|
MINISTRY OF FINANCE |
S.I. No. 21 of 2005 |
THE BANKS AND TRUST COMPANIES |
REGULATION ACT |
(CHAPTER 316) |
THE BANKS AND TRUST COMPANIES |
(FOREIGN CURRENCY POSITION) |
REGULATIONS, 2005 |
The Governor of the Central Bank
of The Bahamas in exercise of the powers conferred by section 24 of the Banks
and Trust Companies Regulation Act, makes the following regulations - |
1. These Regulations may be
cited as the Banks and Trust Companies (Foreign Currency Position) Regulations,
2005. | Citation. |
| Interpretation. |
“Central Bank” means the Central Bank of The
Bahamas established pursuant to section 3 of the Central Bank of The Bahamas
Act | Ch. 321. |
“licensee” means any Bank or Trust company which
is incorporated in The Bahamas and which holds a licence granted under section
4 of the Act; |
“the Act” means the Banks and Trust Companies
Regulation Act. | Ch. 316. |
3. The larger of the sum of net
short or long positions in all foreign currencies, including all outstanding
spot and forward foreign exchange contracts, all on and off balance sheet
assets and liabilities of a licensee at the appropriate spot exchange rates,
shall not exceed ten percent of the licensee's capital base. | Foreign currency position, |
4. On becoming aware of a
contravention of regulation 3, a licensee shall immediately notify the
Inspector of that contravention and provide him with such particulars of that
contravention in such form as the Inspector shall determine. | Notification to Inspector. |
5. The Inspector may, by notice
in writing served on a licensee, require the licensee to take such remedial
action as he considers appropriate for the purpose of having the licensee
comply with regulation 3. | Remedial action. |
6. The Inspector may, by notice in
writing served on a licensee, vary the limit specified in regulation 3 in
relation to that licensee. | Variation of foreign currency limit. |
7. The Governor may impose a
fine not exceeding five thousand dollars where a licensee fails to comply with
the provisions of these Regulations. | Fine. |
Made this 13th day of April,
2005. |
Signed |
JULIAN FRANCIS |
Governor of the Central Bank of The Bahamas |