Revised Laws of Saint Lucia (2023)

13.   Audit and financial statements

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   (1)   A licensee shall appoint an auditor who is a chartered accountant, a certified public accountant, a member of the Institute of Chartered Accountants of the Eastern Caribbean or a professionally qualified accountant satisfactory to the Authority to perform an annual audit and the duties of the auditor 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; and

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      (b)     include discharging all or any of the following requirements if the Authority requires the licensee —

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

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

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         (iii)     to submit a report on a matter referred to in subparagraphs (i) and (ii),

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

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

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   (2)   For the purposes of subsection (1)(b)(i), the additional information required includes —

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      (a)     the volume of transactions relating to the virtual asset business;

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      (b)     a report as to whether proper records of the transactions in relation to the virtual asset business have been maintained; and

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      (c)     a report as to whether the licensee has complied with this Act and any other law as the Authority determines.

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   (3)   A licensee shall, within 4 months of the end of the financial year of the licensee, submit the audited financial statements to the Authority unless prior written approval for an extension is granted by the Authority.

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   (4)   The audited financial statements under subsection (3) shall cover a period of not more than 18 months beginning on the date of the commencement of operations, 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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   (5)   Notwithstanding subsection (1), the Authority may appoint and instruct, at the expense of the licensee, an independent 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 to —

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      (a)     conduct an independent audit of a licensee; and

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      (b)     report the findings or results to the Authority.

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   (6)   The independent auditor shall immediately make a report to the Authority, if in the course of the performance of the external auditor's duties, the external auditor is satisfied that —

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      (a)     there has been a serious breach or non-compliance with 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 a suspicious transaction.

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   (7)   An independent auditor is not liable for breach of a duty solely by reason of non-compliance with subsection (5) or any other request for information by the Authority.

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   (8)   A licensee shall comply with the requirements of the Money Laundering (Prevention) Act and institute procedures to ensure that accounting records and business operations comply with the Money Laundering (Prevention) Act.

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   (9)   In this section, “suspicious transaction” has the meaning assigned under the Money Laundering (Prevention) (Guidance Notes) Regulations.