No. 9 of 1990 Banks and Trust Companies Act, 1990 Virgin Islands


1
I Assent
J. M. A. Herdman
Governor
27th September, 1990
VIRGIN ISLANDS
No. 9 of 1990
An act to provide for the licensing and control of banking business and trust business and related
matters.
[Gazetted 11th October, 1990]
ENACTED by the Legislature of the Virgin Islands as follows:-
Short Title. 1. The Act may be cited as the Banks and Trust Companies Act, 1990.
PART 1
Preliminary
Interpretation. 2. (1) In this Act-
“auditor” means a person who-
(a) is qualified as an accountant by examination conducted by one of the institutes of Chartered
Accountants or Certified Accountants in England and Wales, Ireland or Scotland, the
Canadian Institute of Chartered Accountants or the American Institute of Certified Public
Accountants and is a current member in good standing of one of those institutes; or
(b) possesses such other qualification in accountancy as the Governor in Council, by order
approves and is in good standing with respect to such qualification;
“authorized agent” means a person designated as authorized agent by a bank or trust company
under paragraph (b) of subsection (1) of section 9;
“bank” means a person carrying on banking business;
“banking business” means the business of receiving (other than from a bank or trust company)
and holding on current, savings, deposit or similar account money that is repayable by cheque
or order and is capable of being invested by way of advances to customers or otherwise but
does not include the receiving on savings, deposit or similar account money which is paid by
one company to another at a time when-
(a) one is the subsidiary of the other; or
(b) both are subsidiaries of another company;
“financial year” means, in relation to a licensee under this ActNo.
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(a) the period not exceeding 53 weeks at the end of which the balance of the
licensee’s account is struck; or
(b) If no such balance is struck, or if a period in excess of 53 weeks is used, then, a calendar year;
“Governor” means the Governor in Council;
“Inspector” means the Inspector of Banks, and Trust Companies appointed under subsection
(1) of section 15;
“license” means a licence granted under subsection (3) of section 4;
“licensee” means a company holding a licence under this Act;
“Registrar” means the Registrar of High Court;
“trust company” means a company carrying on trust business;
“trust” means the legal relationship created inter vivos or on death by a person, known as a
settlor or grantor, when assets have been placed under the control of a person, known as a
trustee, for the benefit of a person, known as a beneficiary, or for a specified purpose or when
a person declares that he holds assets as trustee for the benefit of a beneficiary or a specified
purpose and-
(a) the assets constitute a separate trust fund and are not part of the trustee’s own estate;
(b) title to the trust assets stand in the name of the trustee or in the name of another person
on behalf of the trustee; and
(c) the trustee has the power and the duty, in respect of which he is accountable, to manage,
employ or dispose of the assets in accordance with the terms of the trust and the special duties
imposed on him by law;
“trust business” means the business of-
(a) acting as a professional trustee, protector or administrator of a trust or settlement;
(b) managing or administering any trust or settlement; and
No. 8 of (c) company management as defined by the Company Management Act, 1990.
1990.
(2) For the purposes of this Act and subject to subsection (5), a company is deemed to be a
subsidiary of another if-
(a) that other, either-
(i) is a member of it and controls the composition of its board of directors, or
(ii) holds more than half in nominal value of its equity share capital; or
(b) the first-mentioned company is a subsidiary of any company that is the other’s
subsidiary.
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(3) For the purposes of subsection (2), the composition of a company’s board of directors is
deemed to be controlled by another company if that other company by the exercise of some power
exercisable by it without the consent or concurrence of any other person can appoint or remove the
holders of all or a majority of the directorships.
(4) For purposes of subsection (3), the other company is deemed to have power to appoint to
a directorship with respect to which any of the following conditions is satisfied-
(a) that a person cannot be appointed to it without the exercise in his favour by the other company
of such a power as is mentioned in subsection (3);
(b) that a person’s appointment to the directorship follows necessarily from his appointment as a
director of the other company; or
(c) that the directorship is held by the other company itself or by a subsidiary of it.
