Revised Laws of Saint Lucia (2021)

2.   Interpretation

In this Act—

“access” in relation to a funds transfer system or settlement system, means the entitlement or eligibility of a person to become a participant in the system, as a user of the system, on a commercial basis on terms that are fair and reasonable;

“access regime” in relation to a designated funds transfer system, means an access regime that has been established by the Central Bank under section 15;

“affiliate banking business”—

1.  

   (a)     means the business of receiving funds through—

   1.  

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

   1.  

      (ii)     the sale or placement of bonds, certificates, notes or other securities and the use of such funds, either in whole or in part, for loans or investment; and

1.  

   (b)     includes any other activity recognised by the Central Bank as banking practice and which a financial institution may additionally be authorised to do;

“Central Bank” means the Eastern Caribbean Central Bank established by the Eastern Caribbean Central Bank Agreement Act;

“central counterparty” means an entity that is the buyer to every seller and the seller to every buyer in a net settlement system;

“clearing” means the process of transmitting, reconciling or confirming payment orders or security transfer instructions prior to settlement and includes the netting of instruction and the establishment of final positions for settlement;

“clearing house” means—

1.  

   (a)     an arrangement between 2 or more system participants governing the clearing or netting of payment instructions between the system participants; and

1.  

   (b)     a central location or central processing mechanism through which financial institutions agree to exchange payment instructions or other financial obligations;

“collateral” means an asset or third-party commitment that is provided by the collateral taker and accepted by the collateral taker to secure an obligation of the collateral provider;

“Currency Union” refers collectively to the territories of Anguilla, Antigua and Barbuda, The Commonwealth of Dominica, Grenada, Montserrat, Saint Christopher and Nevis, Saint Lucia and Saint Vincent and the Grenadines which use the Eastern Caribbean currency as the official currency;

“designated” in relation to a funds transfer system or a settlement system means a system which is classified as being systemically important and meeting prescribed standards established by the Central Bank in accordance with the provisions of this Act;

“designated funds transfer system” means a funds transfer system designated under section 11;

“designated settlement system” means a settlement system designated under section 11;

“electronic funds transfer” means funds transfer by electronic means, and includes the use of computer-telecommunications systems;

“financial institution” includes any person doing banking business and all officers and branches of a financial institution in Saint Lucia shall be deemed to be one financial institution;

“funds transfer system” means a formal arrangement, based on private contract or statute law among system participants, with common rules and standardised arrangements for the transmission and settlement of money obligations arising among the system participants;

“large value electronic funds transfer system” means the large value electronic funds transfer system established under section 4(1)(a) through which large-value and high priority funds transfers are made between participants in the system for their own account or on behalf of their customers;

“Minister” means the Minister responsible for Finance;

“money services business operator” means a person holding a licence under the Money Services Business Act to conduct money services business;

“netting” means the determination of net payment obligations between 2 or more settling participants within a payment clearing house or the determination of the net settlement obligations between 2 or more settling participants within the payment system;

“operator or a funds transfer system settlement system” means a person authorised or appointed to operate a funds transfer system or settlement system;

“payment” means the payor's transfer of a monetary claim to a party acceptable to the payee and includes clearing and settlement;

“payment obligation” means an indebtedness that is owed by one settling participant to another as a result of the clearing of one or more payment instruction;

“payment system” means—

1.  

   (a)     a network of competing and complementary services that facilitate transactions involving the exchange of payment in return for goods, services, real and financial assets and includes the instruments, rules, institutions, technical processes and procedures that facilitate the circulation of money and the transfer of value to discharge payment obligations; and

1.  

   (b)     several funds transfer systems and settlement systems that ensure the circulation of money;

“retail funds transfer system” means the retail funds transfer system established under section 4(1)(b) that handles a large volume of payments of relatively low value in such forms as cheques, credit transfers, direct debits by various means including through automated teller machines and electronic funds transfer systems;

“settlement” means the act of discharging obligations in respect of funds or securities transfers by 2 or more parties;

“settlement obligation” means an indebtedness by one settling participant to another as a result of one or more settlement instructions;

“settlement rules” means the rules made under section 33 which determine how payment obligations are calculated, netted or settled and includes rules prescribing corrective, punitive or other action in the event that a settling participant is unable or is likely to become unable to meet its obligations to the clearing house, central counter-party or other settling participants;

“settlement system” means a system used to facilitate the settlement of transfers of funds or financial instruments;

“settling participant” means a participant who can settle transactions on his or her own account and for other participants;

“systemically important” means of fundamental importance to the—

1.  

   (a)     proper functioning of the Currency Union's financial system; or

1.  

   (b)     maintenance of the Currency Union's economic stability;

“system participant” means a party who participates in a funds transfer system or settlement system, which is operated, designated or regulated by the Central Bank.