Revised Laws of Saint Lucia (2021)

PART 3
AUDIT, INFORMATION AND EXAMINATION

16.   Annual audit, report and publication of financial statements and results

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    (1)   A licensee shall appoint annually an auditor who is a chartered accountant, a certified public accountant, a member of the Institute of Chartered Accountants of the Eastern Caribbean or some other professionally qualified accountant, satisfactory to the Authority whose duties shall—

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      (a)     be to examine the books and records and to make a report on the annual financial statements and financial position of the licensee; and

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      (b)     include all or any of the following duties as may from time to time be imposed on the auditor by the licensee at the request of the Authority to—

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        (i)     submit such additional information in relation to the audit of the licensee as the Authority considers necessary,

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        (ii)     carry out any other examination or establish any procedure in any particular case,

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        (iii)     submit a report on any of the matters referred to in subparagraphs (i) and (ii),

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        (iv)     submit a report on the financial and accounting systems and risk management controls of the licensee,

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        (v)     provide an opinion on whether suitable measures to counter money laundering and to combat the financing of terrorism have been adopted by the licensee and are being implemented in accordance with the applicable laws.

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    (2)   A licensee shall within 3 months of the end of the financial year, forward the audited financial statements referred to in subsection (1) to the Authority unless prior written approval for an extension has been granted by the Authority.

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    (3)   The licensee shall in audited financial statements referred to in subsection (1) cover a period of not more than 18 months beginning on the date the licensee was incorporated, or, if the licensee has previously prepared audited financial statements beginning at the end of the period covered by the most recent audited financial statements.

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    (4)   A designated licensee shall submit audited financial statements annually to the Central Bank in accordance with the provisions of the Payment System Act and shall submit a copy of such audited financial statements to the Authority.

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    (5)   A licensee shall remunerate the auditor in respect of the discharge by the auditor of all or any of the duties set out in subsection (1).

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    (6)   If in the course of the performance of an auditor's duties an auditor is satisfied that—

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      (a)     there has been a serious breach of or non-compliance with the provisions of this Act or any regulations, notice, order, guidelines or directions issued under this Act;

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      (b)     there is evidence—

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        (i)     that a criminal offence involving fraud or other dishonesty may have been committed, or

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        (ii)     of any suspicious transaction in accordance with the Money Laundering (Prevention) Act, the auditor shall immediately report the matter to the licensee and the Authority.

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    (7)   The Authority may request copies of reports submitted to the licensee by both the internal and external auditors of the licensee.

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    (8)   An auditor shall report to the Authority any matter the auditor is required to report on any licensee to any investigative, regulatory or other institution, simultaneously with the report to that institution.

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    (9)   A licensee who fails to secure compliance with a request under subsection (1)(b) commits an offence and is liable on summary conviction to a fine not exceeding $50,000 for each such failure.

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    (10)   If a licensee fails to appoint an auditor satisfactory to the Authority, the Authority may appoint an auditor for such licensee and the remuneration of the auditor so appointed shall be determined by the Authority and paid by the licensee.

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    (11)   The Authority may appoint an auditor to conduct an independent audit of a licensee, in accordance with the instructions of the Authority, and to report the findings or results to the Authority.

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    (12)   An auditor shall not be liable for breach of any duty solely by reason of compliance with the provisions of subsections (1), (6) or (8), of this section or any other request for information by the Authority.

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    (13)   A person having an interest in any licensee otherwise than as a depositor, director, manager, secretary, or an employee or agent of a licensee shall be eligible for appointment as auditor for the licensee.

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    (14)   A person, appointed as auditor who, after an appointment, acquires any interest in a licensee, or become a director, manager, secretary, or an employee or agent of a licensee shall immediately cease to be such auditor.

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    (15)   The Minister may by Order published in the Gazette

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      (a)     exempt any licensee or any class of licensee from the audit requirement contained in subsection (1);

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      (b)     waive the audit requirement contained in subsection (1) in respect of any licensee or any class of licensee;

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      (c)     require that the Authority conduct an ad hoc audit of any licensee or any class of licensee in respect of which the audit requirement is waived or lifted under paragraphs (a) and (b) of this subsection.

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    (16)   The Authority may assess a licensee for the reasonable expenses of conducting any ad hoc audit ordered by the Minister under subsection (15)(c).