(5) In determining whether one company is a subsidiary of another-
(a) any shares held or power exercisable by the other in a fiduciary capacity are to be treated as
not held or exercisable by it;
(b) subject to paragraphs (c) and (d), any shares held or power exercisable-
(i) by any person as nominee for the other except where the other is concerned only in a
fiduciary capacity, or
(ii) by, or by a nominee for, a subsidiary of the other not being a subsidiary which is
concerned only in a fiduciary capacity;
are to be treated as held or exercisable by the other;
(c) any shares held or power exercisable by any person by virtue of the provisions of any
debentures of the first-mentioned company or of a trust deed securing any issue of such
debentures are to be disregarded; and
(d) any shares held or power exercisable by, or by a nominee for, the other or its subsidiary, not
being held or exercisable as mentioned in paragraph (c), are to be treated as not held or
exercisable by the other if the ordinary business of the other or its subsidiary, as the case may
be, includes the lending of money and the shares are held or the power is exercisable as
above-mentioned by way of security only for the purposes of a transaction entered into in the
ordinary course of that business.
(6) For the purposes of this Act-
(a) a company is deemed to be another’s holding company if the other is its subsidiary; and
(b) a body corporate is deemed the wholly-owned subsidiary of another if it has no members
except that other and that other’s wholly-owned subsidiaries and its or their nominees.
PART II
Licenses
Requirement 3. (1) No person shall carry on banking business, and no trust company shall carry on trust
for licence. business, from within the Virgin Islands, whether or not such business is carried on within or
outside the Virgin Islands, unless the person or the trust company, as the case may be, has
obtained a license under this Act for the purpose.
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(2) No company incorporated in the Virgin Islands shall carry on banking business or trust
business within or outside the Virgin islands unless the company has obtained a licence under this
Act for the purpose.
Application 4. (1) A licence is obtainable by making application therefor to the Governor in the
for licence prescribed form.
First Schedule (2) An application under subsection (1) shall contain the particulars set out in the First
Second Schedule Schedule and shall be accompanied by the fee prescribed in Part I of the Second Schedule.
(3) The Second Schedule may be amended by an order made by the Governor and an order
made under this subsection shall be subject to affirmative resolution.
(4) If the Governor is satisfied that an application to carry on banking business or trust
business is not against the public interest and that the applicant is a person qualified to carry on
banking business or trust business, he may grant the application and issue to the applicant a
licence subject to such terms and conditions as the Governor thinks fit.
(5) A decision to refuse to grant a license, other than a license in respect of a business
in existence at the date of the commencement of this Act, is final and is not
subject to any appeal.
(6) The Governor shall cause notice of the grant of a license under this Act to be
published in the Gazette.
(7) A license issued under this Act shall be prominently displayed on the premises
where the business is carried on.
Duration of 5. A licensee issued under this Act is valid until the 31st December of the year in which
licence. it is issue and is renewable during the month of January in the following year upon
Second Schedule. payment of the fee prescribed in Part II of the Second Schedule.
Exemptions. 6. (1) A person who is licensed under this Act is not required to be licenced under the
No. 10 of 1989. Business, Professions and Trade Licenses Act, 1989 to carry on banking business or trust business.
No. 8 of 1990 (2) This Act does not apply to a person licenced under the Company Management Act,1990
Existing 7. A person who at the commencement of this Act is carrying on banking business or trust
Businesses. business has a period of three months to comply with the trust provisions of the Act.
Notification 8. Where a change occurs in the particulars of a licensee as set out in the application for
of change in the licence, the licensee shall, as soon as possible thereafter, inform the Governor of the
particulars of change.
Licensee.
Principal office 9. (1) A license shall not be granted to any person unless the person designates, and notifies
and authorized to the Governoragents.
(a) a principal office in the Virgin Islands; and
(b) by name, two individuals, approved by the Governor and the Inspector, to be that person’s
authorized agents in the Virgin Islands.
(2) The functions of an authorized agent are to act as an intermediary between the licensee
and, as the case may be, the Governor or the Inspector, except that in the absence or inability of
one authorized agent to act, the other authorized agent may carry out the functions of both
authorized agents under this subsection.
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(3) It shall be a condition of every license granted that the licensee shall forthwith notify the
Governor in writing of any change of-
(a) its principal office in the Virgin Islands; or
(b) any of the persons designated as an authorized agent pursuant to paragraph (b) of subsection
(1).
(4) Where the Governor has approved a person under paragraph (b) of subsection (1) as an
authorized agent, he may in writing revoke the approval.
