(1) Subject to subsection (4), liability to a penalty does not arise if the Reporting Saint Lucia Financial Institution satisfies the Competent Authority or appeal commissioners that there is a reasonable excuse for the failure.
(2) For the purposes of this Act the following is not a reasonable excuse —
(a) that there is an insufficiency of funds to do something; or
(b) that a Reporting Saint Lucia Financial Institution relies upon another person to do something.
(3) If a Reporting Saint Lucia Financial Institution had a reasonable excuse for a failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.
(4) This section does not apply to section 16(1).