Revised Laws of Saint Lucia (2021)

Schedule 4

(Section 181(2))

NOTICE OF OPPORTUNITY TO DISCHARGE LIABILITY

CHAPTER 12.01
BANKING ACT

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

Banking (Credit Institutions) (Licence Fees) Order – Section 12

(Statutory Instrument 96/1998)

Statutory Instrument 96/1998 .. in force 19 December 1998

ARRANGEMENT OF SECTIONS

BANKING (CREDIT INSTITUTIONS) (LICENCE FEES) ORDER – SECTION 12

Commencement [19 December 1998]

1.   Citation

This Order may be cited as the Banking (Credit Institutions) (Licence Fees) Order.

2.   Licence fees

1.  

   (1)   Every credit institution shall pay an annual licence fee of $4,000 to Government.

1.  

   (2)   The fee specified in subsection (1) shall be paid within the first month of each calendar year.

Banking (Licence Fees) Order – Section 12

(Statutory Instrument 36/2004)

Statutory Instrument 36/2004 .. in force 1 June 2004

ARRANGEMENT OF REGULATIONS

BANKING (LICENCE FEES) ORDER – SECTION 12

Commencement [1 June 2004]

1.   Citation

This Order may be cited as the Banking (Licence fees) Order.

2.   Licence fees

Every financial institution shall pay, under section 12 of the Banking Act, the licence fees prescribed in the Schedule.

Schedule

(Regulation 2)

Banking (Credit Institution Capital Requirement) Order – Section 13

(Statutory Instrument 54/1994)

Statutory Instrument 54/1994 .. in force 15 January 1994

ARRANGEMENT OF REGULATIONS

BANKING (CREDIT INSTITUTION CAPITAL REQUIREMENT) ORDER – SECTION 13

Commencement [15 January 1994]

1.   Citation

This Order may be cited as the Banking (Credit Institution Capital Requirement) Order.

2.   Minimum capital requirements

Every licensed credit financial institution shall maintain in Saint Lucia unimpaired, paid up, or as the case may be assigned capital of not less than $1,000,000.

3.   Exemption

This Order shall not apply to any undertaking, institution or society listed in the Schedule.

Schedule

(Regulation 3)

Banking (Dealing in Shares) Order – Section 16

(Statutory Instrument 97/2001)

Statutory Instrument 97/2001 .. in force 13 October 2001

ARRANGEMENT OF SECTIONS

BANKING (DEALING IN SHARES) ORDER – SECTION 16

Commencement [13 October 2001]

1.   Citation

This Order may be cited as the Banking (Dealing in Shares) Order.

2.   Dealing in shares

A financial institution which is licensed under the Securities Act may deal in shares for its own account provided that the aggregate value of such shares does not at any time exceed 10% of the sum of the unimpaired capital and reserves of the financial institution.

Banking (Disclosures in Statement of Accounts) Regulations – Section 33

(Statutory Instrument 7/1994)

Statutory Instrument 7/1994 .. in force 19 February 1994

ARRANGEMENT OF REGULATIONS

BANKING (DISCLOSURES IN STATEMENT OF ACCOUNTS) REGULATIONS – SECTION 33

Commencement [19 February 1994]

1.   Citation

These Regulations may be cited as the Banking (Disclosures in Statement of Accounts) Regulations.

2.   Interpretation

In these Regulations “the Act” means the Banking Act.

3.   Disclosures to be made in statement of accounts

Every statement of accounts prepared by a financial institution under section 19 of the Act shall make in addition to any other disclosures, the disclosures set out in the Schedule in relation to the Assets, Liabilities, Capital and Profit and Loss Account of the financial institution and shall include the additional information set out in Part 5 of the Schedule.

Schedule

PART 1
ASSETS

1.  

   (1)   Cash and short-term funds (in detail).

1.  

   (2)   Statutory reserves in accordance with the Act.

1.  

   (3)   Loans and Advances.

1.  

   (4)   Provision or reserve for loan loss.

1.  

   (5)   Bad and doubtful loans written off in the past 3 financial years together with recoveries effected.

1.  

   (6)   Investments categorised as —

   1.  

      (a)     Government securities;

   1.  

      (b)     Quoted investments;

   1.  

      (c)     Unquoted investments;

   1.  

      (d)     Investments in associated companies.

1.  

   (7)   Goodwill or formation of preliminary expenses treated as assets stating period over which these are to be written off against profits.

1.  

   (8)   Fixed assets (to be shown separately from current assets).

1.  

   (9)   For each item in the balance sheet, the corresponding amount shown in the last annual balance sheet.

PART 2
LIABILITIES

1.  

   (1)   Total deposits by categories.

1.  

   (2)   Current account and other borrowings.

1.  

   (3)   Dividends.

1.  

   (4)   Taxation.

1.  

   (5)   Contingent liabilities stating the aggregate of losses incurred over the last 3 years.

1.  

   (6)   Other Liabilities.

PART 3
CAPITAL

1.  

   (1)   Authorised, issued and paid-up or assigned capital, giving particulars of the categories of the share capital.

1.  

   (2)   Capital issued and paid-up for consideration other than cash.

1.  

   (3)   Arrears of fixed cumulative dividends on the bank shares (calls in arrears should also be shown).

1.  

   (4)   Share premium.

1.  

   (5)   Shares issued at discount (amounts to be shown).

1.  

   (6)   Capital redemption reserve.

1.  

   (7)   Capital reserves — stating the derivation.

1.  

   (8)   Capital obligation, namely, debentures, capital notes, and other long-term borrowings by whatever name called.

1.  

   (9)   Percentage maximum shareholding by any person or group of related persons.

PART 4
PROFIT AND LOSS ACCOUNT

1.  