Types of licences. 10. (1) A license issued under this Act must be in one of the following categories-
(a) a general banking license, for the purpose of carrying on banking business within and outside
the jurisdiction of the Virgin Islands without any restrictions on that business;
(b) a restricted Class I banking licence, for the purpose of carrying on banking business with the
restrictions on that business set forth in section 11;
(c) a restricted Class II banking licence, for the purpose of carrying on banking business with the
restrictions on that business set forth in section 11 with the further restriction that the licensee
shall not receive or solicit funds by way of trade or business from persons other than those
listed in any undertaking accompanying the application for the licence;
(d) a general trust licence, for the purpose of carrying on trust business without any restrictions;
and
(e) a restricted trust licence for the purpose of carrying on trust business with the restriction that
the licensee shall not undertake trust business for persons other than those listed in any
undertaking accompanying the application for the licence.
(2) There may be listed in a schedule to the application for a general trust licence the name of
any company engaging in trust business being a subsidiary of the company applying for a general
trust licence together with a description of the particular type of trust business being carried on or
to be carried on by the subsidiary and the Governor may, upon granting the general trust licence to
the applicant company, include in the licence the name of each subsidiary to be included in the
licence together with the terms and conditions, if any, subject to which the licence is extended to
include each subsidiary.
Limitation 11. The holder of a restricted Class I banking licence shall noton
restricted
banking licences (a) take deposits from any person resident in the Virgin Islands other than another licensee or a
No. 8 of 1984. company incorporated under the International Business Companies Act, 1984;
(b) invest in any asset that represents a claim on any person resident in the Virgin Islands except a
claim resulting from-
(i) a transaction with another licensee; or
(ii) the purchase of bonds or other securities issued by the Government, a statutory
corporation or a company in which the Government is the sole or majority
beneficial owner; or
(c) without the written approval of the Governor, carry on any business in the Virgin Islands
other than the business for which the restricted Class I banking licence has been obtained.
Capital 12. (1) No general banking licence shall be granted to a company unless the company-
Requirements.
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(a) has a fully paid-up capital of not less than $2,000,000, or its equivalent in foreign currencies,
or such greater sum as the Governor, by order, determines; and
(b) has deposited or invested the sum of $500,000 in such manner as the Governor, by order,
prescribes.
(2) No restricted Class I banking licence or restricted Class II banking licence shall be
granted to any company unless the company:-
(a) has a fully paid-up capital of not less than $1,000,000, or its equivalent in foreign currencies,
or such greater sum as the Governor, by order, determines; and
(b) has deposited or invested the sum of $500,000 in such manner as the Governor, by order,
prescribes.
(3) No general trust licence shall be granted to any trust company unless the trust company-
(a) has a fully paid-up capital of not less than $250,000 or its equivalent in foreign currencies, or
such greater sum as the Governor, by order, determines; and
(b) has deposited or invested a sum of money as may be specified by the Governor but not to
exceed $100,000, in such manner as the Governor, by order, prescribes.
(4) The Governor may, on the recommendation of the Inspector, require a licensee to
increase its fully paid-up capital to such greater amount as the Governor may determine for the
nature of the banking business or trust business being, or sought to be, undertaken
Surrender of 13. (1) A licensee that has ceased to carry on the business in respect of which its licence was
Licene granted may apply to the Governor to surrender its licence if the licensee.
(a) produces evidence that it has repaid all deposits and has transferred all trust assets held or
administered by it; or
(b) being a company, is being wound up voluntarily and produces evidence that it is solvent and
is able on demand to repay all its other deposits held by it and all its other creditors and has
transferred all trust assets held or administered by it,
and the Governor may thereupon approve the surrender.
(2) In the case of an application under paragraph (b) of subsection (1) the Attorney General
May apply to the court for an order that the licensee be wound up, either by the court or subject to
the
Cap. 243. supervision of the court, and where the court so orders the provisions of the Companies Act
relating to the winding up of a company by or subject to the supervision of the court, mutatis
mutandis, apply.
PART III
Transferability of Shares and Beneficial Interests
Shares not to be 14. No shares or other interests, whether legal or equitable, in a bank or company shall be
issued or issued, transferred or otherwise disposed of without the prior written approval of the Governor,
transferred except that the Governor may exempt any bank or trust company from the provisions of this
without section, subject to such terms and conditions as the Governor considers necessary.
approval.
