Banks and Trust Companies (Money Transmission Business) Regulations

Link to law: http://laws.bahamas.gov.bs/cms/images/LEGISLATION/SUBORDINATE/2008/2008-0030/BanksandTrustCompaniesMoneyTransmissionBusinessRegulations_1.pdf
Published: 2008-05-06

Banks and Trusts Companies Regulation
CH.316 – 46] BANKS AND TRUST COMPANIES REGULATION






STATUTE LAW OF THE BAHAMAS LRO 1/2010

Banks and Trust Companies (Money Transmission
Business) Regulations

(SECTION 24)
[Commencement 6th May, 2008]

The Governor of the Central Bank of The Bahamas in
exercise of the powers conferred by section 24 of the
Banks and Trust Companies Regulation Act makes the
following regulations —

1. These regulations may be cited as the Banks and
Trust Companies (Money Transmission Business)
Regulations.

2. In these Regulations —
“the Act” means the Banks and Trust

Companies Regulation Act.
3. (1) Any person making application to the

Governor for a licence to carryon the business of providing
money transmission services as a Money Transmission
Service Provider shall supply to the Governor the
following —

(a) where the applicant is a company, the
information, documents and particulars relating to
the applicant set out in paragraphs 1 (1), 2( 1) and
3 through 7 of the Schedule to the Banks and
Trust Companies (Licence Application)
Regulations, 2002; and

(b) in the case of individuals applying as a group for
approval to carryon the business of providing
money transmission services, the information,
documents and particulars relating to group
applicants set out in paragraphs 1(2), 2(2), 3-7 of
the Schedule to the Banks and Trust Companies
(Licence Application) Regulations, 2002:

Provided that where application for a licence to
carryon the business of providing money transmission
services is made by a group of individuals pursuant to
subregulation (1)(b), the group shall be comprised of not
less than five individuals.

(2) In the case of a person engaged in the business of
providing money transmission services prior to the
commencement of these Regulations, such person shall
within three months from the date of the coming into force
of these regulations make application to the Governor

S.I. 30/2008.

Citation.

Interpretation.

Ch. 316.

Application for
licence.

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pursuant to regulation 3 for a Money Transmission Service
Provider's licence.

4. (1) The Governor may grant a licence to any
person to carryon the business of providing money
transmission services subject to such terms and conditions,
if any, as the Governor considers necessary.

(2) The Governor shall in determining whether or not
to grant a licence, take into account the following —

(a) whether the applicant is a fit and proper person to
carry on the business of providing money
transmission services;

(b) the business record and experience of the
applicant;

(c) the nature and sufficiency of the financial
resources of the applicant to provide continuing
financial support for the money transmission
business;

(d) the soundness and feasibility of the business plan;
(e) whether the applicant. if an individual. is resident

in The Bahamas or, if a company, is incorporated
under the Companies Act;

(f) whether those who will operate the money
transmission business will do so responsibly and
whether such persons have the character,
competence and experience for operating a
money transmission business;

(g) whether the applicant will have adequate
insurance coverage for the proposed money
transmission business;

(h) the best interests of the financial system in The
Bahamas.

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

5. (1) A licensed Money Transmission Service
Provider shall have and maintain throughout the duration
of its operations a minimum capital of $50,000.00 or such
other sum as the Governor may require.

(2) Every licensed Money Transmission Service
Provider shall maintain insurance coverage of such amount
with respect to its money transmission business as the

Approval and
conditions for
grant of licence.

Ch. 308.

Minimum capital
requirement.

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STATUTE LAW OF THE BAHAMAS LRO 1/2010

Governor may require, having regard to the volume of the
business.

(3) Every Money Transmission Service Provider
shall have the accounts of its money transmission business
audited annually or at such other times as the Governor
may require, by an auditor, who shall be a chartered
accountant, or a certified public accountant, approved by
the Governor.

(4) The audited accounts shall be forwarded to the
Inspector within three months of the end of the financial
year of the Money Transmission Service Provider's
business, unless prior written approval for an extension has
been granted by the Governor.

(5) A Money Transmission Service Provider may,
appoint a person by agreement in writing as its Money
Transmission Agent with the authority to provide money
transmission services on behalf of the Money Transmission
Service Provider.

