in any year as a private trust company
mentioned in paragraph (q).............................. 5,000

(s) On commencement of the business of a Money
Transmission Service Provider.................. 5,000

(t) Continuance in being on the first day of January
in any year as a Money Transmission Service
Provider mentioned in paragraph (s) .................... 5,000



2. Where any person by reason of falling within a
class mentioned in subparagraphs (a) to (t) of paragraph 1
of this Schedule has paid a fee therein prescribed in respect
of that class for any year and would, but for provisions of
this paragraph of this Schedule, be required to pay in that
year a further fee or further fees by reason of such person
during that year coming additionally within another such
class as aforesaid, such person shall not be required to pay
in respect of fees under this Act for that year more in total
than the highest fee prescribed in respect of any of the
classes within which such person falls:

1 of 2008, s. 5.



1 of 2008, s. 5.

1 of 2008, s. 5.

CH.316 – 34] BANKS AND TRUST COMPANIES REGULATION





STATUTE LAW OF THE BAHAMAS LRO 1/2010

Provided that any person in any year falling within a
class mentioned at subparagraph (a) or (b) and at the same
time within a class mentioned at subparagraph (c) or (d) of
the said paragraph 1 of this Schedule shall, subject to
paragraphs 3 and 4 of this Schedule, be required to pay the
fee prescribed in respect of both such classes for that year.

3. As respects the fees specified at subparagraph (b),
(d), (f), (h), (j), (l), (n), (p), (r) and (t) of paragraph 1 of this
Schedule —

(a) not more than sixty days grace, to be calculated
from the first day of January in each year, may be
allowed by the Treasurer for the payment of the
fees payable in any year; and

(b) no such fees shall be payable in any year where
the original appointment or licence to which such
fee relates was made or granted on or after the
first day of September in the preceding year.

4. Any fee paid by any person in any year pursuant
to subsection (1) of section 300, and paragraph 3 of the
Third Schedule to, the Companies Act shall be deducted
from any fees payable by such person in that year under
this Act.

1 of 2008, s. 5.

Ch. 308.