No. 9 of 1990 Banks and Trust Companies Act, 1990 Virgin Islands
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PART IV
Administration
Inspector of 15. (1) The Governor shall appoint a public officer to be known as the Inspector of
Banks & Trust Banks and Trust Companies for the purpose of ensuring the proper administration of this Act.
Companies.
(2) The functions of the Inspector are-
(a) to maintain a general review of banking and trust company practice in the Virgin Islands;
(b) where he thinks fit or when required by Governor, to examine by way of the receipt of
regular returns or in such other manner as he thinks fit the affairs or business of any licensee
carrying on business within or outside the Virgin Islands for the purpose of satisfying himself
that all provisions of this Act are being complied with and that the licensee is in a sound
financial position and is carrying on its business in a satisfying manner, and to report to the
Governor the results of such examination;
(c) to assist in the investigation of any contravention of the laws of the Virgin Islands that he has
reasonable grounds to believe has or may have been committed by a licensee or by any of its
directors or officers;
(d) to examine accounts and audited annual accounts forwarded to him under section 17 and to
report his findings to the Governor; and
(e) to examine, and make recommendations to the Governor with respect to, applications for
licences.
(3) In the performance of his functions under this Act and subject to the provisions of
section 24, the Inspector may at all reasonable times-
(a) have access to the books, records, vouchers, documents, cash and securities of any licensee;
(b) request any information, matter or thing from any person whom he has reasonable grounds to
believe is carrying on banking business or trust business in the Virgin Islands in contravention
of section 3; and
(c) demand of the authorized agent of the licensee any reasonable information or explanation for
the purpose of enabling the Inspector to perform his functions under the Act.
(4) For the purposes of subsection (3), the Inspector shall have access to the name or title of
an account of a depositor of a licensee or to the settlor, name or title or a trust, only under the
authority of any order of the court made on the ground that there is no other way of obtaining the
information required by him.
(5) The Inspector, with the written approval of the Governor, may authorise in writing any
other person to assist him in the performance of his functions under this Act.
(6) The Inspector may, if it appears to him that there is reasonable ground for suspecting that
there is a contravention of this Act or that a contravention is likely, apply to the court for an order
authorising him to take such action as he considers necessary in the interests of the depositors, the
beneficiaries of any trust, or other creditors and to preserve any assets of the bank or trust
company that is the subject of the order.
Use of word 16. (1) No person, other than a licensee, shall except with the approval of the Governor-
“bank”, etc.
(a) use or continue to use the words “bank”, “savings”, “savings and loans”, “trust”, “trustee”,
“trust company” or “trust corporation”, or any of their derivatives, either in English or in any
other language, in the name, description or title under which that person is carrying on
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business from within the Virgin Islands, whether or not the business is carried on within or
outside the Virgin Islands;
(b) make or continue to make any representation in any advertisement, billhead, circular, letter,
letterhead, notice, paper or in any other manner that that person is carrying on banking
business or trust business; or
(c) in any manner solicit or receive deposits from the public.
(2) No company incorporated in the Virgin Islands shall, except with the approval of the
Governor, be registered, or continue to be registered, by a name which contains “bank”, “savings”,
“savings and loan”, “trust”, “trustee”, “trust company” or “trust corporation” or any of their
derivatives, either in English or in any other language, in the description or title under which the
company is carrying on business within or outside the Virgin Islands.
(3) The Governor may, before giving his approval under subsection (1) or (2), require the
production of such references and such information and particulars as may be prescribed.
(4) The Governor may withdraw any approval given under subsection (1) where he considers
it to be in the public interest.
(5) The Governor may refuse to grant a licence to a bank or trust company or, if the bank or
trust company is already in possession of a licence, he may revoke the licence if, in his opinion,
the bank or trust company is carrying on or appears likely to be carrying on banking business or
trust business, as the case may be, under a name that is-
(a) identical with that of any other person whether within or outside the Virgin Islands, or which
so nearly resembles that name as to be calculated to deceive;
(b) calculated to suggest falsely the patronage of or connection with some person, whether within
or outside the Virgin Islands; or
(c) calculated to suggest falsely that the person-
(i) has special status in relation to or derived from the Government,
(ii) has the official approval of or acts on behalf of the Government or of any department,
branch, agency or organ of Government, or any officer thereof, or
(iii) is recognized in the Virgin Islands as a national or central bank or trust company.