6. (1) No person shall act as a Money Transmission
Agent unless that person has first registered with the
Central Bank.

(2) Every Money Transmission Agent shall upon
registration with the Central Bank, supply the Governor
with the following —

(a) their name and address;
(b) a copy of the written agreement between the

Money Transmission Service Provider and the
proposed Money Transmission Agent; and

(c) such other information and documents as the
Governor may require.

(3) The Governor may register a Money
Transmission Agent subject to such terms and conditions,
if any, as the Governor considers necessary.

(4) The Governor shall, in determining whether to
register any Money Transmission Agent, take into
account —

(a) whether the proposed Money Transmission Agent
is a fit and proper person to provide money
transmission services;

(b) whether the proposed Money Transmission Agent
has entered into a suitable written agreement to

Requirements for
money
transmission
agents.

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provide money transmission services on behalf of
the Money Transmission Service Provider;

(c) the professional reputation and experience of the
proposed Money Transmission Agent;

(d) whether the proposed Money Transmission
Agent, if an individual is resident in The
Bahamas or, if a company, is incorporated under
the Companies Act; and

(e) the best interests of the financial system in The
Bahamas.

(5) Whenever the Governor considers it to be in the
public interest, he may refuse to register a Money
Transmission Agent.

7. The provisions of the Schedule shall have effect
for the payment of the fees in respect of the matters
mentioned in that Schedule and all such fees shall be
payable to the Treasurer and placed in the Consolidated
Fund, provided that all such fees shall be collected and
paid by the Money Transmission Service Providers on
behalf of their Money Transmission Agents.

8. Every Money Transmission Service Provider and
Money Transmission Agent shall —

(a) comply with the provisions of the Financial
Transactions Reporting Act;

(b) verify the identity of each and every client in
accordance with the provisions of the Financial
Transactions Reporting Regulations;

(c) comply with the provisions of the Exchange
Control Regulations Act and the Exchange
Control Regulations; and

(d) maintain its head office or its registered office in
The Bahamas and shall not without the prior
written approval of the Governor establish
outside of The Bahamas such head office or
registered office.

9. (1) Every Money Transmission Service Provider
shall make, keep and preserve the following books,
accounts and other records for a period of five years —

(a) a record of each payment instrument sold;

Ch. 308.

Fees.
Schedule.

Compliance
measures.

Ch. 368.

Ch. 368.

Ch. 360.

Retention of
records.

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STATUTE LAW OF THE BAHAMAS LRO 1/2010

(b) a general ledger, posted at least once per month.
containing all assets. liabilities, capital, income
and expense accounts;

(c) settlement sheets received from its money
transmission agents;

(d) bank statements and bank reconciliation records:
(e) records of outstanding payment instruments:
(f) records of each payment instrument paid within

the five year period; and
(g) a list of the names and addresses of all of its

money transmission agents.

(2) Books, accounts and other records required to be
maintained under sub-regulation (1) of this regulation shall
be maintained in the English language in written form or so
as to enable the records to be readily accessible and readily
convertible into written form in the English language.

10. (1) These regulations do not apply to a bank or
trust company licensed under the Act.

(2) For the avoidance of doubt, where a bank or trust
company licensed under the Act appoints a Money
Transmission Agent pursuant to sub-regulation 5(5), and
the Agent is not itself a bank or trust company licensed
under the Act, that Agent shall be subject to the provisions
of these regulations.

11. Any person who contravenes regulation 6(1)
commits an offence and is liable on summary conviction to
a fine of ten thousand dollars.

12. The Governor may impose a fine not exceeding
$5,000 where a Money Transmission Service Provider or a
Money Transmission Agent fails to comply with any of the
provisions of these regulations.

13. The Governor may, if he thinks fit, exempt a
Money Transmission Service Provider or a Money
Transmission Agent from any of the provisions of these
regulations.



Non-application.

Offence.

Penalty for non-
compliance.

Exemption.

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SCHEDULE (Regulation 7)

The following shall be fees under these Regulations, that is
to say —
Matters in respect of which fee is
payable

Amount of fee
$

(a) Registration as Money
Transmission Agent 300

(b) Continuance in being on
the first day of January in
any year as a Money
Transmission Agent as
mentioned in sub-
paragraph (a) of this
paragraph. 300
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