TRINIDAD AND TOBAGO Hamel -Smith

Trinidad and Tobago © Copyright Lex Mundi Ltd. 2007 Bank Finance and Regulation Survey TRINIDAD AND TOBAGO Hamel -Smith I. BANKS AND FINANCIAL INS...
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Trinidad and Tobago

© Copyright Lex Mundi Ltd. 2007

Bank Finance and Regulation Survey

TRINIDAD AND TOBAGO Hamel -Smith I.

BANKS AND FINANCIAL INSTITUTIONS SUPERVISION

1.

Applicable laws and regulation. Provide a list of the main laws and regulations that refer to the supervision and control of banks and financial institutions. Give a brief summary of the substance of each of them.

The following are a list of the laws and regulations related to the supervision and control of banks and financial institutions: The Financial Institutions Act, 1993, as amended from time to time – provides for the regulation and supervision of banks and other financial institutions in Trinidad and Tobago, including, inter alia, licensing requirements, ownership and control requirements, restrictions on activities and reporting requirements. A proposal to amend the act has recently been circulated to banks and financial institutions for their comments. The Financial Institutions (Prudential Criteria) Regulations, 1994 – sets out the minimum capital adequacy requirement (qualifying capital) and other prudential criteria for banks and the mechanism for determining same. Licensees under the Financial Institutions Act are required to have qualifying capital of not less than eight percent of its risk adjusted assets. The Central Bank Act, (Ch. 79:02) – governs the establishment of the Central Bank as well as its role as the supervisory body of financial institutions (including Insurance Companies since 2004) through the position of the Inspector of Financial Institutions (formerly the Inspector of Banks). Guideline on Combating Money Laundering and Terrorist Financing (December 2005) – Guideline issued by the Central Bank requiring banks, insurance companies and their intermediaries to record and report any suspicious activity as set out in the Guideline and the suspicious activity report must be provided to the company’s chief compliance officer. These records and reports must be provided to law enforcement authorities for criminal investigations and prosecutions. The Guideline also refers to the recently passed Anti-Terrorism Act, 2005 as well as the Financial Obligations Regulations, 2001. The Financial Obligations Regulations, 2001 have not yet been approved by the legislature. Financial entities will be required to update their procedures and policies should these regulations be implemented. Proceeds of Crime Act, 2000 - provides for the consolidation of the confiscation of the proceeds of drug trafficking and for the confiscation of the proceeds of other crime and the criminalizing of money laundering; requires financial institutions to develop and implement a written program to monitor compliance with that Act, retain relevant records for at least 6 years and appoint a staff member with responsibility for ensuring continual compliance with that Act.

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Electronic Transfer of Funds Crime Act, 2000 - prohibits financial institutions from making available any list of card holders to any person without the proper approval of the card holders except another financial institution for the purpose of credit rating. Agreed Minute on the Operation of the Foreign Exchange Market (July 1993) - specifies that the Central Bank is to regulate the foreign market by licensing market participants, establishing prudential norms and reserving the right to intervene in the market in pursuit of its monetary policy objectives. It also states that the Central Bank is to provide the forum for consultation and the provision of information to authorized dealers and communicate to such dealers in a timely manner the policy positions of the Government and the Central Bank. Entered into when the country moved from a fixed rate foreign exchange system to a managed floating rate system. A Code of Conduct for the guidance of all market participants in foreign exchange dealings (July 1994) - The Code of Conduct sets forth general standards in respect of the responsibility for dealing activities, insider abuse, integrity, dealing procedures, documentation and the settlement of differences. In addition to Guidelines circulated from time to time (e.g. The ‘Fit and Proper’ Guideline, The Prudent Person Approach to Investment and Lending Guideline, Guideline on Security Systems for Safeguarding Customer Information) the Minister of Finance publishes (after receiving the recommendations of the Central Bank when required) Legal Notices which may be addressed specifically to a particular financial institution or to all financial institutions pursuant to the Financial Institutions Act which are binding unless they state otherwise. 2.

Entities/Authorities in charge of the control and supervision. Purposes, powers and functions of each of them- their organization and structure (i.e. public or private, independency or body of the Government to which they belong, size, etc).

The Central Bank of Trinidad and Tobago was established by an Act of Parliament on December 12, 1964. The Central Bank is the entity responsible for the control and supervision through the office of the Inspector of Financial Institutions, a position created under the Central Bank Act. The Bank is a body corporate established for the purpose of the promotion of such monetary credit and exchange conditions as are most favorable to the development of the economy of Trinidad and Tobago. The Central Bank Act provides that the Bank shall: (a) (b) (c) (d) (e) (f) (g) (h)

have the exclusive right to issue and redeem currency notes and coin in Trinidad and Tobago; act as banker for, and render economic, financial and monetary advice to the Government; maintain, influence and regulate the volume and conditions of supply of credit and currency in the best interest of the economic life of Trinidad and Tobago; maintain monetary stability, control and protect the external value of the monetary unit, administer external monetary reserves, encourage expansion in the general level of production, trade and employment; undertake continuously economic, financial and monetary research; and review legislation affecting the financial system; and developments in the field of banking and financial services, which appear to it to be relevant to the exercise of its powers and the discharge of its duties.

