CHAPTER
351
CENTRAL BANK OF THE BAHAMAS |
ARRANGEMENT OF
SECTIONS |
PART I
PRELIMINARY |
SECTION |
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PART II
ESTABLISHMENT AND FUNCTIONS OF THE BANK |
The Central Bank of The Bahamas. |
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PART III
CAPITAL AND RESERVES |
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PART IV
CURRENCY |
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Contracts, etc., deemed to be in Bahamian
currency. |
Sole right of Bank to issue notes and coins. |
Issue, etc., of notes and coins. |
Denominations and forms of notes and coins. |
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Exemption from stamp duty. |
PART V
GOLD, FOREIGN EXCHANGE, EXTERNAL RESERVE, ETC. |
Power of bank in relation to foreign exchange,
etc. |
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PART VI
RELATIONS WITH THE COMMERCIAL BANKS |
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Power of Governor to fine. |
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Bank as banker to commercial banks. |
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PART VII
RELATIONS WITH THE GOVERNMENT |
Bank as banker to Government. |
Bank as agent for Government. |
Advances to the Government. |
PART VIII
GENERAL POWERS OF THE BANK |
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PART IX
ACCOUNTS, STATEMENTS AND AUDIT |
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Publication of statements. |
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PART X
MISCELLANEOUS |
Information may be required from financial
institutions. |
Assistance in obtaining information. |
Supplying false statement. |
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Offences by corporations. |
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PART XI
REPEAL, TRANSITIONAL, ETC. |
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SCHEDULE - The Bank. |
CHAPTER 351 |
CENTRAL BANK OF
THE BAHAMAS |
An Act to
repeal the Central Bank of The Bahamas Act and to make fresh provisions for the
establishment of a Central Bank, its functions and duties; and for connected
purposes. | 37 of 2000
S.I. 128/2001 |
[Commencement 29th
December, 2000] |
PART I
PRELIMINARY |
1. This Act may be cited as the Central Bank of The
Bahamas Act, 2000. | Short title. |
2. In this Act- | Interpretation. |
"Bank"
means the Central Bank of The Bahamas established by section 3; |
"bank"
means a financial institution lawfully carrying on banking business including
the accepting of deposits of money withdrawable by cheque; |
"banking
business" means the business of accepting deposits of money which may be
withdrawn or repaid on demand or after a fixed period or after notice, and
employing those deposits in whole or in part by lending or otherwise investing
them for the account and at the risk of the person accepting them; and
"banker" shall be construed accordingly; |
"Board"
means the Board of Directors of the Bank provided for by subsection (4) of
section 3; |
"civil and
administrative investigations and proceedings" means proceedings in any
court of law in the jurisdiction of an overseas regulatory authority and
investigations undertaken by the overseas regulatory authority preliminary to
bringing such proceedings; |
"coins"
means coins of the currency of The Bahamas; |
"commercial
bank" means a bank licensed to carry on banking business in The Bahamas; |
"company"
means a company incorporated under any law in force whether in The Bahamas or
elsewhere; |
"director"
means a member of the Board; |
"financial
institution" means an institution carrying on banking business; |
"Governor"
means the person appointed as such under paragraph 1 of the Schedule; |
"Minister"
means the Minister of Finance; |
"notes"
means notes of the currency of The Bahamas; |
"overseas
regulatory authority" means an authority [i]*
which, in a country or territory outside The Bahamas, exercises functions
corresponding to- |
(a) any
functions of the Bank; or |
(b) any
additional regulatory functions in relation to companies or financial services
as the Bank may specify by order including the conduct of civil and
administrative investigations and proceedings to enforce laws, regulations and
rules administered by that authority; |
"public
corporation" means a body corporate established directly by statute for
public purposes; |
"regulatory
functions" means functions of the Bank, or functions corresponding to such
functions, and any other similar functions relating to companies or financial
services as may be specified by the Bank; |
"regulatory
laws" means the Banks and Trust Companies Regulation Act, 2000; |
"securities"
means shares, stocks, bonds, debentures or debenture stock; |
"trust
business" means the business of acting as trustee or executor and
administrator; |
"trust
company" means a company carrying on trust business; |
"year"
means financial year of the Bank. |
PART II
ESTABLISHMENT AND FUNCTIONS OF THE BANK |
3. (1) There shall continue to be a bank, to be called
"the Central Bank of The Bahamas" having the functions assigned to it
by the following provisions of this Act. | The Central Bank of The Bahamas. |
(2) The Bank shall
be a body corporate having perpetual succession and a common seal and, subject
to the provisions of this Act, with power to acquire, hold and dispose of
movable and immovable property of whatever kind and to enter into contracts and
to do all things necessary for the purpose of its functions. |
(3) The Bank may
sue and be sued in its corporate name and may for all purposes be described by
that name. |
(4) There shall be
a Board of Directors of the Bank, who, subject to the provisions of this Act,
shall be responsible for the policy of the Bank and shall manage its affairs
and business. |
(5) The provisions
of the
Schedule shall have effect as to the Board of Directors and otherwise in
relation to the Bank. |
4. The Bank shall have its principal place of business
in the City of Nassau and may in The Bahamas or elsewhere- | Places of business, etc. |
(a) establish
and maintain such branch offices; and |
(b) appoint
such agents and correspondents, |
as the Bank
thinks fit. |
5. (1) It shall be the duty of the Bank, subject to the
provisions of this Act- | The Bank's functions. |
(a) to promote
and maintain monetary stability and credit and balance of payments conditions
conducive to the orderly development of the economy; |
(b) in
collaboration with the financial institutions, to promote and maintain adequate
banking services and high standards of conduct and management therein; |
(c) to advise
