Banks and Trusts Companies (Licence Application) Regulations

Link to law: http://laws.bahamas.gov.bs/cms/images/LEGISLATION/SUBORDINATE/2002/2002-0037/BanksandTrustsCompaniesLicenceApplicationRegulations_1.pdf
Published: 2001-05-04

Banks and Trusts Companies (Licence Application) Regulations
CH.316 –3E] BANKS AND TRUST COMPANIES REGULATION






STATUTE LAW OF THE BAHAMAS LRO 1/2010

CHAPTER 316

BANKS AND TRUST COMPANIES REGULATION

BANKS (PUBLISHING AND CERTIFYING OF
ANNUAL ACCOUNTS) ORDER

(SECTION 8)
[Commencement 25th July, 1959]

1. This Order may be cited as the Banks (Publishing
and Certifying of Annual Accounts) Order.

2. The correctness of annual accounts published by
a bank under the provisions of section 8 of the Banks Act
shall be certified by a chartered accountant or certified
public accountant.

BANKS AND TRUST COMPANIES (LICENCE
APPLICATION ) REGULATIONS

(SECTION 20)
[Commencement 4th May, 2001]

1. These Regulations may be cited as the Banks and
Trusts Companies (Licence Application) Regulations.

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

of The Bahamas appointed under paragraph 1 of
the Schedule to theCentral Bank of The Bahamas
Act;

“Zone A country” means any country which is a full
member of the Organization for Economic Co-
operation and Development (OECD), together
with any country which has concluded lending
arrangements with the International Monetary
Fund associated with the General Agreement to
Borrow, excluding those countries which have
rescheduled their external debts during the
preceding five years and those countries whose
rating for long-term liabilities in foreign
currencies is lower than “investment grade” or
which have no rating and whose yield to maturity
and remaining duration are not comparable with

G.N. 133/1959

Citation.

Annual accounts
to be certified.

S.I. 37/2002.

Citation.

Interpretation.

Ch. 351.

S.I. 31/2008.

BANKS AND TRUST COMPANIES REGULATION [CH.316 –3F






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those of long-term liabilities with an investment
grade rating.

3. Any person making application for a licence to
carry on banking business or trust business shall supply to
the Governor —

(a) in the case of an application made for the purpose
of operating a branch or a representative office of
a foreign bank or trust company in The Bahamas;

(b) in the case of an application made for the purpose
of establishing a subsidiary of a bank or trust
company;

(c) in the case of an applicant who is not a bank or
trust company,

the information, documents and particulars relating to the
applicant set out in the Schedule to these Regulations.

4. The Governor may if he thinks fit, exempt a
licensee from any of the provisions of these regulations.

SCHEDULE (Regulation 3)
In this Schedule, “applicant” means the applicant for a

licence under section 4 of the Banks and Trust Companies
Regulation Act.

An application for a licence to operate a bank or trust
company or a subsidiary, branch or representative office,
as the case may be, of a bank or trust company, must be
submitted in the English language and is to contain the
following minimum information:

1. (1) In the case of a bank or trust company making
application for a licence to operate a subsidiary, branch or
representative office or, in the case of a corporate applicant
which is not a bank or trust company making application
for a licence to operate a bank or trust company, which
shall in these Regulations be collectively referred to as
“corporate applicants”, the following information is
required:

(a) name of the corporate applicant;
(b) address of head office of the corporate applicant

including mailing address;
(c) for a subsidiary bank or trust company, the

proposed corporate name;
(d) address of the proposed office in The Bahamas;

Application for
licence.

S.I. 31/2008.

Schedule.

Power to exempt.

Ch. 316.

General
information.

CH.316 –4] BANKS AND TRUST COMPANIES REGULATION






STATUTE LAW OF THE BAHAMAS LRO 1/2010

(e) purpose of opening the subsidiary, branch or
representative office as the case may be;

(f) a description of planned business activities in The
Bahamas;

(g) where the applicant is a body corporate:
(i) history, activity, present structure and

organisation;
(ii) annual reports (including audited

consolidated financial statements) of the
applicant for the three consecutive financial
years immediately preceding the date of the
application;

(iii) unaudited consolidated financial statements
of the applicant as at the end of the most
recent quarter prior to submission of the
application, certified by a director or senior
officer; and

(iv) two references, in original form, from a
financial institution satisfactory to the
Governor; and

(h) particulars concerning the composition of the
direct and/or indirect ownership structure of the
proposed licensee, including an organizational
chart showing the structure of the direct and/or
indirect share holdings analysed according to
holdings of voting rights and/or shares.

(2) In the case of individuals applying as a group for
a licence to operate a bank or trust company, applications
may be made by no fewer than five individuals who shall
in these Regulations be collectively referred to as “group
applicants” and in respect of whom the following
information is required:

(a) name of each individual making application;
(b) business and personal address of each individual

including mailing address;
(c) the proposed corporate name of the bank or trust

company;
(d) address of the proposed office in The Bahamas;
(e) purpose of opening the bank or trust company;
(f) a description of planned business activities; and

BANKS AND TRUST COMPANIES REGULATION [CH.316 –5






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(g) where the application is made by a group of
individuals:
(i) date of formation, history, present structure

and organisation of the group applicant, and
details of all business activities of the group;

(ii) detailed comments regarding the position
within the group, of any dominant
member(s) of the group;

(iii)
(a) a current statement of assets and

liabilities, certified by a public
accountant and prepared no earlier than
three months prior to the date of
application for each member of the
group who is to acquire, own, hold or
exercise voting control of share capital
in excess of 10% of the shares in a
proposed licensee; or

(b) a concise net worth statement certified
by a public accountant for each member
of the group who is to acquire, own,
hold or exercise voting control of share
capital in a proposed licensee of 10% or
less, and which statement indicates that
the individual member's net worth is at
least five (5) times the value of the
shares to which the individual member
is subscribing.