The Bank is managed by a Board of Directors comprising a Governor, not more than two Deputy Governors and not less than six other directors, two of whom may be public service directors. The Governor and the other directors are appointed by the President. However, the President acts in accordance with the advice of the Prime Minister and given the role of the Central Bank to act as banker for, and render economic, financial and monetary advice to the Government, it is effectively viewed and acts as an arm of the Government. The Act provides that the public service directors shall be an officer of the Ministry of Finance and an officer of the Ministry or appropriate department of Government responsible for economic planning.

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3.

Describe briefly the activities under supervision and give a list the different types of licenses available.

The Central Bank is empowered to grant or revoke licenses, recommend regulations, issue cease-and-desist orders, prescribe the qualifications of the management and directors of banks and financial institutions and generally to ensure the prudent operations of banks and financial institutions in the public interest. Licenses. There are two main types of licenses available under the Financial Institutions Act: -

License to carry on the Business of Banking License to carry on Business of a Financial Nature

Under the Financial Institutions Act "Business of a financial nature" means the collection of funds in the form of deposits, shares, loans, premiums, and the investment of such funds in loans, shares and other securities and includes the performance for reward, of the functions and duties of a trustee, administrator, executor or attorney as well as the types of business set out in the First Schedule but does not include the business of banking. Licenses to carry on Business of a Financial Nature are generally specific to one or more of the types set out in the First Schedule which include:

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Class 1. Confirming House or Acceptance House 2. Finance House or Finance Company

3. Leasing Corporation 4. Merchant Bank

5. Mortgage Institutions 6. Trust Companies

7. Unit Trust

8. Credit card business

9. Financial Services

4.

Activities Confirming, accepting or financing import and export bills Hire Purchase and Installment Credit Accounts Receivable Trade and Inventory Financing Factoring Block Discounting Lease Financing Floating and underwriting stocks, shares Dealing in gold Providing Consultancy and investment management services and corporate advisory services Acceptance Credit Project Development Lease Financing Foreign Exchange Dealing Inter-Bank financing Mortgage Lending Managing Trust Funds Performing duties of trustees, Executor or administrator and attorney Administration of Pension Funds Mortgage Lending Providing facilities for the participation by persons as beneficiaries under a trust or other scheme, in profits or income arising from the acquisition, holding, management, or disposal of securities or any other property whatever. Issuing payment, credit or charge cards and, in cooperation with others including other financial institutions, operating a payment, credit or charge card plan. Providing financial services relating to future and contingent liabilities in relation to foreign exchange and commodities.

Describe briefly non regulated financial and banking activities.

(i) Credit Unions. Credit unions are largely unregulated or under-regulated in Trinidad and Tobago as any undertaking incorporated under the Co-operatives Societies Act (under which Credit unions are formed) is specifically exempted from complying with the requirements of the Financial Institutions Act. However, despite the exemption, the Central Bank may, at the request of the Minister of Finance, require information from, enquire into, and examine the affairs of any financial institution exempted under the Third Schedule of the Financial Institutions Act and there has been some discussion by the Governor of the Central Bank recently about regulating larger credit unions which is expected to be brought about in the near future.

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Thailand © Copyright Lex Mundi Ltd. 2007 (ii) Insurance Companies. Insurance companies have expanded their services into the financial services sector over the years. Certain activities of insurance companies are specifically exempted from the requirements under the Financial Institutions Act. These activities include: the collection of funds in the form of deposits or premiums for the purpose of insurance business; mortgage lending; trust company duties (including administration of pension funds; and unit trust business. Prior to 2004, Insurance Companies were supervised by the Supervisor of Insurance, a position created under the Insurance Act. In 2004, the Insurance Act, the Central Bank Act and the Financial Institutions Act were amended to provide that the Central Bank would act as the regulator of insurance companies through the office of the Inspector of Financial Institutions (formerly Inspector of Banks). Further proposed amendments are being considered to more strictly regulate the insurance industry along the lines of regulations governing banks. (iii) Money Transfer. Companies which provide money transfer services such as Western Union are unregulated locally at present although there have been some discussions as to how they should be regulated and by whom. (iv) Unit Trust. The Trinidad and Tobago Unit Trust Corporation (“UTC”) is a statutory corporation established by an Act of Parliament in 1981 (Act No. 26 of 1981) for the purpose of establishing a Unit Trust and various (investment) schemes under same. The Act was amended in 1997 to provide that the UTC may provide trustee business, merchant banking, credit card business and foreign exchange services. The UTC had an initial capital of five million dollars provided by contributions by the Central Bank, life insurance companies, the National Insurance Board, and commercial banks and financial institutions. The UTC is not currently licensed as a non-bank financial institution under the Financial Institutions Act nor regulated by the Central Bank although the approval of the Central Bank is required for the Board of Directors of the UTC to make regulations relating to the issue of units and matters relating thereto. The Central Bank has indicated that it is currently giving consideration to both of these matters. 5.