the Minister on any matter of a financial or monetary nature referred to by him
to the Bank for its advice. |
(2) The Bank
shall, subject to provisions of subsections (4), (5) and (7) of section 38,
have the power to assist and co-operate with overseas regulatory authorities. |
(3) The bank
shall, subject as aforesaid, have power to do anything, whether in The Bahamas
or elsewhere, which is calculated to facilitate, or is incidental or conducive
to the discharge of its duty under this section. |
PART III
CAPITAL AND RESERVES |
6. (1) The authorised capital of the Bank shall be
three million dollars. | Capital of the Bank. |
(2) Any capital
required to make up the authorised capital of the Bank shall be paid from the
Consolidated Fund at such times and in such amounts as the Board, with the
approval of the Minister, may determine. |
7. (1) The Bank shall establish and maintain a General
Reserve, to which, subject to the provisions of this section, at the end of
each year the net profit of the Bank shall be credited (after the making of
such deductions and allowances for other reserves and contingencies as the Bank
may think fit) or the net loss incurred by the Bank debited, as the case may
require. | General Reserve. |
(2) Whenever at
the end of any year the amount in the General Reserve exceeds- |
(a) twice the
authorised capital of the Bank; |
(b) fifteen per
centum of the demand liabilities of the Bank, |
whichever is
greater, then the amount of any such excess shall be paid over to the
Consolidated Fund, unless the Minister otherwise determines. |
PART IV
CURRENCY |
8. (1) The currency of The Bahamas shall be the notes
and coins issued by the Bank under the provisions of this Act. | Currency of The Bahamas. |
(2) The unit of
the said currency shall be the dollar, which shall be divided into one hundred
cents. |
9. The parity of the dollar shall be equivalent to
0.736662 grams of fine gold, so, however, that the Minister may, after
consultation with the Bank, by order alter the said parity whether in terms of
gold or any other standard. | Parity of the dollar. |
10. Every contract, sale, payment, bill, note or security
for money and every transaction, dealing, proceeding, matter or thing whatever
relating to money or involving the payment of, or the liability to pay, money
shall be deemed to be made, executed or entered into in or in relation to the
currency of The Bahamas unless it is expressly made executed or entered into in
or in relation to the currency of some other country. | Contracts, etc., deemed to be in Bahamian currency. |
11. (1) The Bank shall have the sole right and
authority to issue notes and coins throughout The Bahamas. | Sole right of Bank to issue notes and coins. |
(2) No person
other than the Bank shall issue in The Bahamas notes or coins or any documents
or tokens having the appearance of notes or coins. |
(3) Any person who
contravenes the provisions of subsection (2) shall be guilty of an offence and
shall be liable on conviction thereof to a fine not exceeding one hundred
thousand dollars or to imprisonment for a term not exceeding five years or to
both such fine and imprisonment. |
12. The Bank shall from time to time as circumstances
may require- | Issue, etc., of notes and coins. |
(a) arrange for
the printing of notes and the minting of coins; and |
(b) issue,
re-issue and redeem notes and coins. |
13. The Minister may, after consultation with the
Bank, by order prescribe- | Denominations and form of notes and coins. |
(a) the
denominations (being multiples or fractions of a dollar), forms and designs of
the notes and coins; and |
(b) the
standard weight and composition of such coins, and the amount of tolerance and
the variation which shall be allowed therein. |
14. (1) Subject to the provisions of this section- | Legal tender. |
(a) notes
issued by the Bank shall be legal tender in The Bahamas at their face value for
the payment of any amount; |
(b) coins
issued by the Bank shall be legal tender in The Bahamas at their face value up
to an amount not exceeding one hundred dollars in the case of coins of a
denomination of not less than one dollar, and up to an amount not exceeding
five dollars in the case of coins of a lesser denomination. |
(2) All notes and
coins lawfully in circulation immediately before commencement of this section
shall be deemed for all purposes to be notes and coins issued by the Bank under
this Act and to be legal tender until withdrawn from circulation under the
provisions of subsection (3). |
(3) The Bank may,
on giving not less than one month's notice in the Gazette, call in any
notes or coins on payment of the face value thereof, and any such notes or
coins shall, on the expiration of the notice, cease to be legal tender but,
subject to the provisions of section 15, shall be redeemable by the Bank on
demand. |
(4) A coin which
has been impaired, diminished in size or lightened otherwise than by fair wear
and tear, or which has been defaced by stamping, engraving or piercing shall
not be legal tender. |
15. No person shall be entitled as of right to recover
from the Bank the value of any lost, stolen, mutilated or imperfect note or
coin; but the Bank may in its discretion as an act of grace refund to any
person the value of any mutilated or imperfect note or coin. | Damaged currency, etc. |
16. Notes and coins issued by the Bank shall be exempt
from the payment of stamp duty. | Exemption from stamp duty. |
PART V
GOLD, FOREIGN EXCHANGE, EXTERNAL RESERVE, ETC. |
17. Subject to the provisions of this Act, the Bank
may- | Power of Bank in relation to foreign exchange, etc. |
(a) buy and
sell gold, foreign exchange, foreign bills of exchange and securities of
foreign governments; |
(b) maintain
deposits in any foreign financial institution and utilise any such deposit in
such manner as the Bank may think expedient for the due performance of the
functions of the Bank; |
(c) make
arrangements with any foreign financial institution to borrow, on such terms
and conditions as the Bank may think fit, any foreign currency. |
18. (1) The Bank shall at all times maintain a reserve
of external assets consisting of all or any of the following- | External reserve. |
(a) gold
(whether coins or bullion); |
(b) notes and
coins (other than gold coins); |
(c) balances
payable an demand held with financial institutions or agents; |
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(e) bills in
the nature of Treasury Bills maturing within one hundred and eighty-four days
issued by any foreign government; |
(f) marketable
securities issued or guaranteed by any foreign government; |