Accounts 17. (1) Every licensee shall have its accounts audited by an auditor annually or at such other
periods as the Governor or the Inspectors may require.
(2) The accounts shall be forwarded to the Inspector within 3 months from the end of the
financial year of the licensee, unless prior written approval for an extension has been granted by
the Inspector.
(3) Where a licensee changes its auditor, the Inspector may require the former auditor to
explain the circumstances that gave rise to the change.
Certain 18. A licensee shall not change its name or operate outside the Virgin Islands any subsidiary
approvals branch, agency or representative office without the prior written approval of the Governor.
required.
Number & 19. (1) A licensee shall at no time have less than two (2) directors.
approvals
of directors. (2) A licensee shall, before the appointment of a director or other senior officer, apply to the
Governor for his written approval of the appointment.
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(3) Notwithstanding subsection (2), the Governor may exempt a licensee from the
requirements specified in that subsection but such an exemption-
(a) ipso facto lapses if the director or senior officer becomes bankrupt, makes an arrangement or
composition with his creditors or is convicted of an offence involving dishonesty; and
(b) may be revoked by the Governor.
Specific 20. (1) Where the Governor is satisfied that a licenseepowers
of
Governor (a) has ceased to carry on banking business or trust business;
(b) has gone into liquidation or is wound up or is otherwise dissolved;
(c) has made any arrangement or composition with its creditors;
(d) is unable or appears likely to become unable to meet its obligations as they fall due;
(e) is carry on business in a manner detrimental to the public interest, the interests of its
depositors or interests of the beneficiaries of any trust, or to the interests of other creditors;
(f) has contravened any provisions of this Act; or
(g) has failed to comply with a condition of its licence,
he may take any of the actions set forth in subsection (2).
(2) The actions that the Governor may take in pursuance of subsection (1) are:
(a) revocation of the licence;
(b) imposition of new or additional conditions upon the licensee;
(c) the substitution of any director or officer of the licensee;
(d) the appointment, at the expense of the licensee, of a person to advise the licensee on the
proper conduct of its affairs and to report to the Inspector thereon within three (3) months of
such appointment;
(e) the appointment, at the expense of the licensee, of a person to assume control of the licensee’s
affairs who shall mutatis mutandis have all the powers of a person appointed as a
Cap. 9. receiver or manager of a business appointed under the Bankruptcy Act; or
(f) the requiring of the taking of such action by the licensee as the Governor thinks fit.
(3) Notwithstanding subsection (1) of section 26, a licensee may within seven (7) days from
the date of a decision taken under subsection (2) apply to the Governor for a reconsideration of his
decision if that decision involves the revocation of a license.
(4) A person appointed under paragraph (d) or (e) of subsection (2) or whose appointment
has been extended under paragraph (b) of subsection (5) may at his discretion and in any case
within three (3) months from the date of his appointment or of the extension of his appointment, as
the case may be, prepare and furnish a report to the governor and the Inspector of the affairs of the
licensee and may make recommendations thereon.
(5) The Governor may, on receipt of a report under subsection (4)-
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(a) revoke the appointment of the person appointed under paragraph (d) or (e) or subsection (2);
(b) extend the period of appointment of the person appointed under paragraph (d) or (e) of
subsection (2);
(c) subject to such conditions as the Governor may impose, allow the licensee to reorganise its
affairs in such manner as the Governor approves; or
(d) revoke the license and instruct the Attorney General to apply to the court for an order that the
licensee be forthwith wound up by the court; in which case, the provisions of the Companies
Cap. 243. Act relating to the winding up of a company by the court apply mutatis mutandis for the
purpose of giving the necessary effect to this provision.
(6) Whenever the Governor revokes a licence under paragraph (a) of subsection (2) or
paragraph (d) of subsection (5) or under subsection (5) of section 16, he shall cause notice of the
revocation to be published in the Gazette and may also cause notice to be published, whether
within the Virgin Islands or elsewhere, in such newspaper or other publication as he may think fit
in the circumstances.
