ACT
(Acts No. 3 of 2015 and 16 of 2015)
Act 3 of 2015 .. in force 12 November 2015 (S.I. 104/2015)
Amended by Act No. 16 of 2015 .. in force 12 November 2015
ARRANGEMENT OF SECTIONS
PART 1
PRELIMINARY
| 1. | Short title and commencement |
| 2. | Interpretation |
PART 2
LICENCES
| 3. | Requirement for licence |
| 4. | Examination of books of person carrying on banking business without a licence |
| 5. | Appointment of receiver for failure to hold licence |
| 6. | Repayment of funds obtained without licence |
| 7. | Application for licence |
| 8. | Grant or denial of licence |
| 9. | Licence fees and penalty for default |
| 10. | Permissible activities |
| 11. | Conditions for licence |
| 12. | Variation of condition for licence |
| 13. | Register of licensed financial institutions |
| 14. | Revocation of licence |
| 15. | Requirement to inform Minister for finance |
| 16. | Restricted words, names, and practices |
| 17. | Display of licence certificate |
| 18. | Offices and branches deemed one licensed financial institution |
| 19. | Authorisation of location and approval of new business premises |
PART 3
OWNERSHIP STRUCTURES
| 20. | Ownership or control of licensed financial institutions |
| 21. | Written application for approval |
| 22. | Criteria for approval for ownership or control |
| 23. | Granting of approval |
| 24. | Person with control to be fit and proper |
| 25. | Grounds for disapproval of a transfer |
| 26. | Prohibition against selling below supervisor shareholding |
| 27. | Group holdings to be deemed holdings of single member |
| 28. | Quarterly reports on ownership and control |
| 29. | Report by foreign licensed financial institution on change of control |
| 30. | Sanctions |
| 31. | Prohibitions against transfer and acquisition of interest |
| 32. | Non-applicability of this Part to government or other persons |
| 33. | Variation of supervisory thresholds |
| 34. | Approval of application for licence by financial holding company |
PART 4
FINANCIAL HOLDING COMPANIES
| 35. | Requirement for licensing of financial holding companies |
| 36. | Application for licence by financial holding companies |
| 37. | Considerations to grant licence to financial holding company |
| 38. | Grant or denial of licence to financial holding company |
| 39. | Conditions for licence to financial holding company |
| 40. | Restriction on activities of financial holding companies |
| 41. | Limitation of risk to licensed financial institution |
| 42. | Revocation of licence of financial holding company |
| 43. | Actions of fundamental change requiring approval |
PART 5
FINANCIAL REQUIREMENTS AND LIMITATIONS
| 44. | Minimum paid-up or assigned capital |
| 45. | Maintenance of reserve fund |
| 46. | Adequacy of capital |
| 47. | Additional capital in respect of special risks |
| 48. | Liquidity requirement |
| 49. | Limit on exposures |
| 50. | Restrictions on exposures to related parties |
| 51. | Restrictions on lending to employees |
| 52. | Prohibition of advances against security of own shares |
| 53. | Prohibition on engaging or investing in trade and outsourcing |
| 54. | Financial subsidiaries permitted |
| 55. | Restrictions on investments in real property |
| 56. | Time limit for compliance with financial requirements |
| 57. | Maintenance of specified assets |
| 58. | Recordkeeping and reporting required |
PART 6
AUDIT AND INFORMATION
| 59. | Annual audit, report and publication of financial statements and results |
| 60. | Appointment of external auditor |
| 61. | Duties of external auditor |
| 62. | Remuneration of external auditors |
| 63. | Immediate reports to Central Bank |
| 64. | Resignation or removal of external auditor |
| 65. | Request for copies of reports |
| 66. | External auditor to report to Central Bank |
| 67. | No liability for breach of duty |
| 68. | Failure to comply with request |
| 69. | Audited financial statements |
PART 7
SUPERVISION
| 70. | Central Bank examination |
| 71. | Consolidated supervision |
| 72. | Prudential requirements |
| 73. | Reporting of group structures |
| 74. | Disclosure and access to books and records by Central Bank Examiner for examination |
| 75. | Central Bank's powers of remedial action |
| 76. | Additional Central Bank remedial actions |
| 77. | Remedial actions against directors, officers, employees or significant shareholders |
| 78. | Additional Central Bank powers of remedial action against directors, officers, employees or significant shareholders |
| 79. | Supplemental powers |
| 80. | Failure to comply with remedial actions |
| 81. | Effective date of order, warning, agreement, direction |
| 82. | Suspension of persons charged with criminal offence etc. |
| 83. | Dismissal of criminal case not a bar to Central Bank action |
| 84. | Persons convicted may be prohibited from banking business |
| 85. | Appointment of observer |
| 86. | Actions required for adequately capitalised licensed financial institutions or affiliates suffering losses |
| 87. | Actions required for undercapitalised licensed financial institutions, or affiliates |
| 88. | Notification of removal of directors and officers |
| 89. | Submission of returns and production of information as required by the Central Bank |
| 90. | Central Bank may request further information |
| 91. | Extension of period for providing information |
| 92. | Disclosure of basis for charges and fees |
| 93. | Restriction on advertising likely to mislead the public |
| 94. | Agreement or arrangement with foreign supervisory authority |
| 95. | Furnishing of statement or return to participating governments |
| 96. | Prohibition against providing false, misleading statements |
PART 8
CORPORATE GOVERNANCE
| 97. | Minimum criteria for determining whether a person is fit and proper |