(g) any reserve
asset deemed by the Board to be an internationally recognised reserve asset: |
Provided that at
no time shall any securities held by the Bank pursuant to paragraph (f) which
mature beyond five years constitute more than thirty per centum in value of the
whole of the assets in the reserve of external assets. |
(2) The value of
the said reserve shall not at any time be less than fifty per centum of the
value of the aggregate of notes and coins in circulation and the demand
liabilities of the Bank. |
PART VI
RELATIONS WITH THE COMMERCIAL BANKS |
19. (1) Subject to the provisions of this section,
every commercial bank shall establish and maintain a reserve to be called
"the Statutory Reserve" of not less than that percentage of the
amount of its deposit liabilities in Bahamian dollars that is at any time fixed
by the Bank under this section. | Statutory Reserve. |
(2) The Bank may
by order fix and from time to time vary the percentage required by subsection
(1): |
Provided that- |
(a) the
percentage fixed as aforesaid shall not at any time be less than five nor more
than twenty per centum; |
(b) different
percentages may be so fixed for different classes of commercial banks; |
(c) any such
order may require a proportion of the said reserve (which shall be specified in
the order) to be lodged with the Bank; and |
(d) no such
order shall be made increasing any percentage at the time in force by more than
five per centum in any period of thirty days. |
(3) If any bank
contravenes or fails to comply with any provision of an order made under this
section, it shall be guilty of an offence, and shall be liable on conviction
thereof to a fine based on the amount of the deficiency of twice the annual
discount rate prevailing at the time of the contravention or failure to comply
for every day during which the contravention or failure continues. |
20. (1) Every commercial bank shall so conduct its
business as to ensure, taking one month with another, that its liquid assets
are on average not less than that percentage of the amount of its deposit
liabilities in Bahamian dollars that is at any time fixed by the Bank under
this section. | Liquid assets. |
(2) The Bank may
by order fix and from time to time vary the percentage required by subsection
(1): |
Provided that- |
(a) the
percentage fixed as aforesaid shall not at any time be less than ten nor more
than thirty per centum; |
(b) different
percentages may be so fixed for different classes of commercial banks; and |
(c) no such
order shall be made increasing any percentage at the time in force by more than
five per centum in any period of thirty days. |
(3) In this
section "liquid assets" means- |
|
(b) any cash
balance held at the Bank; |
(c) money at
call and demand balances at any financial institution carrying on business in
The Bahamas; |
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(e) stock of
the Government; |
(f) any
instrument or security of a kind referred to in subsection (1)(f)(ii) of
section 29; |
(g) any freely
convertible foreign currency; |
(h) money at
call and demand balances at any financial institution abroad being money at
call or demand balances held in freely convertible foreign currency; |
(i) any other
asset designated for the purposes of this subsection by the Bank. |
(4) In subsection
(3)- |
"freely
convertible foreign currency" means any foreign currency which at the time
in question is in the opinion of the Bank a currency that is freely negotiable
and transferable in international exchange markets at exchange rate margins
consistent with the Articles of Agreement of the International Monetary Fund; |
"money at
call and demand balances at any financial institution" means money at call
and demand balances held by any commercial bank at any financial institution
less money at call and demand balances held at that bank by any financial
institution. |
(5) If any bank
contravenes or fails to comply with any provision of an order made under this
section, it shall be guilty of an offence and shall be liable on conviction
thereof to a fine based on the amount of the deficiency of twice the annual
discount rate prevailing at the time of the contravention or failure to comply
for every day during which the contravention or failure continues. |
21. (1) Notwithstanding section 39, the Governor may
where he is satisfied that a bank has committed an offence under section 19 or
section 20 order the bank to pay a fine based on the amount of the deficiency
of twice the annual discount rate prevailing at the time of the contravention
or failure to comply for every day during which the contravention or failure continues. | Power of Governor to fine. |
(2) Where the
Governor makes an order under this section- |
(a) the order
shall be put in writing; |
(b) the order
shall specify the offence which the bank committed and the penalty imposed by
the Governor; |
(c) a copy of
the order shall be given to the bank; |
(d) once the
bank pays the fine as ordered, the bank shall not be liable to any further
prosecution in respect of the offence and where any such prosecution is brought
it shall be a good defence for the bank to prove that the offence with which it
is charged has been dealt with under this section; and |
(e) the order
may be enforced in the same manner as an order of the court. |
22. (1) Subject to subsection (2), the Bank may by
regulations prescribe- | Credit controls. |
(a) the maximum
amounts of loans or advances which commercial banks may have outstanding at any
time or during such period or periods as may be specified in the regulations; |
(b) the
purposes for which, the maturities for which and the security on which loans or
advances may or may not be made by commercial banks; |
(c) the methods
of computation, the minimum and maximum amounts of interests payable in respect
to loans, advances and deposits or classes thereof. |
(2) Any such
regulations- |
(a) may be made
applicable to all the loans and advances of any specified commercial bank or to
any specified class or classes of loans or advances of any specified class or
classes of such banks; |
(b) shall not
have effect so as to impose in respect of any loan or advance any limit or
restriction that is more rigorous than applies to that loan or advance at the
date of the coming into force of the regulations; |
(c) shall fix a
date for the coming into force of the regulations, which shall not be earlier
than thirty days after the date of the receipt of written notice by the
relevant bank at its principal place of business in The Bahamas. |
23. The Bank may act as banker to any commercial bank