   (1)   Current operating earnings —

   1.  

      (a)     Interest on Loans and Advances and Discounts;

   1.  

      (b)     Amount of income from investments detailing the attractable category of investments;

   1.  

      (c)     Exchange, commission and service charge;

   1.  

      (d)     Other current operating earnings.

1.  

   (2)   Current operating expenses —

   1.  

      (a)     Interest on deposits —

      1.  

         (i)     on Savings Accounts,

      1.  

         (ii)     other interest bearing deposits;

   1.  

      (b)     Remuneration to employees;

   1.  

      (c)     Directors emoluments and other associated expenses;

   1.  

      (d)     Amount of provision for depreciation, renewals and in value of fixed assets;

   1.  

      (e)     Allowance for losses and bad debts;

   1.  

      (f)     Management fees and Head Office expenses;

   1.  

      (g)     Interest on debenture and other fixed loans;

   1.  

      (h)     Discount on shares issued; and

   1.  

      (i)     Other current operating expenses.

1.  

   (3)   Net before taxes.

1.  

   (4)   Income tax on profits.

1.  

   (5)   Net operating earnings.

1.  

   (6)   Gross dividends on profits —

   1.  

      (a)     payable locally;

   1.  

      (b)     payable overseas.

1.  

   (7)   Net retained profit or losses.

PART 5
ADDITIONAL INFORMATION

1.  

   A list of affiliated companies such as —

   1.  

      (a)     holding company of the bank;

   1.  

      (b)     parent body of the bank (branches of foreign banks or wholly owned subsidiary);

   1.  

      (c)     subsidiary companies; and

   1.  

      (d)     any company or person holding more than ¹/₂ in nominal value of equity share or stock.

Banking (Abandoned Property) Regulations – Section 183

(Statutory Instrument 188/2021)

Statutory Instrument 26/1999 .. in force 30 April 1999 (Revoked by S.I. 5/2014)

Statutory Instrument 5/2014 .. in force 27 January 2014 (Revokes S.I. 26/1999)

Statutory Instrument 26/1999 .. in force 30 April 1999 (Revoked by S.I. 5/2014)

Statutory Instrument 5/2014 .. in force 27 January 2014 (Revoked by S.I. 188/2021)

Statutory Instrument 188/2021 .. in force 22 November 2021 (Revokes S.I. 5/2014)

ARRANGEMENT OF REGULATIONS

BANKING (ABANDONED PROPERTY) REGULATIONS – SECTION 183

Commencement [22 November 2021]

1.   Citation

These Regulations may be cited as the Banking (Abandoned Property) Regulations.

2.   Interpretation

In these Regulations —

“abandoned property” means any property presumed abandoned under Part 12 of the Act;

“Act” means the Banking Act;

“claimant” means a person who makes a claim to abandoned property as the owner or a legal representative; and

“prohibited item” means anything deemed controlled or illegal by an Act of Parliament.

3.   Publication of abandoned property

1.  

   (1)   Subject to regulation 15, a notice issued by a licensed financial institution or licensed financial holding company under section 168(4) of the Act must be —

   1.  

      (a)     published in a newspaper for 2 consecutive weeks;

   1.  

      (b)     published in one issue of the Gazette; and

   1.  

      (c)     mailed to the owner at his or her last known address by registered mail.

1.  

   (2)   A notice published or mailed under subregulation (1) must include a statement to the effect that on the expiration of the date stipulated within the notice and without a claim from the owner, the abandoned property must be paid to the Central Bank.

1.  

   (3)   A licensed financial institution or licensed financial holding company shall confirm to the Central Bank that it has complied with section 168(4) of the Act, within 2 months after the end of the financial year of the licensed financial institution or licensed financial holding company.

1.  

   (4)   The confirmation required under subregulation (3) must provide the following details regarding the publication of abandoned property —

   1.  

      (a)     a copy of the notice published in the Gazette;

   1.  

      (b)     a copy of the notice published in the newspaper;

   1.  

      (c)     a link to the website of the licensed financial institution or licensed financial holding company where the abandoned property has been published;

   1.  

      (d)     the number of owners notified;

   1.  

      (e)     the number of accounts presumed to be abandoned;

   1.  

      (f)     the total value of the abandoned property; and

   1.  

      (g)     a copy of the template of the notice sent to the owners.

1.  

   (5)   Where a licensed financial institution or licensed financial holding company does not hold any abandoned property, the licensed financial institution or licensed financial holding company shall inform the Central Bank in writing.

4.   Report on abandoned property

1.  

   (1)   A licensed financial institution or licensed financial holding company shall report the holdings, required by section 168(1) of the Act, electronically to the Central Bank.

1.  

   (2)   The report under subregulation (1) must provide —

   1.  

      (a)     in the case of a general deposit or funds paid, the —

      1.  

         (i)     name of the owner,

      1.  

         (ii)     account number, and

      1.  

         (iii)     value of the abandoned property; and

   1.  

      (b)     in the case of an instrument, the —

      1.  

         (i)     name of the person at whose request the instrument was issued,

      1.  

         (ii)     instrument number,

      1.  

         (iii)     date of the instrument, and

      1.  

         (iv)     amount of the instrument.

1.  

   (3)   A licensed financial institution or licensed financial holding company shall —

   1.  

      (a)     report the holdings required under section 170(2) of the Act, in Form 1 as set out in the Schedule; and

   1.  

      (b)     submit a copy of the completed and signed form under paragraph (a), to the Central Bank.

1.  

   (4)   The form under subregulation (3)(a), must be completed in triplicate and one copy shall be retained for a period of eleven years by the —

   1.  

      (a)     licensed financial institution or licensed financial holding company;

   1.  

      (b)     Minister; and

   1.  