(iv) the Governor may, at his discretion, require
certified copies of official tax returns.

2. (1) Corporate Applicants are required to provide:
(a) a list of and background information on all direct

or indirect shareholders who represent
individually or as a group 5% or more of the
voting rights and/or shares of the applicant at the
time of application whether or not the shares of
the applicant are publicly traded;

(b) a copy of the act, charter, certificate of
incorporation and Memorandum and Articles of

S.I. 31/2008.

S.I. 31/2008.

Ownership of
applicant and/or
proposed
licensee.

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Association of the applicant, as may be
appropriate, verified by statutory declaration
made by
a director or the secretary duly authenticated
under public seal of the jurisdiction in which the
applicant has been incorporated;

(c) an organisational chart showing the structure of
the direct and indirect shareholding of the
applicant analysed according to holdings of
voting rights and/or shares.

(2) Group Applicants are required to provide:
(a) details of the proposed shareholdings of each

individual shareholder of the proposed licensee;
(b) for each proposed shareholder, the following

information:
(i) date and place of birth and nationality;
(ii) curriculum vitae incorporating: personal

data; educational background; professional
education and training; a list of previous
professional activities and scope of
responsibilities, including details of the level
and number of subordinates managed;

(iii) two character references in original form
from sources satisfactory to the Governor;
and

(iv) two financial references in original form
from sources satisfactory to the Governor.

3. Applicants are required to supply the following
information in relation to the proposed licensee:

(a) particulars concerning the composition and
organisation of the proposed board of directors
and management;

(b) for each proposed director or member of
management, as the case may be, the following
information is required:
(i) full name, date of birth, nationality, and

domicile;
(ii) curriculum vitae, incorporating: personal

data; educational background; professional
education and training; list of previous

Proposed Board
of Directors and
management.

BANKS AND TRUST COMPANIES REGULATION [CH.316 –7






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professional activities and scope of
responsibilities, including details of the level
and number of subordinates managed;

(iii) two character references in original form
from sources satisfactory to the Governor; or
alternatively, in cases where a proposed
director has been approved to serve as a
group director or a director of the parent
company domiciled in a Zone A country, a
letter from the home regulator of the
applicant stating that due diligence measures
have been undertaken and that the individual
remains in good standing;

(iv) one financial reference in original form from
a financial institution acceptable to the
Governor; and

(v) a police or other certificate in original form,
satisfactory to the Governor, confirming that
the person has not been convicted of a
serious crime or any offence involving
dishonesty.

4. Applicants are required to supply the following
information in relation to the proposed licensee:

(a) organisational chart detailing reporting lines and
respon-sibilities;

(b) particulars regarding internal organisation
including but not limited to staffing, logistics and
information technology and management
information systems;

(c) details regarding arrangements for internal audit
including but not limited to reporting lines and
scope of the function; and

(d) compliance program, including but not limited to
procedures relating to know-your-customer and
anti-money laundering requirements.

5. Applicants are required to provide, in relation to
the proposed licensee, a business plan for the first three
years of operations. The plan must include but need not be
limited to details of the following:

(a) development of business activities, and customer
base;

S.I. 31/2008.

Business rules
and internal
organisation.

Business plan.

CH.316 –6] BANKS AND TRUST COMPANIES REGULATION






STATUTE LAW OF THE BAHAMAS LRO 1/2010

(b) projected budgets (capital and current), covering
the same time frame, including balance sheet and
income statement;

(c) appropriate arrangements for the maintenance of
records in The Bahamas; and

(d) arrangements for premises.

6. Applicants are required to provide full details, to
the satisfaction of the Governor, of the source of funds to
comprise the initial capital of the bank or trust company.

7. Applicants are required to provide:
(a) the name and address of the auditor(s) of the

proposed licensee; and
(b) where appropriate, details of arrangements for

review of the operation of the branch or
representative office.

8. A corporate applicant which is a bank or trust
company not licensed in The Bahamas is required to
provide written confirmation by the relevant home country
supervisory authority that the requirements prescribed by
section 4(4)(b), (c), (d), (e) and (f) of the Banks and Trust
Companies Regulation Act have been or will be met, as the
case may be.

BANKS AND TRUST COMPANIES (RESTRICTION
ON USE OF BANKING NAMES AND

DESCRIPTIONS) REGULATIONS

(SECTION 20)
[Commencement 4th May, 2001]

1. These Regulations may be cited as the Banks and
Trust Companies (Restriction on Use of Banking Names
and Descriptions) Regulations.

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

of The Bahamas appointed under paragraph 1 of
the Schedule to the Central Bank of The Bahamas
Act;

“restricted words” means “bank”, “trust”, “trust
company”, “trust corporation”, “savings” or
“savings and loan” or any of their derivatives
either in English or in any other language.

Sources of capital
funding.

Statutory
auditors.

Consolidated
supervision.





Ch. 316.

S.I. 38/2002.

Citation.

Interpretation

Ch. 351.
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