in The Bahamas and as banker, agent or correspondent to any bank abroad. | Bank as banker to commercial banks. |
24. The Bank may accept deposits that are required to
be transferred to it in accordance with the Banks and Trust Companies
Regulation Act, pay interest on money so deposited and pay out money to any
person entitled thereto. | Transfer of money. |
25. The Bank may promote the establishment of a bank
clearing system and provide facilities therefor. | Clearing house. |
PART VII
RELATIONS WITH THE GOVERNMENT |
26. The Bank may act as banker to the Government or
any public corporation. | Bank as banker to Government. |
27. The Bank may act generally as agent for the
Government on such terms and conditions as may be agreed between the Government
and the Bank where the Bank can so act consistently with its functions under
this Act and, in particular, the Bank may act as the agent of the Government in
the management of the public debt. | Bank as agent for Government. |
28. (1) Subject to the provisions of this section, the
Bank may make temporary advances to the Government on such terms and conditions
as may be agreed between the Minister and the Bank. | Advances to the Government. |
(2) Every such
advance made by the Bank to the Government shall be repaid by the Government as
soon as possible. |
(3) The amount of
any such advances by the Bank to the Government which may be outstanding at any
one time shall not exceed ten per centum of the average ordinary revenue of the
Government or ten per centum of the estimated ordinary revenue of the
Government, whichever is the less. |
(4) In subsection
(3)- |
"ordinary
revenue" means all income or contributions to Government revenue not being
loans, capital grants or other receipts of a capital nature; |
"average
ordinary revenue" means the annual average of the ordinary revenue of the Government
over the three years (for which accounts have been laid before Parliament) next
before the year in which any question under the subsection is raised; |
"estimated
ordinary revenue" means the ordinary revenue, as estimated in the
estimates of the Government as laid before Parliament, for that year. |
PART VIII
GENERAL POWERS OF THE BANK |
29. (1) Subject to the provisions of this Act, the
Bank may, in the discharge of its functions- | Powers of the Bank. |
(a) open
accounts for, accept deposits from, and collect money for or on account of, the
Government or any commercial bank or any public corporation; |
(b) buy, hold,
sell, discount or re-discount- |
(i) bills
of exchange, promissory notes or other credit instruments maturing within one
hundred and eighty days from the date of their acquisition by the Bank; |
|
(c) buy, hold
and sell securities issued or guaranteed by the Government, being securities
issued to the public and maturing within twenty years from the date of their
acquisition by the Bank, but so that the total amount of any such securities at
any time held by the Bank which mature beyond five years after their date of
issue (including any such securities held by the Bank as security for any loans
or advances) shall not exceed twenty per centum of the demand liabilities of
the Bank; |
(d) for the
purpose of promoting the development of a securities market, buy, hold and sell
fixed term and fixed interest securities of any company, but so that the total
amount of any such securities at any time held by the Bank (including any such
securities held by the Bank as security for any loans or advances) shall not
exceed five per centum of the total liabilities of the Bank; |
(e) with the
approval of the Minister, buy, hold and sell securities of any public
corporation or any company, being a public corporation or company established
for the purpose of developing a securities market, or financing economic
development, in The Bahamas; |
(f) make to
any commercial bank or any public corporation, on such terms and conditions as
may be determined by the Bank, loans or advances on the security of any of the
following, that is to say- |
(i) gold
coins or gold bullion; |
(ii) bills
of exchange, promissory notes, other credit instruments, Treasury Bills or
securities, being bills of exchange, promissory notes, credit instruments,
Treasury Bills or securities of any kind mentioned in paragraph (b) or (c); |
(iii) warehouse
warrants or other documents to goods duly insured and secured by a letter of
hypothecation from the owner; or |
(iv) securities
of any kind mentioned in paragraph (d) or (e). |
(2) Where any loan
or advance is made on the security of any instrument mentioned in subsection
(1)(f)(ii)- |
(a) the loan or
advance shall not extend beyond the maturity date of the instrument itself or
ninety-three days, whichever is the longer; and |
(b) the amount
of any such loan or advance shall not exceed eighty-five per centum of the
market value of the instrument at the date of its acquisition by the Bank. |
(3) Subject to the
provisions of this Act, the Bank may in the discharge of its functions do any
other banking business incidental to or consequential upon the functions of the
Bank. |
30. Except as expressly authorised by this Act, the
Bank shall not- | Prohibited activities. |
(a) engage in
trade or otherwise have a direct interest in any business undertaking, except
such as the Bank may acquire in the course of the satisfaction of debts due to
the Bank, but so that it shall be the duty of the Bank to dispose as soon as
may be of any such interest so acquired; |
(b) grant
unsecured loans or advances to any person; or |
(c) acquire any
interest in real property except in so far as the Bank may consider necessary
or expedient for the provision, or the future provision, of premises for the
conduct of its business or for any purpose (including use of, or residence in,
any such premises by directors, officers or servants of the Bank) incidental to
the performance of its functions. |
PART IX
ACCOUNTS, STATEMENTS AND AUDIT |
31. The financial year of the Bank shall end on the
thirty-first day of December. | Financial year. |
32. (1) The Bank shall, within four months after the
end of each financial year, cause to be made and transmit to the Minister- | Publication of accounts. |
(a) a report of
the operations of the Bank during that year; and |
(b) a statement
of the accounts of the Bank in respect of that year certified by the auditors
appointed under subsection (1) of section 34. |
(2) The Bank- |
(a) shall, in
the preparation of the said accounts, exclude from its calculations any profit
or loss arising from any revaluation of any assets or liabilities of the Bank