      (c)     Central Bank.

5.   Custody of abandoned property

1.  

   (1)   Subject to regulation 8 and at the time the report is made to the Central Bank pursuant to section 168(1) of the Act, a licensed financial institution or licensed financial holding company shall submit to the Central Bank any abandoned property.

1.  

   (2)   The Central Bank shall publish the particulars of the abandoned property on its website until any of the following events occurs —

   1.  

      (a)     a claim is legally settled; or

   1.  

      (b)     fifteen years have elapsed from the date on which the abandoned property was paid into the custody of the Central Bank.

6.   Delivery of contents of a safe deposit box

1.  

   (1)   A licensed financial institution or licensed financial holding company shall deliver to the Minister, pursuant to section 170(2) of the Act, contents of a safe deposit box together with the completed form under regulation 4(3)(a).

1.  

   (2)   The Minister shall acknowledge receipt of the abandoned property by completing and signing the designated area of the completed form under regulation 4(3)(a).

7.   Sale of contents of a safe deposit box

1.  

   (1)   The Minister shall not less than 7 days before selling the contents of a safe deposit box by public auction pursuant to section 171 of the Act, give written notice to the Central Bank of the public auction.

1.  

   (2)   A notice under subregulation (1) must include —

   1.  

      (a)     the date, time and place of the public auction; and

   1.  

      (b)     an inventory of the safe deposit box to be offered for sale.

1.  

   (3)   The Minister shall publish the date, time and place of the public auction in —

   1.  

      (a)     a newspaper for 2 consecutive weeks; and

   1.  

      (b)     one issue of the Gazette.

1.  

   (4)   On the right to sell contents of a safe deposit box arising under section 171(1) of the Act, the Minister shall hold a public auction within 60 days.

1.  

   (5)   The Minister shall execute all documents necessary to transfer ownership of sold abandoned property to the purchaser.

8.   Deduction of expenses

1.  

   (1)   A licensed financial institution or licensed financial holding company may deduct from the abandoned property all reasonable expenses properly incurred and incidental to publishing and mailing notices required under section 168(4) of the Act before the abandoned property is paid to the Central Bank.

1.  

   (2)   Where pursuant to subregulation (1) a licensed financial institution or licensed financial holding company deducts expenses and the value of the abandoned property is insufficient to cover the expenses, any excess shall be borne by the licensed financial institution or licensed financial holding company.

9.   Handling of proceeds from sale of contents of a safe deposit box

1.  

   (1)   The Minister shall deposit proceeds from a public auction into the Abandoned Property Fund within 7 business days of the sale.

1.  

   (2)   A deposit made under subregulation (1) must be accompanied by a statement in Form 2 as set out in the Schedule.

1.  

   (3)   The form under subregulation (2) must be completed in duplicate and one copy shall be retained for a period of 11 years by the —

   1.  

      (a)     Minister; and

   1.  

      (b)     Central Bank.

10.   Abandoned property remaining unsold

1.  

   (1)   The Minister shall submit to the Central Bank, within seven business days of a sale, a statement of abandoned property remaining unsold in Form 3 as set out in the Schedule.

1.  

   (2)   The Minister shall submit to the Central Bank, within 60 days of the sale, a statement of any abandoned property remaining unsold that the Minister intends to dispose in Form 4 as set out in the Schedule.

1.  

   (3)   The statement submitted under subregulation (2) must be accompanied with a notice of the date, time, method and location of intended disposal of the abandoned property remaining unsold.

1.  

   (4)   The Minister shall provide the Central Bank, within 30 days of the disposal of abandoned property remaining unsold, written confirmation that the unsold abandoned property has been disposed of.

1.  

   (5)   The forms under subregulations (1) and (2) must be completed in duplicate and one copy, of each form, shall be retained for a period of 11 years by the —

   1.  

      (a)     Minister; and

   1.  

      (b)     Central Bank.

11.   Claim on abandoned property

1.  

   (1)   Pursuant to section 173(1)(a) of the Act a claimant shall make a claim for abandoned property, in Form 5 as set out in the Schedule, to the licensed financial institution or licensed financial holding company where the account was established.

1.  

   (2)   A claim under subregulation (1) must be —

   1.  

      (a)     signed by the claimant;

   1.  

      (b)     notarized by a Notary Royal; and

   1.  

      (c)     supported by affidavit evidence.

1.  

   (3)   On receiving a claim made under subregulation (1), the licensed financial institution or licensed financial holding company shall verify that the claimant legally has rights to the abandoned property.

1.  

   (4)   The form under subregulation (1) must be completed in triplicate and one copy shall be retained by the —

   1.  

      (a)     claimant;

   1.  

      (b)     licensed financial institution or licensed financial holding company for a period of 16 years; and

   1.  

      (c)     Central Bank for a period of 16 years.

1.  

   (5)   In verifying a claim under subregulation (3) the licensed financial institution or licensed financial holding company shall consider —

   1.  

      (a)     the names and signatures of the owner and the claimant;

   1.  

      (b)     whether the account number in the claim and that associated with the abandoned property are the same;

   1.  

      (c)     any documentary evidence of the address of the owner on record or of the business relationship with the licensed financial institution or licensed financial holding company;

   1.  

      (d)     any documentary evidence of legal authorization to claim the abandoned property if the claimant is not the owner; and

   1.  

      (e)     any other document or record that the licensed financial institution or licensed financial holding company may consider substantive to the validity of the claim and the identity of the owner and the legal authority of the claimant.

1.  

   (6)   A licensed financial institution or licensed financial holding company on receiving a claim and after satisfying its internal requirements shall submit the claim to the Central Bank for verification before the claim is settled.

1.  