| 98. | Criteria for determining whether a person is fit and proper to be a significant shareholder |
| 99. | Determining whether business carried out in prudent manner |
| 100. | Requirement for fit and proper policy |
| 101. | Notification to Central Bank of appointment of officers and directors |
| 102. | Responsibility of board for corporate governance |
| 103. | Removal and disqualification of director or officer |
| 104. | Right to make representation |
| 105. | Notice of confirmed removal |
| 106. | Person to be removed from office |
| 107. | Effective date of removal |
| 108. | Failure to comply with a direction |
| 109. | Failure to comply with section 103 |
| 110. | Declaration and registration of related interest and conflict of interest by director |
| 111. | Responsibility for deceiving statements and obstruction of audit or authorised examination. |
| 112. | Management's duty of compliance with the requirements of the laws |
| 113. | Liability of directors, officers and partners |
PART 9
OFFICIAL ADMINISTRATION
| 114. | Grounds for appointing an official administrator |
| 115. | Notice of appointment of official administrator |
| 116. | Effective date of appointment |
| 117. | Persons qualified to be official administrator |
| 118. | Period of appointment |
| 119. | Replacement and removal of official administrator |
| 120. | Official administrator to be fit and proper |
| 121. | Declaration of conflict of interest |
| 122. | Transactions to be approved by Central Bank |
| 123. | Failure of official administrator to disclose interest |
| 124. | General powers of the official administrator |
| 125. | Central Bank oversight of official administration |
| 126. | Suspension of dividends |
| 127. | Moratorium and effect of official administration on proceedings |
| 128. | Suspension of contractual early termination rights |
| 129. | Taking control of the licensed financial institution |
| 130. | Inventory and plan of action to resolve the licensed financial institution or licensed financial holding company |
| 131. | Capital increase by existing shareholders |
| 132. | Recapitalization by new shareholders |
| 133. | Mergers, sales and other restructurings |
| 134. | Mandatory restructuring of liabilities |
| 135. | Misconduct by shareholders, directors, officers and others |
| 136. | Expenses of the official administration |
| 137. | Termination of official administration |
PART 10
RECEIVERSHIP AND COMPULSORY LIQUIDATION
| 138. | Grounds of receivership |
| 139. | Qualifications and compensation for receiver |
| 140. | Commencement and notice of receivership |
| 141. | Central Bank oversight of receiver |
| 142. | General powers of receiver |
| 143. | Transfer of assets and liabilities |
| 144. | Effects of receivership |
| 145. | Taking control of the licensed financial institution or licensed financial holding company |
| 146. | Repudiation of contracts |
| 147. | Avoidance of pre-receivership transfers |
| 148. | Obligations of lessors of licensed financial institution or licensed financial holding company premises and utility providers |
| 149. | Protection of payment, clearance, and settlement systems |
| 150. | Determination of claims |
| 151. | Authority to disallow claims |
| 152. | Claims relating to eligible financial contracts |
| 153. | Priorities in payment of claims |
| 154. | Unclaimed funds |
| 155. | Safe deposits and unclaimed property |
| 156. | Termination of receivership and final reporting to the Central Bank |
| 157. | Receiver to notify Central Bank of fraudulent activities |
PART 11
VOLUNTARY LIQUIDATION
| 158. | Voluntary liquidation |
| 159. | Cessation of business operations |
| 160. | Notice to depositors of voluntary liquidation |
| 161. | Rights of depositors and creditors in voluntary liquidation |
| 162. | Distribution of assets |
| 163. | Insufficiency of assets in discharge of obligations in voluntary liquidation |
| 164. | Audited accounts, and conclusion of liquidation |
| 165. | Review of bank resolutions under Parts IX or X |
| 166. | Non-application of Companies Act |
PART 12
ABANDONED PROPERTY
| 167. | Abandoned property |
| 168. | Report, publication and disposal of abandoned property |
| 169. | Abandoned property to vest in the Crown |
| 170. | Safe deposit boxes |
| 171. | Sale of contents of a safe deposit box |
| 172. | Handling of proceeds of sale of abandoned property |
| 173. | Claims on abandoned property |
| 174. | Failure to file report or to pay property |
PART 13
TRANSFER OF BANKING BUSINESS
| 175. | Banking business vesting order |
| 176. | Supplementary provision as to transfers |
| 177. | Transfers to be subject to stamp duty |
PART 14
MISCELLANEOUS PROVISIONS
| 178. | Secrecy of information |
| 179. | Administrative penalties |
| 180. | Administrative penalties to be placed to the credit of Central Bank |
| 181. | Schedule III offences |
| 182. | Working days of licensed financial institutions and licensed holding company |
| 183. | Regulations |
| 184. | Prudential standards |
| 185. | Court's powers in legal claims against Central Bank |
| 186. | Bridge financial institutions and asset management vehicles |
| 187. | Participating Government financing of transfers of deposits |
| 188. | Immunity |
| 189. | Non-application of Aliens (Licensing) Act |
| 190. | Provisions applicable to credit institution, class of credit institution and financial group |
| 191. | Amendment of Schedules |
| 192. | Repeal and savings |
| 193. | Transitional |
| Schedule 1 | |
| Schedule 2 | |
| Schedule 3 | |
| Schedule 4 | |
(Acts No. 3 of 2015 and 16 of 2015)
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An Act to provide for the regulation of banking business, the establishment of a single banking space and for incidental and related matters and the repeal of the Banking Act, Cap.12.01.
Commencement [12 November 2015]