Revised Laws of Saint Lucia (2023)

2.   Interpretation

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   (1)   In this Act—

“applicant” means an eligible company which applies under section 4;

“auditor” means a person who—

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   (a)     is a member of the Institute of Chartered Accountants in Saint Lucia or any other person who is a member of another professional accounting association and who is approved as an auditor by the Minister;

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   (b)     is independent of the licensee and its parent company;

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   (c)     has at least 5 years of experience in performing audits of a financial institution;

“bank” means a person carrying on banking business;

“banking business” means—

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   (a)     the business of receiving funds by—

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      (i)     the acceptance of monetary deposits which are repayable on demand or after notice or any similar operation, or

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      (ii)     the sale or placement of bonds, certificates, notes or other securities,

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   and the use of the funds, either in whole or in part, for loans or investment for the risk of the customer; and

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   (b)     any other activities recognised by the Minister as customary banking practice and which a financial institution may additionally be authorised to do,

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   and a person shall, without prejudice to the generality of the foregoing to be deemed to accept deposits of money if that person advertises for or solicits the deposits from the general public irrespective of any terms or conditions under which deposits or money are solicited or received or whether or not certificates or other instruments are issued in respect of such deposits;

“Court” means the High Court;

“Director” means the Director of Financial Services appointed as such under section 11 of the Registered Agent and Trustee Act;

“effective consolidated supervision” means—

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   (a)     the consistent periodic assessment of the overall strength of a financial group of companies and the impact that the activities of one company in the group has on another company;

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   (b)     the effect of activities of a company that is not regulated on a company that is regulated and supervised;

(Inserted by Act 14 of 2022)

“eligible company” means a body corporate—

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   (a)     which is incorporated or continued under the International Business Companies Act for the purpose of carrying on international banking business;

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   (b)     having at least one director who is a resident; and

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   (c)     whose objects or business activities are restricted to international banking business;

“financial services regulator” means a statutory body or government department responsible for the registration and licensing of—

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   (a)     a bank;

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   (b)     a non-bank financial institution, such as—

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      (i)     a building society,

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      (ii)     a credit union,

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      (iii)     an insurance company,

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      (iv)     a lending institution,

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      (v)     a money transmitter;

(Inserted by Act 14 of 2022)

“international accounting standards” means the standards of accounting set by the International Accounting Standards Committee for use in the preparation of financial statements;

“International Accounting Standards Committee” means the International Accounting Standards Committee established under the International Accounting Standards Committee Agreement 1973;

“international banking business” means banking business which does not involve—

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   (a)     taking deposits from any resident, provided that another licensee, or a person registered or licensed under any other law in force in Saint Lucia relating to international financial services shall be presumed not to be a resident for the purposes of this definition;

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   (b)     investing in any asset which represents a claim on any resident, except a claim resulting from—

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      (i)     a loan to a person registered or licensed under any other law in force in Saint Lucia relating to international financial services,

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      (ii)     a transaction with another licensee under this Act, or

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      (iii)     the purchase of bonds or other securities issued by the Government, a statutory corporation of the Government, or a company in which the Government is the sole or majority beneficial owner,

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   and for the removal of doubt, but subject to the regulations, the acceptance in trust of amounts of money in foreign currencies or in foreign securities or both, personal or movable property with its situs outside Saint Lucia, or real or immovable property with its situs outside Saint Lucia, for persons who are non-residents, which trust assets are to be administered, managed, or invested or otherwise dealt with for the benefit of persons who are non-residents, including any activities related, incidental or ancillary thereto, is an activity that a licensee under this Act is permitted to engage in;

“International Business Companies Act” means International Business Companies Act;

“licence” means a licence granted under section 4;

“licensee” means an eligible company which has been granted a licence under this Act to carry on international banking business from within Saint Lucia;

“liquidator” means a liquidator appointed under section 33;

“Minister” means the Minister responsible for international financial services;

“officer” means officer of a licensee;

“person” includes natural person, body corporate, holding body corporate, company, parent company and partnership;

“physical presence” means the existence of meaningful mind and management in the country in which the bank is incorporated and licensed and the existence of a registered agent or non-management staff does not constitute mind and management; (Inserted by Act 14 of 2022)

“prescribed” means prescribed in the Regulations;

“receiver” means a receiver appointed under section 28;

“registered agent” means a person licensed to carry on the business of international financial services representation under the Registered Agent and Trustee Licensing Act;

“regulations” means regulations made under section 56;

“resident” means, for the purpose of this Act—

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   (a)     a natural person who is ordinarily resident in Saint Lucia as under the Income Tax Act;

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   (b)     a trust company, partnership, limited partnership or other body, incorporated, established, formed or organised in Saint Lucia under the law in force in Saint Lucia, the majority of shares or other ownership of which is legally or beneficially owned, directly or indirectly, by the Government or by persons who are residents under the provisions of paragraph (a) or (c);

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   (c)     any other trust, corporation, partnership, limited partnership, or other entity who or which is a resident of, or ordinarily resident or domiciled in Saint Lucia as under the Income Tax Act,

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   but does not mean a person registered or licensed under any law in force in Saint Lucia relating to international financial services;

“shell bank” means a bank that—

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   (a)     does not have physical presence in the country it is incorporated and licensed; and

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   (b)     is unaffiliated with a financial group of companies, that is subject to effective consolidated supervision by a financial service regulator;

(Inserted by Act 14 of 2022)

“tax” includes duty, levy, excise tax, capital gains tax, income tax, and rates.

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   (2)   In this Act, unless the context requires otherwise, any reference to “$” shall, unless otherwise stated, be to the lawful currency of the United States of America.