   (7)   The Central Bank shall verify a claim submitted to it by a licensed financial institution or licensed financial holding company and where a claim is verified the Central Bank shall credit the account of the licensed financial institution or licensed financial holding company and advise the licensed financial institution or licensed financial holding company to settle the claim.

12.   Claim on contents of a safe deposit box

1.  

   (1)   A claimant shall make a claim for abandoned property pursuant to section 173(1)(b) and (c) of the Act, to the Minister in Form 6 as set out in the Schedule.

1.  

   (2)   The form under subregulation (1) must be completed in triplicate and one copy shall be retained by the —

   1.  

      (a)     claimant;

   1.  

      (b)     Minister for a period of 11 years; and

   1.  

      (c)     Central Bank for a period of 11 years.

1.  

   (3)   A claim under subregulation (1) must be —

   1.  

      (a)     signed by the claimant;

   1.  

      (b)     notarized by a Notary Royal; and

   1.  

      (c)     supported by affidavit evidence.

1.  

   (4)   On receiving a claim under subregulation (1), the Minister shall verify that the claimant is the rightful and legal owner of the abandoned property.

1.  

   (5)   In verifying a claim under subregulation (4) the Minister shall consider —

   1.  

      (a)     the names of the owner and the claimant;

   1.  

      (b)     whether the safe deposit box number in the claim and that associated with the abandoned property are the same;

   1.  

      (c)     any documentary evidence of address of the owner on record or of the business relationship with the licensed financial institution or licensed financial holding company;

   1.  

      (d)     any documentary evidence of legal authorization to claim the abandoned property if the claimant is not the owner; and

   1.  

      (e)     any other document or record that the Minister may consider substantive to the validity of the claim and identity of the owner and the legal authority of the claimant.

1.  

   (6)   The Minister shall submit to the Central Bank quarterly records of claimed abandoned property in Form 7 as set out in the Schedule.

1.  

   (7)   The form under subregulation (6) must be completed in duplicate and one copy shall be retained for a period of 11 years by the —

   1.  

      (a)     Minister; and

   1.  

      (b)     Central Bank.

13.   Notice of settled claim

1.  

   (1)   Where a claim is settled the licensed financial institution, licensed financial holding company or the Minister shall within 2 business days give notice to the Central Bank that the claim has been settled in Form 8 as set out in the Schedule.

1.  

   (2)   The notice under subregulation (1) must include the —

   1.  

      (a)     particulars of the claimed abandoned property; and

   1.  

      (b)     method of payment used to settle the claim.

1.  

   (3)   The form under subregulation (1) must be completed in duplicate and one copy shall be retained for a period of 11 years by the —

   1.  

      (a)     licensed financial institution, licensed financial holding company or Minister; and

   1.  

      (b)     Central Bank.

14.   Retention of customer records

1.  

   (1)   A licensed financial institution or licensed financial holding company shall maintain customer records pertaining to abandoned property paid into the custody of the Central Bank for a period of 16 years from the date of payment to the Central Bank to facilitate the verification and settlement of claims under regulation 11.

1.  

   (2)   The Minister shall maintain for a period of 11 years —

   1.  

      (a)     customer details in respect of abandoned property in safe deposit boxes to facilitate the verification and settlement of claims under regulation 12; and

   1.  

      (b)     all records of any unsold abandoned property disposed pursuant to regulation 10.

15.   Prohibited items

1.  

   (1)   Immediately on discovery, a licensed financial institution or licensed financial holding company shall deliver any abandoned property that is a prohibited item to the Royal Saint Lucia Police Force.

1.  

   (2)   A licensed financial institution or licensed financial holding company shall not publish a prohibited item or the particulars of a prohibited item in a notice.

16.   Completion of forms

1.  

   (1)   Except as may be otherwise prescribed, the forms as set out in the Schedule to these Regulations must be —

   1.  

      (a)     typewritten or printed;

   1.  

      (b)     legible and suitable for photocopying; and

   1.  

      (c)     produced on good quality 8.5 inches by 14.0 inches paper.

1.  

   (2)   Information with respect to figures, inserted in the forms as set out in the Schedule, must be numerical and not in words.

1.  

   (3)   Where information or an item required to be disclosed on the form does not apply, the phrase “not applicable” or the abbreviation “N/A” should be used.

17.   Revocation

The Banking (Abandoned Property) Regulations, Statutory Instrument 5 of 2014, are revoked.

Schedule

FORM 1

(Regulation 4)

STATEMENT OF DELIVERY OF THE CONTENTS OF A SAFE DEPOSIT BOX

BANKING ACT: SECTION 170(2)(b)

FORM 2

(Regulation 9)

STATEMENT OF SOLD ABANDONED PROPERTY

BANKING ACT: SECTION 172(2)

FORM 3

(Regulation 10)

STATEMENT OF UNSOLD ABANDONED PROPERTY

BANKING ACT: SECTION 172(3)

FORM 4

(Regulation 10)

STATEMENT OF DISPOSAL OF ABANDONED PROPERTY

BANKING ACT: SECTION 172(3)

FORM 5

(Regulation 11)

CLAIM FOR ABANDONED PROPERTY FROM THE ECCB

BANKING ACT: SECTION 173(1)(a)

FORM 6

(Regulation 12)

CLAIM FOR ABANDONED PROPERTY FROM THE MINISTER

BANKING ACT: SECTION 173(1)(b)

FORM 7

(Regulation 12)

STATEMENT OF CLAIMED ABANDONED PROPERTY

BANKING ACT: SECTION 173

FORM 8

(Regulation 13)

CONFIRMATION OF PAYMENT OF CLAIM FOR ABANDONED PROPERTY

BANKING ACT: SECTION 173

Banking (Capital Adequacy and Capital Ratios) Regulations

(Statutory Instrument 151/2007)

Statutory Instrument 151/2007 .. in force 1 September 2007

ARRANGEMENT OF REGULATIONS

PART 1
PRELIMINARY

PART 2
REQUIREMENTS FOR CERTAIN CAPITAL COMPONENTS

PART 3
CAPITAL ADEQUACY RATIO

PART 4
IMPAIRMENT OF CAPITAL ADEQUACY

BANKING (CAPITAL ADEQUACY AND CAPITAL RATIOS) REGULATIONS – SECTION 34(8)

Commencement [1 September 2007]

PART 1
PRELIMINARY

1.   Citation

These Regulations may be cited as the Banking (Capital Adequacy and Capital Ratios) Regulations.