Attorney 21. The Attorney General may, upon being instructed by the Inspector or in any case in which a
General may licensee or a person who has at any time been a licensee is being wound up voluntarily, apply to
apply to Court. the court for leave to intervene on behalf of any interested party if he considers that the winding up
is not being conducted in the best interests of its depositors, the beneficiaries of any trust, or other
creditors, and the court may make such order as it shall consider appropriate.
Power 22. (1) If a Judge or Magistrate is satisfied by information on oath, whether oral or written,
of search. given by the Inspector or a person authorised by the Inspector that-
(a) there is reasonable ground for suspecting that an offence against this Act has been or is being
committed and that evidence of the commission of the offence is to be found at any premises,
or in any vehicle, vessel or aircraft specified in the information; or
(b) any documents, cash or securities that ought to have been produced under subsection (3) of
section 15 and have not been produced are to be found at any premises, vehicle, vessel or
aircraft specified in the information, he may issue a search warrant authorising the Inspector,
together with any other person named in the warrant, to enter the premises specified in the
information or, as the case may be, any premises upon which the vehicle, vessel or aircraft so
specified may be, at any time within one month from the date of the warrant, and to search the
premises or the vehicle, vessel or aircraft.
(2) The Inspector or any other person authorised by a warrant to search any premises or any
vehicle, vessel or aircraft may search every person who is found in or who he has reasonable
grounds to believe to have recently left or to be about to enter those premises, or that vehicle,
vessel or aircraft, and may seize any document, cash or securities found in the premises or in the
vehicle, vessel or aircraft which he has reasonable grounds for believing ought to have been
produced under subsection (3) of section 15, except that no female shall, in pursuance of any
warrant issued under this section be searched except by a female.
(3) Where by virtue of this section a person has power to enter any premises, or a vehicle,
vessel or aircraft, he may use such force as is reasonably necessary for the purpose of exercising
that power.
PART V
Miscellaneous
Power of 23. The Inspector may require a licensee to effect a policy of insurance with a reputable
Inspector insurance company againstto
require
insurance
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(a) losses arising out of claims of negligence or breach of duty by the licensee or any employee;
(b) the dishonesty of employees or of the licensee;
(c) loss of documents; and
(d) such other risks as the Inspector may from time to time stipulate,
in such amount and of such a nature as the Inspector may determine to be fit and proper, having
due regard to the nature and type of business carried on by the licensee; and in the event that the
insurance is withdrawn, canceled or not renewed, the licensee shall immediately notify the
Inspector and shall cease to carry on its business until the insurance has been reinstated or
replaced.
Privilege of 24. (1) Any information, document, record, statement or thing made or disclosed to the
information Inspector, Registrar, Director of Financial Services or any person acting under their authority
and gateways in the course of discharging any duty or exercising any power under this Act or the regulations
for justifiable concerning any licensee or any applicant for a licence is absolutely privileged and shall not be
disclosure disclosed except as provided in subsection (2).
2/1995
(2) The restriction on disclosure in subsection (1) does not apply when the disclosure is
made-
(a) to the Governor, the Minister or a public officer approved by the Minister;
(b) to any person for the purpose of discharging any duty or exercising any power under this Act
or the regulations;
(c) on the order of a Court of competent jurisdiction for the purposes of any criminal or civil
proceedings;
(d) on request by:-
(i) a high ranking officer of a competent authority in an international organisation
recognised by the Governor; or
(ii) a high ranking officer of the law enforcement authority in a country or
jurisdiction approved by the Governor,
for the purpose of legal assistance in the investigation of any criminal activity.
(e) for the purposes of enabling or assisting a foreign regulatory authority in a country or
jurisdiction approved by the Governor in discharging duties or exercising powers
corresponding to those under this Act or the regulations. Provided that in a disclosure made
under paragraph (d) or (e) the authority receiving the disclosure shall be required not to
transmit any information, document, record, statement or thing disclosed to any other person
except with the prior written consent of the Governor.
(3) Any person who contravenes the provisions of this section commits an offence and is
liable on summary conviction to a fine not less than $5,000 and not more than $50,000 for each
offence.
Recovery 24A. Where assistance to a foreign regulatory authority is provided in accordance with the
of costs. the provisions of the Act the resulting cost of that assistance shall be borne by the foreign
2/1995 regulatory authority requesting the assistance in a similar manner to a claim for costs submitted to
the Court.