occasioned by any change in the value of the currency of The Bahamas or any
foreign currency; |
(b) shall
credit or debit, as the case may require, any such profit or loss to an account
(to be established and maintained by the Bank and called "the Exchange
Equalisation Account"), and |
(c) may from
time to time transfer to the General Reserve provided for by section 7 any
balance at any time in the said Account, or any part thereof, as the Bank
thinks fit. |
(3) The Minister
shall as soon as possible after their receipt- |
(a) cause a
copy of the said report and statement of accounts to be laid before each House
of Parliament; and |
(b) cause a
copy of the said statement of accounts to be published in the Gazette. |
33. The Bank shall on or before the end of every month
prepare and transmit to the Minister and publish in the Gazette a
statement of the assets and liabilities of the Bank as at the last working day
of the preceding month. | Publication of statements. |
34. (1) The accounts of the Bank shall be audited
annually by auditors appointed by the Board with approval of the Minister. | Audit. |
(2) Without
prejudice to the provisions of subsection (1), the Minister may at any time
require the Auditor-General to examine and report on the accounts of the Bank
as a whole or any aspect of the operations of the Bank, and the Bank shall
provide the Auditor-General with all necessary and proper facilities for such
an examination. |
PART X
MISCELLANEOUS |
35. (1) The Bank may require any financial institution
or trust company, or any director, officer or servant of such an institution or
company, to supply to the Bank in such form and within such time as the Bank
may determine such information as the Bank considers necessary to enable the
Bank to carry out it functions under this Act. | Information may be required from financial
institutions. |
(2) The Bank may
at all reasonable times by notice in writing given- |
(a) to a person
regulated under the regulatory laws; |
(b) to a
connected person; or |
(c) to a person
reasonably believed to have information relevant to an enquiry by the Bank, |
require him- |
(i) to provide
specified information or information of a specified description, or |
(ii) to
produce specified documents or documents of a specified description, |
as it may
reasonably require in connection with the exercise by the Bank of functions
conferred on it by or under this Act or the regulatory laws. |
(3) Where, in
accordance with section 38, the Bank is satisfied that assistance should be
provided in response to a request by an overseas regulatory authority it may in
writing direct- |
(a) a person
regulated under the regulatory laws; |
|
(c) a person
that is engaging in an activity that is subject to regulation under the
regulatory laws; or |
(d) a person
reasonably believed to have information relevant to enquiries to which the
request relates, |
within a
stated time, to- |
(i) provide
the Bank with specified information or information of a specified description
with respect to any matter relevant to the inquiries to which the request
relates, |
(ii) produce
specified documents or documents of a specified description relevant to those
inquiries; or |
(iii) give to
the Bank such assistance in connection with those inquiries as the Bank may
specify in writing. |
(4) Where a person
fails to comply with a requirement under subsection (2) or a direction given
under subsection (3) within three days from the date of the requirement or
direction or such longer period as the Bank may permit, the Bank may apply to a
Stipendiary and Circuit Magistrate for an order requiring the person to comply
with the requirement or direction. |
(5) Where, in
connection with a requirement under subsection (2) or a direction given under
subsection (3), the Bank considers it necessary to examine a person on oath,
the Bank may apply to a Stipendiary and Circuit Magistrate to have that person
examined by the court and to have the results of that examination sent to the
Bank. |
(6) The court
shall process an application under subsection (5) within seven days of its
receipt and shall send the result of the examination to the Bank within
fourteen days of the examination. |
(7) Where
documents are produced pursuant to subsection (2) or (3) the Bank may take
copies of them or extracts from them. |
(8) A person shall
not be required under this section to disclose information or to produce a
document which he would be entitled to refuse to disclose or to produce on the
grounds of legal professional privilege in court proceedings. |
(9) Where a person
claims a lien on a document, its production under this section is without
prejudice to his lien. |
(10) In this
section "document" includes information recorded in any form and, in
relation to information recorded otherwise than in legible form, the power to
require its production includes power to require the production of a copy of it
in legible and intelligible form. |
(11) For the
purposes of this section, any information or other matter comes to a
professional legal adviser in privileged circumstances if it is communicated or
given to him- |
(a) by, or by a
representative of, a client of his in connection with the giving by the adviser
of legal advice to the client; |
(b) by, or by a
representative of, a person seeking legal advice from the adviser; or |
|
(i) in
contemplation of, or in connection with, legal proceedings; and |
(ii) for
the purpose of those proceedings. |
(12) No
information or other matter shall be treated as coming to a professional legal
adviser in privileged circumstances if it is communicated or given with a view
to furthering any criminal purpose. |
(13) For the
purposes of subsections (2) and (3) a person is connected with a person
regulated under the regulatory laws (the "regulated person") if he is
or has at any relevant time been- |
(i) a member
of the regulated person's group; |
(ii) a
controller of the regulated person; |
(iii) any other
member of a partnership of which the regulated person is a member; or |
(iv) a member,
officer, manager, employee or agent of the regulated person. |
(14) A person who
without reasonable cause- |
(a) fails to
comply with a requirement of the Bank under subsection (2) or a direction of
the Bank under subsection (3); |
(b) with intent
to avoid the provisions of subsections (2) or (3) destroys, mutilates, defaces,
hides or removes a document; or |
(c) wilfully
obstructs an inquiry by the Bank made in accordance with the provisions of
subsection (2) or (3), |
shall be
guilty of an offence and shall be liable on conviction thereof to a fine not