2.   Interpretation

In these Regulations, unless the context otherwise requires —

“Act” means the Banking Act;

“capital adequacy” refers to maintenance of the aggregate of the minimum paid up capital stipulated in section 13 of the Act, and adherence to the capital adequacy requirements prescribed in Part 2 of these Regulations;

“financial asset” means any asset that is —

1.  

   (a)     cash;

1.  

   (b)     an equity instrument of another enterprise;

1.  

   (c)     a contractual right to receive cash or another financial asset from another enterprise;

1.  

   (d)     a contractual right to exchange a financial instrument with another enterprise under conditions that are potentially favourable;

“financial institution” refers to an institution licensed under the Act;

“financial liability” refers to a contractual obligation to —

1.  

   (a)     deliver cash or another financial asset to another enterprise;

1.  

   (b)     exchange a financial instrument with another enterprise under conditions that are potentially unfavourable;

“fixed assets revaluation reserve” means the increase in book value of a fixed asset based on an independent and professional appraisal as to the market value of such an asset;

“Manual of Instructions” means the current Manual of ECCB Banking Schedules and Instructions;

“person” means an individual or legal person including an association or any group or persons acting in common, whether or not incorporated;

“specific provision for loan losses” means loan loss reserves held against identified losses or potential losses and which can not be utilized to satisfy general losses which subsequently materialize;

“subordinated debt” means debt having a claim against the issuer's assets that is lower ranking or junior to other obligations, and is paid after claims to holders of senior claims are satisfied;

“substantial equity investment” means an investment in which a licensed financial institution owns at least 20% of another entity's equity;

“total regulatory capital” means capital which is approved for regulatory purposes and computed in accordance with the Schedule;

“Tier I Capital” means unimpaired capital and reserves that is computed in accordance with relevant criteria established in the Schedule;

“Tier II Capital” means capital computed in accordance with relevant criteria established in the Schedule.

3.   Application

These Regulations apply to all financial institutions licensed under the Act.

PART 2
REQUIREMENTS FOR CERTAIN CAPITAL COMPONENTS

4.   Capital adequacy requirement

(1)   Every licensed financial institution shall maintain adequate capital in accordance with the following:

1.  

   (a)     the provisions of section 15 of the Banking Act of Antigua and Barbuda, Dominica, Grenada, Montserrat and St. Kitts and Nevis; section 14 of the Banking Act of Anguilla and section 13 of the Banking Acts of St. Lucia and St. Vincent and the Grenadines;

1.  

   (b)     the Schedule;

1.  

   (c)     capital ratios as provided for under regulation 8.

(2)   Every foreign licensed financial institution shall within one month of the end of its financial year, submit to the Central Bank an undertaking in writing in the form set out in the Letter of Comfort, that an amount —

1.  

   (a)     equivalent to its assets; or

1.  

   (b)     which supplements the amount required to be equivalent to its net assets, which is not less than 5% of its deposit liabilities or such other liabilities as may be determined by the Central Bank, has been attributed or pledged as assigned capital.

(3)   The amount of assigned capital shall be specified in a schedule to the Letter of Comfort and shall be calculated on the financial institution's deposit liabilities as at the financial year end.

5.   Preference shares

Perpetual cumulative preference shares, long-term preference shares and mandatory convertible debt instruments must satisfy the following criteria to be eligible for inclusion in Tier II Capital:

1.  

   (a)     they must be unsecured, subordinated and fully paid;

1.  

   (b)     they must not be redeemable at the discretion of the holder;

1.  

   (c)     they must be available to absorb losses;

1.  

   (d)     service obligations attached to the instruments must be deferrable.

6.   Fixed assets revaluation reserves

(1)   Fixed assets must be valued on a basis satisfactory to the Central Bank.

(2)   Revaluation of premises shall only be carried out by an independent and certified valuer.

(3)   A financial institution must fully disclose and report in its balance sheet or notes to the audited accounts, details of the reserves arising from revaluation of fixed assets.

(4)   A financial institution must disclose the basis used to revalue its assets and the effective date of revaluation.

(5)   Revaluation reserves on fixed assets may be included in Tier II Capital in accordance with the Schedule.

7.   Subordinated debt

(1)   Approved subordinated debt may be included in Tier II Capital if it satisfies the following requirements —

1.  

   (a)     it is unsecured;

1.  

   (b)     it has an original fixed term to maturity of over 5 years;

1.  

   (c)     it may be redeemed before maturity only at the option of the licensed financial institution and with the prior approval of the Minister in consultation with the Central Bank; and

1.  

   (d)     it satisfies such further conditions prescribed by the Central Bank.

(2)   In addition to the requirements of sub-regulation (1), approved subordinated debt may be included in Tier II capital during the last 5 years before maturity if a cumulative discount or amortization factor of 20% per annum is applied to reflect the diminishing value of the subordinated debt as a continuing source of strength.

PART 3
CAPITAL ADEQUACY RATIO

8.   CApital adequacy ratio

(1)   A licensed financial institution shall assign all assets recorded on the balance sheet as well as off-balance sheet exposures to broad risk categories in accordance with the Schedule.