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Islands
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Offences 25. (1) A licensee or any director or officer of a licensee who knowingly or wilfully
supplies false or misleading information to the Governor or the Inspector is guilty of an
offence and is liable on summary conviction to a fine not exceeding $50,000 or to
imprisonment for a term not exceeding 2 years or both.
(2) Any person who operates a banking business or a trust business in contravention
of section 16 is guilty of an offence and is liable on summary conviction to a fine not
exceeding $10,000 or to a term of imprisonment not exceeding one year or both; and in
the case of a continuing offence to a fine not exceeding $10,000 for each day during
which the offence continues.
(3) Any licensee who advertises inviting either directly or indirectly other parties to
commit breaches of the laws of the country in which the advertisement appears or to
which such advertisement is directed is guilty of an offence and is liable on summary
conviction to a fine not exceeding $1,000 or to imprisonment for a term not exceeding 6
months or both.
(4) Where a limited liability company is convicted of an offence against subsection
(3), every director and every officer concerned with the management of the company is
liable to be convicted for that offence unless he satisfies the court that the offence was
committed without his knowledge or consent and that he took all reasonable steps to
prevent the commission of the offence.
(5) Any person who-
(a) fails to comply with a request made of him by the Inspector or by any other person
acting under this Act;
(b) assaults or obstructs the Inspector or other person in the performance of his functions
under this Act;
(c) uses any insulting language to the Inspector or other person in the performance of his
functions under this Act;
(d) by the offer of any gratuity, bribe or any other inducement prevents or attempts to
prevent the Inspector or other person from performing his functions under this Act;
and
(e) contravenes any provision of this Act for which no punishment is specifically
provided.
is guilty of an offence and is liable on summary conviction to a fine not exceeding $1,000
or to imprisonment for a term not exceeding 12 months or both.
Appeals 26. (1) An appeal lies to the High Court from any decision of the Governor:-
(a) revoking a licence under subsection (5) of section 16 or under paragraph (a) of
subsection (2) or paragraph (d) of subsection (5) of section 20;
(b) withdrawing any approval under subsection (4) of section 16; or
(c) requiring a licensee to take certain steps which the Governor may specify under
section 20.
(2) An appeal against the decision of the Governor shall be by motion.
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(3) The following procedure applies to appeals from the Governor-
(a) the appellant within 21 days after the day on which the Governor has given his
decision shall serve a notice in writing, signed by the appellant or his solicitor, on the
Attorney General of his intention to appeal and of the general grounds of his appeal
except that any person aggrieved by a decision of the Governor may upon serving
notice on the Attorney General apply to the court within 14 days after the day on
which the Governor has given his decision for leave to extend the time within which
notice of appeal prescribed by this section may be served, and the court upon hearing
of the application may extend the time prescribed by this section as it deems fit;
(b) the Attorney General shall, within 21 days of receiving the notice of appeal, obtain a
copy of the Governor’s decision and transmit to the Registrar without delay a copy
thereof together with all papers relating to the appeal, except that the Governor is not
compelled to disclose any information if he considers that the public interest would
suffer by such disclosure and a certificate given by the Governor under the Public
Seal is conclusive that disclosure is not in the public interest;
(c) the Registrar shall set down the appeal for hearing on such day as is convenient, and
shall cause notice of the hearing to be published, in such manner, as the court may
direct; and
(d) the court may adjourn the hearing of any appeal and may, upon the hearing thereof,
confirm, revere, vary or modify the decision of the Governor or remit the matter with
the opinion of the court thereon to the Governor.
(4) An appeal against a decision of the Governor shall not operate as a suspension
of the decision of the Governor.
Immunity. 27. No. liability attaches to the Governor, the Inspector or any person acting under the
authority of the Governor or the Inspector for an act done in good faith in the discharge
or purported discharge of his functions under this Act.
Regulations. 28. The Governor may make regulations generally for carrying the purpose and
provisions of this Act into effect, and specifically, for the following purposes:
(a) prescribing anything by this Act authorized or required to be prescribed
(b) controlling the form of advertising by licensees; and
(c) exempting any person or business, or class of person or business from any provision
of this Act.