exceeding one hundred thousand dollars and if the offence of which he is
convicted is continued after conviction he commits a further offence and shall
be liable to a fine of ten thousand dollars for every day on which the offence
is continued. |
(15) Where- |
(a) an offence
under this section, which has been committed by a body corporate, is proved to
have been committed with the consent or connivance of, or to be attributable to
any neglect on the part of, any director, manager, secretary or other similar
officer of the body corporate, or any person who was purporting to act in any
such capacity, he, as well as the body corporate, shall be guilty of that
offence and be liable to be proceeded against and punished accordingly; |
(b) the affairs
of a body corporate are managed by its members, paragraph (a) shall apply in
relation to the acts and defaults of a member in connection with his functions
of management as if he were a director of the body corporate. |
36. (1) The Bank may- | Assistance in obtaining information. |
(a) seek the
assistance of the Commissioner of Police in the exercise of its powers under
this law; and |
(b) authorise a
competent person to exercise any of those powers. |
(2) No such
assistance shall be sought or authority granted under subsection (1) except for
the purpose of investigating- |
(a) the
affairs, or any aspect of the affairs, of a person specified by the Bank; or |
(b) a subject
matter specified by the Bank, being a person who, or a subject matter which, is
the subject of the inquiries being carried out by or on behalf of an overseas
regulatory authority or the Bank. |
(3) No person
shall be bound to comply with a requirement imposed by a person exercising
powers by virtue of an authority granted under this section unless he has, if
required, produced evidence of his authority. |
(4) Where the Bank
seeks assistance or grants an authority under subsection (1), the assistance or
authority shall be provided or executed in such manner as the Bank may
determine; and where the Bank grants such an authority to a person, he shall
make a report to the Bank in such manner as the Bank may require, on the exercise
of that authority and the results of exercising it. |
37. Any person who supplies or is concerned in
supplying to the Minister or the Bank or any other person any statement,
account, report or other information pursuant to this Act or any purpose for
which any such statement, account, report or information is lawfully required
thereunder, knowing the same to be false in a material particular, shall be
guilty of an offence and shall be liable on conviction thereof to a fine not
exceeding one hundred thousand dollars or to imprisonment for a term not
exceeding five years and in the case of a continuing offence to a fine not
exceeding two thousand dollars for each day during which the offence continues. | Supplying false statement. |
38. (1) Subject to subsections (2) and (3), whoever is
a director, officer, employee, agent or adviser of the Bank and who discloses
any information relating to- | Confidentiality. |
(a) the affairs
of the Bank; |
(b) any
application made to the Bank or the Government under the regulatory laws; |
(c) the affairs
of a bank or trust company; or |
(d) the affairs
of a customer, client or policyholder of, or a company or mutual fund managed
by, a bank or trust company, |
that he has
acquired in the course of his duties or in the exercise of the Bank's functions
under this or any other law, is guilty of an offence and shall be liable on
conviction to a fine not exceeding fifty thousand dollars or to imprisonment
for three years. |
(2) Subsection (1)
shall not apply to a disclosure- |
(a) lawfully
required or permitted by any court of competent jurisdiction within The
Bahamas; |
(b) for the
purpose of assisting the Bank to exercise any functions conferred on it by this
Act, by any other Act or by regulations made thereunder; |
(c) in respect
of the affairs of a bank or trust company or of a customer, client, policyholder
of, or a company or mutual fund managed by a bank or trust company, with the
authority of the bank or trust company, customer, client, policyholder, company
or mutual fund, as the case may be which consent has been voluntarily given; |
(d) if the
information disclosed is or has been available to the public from any other
source; |
(e) where the
information disclosed is in a manner that does not enable the identity of any
bank or trust company or of any customer, client, or policyholder of, or company
or mutual fund managed by, a bank or trust company to which the information
relates to be ascertained; |
(f) to a
person with a view to the institution of, or for the purpose of- |
|
(ii) disciplinary
proceedings, whether within or outside The Bahamas, relating to the exercise by
a counsel and attorney, auditor, accountant, value or actuary of his
professional duties; or |
(iii) disciplinary
proceedings relating to the discharge by a public officer, or a member or
employee of the Bank of his duties; or |
(g) for the
purposes of any legal proceedings in connection with- |
(i) the
winding-up or dissolution of a bank or trust company; or |
(ii) the
appointment or duties of a receiver of a bank or trust company. |
(3) Subject to
subsection (7), the Bank may disclose to an overseas regulatory authority
information necessary to enable that authority to exercise regulatory functions
including the conduct of civil or administrative investigations and proceedings
to enforce laws, regulations and rules administered by that authority. |
(4) In deciding
whether or not to exercise its power under subsection (3), the Bank may take
into account- |
(a) whether the
inquiries relate to the possible breach of a law or other requirement which has
no close parallel in The Bahamas or involve the assertion of a jurisdiction not
recognised by The Bahamas; and |
(b) the
seriousness of the matter to which the inquiries relate, the importance to the
inquiries of the information sought in The Bahamas. |
(5) The Bank may
decline to exercise its powers under subsection (3) unless the overseas
regulatory authority undertakes to make such contribution towards the costs of
the exercise as the Bank considers appropriate. |
(6) In subsection
(4)(a) "relevant country or territory" means the country or territory
from which the request for assistance is made. |
(7) Nothing in
subsection (3) authorises a disclosure by the Bank unless- |
(a) the Bank
has satisfied itself that the intended recipient authority is subject to
adequate legal restrictions on further disclosures which shall include the
