Revised Laws of Saint Lucia (2021)

12.   Core income-generating activities

A relevant entity shall provide proof to the Competent Authority of the following core income-generating activities —

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   (a)     in the case of the banking business sector —

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      (i)     raising funds,

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      (ii)     managing risk including credit, currency and interest risk,

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      (iii)     taking hedging positions,

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      (iv)     providing loans, credit or other financial services to customers,

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      (v)     accepting monetary deposits, holding assets on behalf of customers and providing similar financial services,

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      (vi)     managing regulatory capital, and

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      (vii)     preparing regulatory reports and returns;

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   (b)     in the case of the insurance business sector —

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      (i)     predicting and calculating risk,

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      (ii)     insuring or re-insuring against risk,

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      (iii)     providing client services, and

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      (iv)     preparing regulatory reports and returns;

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   (c)     in the case of the shipping sector —

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      (i)     managing crew, including hiring, paying, and overseeing crew members,

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      (ii)     hauling and maintaining ships,

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      (iii)     overseeing and tracking deliveries,

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      (iv)     determining the goods to order and when to deliver the goods, and

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      (v)     organizing and overseeing voyages;

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   (d)     in the case of the international mutual funds business sector —

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      (i)     taking decisions on the holding and selling of investments,

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      (ii)     calculating risks and reserves,

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      (iii)     taking decisions on currency or interest fluctuations and hedging positions, and

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      (iv)     preparing relevant regulatory or other reports for government authorities and investors;

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   (e)     in the case of a distribution and service centre business —

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      (i)     transporting and storing goods,

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      (ii)     managing stocks and processing orders, and

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      (iii)     providing consultation or administrative services;

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   (f)     in the case of the financing and leasing sector —

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      (i)     in the case of leasing, identifying and acquiring assets to be leased,

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      (ii)     agreeing funding terms,

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      (iii)     setting the terms and duration of any financing, leasing or hire-purchase agreement,

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      (iv)     monitoring and revising agreements, and

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      (v)     managing risks;

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   (g)     in the case of the headquartering sector —

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      (i)     making management decisions on behalf of a foreign group entity,

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      (ii)     taking decisions that are material for decision-making in a foreign group entity,

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      (iii)     incurring expenditure on behalf of a group entity, and

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      (iv)     co-ordinating group activities;

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   (h)     in the case of a relevant entity with income from holding tangible assets —

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      (i)     taking strategic decisions, managing and bearing principal risks relating to the development and subsequent exploitation of the tangible asset,

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      (ii)     taking strategic decisions, managing and bearing principal risks relating to the third party acquisition and subsequent exploitation of the tangible asset, and

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      (iii)     carrying on the underlying trading activities through which the tangible asset is exploited and leads to the generation of revenue from third parties;

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   (i)     in the case of a relevant entity with income from holding intangible assets —

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      (i)     conducting research and development without acquiring or outsourcing research and development,

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      (ii)     taking strategic decisions, managing and bearing principal risks relating to —

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         (A)     the development and subsequent exploitation of the intangible asset; and

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         (B)     the third party acquisition and subsequent exploitation of the intangible asset,

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      (iii)     carrying on the underlying trading activities through which the intangible asset is exploited for the generation of revenue from third parties;

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   (Substituted by Act 15 of 2020)

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   (j)     in the case of a pure equity holding company, acquiring and holding equity participations or interest in other entities that generate only dividends and capital gains.