(2)   A licensed financial institution shall maintain a minimum ratio between its total regulatory capital, the numerator, and the aggregate of its risk weighted on-balance sheet assets and risk weighted off-balance sheet assets less approved deductions, of not less than 8%, calculated on a consolidated and solo basis.

(3)   A licensed financial institution shall calculate its capital adequacy ratio in accordance with the criteria prescribed in the Schedule.

(4)   The Central Bank may require a licensed financial institution to increase its capital adequacy ratio above the amount specified in regulation 8(2).

(5)   A licensed financial institution shall maintain adequate systems and procedures, satisfactory to the Central Bank, to facilitate computation of the capital adequacy ratio.

(6)   In determining the adequacy of the systems and procedures, the Central Bank may have regard to international standards of best practice, the risk profile of a licensed financial institution and the resources of the licensed financial institution.

(7)   A licensed financial institution shall provide the Central Bank with computations of its capital adequacy ratio in such form and frequency as the Central Bank may determine.

(8)   A licensed financial institution whose capital adequacy ratio falls below the minimum required amount shall employ one or a combination of the following strategies in order to achieve compliance within 3 months of the reduction in the capital adequacy ratio —

1.  

   (a)     change the risk profile of its assets by converting high risk assets to lower risk assets;

1.  

   (b)     increase its total regulatory capital;

1.  

   (c)     apply any other strategy approved by the Central Bank.

(9)   Nothing in this regulation shall be interpreted to exempt a licensed financial institution from the requirements imposed by the Central Bank under sections 15(3) and 15(4) of the Act.

PART 4
IMPAIRMENT OF CAPITAL ADEQUACY

9.   Declaration and payment of dividend and other transfers

(1)   A licensed financial institution shall not declare, credit or pay any dividend on its shares or make any other transfer from profits where such declaration, credit, payment or other transfer would impair its capital adequacy.

(2)   Pursuant to subregulation (1) a financial institution shall not take any of the actions specified therein unless and until —

1.  

   (a)     all its capitalised expenses, including preliminary expenses, organization expenses, share selling commission or brokerage, amount of losses incurred and any other item of expenditure not represented by tangible assets, have been completely written off; and

1.  

   (b)     all bad and doubtful debts and other classified assets have been fully and duly provided for, as required by guidelines issued by the Central Bank under section 36 of the Act;

1.  

   (c)     the financial institution has complied with the requirement of section 14(1) of the Act.

(3)   A licensed financial institution may declare credit or pay any dividend on its shares in the current year, upon certification from an external auditor of the adequacy of capital.

(4)   A licensed financial institution shall not pay any dividend from unrealized gains including gains arising from asset revaluations.

10.   Sanctions

(1)   Where the Central Bank has reasonable cause to believe that a licensed financial institution is in breach of the capital adequacy requirement prescribed by regulation 4, the Central Bank may suspend access by the financial institution to credit facilities of the Central Bank or direct the financial institution to —

1.  

   (a)     inject additional capital in the institution;

1.  

   (b)     refrain from declaring or paying dividends;

1.  

   (c)     suspend the acceptance of new deposits;

1.  

   (d)     suspend the acquisition of fixed assets;

1.  

   (e)     suspend lending operations.

(2)   Where in the opinion of the Central Bank a licensed financial institution is in violation of the capital adequacy requirement, the Central Bank may take any of the measures prescribed in section 21(1) of the Act.

(3)   Where the Central Bank determines that a licensed financial institution's capital deficiency is severe enough to have resulted in impairment of capital and such capital impairment is assessed to be detrimental to the interests of depositors, the Central Bank may recommend to the Minister that the licence be revoked under section 22(2) of the Act.

Schedule

(Regulations 2, 4, 6 and 8)

CAPITAL ADEQUACY COMPUTATION WORKSHEETS

Banking (RBTT Bank Caribbean Limited) Banking Business Vesting Order – Section 175

(Statutory Instrument 55/2015)

Statutory Instrument 55/2015 (RBTT Bank Caribbean Limited) .. in force 1 May 2015

ARRANGEMENT OF SECTIONS

BANKING (RBTT BANK CARIBBEAN LIMITED) BANKING BUSINESS VESTING ORDER – SECTION 175

Commencement [1 May 2015]

1.   Citation

This Order may be cited as the Banking (RBTT Bank Caribbean Limited) Banking Business Vesting Order.

2.   Interpretation

In this Order —

“Agreement” means the Business Transfer Agreement Relating to the Sale and Purchase of the Branch Business of RBTT Bank Caribbean Limited in Saint Lucia which was signed on the 15^th day of April, 2015 between RBTT Bank Caribbean Limited and Royal Bank of Canada;

“assets” has the meaning assigned to it in the Agreement;

“branch business” means the business carried on by the RBTT Bank Caribbean Limited in Saint Lucia, comprising the assets, liabilities and properties of the RBTT Bank Caribbean Limited in Saint Lucia;

“liabilities” has the meaning assigned to it in the Agreement;

“properties” means all moveable and immovable property in Saint Lucia owned or leased by the RBTT Bank Caribbean Limited;

“RBTT Bank Caribbean Limited” means the company incorporated in St. Vincent and the Grenadines and which is registered and licensed under the laws of Saint Lucia;

“Royal Bank of Canada” means the Canadian chartered bank which is registered and licensed under the laws of Saint Lucia.

3.   Vesting of banking business

The branch business of RBTT Bank Caribbean Limited is transferred to and vested in the Royal Bank of Canada pursuant to the Agreement.

4.   Approved business premises

The Royal Bank of Canada shall carry on banking business at —

1.  