provision of an undertaking of confidentiality; or |
(b) the Bank
has been given an undertaking by the recipient authority not to disclose the
information provided without the consent of the Bank; and |
(c) the Bank is
satisfied that the assistance requested by the overseas regulatory authority is
required for the purposes of the overseas regulatory authority's regulatory
functions including the conduct of civil or administrative investigations or
proceedings to enforce laws administered by that authority; and |
(d) the Bank is
satisfied that information provided following the exercise of its powers under
subsection (3) will not be used in criminal proceedings against the person
providing the information. |
(8) Where in the
opinion of the Bank it appears necessary in relation to any request for
assistance received from an overseas regulatory authority to invoke the
jurisdiction of a Stipendiary and Circuit Magistrate in the manner contemplated
by subsections (4) and (5) of section 35, the Bank shall immediately notify the
Attorney-General with particulars of the request, and shall send him copies of
all documents relating to the request, and the Attorney-General shall be
entitled, in a manner analogous to amicus curiae, to appear or take part
in any proceedings in The Bahamas, or in any appeal from such proceedings, arising
directly or indirectly from any such request. |
39. Every offence against this Act shall be tried
summarily. | Offences. |
40. Where an offence under this Act which has been committed
by a body corporate is proved to have been committed with the consent or
connivance of, or to be attributable to any neglect on the part of, a director,
manager, secretary or other similar officer of the body corporate, or any
person who was purporting to act in any such capacity, he, as well as the body
corporate, shall be guilty of that offence and be liable to be proceeded
against accordingly. | Offences by corporations. |
41. The Bank shall be exempt from tax under the Real
Property Tax Act. | Exemption. |
PART XI
REPEAL, TRANSITIONAL, ETC. |
42. The Central Bank of The Bahamas Act is hereby
repealed. | Repeal. |
43. (1) Upon the day of the coming into operation of
this Act- | Transitional provisions. |
(a) every
person who immediately before that day was appointed a director to the Board of
Directors shall be deemed to have been appointed under this Act and shall
continue to serve in that office for the unexpired portion of the term
remaining to be served; |
(b) all real
and personal property and every right and interest in property that immediately
before that day was vested in the Bank under the repealed Act, shall, by force
of this section, continue to be vested in the Bank for the purposes of this Act
subject to any debts, trusts and liabilities affecting them; |
(c) all rights
accruing or accrued to the Bank in respect of any property vested in the Bank
by virtue of this section are vested in the Bank and may be enforced against
the Bank; |
(d) all
contracts, agreements, leases and undertakings made by the Bank and all
securities lawfully given to or by the Bank and in force immediately before
that day shall have effect as contracts, agreements, leases and undertakings by
and with the Bank and may be enforced by and against the Bank accordingly; |
(e) all debts
due and moneys payable by the Bank and all claims, liquidated or unliquidated,
recoverable against the Bank shall be debts due and moneys payable by and
claims recoverable against the Bank; |
(f) any legal
or other proceedings that might, but for this section, have been continued or
commenced by or against the Bank may be continued or commenced by or against
the Bank. |
(2) A reference- |
(a) in a law of
The Bahamas; and |
|
in force
immediately before the date of the coming into operation of this Act to the
Bank shall be read, deemed and taken to refer to the Bank. |
(3) The persons
who immediately before the coming into operation of this Act were appointed the
Governor and Deputy Governor under the repealed Act shall continue under the
title of Governor and Deputy Governor respectively under this Act as if those
persons had been appointed under this Act on the same terms and conditions for
a term expiring on the day on which the appointment under the repealed Act
would expire. |
(4) Any officer or
servant appointed or employed by the Bank shall continue in office or employment
with the Bank on the same terms and conditions as existed before the coming
into operation of this Act. |
44. Any licence, authority, approval or exemption
granted by the Bank which is in force immediately before the coming into force
of this Act- | Savings. |
(a) shall
continue to have effect after the coming into force of this Act as if granted
by the Bank; |
(b) in the case
of a grant for a specific period, shall remain in force for so much of that
period as falls after the coming into force of this Act. |
SCHEDULE (Section 3(5)) |
THE BANK |
The Board of
Directors |
1. (1) The Board
of Directors shall consist of the following persons to be appointed by the
Governor-General, that is to say- |
(a) a Governor,
who shall be a person of recognised experience in financial matters and shall
be appointed by the Minister by instrument in writing for a period not
exceeding five years and shall be eligible for re-appointment; he shall be
appointed on such terms and conditions as may be set out in his instrument of
appointment, and such terms and conditions may not be altered to his
disadvantage during his tenure of office; |
(b) two Deputy
Governors, who shall perform the functions conferred on them by this Act and,
under the supervision of the Governor such other functions as may be conferred
on them by the Board; |
(c) two other
directors, being persons appearing to the Governor-General to have wide
experience in, and to have shown capacity in, financial or commercial matters,
industry, law or administration. |
(2) The Board may
make bye-laws regulating the conduct of the Bank's business and may make
regulations and issue orders for the purpose of giving effect to the provisions
of this Act. |
(3) Paragraphs 2
to 10 shall have effect in relation to the Board. |
2. (1) Each
director shall, subject to the provisions of this paragraph, hold and vacate
his office in accordance with the terms of his appointment and shall, on
ceasing to hold office, be eligible for re-appointment. |
(2) The Deputy
Governors shall not be appointed or re-appointed for a period exceeding five
years. |
(3) A director
other than the Governor or the Deputy Governors shall not be appointed or
re-appointed for a period exceeding four years. |
