Banks and Trust Companies (Temporary Business Continuity Operations) Regulations

Link to law: http://laws.bahamas.gov.bs/cms/images/LEGISLATION/SUBORDINATE/2009/2009-0033/BanksandTrustCompaniesTemporaryBusinessContinuityOperationsRegulations_1.pdf
Published: 2009-02-20

Banks and Trusts Companies Regulation
BANKS AND TRUST COMPANIES REGULATION [CH.316 –3






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BANKS AND TRUST COMPANIES (TEMPORARY
BUSINESS CONTINUITY OPERATIONS)

REGULATIONS

(SECTION 3(4))
[Commencement 20th February, 2009 ]

1. These Regulations may be cited as the Banks and
Trust Companies (Temporary Business Continuity
Operations) Regulations.

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

Companies Regulation Act;
“the Agreement” means a binding agreement

between a person who wishes to register as
an exempt person and a licensee for the
provision of temporary business continuity
arrangements;

“the equipment” means computer apparatus
which is located in The Bahamas at a
facility operated by a licensee which has
entered into an Agreement;

“exempted activities” means transactions and
activities which —
(a) are banking or trust business

performed in or from The Bahamas by
or on behalf of an exempt person;

(b) the exempt person is authorized by a
relevant regulator to perform or have
performed on its behalf;

(c) cannot be performed by the exempt
person in or from a relevant
jurisdiction due to the occurrence of a
relevant event or are performed
outside the relevant jurisdiction solely
for the purposes of testing and
maintenance; and

(d) are not unlawful under the laws of The
Bahamas;

“exempt person” means a person who —
(a) is licensed, authorized or regulated by

a relevant regulator at the relevant
time to carry on banking or trust
business; and

S.I. 33/2009.

Citation.

Interpretation.

Ch. 316.

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STATUTE LAW OF THE BAHAMAS LRO 1/2010

(b) is registered with the Central Bank as
an exempt person under regulation 4;

“licensee” means any person who holds a
licence granted under section 3 of the Act;

“relevant event” means an unplanned
interruption to the operations of or
accessibility to the computer apparatus of
the exempt person in a relevant jurisdiction
due to an event beyond the control of the
exempt person occurring in the relevant
jurisdiction caused by —
(a) fire, hurricane, tidal wave, tornado,

flood, volcanic eruption, act of God or
any other kind of natural disaster; or

(b) act of war or terrorism (excluding
social upheaval due to political factors
or governmental action).

“relevant jurisdiction” means the jurisdiction in
which the exempt person is licensed,
authorized or regulated by a relevant
regulator to carry on banking or trust
business;

“relevant regulator” means a Supervisory
Authority located in a relevant jurisdiction
and charged with the responsibility of
regulating banking or trust business by
organizations licensed in its home country;

“relevant time” means the duration of the
exempted activities calculated in
accordance with the provisions of
regulations 7 and 8;

“required person” means any person who in or
from The Bahamas undertakes exempted
activities on behalf of an exempt person;

“testing and maintenance” means exempted
activities undertaken by or on behalf of an
exempt person for the sole purpose of
establishing and/or verifying the
effectiveness of temporary business
continuity arrangements.

(2) Any terms used in these Regulations without
definitions shall unless the context indicates otherwise,
have the same meaning ascribed to those terms in the Act.

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3. (1) Sub-sections (1) and (2) of section 3 of the Act
shall not apply to an exempt person or a required person in
respect of exempted activities undertaken during the
relevant time.

(2) Neither an exempt person nor a required person
shall be required to obtain a licence under section 4 of the
Business Licence Act.

4. (1) A person seeking registration as an exempt
person shall apply in writing to the Governor within seven
days of entering into the Agreement. The application shall
include —

(a) the terms of the Agreement;
(b) written confirmation from the relevant regulator

that the person is licensed, authorized or
regulated by the relevant regulator;

(c) a list of the name, address and occupation of any
required person; and

(d) if the Governor so requires —
(i) a copy of the Agreement; and
(ii) any other documentation or information the

Governor considers to be relevant to the
application.

(2) The Governor may register an exempt person
subject to such terms and conditions, if any, as the
Governor considers necessary.

(3) The Governor may refuse to register a person as
an exempt person if —

(a) the relevant regulator does not confirm that the
person is licensed, authorized or regulated by the
relevant regulator;

(b) the Agreement is not compliant with these
Regulations; or

(c) he considers it to be in the best interest of the
financial system in The Bahamas.

5. (1) A Licensee shall notify the Inspector in
writing forthwith of —

(a) the occurrence of a relevant event resulting in the
operation of the equipment on behalf of the
exempt person;

Exemption.

Ch. 329.

Application for
registration as an
exempt person.

Conditions.

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STATUTE LAW OF THE BAHAMAS LRO 1/2010

(b) the date when the use of the equipment on behalf
of the exempt person terminates;

(c) any changes in the use or proposed use of the
equipment on behalf of the exempt person; and

(d) any changes to the terms of the Agreement.

(2) An exempt person shall not —
(a) establish a permanent place of business in The

Bahamas;
(b) carry on any banking or trust business in or from

The Bahamas other than the exempted activities;
and

(c) hold itself out as carrying on any banking or trust
business in or from The Bahamas other than the
exempted activities.

(3) In the event that any information or particulars
provided in the list required by regulation 4(1)( c) changes
an exempt person shall within 7 days of such change notify
the Inspector in writing of such change.

6. The Governor may withdraw an exemption by
giving notice in writing to the exempt person if —

(a) the exempt person or a Licensee breaches a
condition specified in regulation 5; or

(b) the Central Bank becomes aware that the exempt
person is no longer licensed, authorized or
regulated by the relevant regulator or is in breach
of the regulatory requirements in the relevant
jurisdiction.

7. In relation to testing and maintenance, the
relevant time shall commence on the date that the Central
Bank confirms registration of the exempt person and shall
terminate when the registration ceases or the Agreement
terminates, whichever is the earlier.

8. In relation to the carrying on of exempted
activities following the occurrence of a relevant event —

(a) the relevant time shall commence on the date that
the Inspector confirms receipt of written
notification under regulation 5(1)(a) and, subject
to paragraph (b), shall not exceed 30 days where
the relevant regulator is unable to continue to

Circumstances
pertaining to
withdrawal of an
exemption.

Duration of the
exemption:
testing and
maintenance.

Duration of the
exemption:
exempted
activities.

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exercise its regulatory functions and 60 days in
all other events;

(b) on receipt of a written application from an
exempt person for an extension of the relevant
time under paragraph (a), the Governor may grant
an extension, or series of extensions, to the
relevant time where he is satisfied that such an
extension, or extensions, are warranted;

(c) in considering an application under paragraph (b)
the Governor may request any information that he
considers relevant;

(d) any extension or series of extensions granted may
be subject to such conditions as are in the opinion
of the Governor deemed necessary.

9. These regulations shall not apply to Money
Transmission Service Providers or Money Transmission
Agents.

Non-application.
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