   (a)     22 Micoud Street, in the City of Castries in the State of Saint Lucia; and

1.  

   (b)     Unit No. 22 Baywalk Mall, Rodney Bay in the Quarter of Gros-Islet in the State of Saint Lucia.

Schedule

(Section 2)

Properties include —

1.  

   1.   Lease between Hebah Limited and RBTT Bank Caribbean Limited dated the 15^th day of January, 2010 of Unit No. 22 being part of the shopping centre known as Baywalk Shopping Mall situate at Rodney Bay, in the Quarter of Gros-Islet, in the State of Saint Lucia on a portion of land registered as Block and Parcel Number 1255B 77 and registered as Instrument Number 3094/2010.

1.  

   2.   Lease between Chreiki & Sons Limited and RBTT Bank Caribbean Limited dated 30^th May, 2014 of the Ground and First Floor of a building situate at the corner of Micoud and Bourbon Streets, in the City of Castries, in the State of Saint Lucia being part of Block and Parcel Numbers 0848D 300 and 301 and registered in the Land Registry as Instrument Number 2314/2014.

Banking (FirstCaribbean International Finance Corporation (Leeward and Windward) Ltd. and FirstCaribbean International Bank (Barbados) Limited) Banking Business Vesting Order – Sections 175(3) and (5)

(Statutory Instrument 115/2019)

Statutory Instrument 115/2019 (FirstCaribbean International Finance Corporation (Leeward and Windward) Ltd. and FirstCaribbean International Bank (Barbados) Limited) .. in force 19 August 2019

ARRANGEMENT OF SECTIONS

BANKING (FIRSTCARIBBEAN INTERNATIONAL FINANCE CORPORATION (LEEWARD AND WINDWARD) LTD. AND FIRSTCARIBBEAN INTERNATIONAL BANK (BARBADOS) LIMITED) BANKING BUSINESS VESTING ORDER – SECTIONS 175(3) AND (5)

Commencement [19 August 2019]

1.   Citation

This Order may be cited as the Banking (FirstCaribbean International Finance Corporation (Leeward and Windward) Ltd. and FirstCaribbean International Bank (Barbados) Limited) Banking Business Vesting Order.

2.   Interpretation

In this Order —

“Agreement” means the Business Transfer Agreement made on the 5^th day of February, 2019 in which the transferor financial institution agreed to transfer its liabilities and assets to the transferee financial institution;

“transferee financial institution” means the FirstCaribbean International Bank (Barbados) Limited;

“transferor financial institution” means the FirstCaribbean International Finance Corporation (Leeward and Windward) Ltd.

3.   Transfer of liabilities and assets

The Banking Business including the liabilities and assets as specified in the Agreement of the transferor financial institution is transferred as intended by the Agreement to the transferor financial institution.

4.   Corporation tax

Notwithstanding the Income Tax Act, the transferee financial institution shall carry forward and set off the losses of the transferor financial institution as if the undertaking of the transferor financial institution had not been permanently discontinued and a new banking business had been set up and commenced by the transferee financial institution.

Banking (Republic Bank (EC) Limited and the Bank of Nova Scotia) Banking Business Vesting Order – Section 175(3) and (5)

(Statutory Instrument 143/2019)

Statutory Instrument 143/2019 (Republic Bank (EC) Limited and The Bank of Nova Scotia) .. in force 14 October 2019

ARRANGEMENT OF SECTIONS

BANKING (REPUBLIC BANK (EC) LIMITED AND THE BANK OF NOVA SCOTIA) BANKING BUSINESS VESTING ORDER – SECTION 175(3) AND (5)

Commencement [14 October 2019]

1.   Citation

This Order may be cited as the Banking (Republic Bank (EC) Limited and The Bank of Nova Scotia) Banking Business Vesting Order.

2.   Interpretation

In this Order —

“Act” means the Banking Act, Cap. 12.01;

“Agreements” means the —

1.  

   (a)     Purchase and Sale Agreement made on the 27^th day of November, 2018 as amended by the Amended and Restated Purchase and Sale Agreement made on the 24^th day of September, 2019 between the transferor financial institution and the Republic Financial Holdings Limited; and

1.  

   (b)     Local Purchase Agreement made on the 20^th day of September, 2019 between the transferor financial institution and the transferee financial institution relating to the transfer of the branch business of the transferor financial institution;

“transferee financial institution” means the Republic Bank (EC) Limited, a corporation incorporated and licensed under the laws of Saint Lucia;

“transferor financial institution” means The Bank of Nova Scotia, a Schedule I bank existing under the laws of Canada, registered and licensed under the laws of Saint Lucia.

3.   Vesting of banking business

The banking business of the transferor financial institution, including the assets, property, rights, liabilities and obligations as intended by the Agreements is, from the 31^st day of October, 2019, transferred and vested in the transferee financial institution.

Banking (Royal Bank of Canada) Banking Business Vesting Order – Section 175

(Statutory Instrument 66/2021)

Statutory Instrument 66/2021 .. in force 1 April 2021

ARRANGEMENT OF ORDER

BANKING (ROYAL BANK OF CANADA) BANKING BUSINESS VESTING ORDER – SECTION 175

Commencement [1 April 2021]

1.   Citation and commencement

1.  

   This Order may be cited as the Banking (Royal Bank of Canada) Banking Business Vesting Order.