Directions. 29. Without limiting or affecting section 28 the Inspector may, from time to time, issue
by publication in the Gazette, directions with relation to such matters as he may think fit
and appropriate and failure by any licensee to comply with such directions shall be taken
into consideration when any action is proposed to be taken under section 20.
Repeal. 30. The Banking Ordinance, 1972 is repealed.
No. 17 of 1972
Commence- 31. The Act comes into operation on such date as the Governor by proclamation
ment published in the Gazette appoints.
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FIRST SCHEDULE [section 4 (2)]
PARTICULARS TO BE SPECIFIED IN APPLICATIONS
Every company applying for a licence under this Act shall furnish in writing to the Governor the
following particulars which shall accompany the application.
(1) Name of applicant
(2) Address in the Virgin Islands of principal office of applicant and, in the case of a
company incorporated in the Virgin Islands, its registered office,
(3) The names and addresses of all directors.
(4) The names and addresses of all shareholders.
(5) The name and addresses of all officers and managers.
(6) Names and addresses of solicitors, if any, to the applicant, together with a letter from
the solicitors confirming that they act for the applicant.
(7) Names and addresses of auditors of the applicant, together with a letter from the
auditors confirming they act for the applicant.
(8) Evidence of the proper incorporation of the company in the Virgin Islands or in the
country of incorporation as the case may be.
(9) Evidence in writing that the applicant itself or some person directly or indirectly
connected with the applicant is possessed of solid and practical experience in
banking business or trust business, as the case may be.
(10) The following:-
(a) an undertaking in writing to provide and set apart a fully paid up capital
before or at the time it commences business, such as the Governor may in
his absolute discretion determine, or by a guarantee under seal of such sum
given by a holding or parent or other company approved by the Governor;
and
(b) the guarantee referred to in subparagraph (a) shall expressly provide that its
formal validity, its essential validity, its interpretation and effect and the
rights and obligations of the parties to it are governed exclusively by the
law of the Virgin Islands and that the court of the Virgin Islands only shall
be the forum for these purposes.
(11)Character references in writing, together with such other evidence as the Governor
may require, that neither the applicant nor any director or officer of the applicant has
a criminal record either in the Virgin Islands or elsewhere.
(12) Annual accounts of its holding company, if any, for the preceding three (3) years and
thereafter annually duly audited and certified by an independent auditor.
(13) Names of all subsidiary companies of the applicant with addresses of their registered
offices.
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(14) A copy of the act, charter, certificate of incorporation or memorandum of association
and articles of association, as may be appropriate, verified by an affidavit sworn by a
director, secretary and duly authenticated as follows:
(a) in the case of a company incorporated in the Virgin Islands, notarized; and
(b) in the case of a foreign company, certified and authenticated under the
public seal of the country, city or place under the laws of which such
company has been incorporated.
(15) References, including one from a bank or trust company.
(16) Statement of assets and liabilities at the end of the month prior to the submission of
the application certified by a director or senior officer.
(17) Statement of capital of any other company held, directly or through a subsidiary, as
an asset of the applicant.
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SECOND SCHEDULE
Part I [Section 2 (2)]
FEES FOR THE GRANT OF A LICENCE
(1) If a licence is granted on or before the 30th day of June in any year:
(a) a General Banking Licence $20,000.00
(b) a Restricted Class I Banking Licence $16,000.00
(c) a Restricted Class II Banking Licence $16,000.00
(d) a General Trust Licence $10,000.00
(e) a Restricted Trust Licence $ 300.00
(2) If a licence is granted on or after the 1st day of July in any year:
(a) a General Banking Licence $10,000.00
(b) a Restricted Class I Banking Licence $8,000.00
(c) a Restricted Class II Banking Licence $8,000.00
(d) a General Trust Licence $5,000.00
(e) a Restricted Trust Licence $ 150.00
Part II [Section 5]
FEES OF THE RENEWAL OF A LICENCE
(a) a General Banking Licence $20,000.00
(b) a Restricted Class I Banking Licence $16,000.00
(c) a Restricted Class II Banking Licence $16,000.00
(d) a General Trust Licence $10,000.00
(e) a Restricted Trust Licence $ 300.00
Passed the Legislative Council this day of , 1990.
(Sgd) K. L. Flax
Speaker
(Sgd) Hugh A. Hodge
Clerk of the Legislative Council

 

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