CH.316 – 22] BANKS AND TRUST COMPANIES REGULATION

STATUTE LAW OF THE BAHAMAS LRO 1/2008

BANKS AND TRUST COMPANIES (FOREIGN CURRENCY POSITION) REGULATIONS

ARRANGEMENT OF SECTIONS

SECTION

1. Citation. 2. Interpretation. 3. Foreign currency position, 4. Notification to Inspector. 5. Remedial action. 6. Variation of foreign currency limit. 7. Fine.

BANKS AND TRUST COMPANIES (FOREIGN CURRENCY POSITION) REGULATIONS

(SECTION 24) [Commencement 13th April, 2005]

1. These Regulations may be cited as the Banks and Trust Companies (Foreign Currency Position) Regulations.

2. In these Regulations — “Central Bank” means the Central Bank of The

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

“licensee” means any Bank or Trust company which is incorporated in The Bahamas and which holds a licence granted under section 4 of the Act;

“the Act” means the Banks and Trust Companies Regulation Act.

3. The larger of the sum of net short or long positions in all foreign currencies, including all outstanding spot and forward foreign exchange contracts, all on and off balance sheet assets and liabilities of a licensee at the appropriate spot exchange rates, shall not exceed ten percent of the licensee’s capital base.

4. On becoming aware of a contravention of regulation 3, a licensee shall immediately notify the Inspector of that contravention and provide him with such

S.I. 21/2005

Citation.

Interpretation.

Ch. 351.

Ch. 316.

Foreign currency position.

Notification to Inspector.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 23

LRO 1/2008 STATUTE LAW OF THE BAHAMAS

particulars of that contravention in such form as the Inspector shall determine.

5. The Inspector may, by notice in writing served on a licensee, require the licensee to take such remedial action as he considers appropriate for the purpose of having the licensee comply with regulation 3.

6. The Inspector may, by notice in writing served on a licensee, vary the limit specified in regulation 3 in relation to that licensee.

7. The Governor may impose a fine not exceeding five thousand dollars where a licensee fails to comply with the provisions of these Regulations.

Remedial action.

Variation of foreign currency limit.

Fine.