2.   Interpretation

In this Order —

“Agreement” means the St. Lucia Branch Asset Purchase Agreement made on the 11^th day of December, 2019 between the Transferor Financial Institution and the Transferee Financial Institution, as amended by the Amendment to the St. Lucia Branch Asset Purchase Agreement made on the 24^th day of January, 2020 as further amended by the Second Amendment to St. Lucia Branch Asset Purchase Agreement made on the 28^th day of January, 2021, relating to the transfer of the St. Lucia Branch Banking Business of the Transferor Financial Institution;

“Assumed Liabilities” has the meaning assigned to it in the Agreement;

“Purchased Assets” has the meaning assigned to it in the Agreement, as more particularly described in the Schedule;

“St. Lucia Branch Banking Business” means the banking business carried on by the Transferor Financial Institution in Saint Lucia comprising all the Purchased Assets, Assumed Liabilities, property, rights and obligations as specified in and intended by the Agreement;

“Transferee Financial Institution” means 1^st National Bank St. Lucia Limited, a corporation incorporated and licensed to carry on banking business under the laws of Saint Lucia;

“Transferor Financial Institution” means Royal Bank of Canada, a Schedule 1 bank existing under the laws of Canada and registered and licensed to carry on banking business in Saint Lucia.

3.   Vesting of banking business

The St. Lucia Branch Banking Business of the Transferor Financial Institution is, without further assurance, transferred to and vested in the Transferee Financial Institution with effect from the commencement of this Order.

Schedule

(Section 2)

PURCHASED ASSETS

1.     Purchased Assets are the following assets of the St. Lucia Branch Banking Business —

     (a)     the Cash Items;

     (b)     the Loans;

     (c)     the Branch Leased Real Property and Branch Real Property Leases;

     (d)     the Branch Owned Real Property;

     (e)     the Receivables;

     (f)     the Fixed Assets;

     (g)     the Branch Contracts;

     (h)     the Equity Interests set out in Section 1.1 (c) of the Seller's Disclosure Letter;

     (i)     the Off-Balance Sheet Items; and

     (j)     the Customer Books and Records.

2.     Capitalized terms used in this Schedule but not otherwise defined have the meaning assigned to the terms in the Agreement.

Banking (Licences) Regulations

(Statutory Instrument 215/2021)

Statutory Instrument 215/2021 .. in force 30 December 2021

ARRANGEMENT OF REGULATIONS

BANKING (LICENCES) REGULATIONS – SECTION 183

Commencement [30 December 2021]

1.   Citation

These Regulations may be cited as the Banking (Licences) Regulations.

2.   Interpretation

In these Regulations —

“Act” means the Banking Act;

“licence” means a licence issued under Part II or Part IV of the Act.

3.   Application for licence

1.  

   (1)   A person who wishes to carry on banking business or operate a financial holding company shall make an application for a licence in Form 1 or Form 2 respectively in the Schedule.

1.  

   (2)   An applicant shall submit with the application —

   1.  

      (a)     a personal questionnaire for each significant shareholder, director and officer in Form 3 of the Schedule;

   1.  

      (b)     supporting documentation under sections 7(1), 7(2) and 36(2) of the Act and listed in the corresponding application form set out in the Schedule; and

   1.  

      (c)     a non-refundable application fee as set out in Schedule I to the Act.

1.  

   (3)   An applicant shall complete a form set out in the Schedule in accordance with notes specified in the form.

4.   Refusal of application

The Central Bank may refuse to accept an application for a licence if —

1.  

   (a)     the application does not comply with regulation 3; or

1.  

   (b)     the application is based on false, misleading or inaccurate information or suppressed material information.

5.   Obsolete application

If an applicant fails to submit the supporting documentation under regulation 3(2)(b) within one year of the date of the application, the Central Bank shall treat the application as obsolete.

6.   Alterations of facts disclosed in application

1.  

   (1)   An applicant shall, as soon as is reasonably practicable give written notice to the Central Bank of —

   1.  

      (a)     a proposed alteration to; or

   1.  

      (b)     the occurrence of an event which the applicant knows affects or may affect in a material respect,

1.  

   information supplied by the applicant to the Central Bank in relation to an application, being a proposal or event made or occurring while the application is pending a decision by the Central Bank.

1.  

   (2)   If an applicant fails to give written notice to the Central Bank under subregulation (1), the Central Bank may reject the application.

7.   Standard conditions

Without limiting the generality of sections 11, 12 and 39 of the Act, the Central Bank may grant a licence subject to the following standard conditions —

1.  

   (a)     the licence is personal to the licensee and is not transferable or assignable;

1.  

   (b)     the licensee shall only engage in the business permitted by the licence and from the premises specified in the licence;

1.  

   (c)     the licensee shall, as soon as is reasonably practicable, give written notice to the Central Bank of —

   1.  

      (i)     a proposed alteration to; or

   1.  

      (ii)     the occurrence of an event which the licensee knows affects or may affect in a material respect,

information supplied by the licensee to the Central Bank in the course of the application for that licence.

8.   Authority on receipt of notice

1.  

   (1)   On receipt of the written notice under regulation 6, the Central Bank may require the applicant to take measures that may be necessary as a result of the proposed alteration or occurrence.

1.  

   (2)   On receipt of the written notice under regulation 7(c), the Central Bank shall review the licence and may —

   1.  

      (a)     require the licensee to take measures that may be necessary as a result of the proposed alteration or occurrence; and

   1.  

      (b)     if necessary, grant a new licence to the licensee to reflect change in the licence.

Schedule

(Regulation 3)

FORM 1
APPLICATION FOR A LICENCE TO CARRY ON BANKING BUSINESS UNDER THE BANKING ACT

(Sections 7(1), 7(2) and 36(2))

FORM 2
APPLICATION FOR A LICENCE FOR A FINANCIAL HOLDING COMPANY UNDER THE BANKING ACT

FORM 3
PERSONAL QUESTIONNAIRE FOR SIGNIFICANT SHAREHOLDERS DIRECTORS AND OFFICERS OF COMPANIES APPLYING TO BE LICENCEDUNDER THE BANKING ACT