3. (1) The
Governor and the Deputy Governors shall not while holding office as such hold
any other office or employment, whether remunerated or not, without the prior
approval of the Governor-General. |
(2) Subject to
subparagraph (1), a person may not be appointed or remain a director who- |
(a) is a member
of either House of Parliament; or |
(b) is a
director, officer or servant of, or is a shareholder of, or has a controlling
interest in, any financial institution. |
4. The
Governor-General may appoint any person eligible to be appointed a director to
act temporarily in the place of any director who is absent or unable to act. |
5. Any director
may at any time by notice in writing to the Governor-General resign his office. |
6. If the
Governor-General is satisfied that a director- |
(a) has been
absent from meetings longer than three consecutive months without the
permission of the Board; |
(b) has become
bankrupt or made arrangements with his creditors; |
(c) is
incapacitated by physical or mental illness; or |
(d) is
otherwise unable or unfit to discharge the functions of a director, |
the
Governor-General may declare his office as director to be vacant and shall
notify that fact in such manner as the Governor-General thinks fit, and
thereupon that office shall become vacant. |
7. The names of
all the directors and every change therein shall be published in the Gazette. |
8. The Bank shall
pay to the directors such remuneration (if any), whether by way of salary,
honorarium or fees, as the Governor-General may determine and, if a person
ceases to be a director and it appears to the Governor-General that there are
special circumstances which may make it right that the person should receive
compensation, the Governor-General may require the Bank to pay to that person a
sum of such amount as the Governor-General may determine. |
9. (1) The
Governor, or in case of his absence or disability, a Deputy Governor, shall- |
(a) preside as
chairman at the meetings of the Board; |
(b) serve as
chief executive officer of the Bank responsible to the Board for the execution
of its policy and the management of the Bank; |
(c) except as
may otherwise be provided in this Act, the bye-laws of the Bank or the
resolutions of the Board, have the power to act, contract, and sign instruments
and documents on behalf of the Bank and, pursuant to the resolutions of the
Board, delegate such power to other officers of the Bank. |
(2) The Deputy
Governors may attend all meetings of the Board but shall not have the right to
vote at those meetings. |
(3) Notwithstanding
subparagraph (2), where a Deputy Governor presides as chairman under
subparagraph (1)(a) he shall have the right to vote. |
(4) The Governor
and the Deputy Governors shall devote the whole of their professional services
to the Bank and while holding office shall not without the approval of the
Minister- |
(a) receive any
salary or supplementation thereto from any source other than the Bank; |
(b) occupy any
other office or employment, whether remunerated or not. |
(5)
Notwithstanding subparagraph (4), the Governor may- |
(a) act as a
member of any board, committee or commission established by the Government; |
(b) become a
Governor, director or member of the board, by whatever name called, of any
international bank or international financial institution of which The Bahamas
is a member; |
(c) become a
director of any corporation in The Bahamas in which the Government is a
participant. |
10. (1) The Board
shall meet as often as may be required for the due performance of its
functions, and in any case at least once in every month. |
(2) A meeting of
the Board- |
(a) may be
convened by the Governor or, in his absence, a Deputy Governor; or |
(b) shall be
convened on the written requisition of two directors specifying the reasons for
which the meeting is required. |
(3) Meetings of
the Board shall be presided over by the Governor or, in the event of his
inability to act, by a Deputy Governor. |
(4) Three
directors (of whom one shall be either the Governor or a Deputy Governor) shall
form a quorum at any meeting. |
(5) A decision
shall be adopted by a simple majority of the directors present and in the case
of an equality of votes the person presiding at the meeting shall have and
exercise a casting vote. |
(6) A director who
is directly or indirectly interested otherwise than as a director or in common
with other directors in a contract or other transaction made or proposed to be
made by the Bank, shall disclose the nature of his interest at the first
meeting of the Board at which he is present after the relevant fact have come
to his knowledge and any such disclosure shall be recorded in the minutes of
the Board and after the disclosure that director shall not take part in any
deliberation or decision of the Board with respect to that contract or
transaction. |
(7) Minutes of
each meeting of the Board shall be kept in such form as the Board may
determine. |
(8) No act or
proceeding of the Board shall be invalidated merely by reason of any vacancy in
the Board or of any defect in the appointment of a director. |
(9) No action,
suit, prosecution or other proceedings shall be brought or instituted
personally against any director in respect of any act done bona fide in
pursuance of the execution or intended execution of this Act. |
(10) Where any
director is exempt from liability by reason only of the provisions of
subparagraph (9) the Bank shall be liable to the extent that it would be if
that member were an employee or agent of the Bank. |
Staff |
11. The Bank may
appoint and employ at such remuneration and on such terms and conditions as it
thinks fit, such officers, servants and agents as the Board considers necessary
for the due discharge of the functions of the Bank. |
12. The Bank shall
have power- |
(a) to pay to
or in respect of officers or servants of the Bank such pensions or gratuities; |
(b) to make
such payments towards the provisions for them of pensions or gratuities; or |
(c) to maintain
for them such pension schemes (whether contributor or not), |
as the Bank
may determine. |
Authentication of
Documents |
13. (1) The seal
of the Bank shall be kept under the control of the Governor or the Deputy
Governor and the affixing thereof shall be authenticated by the signature of
the Governor or the Deputy Governor and one other director authorised by the
Board to act in that behalf. |
(2) Any document
purporting to be a document duly executed under the seal of the Bank shall be
received in evidence and shall, unless the contrary is proved, be deemed to be
a document so executed. |