Describe briefly non-permitted financial and banking activities and/or government monopolies.

(i)

Banks are subject to numerous restrictions under the Financial Institutions Act, but, in particular, may not: • engage in or carry on any business other than the business of banking or business of a financial nature; • directly or indirectly engage in any trade except so far as may be necessary in the ordinary course of business operations and services, including the satisfaction of debts due to such bank and the due performance of its functions as a trustee, executor, administrator or attorney; or • acquire, deal, underwrite or provide financing for underwriting or dealing in its own shares. • no licensee may incur, in Trinidad and Tobago, deposit liabilities of an amount exceeding twenty times the sum of its paid-up share capital and Statutory Reserve Fund.

A licensee other than a Bank may not engage in or carry on any business other than business of financial nature and may not (a) accept a deposit upon terms that it is repayable on demand or in less than one year (and shall inform the depositor of this limitation at the time when a deposit is made); (b) without the written permission of the Central Bank repay any deposit within less than one year

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Thailand © Copyright Lex Mundi Ltd. 2007 from the date on which the deposit was received by the licensee; (c) grant loans for periods of less than one year. (ii) The Central Bank has the exclusive right to issue and redeem currency notes and coin in Trinidad and Tobago. While not a monopoly, the Government of Trinidad and Tobago indirectly owns all of the capital stock of First Citizens Bank Limited, (“FCB”) a retail and commercial bank organized in 1993 by the Government to acquire and take over three predecessor banks which were majority owned by the Government and which were experiencing difficulty in meeting their obligations to their creditors. Apart from FCB the following commercial banks operate in Trinidad and Tobago, namely, Citibank Trinidad and Tobago Limited (“Citibank”), RBTT Bank Limited (“RBTT”), Republic Bank Limited (“Republic”) and Scotiabank of Trinidad and Tobago Limited (“Scotiabank”).

II.

BANKING ACTIVITIES

6.

Different types of banking licenses. Activities permitted under each of them. Activities prohibited.

See Sections 3 and 5(i) above. 7.

Procedures to be followed and requirements to be met to obtain each of the different licenses. Formalities to be fulfilled, documentation to be submitted, guaranties requested, time estimation, etc.

A person other than a company licensed by the Central Bank for that purpose may not carry on any banking business in Trinidad and Tobago. A person shall not carry on any business of a financial nature in Trinidad and Tobago unless (a) licensed for that purpose by the Central Bank; or (b) licensed under the Financial Institutions Act to carry on business of banking. A license to carry on business of a financial nature may contain such terms and conditions relating to the type of business which may be carried on by the licensee thereof as may be specified. Every application for a license to operate a financial institution or a license to carry on business of banking must be made to the Central Bank in writing and must be accompanied by: (a) a statement of the applicant's name and the address of its registered office in Trinidad and Tobago; (b) the name, address, nationality, experience, and other relevant information pertaining to each director, chief executive and manager or proposed director, chief executive and manager; (c) a concise history of the applicant's business experience, proposed business dealings including the type of business which it proposes to carry on, and the management arrangements for the institution; (d) a certified statement or such proof as the Central Bank may require of the applicant's ability to meet the requirement of a minimum paid-up share capital of not less than fifteen million dollars or such increased amounts as may be required; (e) a certified copy of the memorandum and articles of association or other instrument under which the applicant is incorporated;

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© Copyright Lex Mundi Ltd. 2007 (f) in the case of an applicant who has been carrying on business prior to its application for a license, a copy of its Profit and Loss Account, Balance Sheet and the auditor's report thereon for the three consecutive years immediately preceding its application, except that where such applicant has been functioning for less than three years, a copy of its Profit and Loss Account, Balance Sheet and the auditor's report thereon for each year it has been in operation shall be sufficient; (g) such further information as the Central Bank may require.

The Central Bank may, on an application duly made in accordance with the above, and after being provided with all such information and documents as it may require under the Act, and after consultation with the Minister, approve or refuse the application. The following fees are payable annually to the Central Bank not later than the thirty-first day of January or such later date as may be specified by the Central Bank in respect of(a) an institution licensed to carry on business of banking, fifty thousand dollars (approx. US$8,000); (b) an institution licensed to carry on business of a financial nature, twenty thousand dollars (approx. US$3,200); except that where in either case a license is issued for the first time after the first quarter in any year, the fee payable is calculated on a pro rata basis. Every licensee is required to pay to the Central Bank an annual fee of ten thousand dollars for each of its branches (approx. US$1,600). 8.

Legal structure admitted/requested for each of the different licenses.

a)

Different types of legal structures that may be used, i.e. corporations, limited liability partnerships, branches, subsidiaries, etc.

There are no restrictions on the type of legal structure other than it be a corporate entity. A licensee may not establish a branch, representative office or a subsidiary without the prior approval of the Central Bank. Of the commercial banks operating in Trinidad and Tobago, RBTT, Republic and Scotiabank operate as local public limited liability companies. Both Citibank and FCB are local limited liability companies. b)

Capital requirements and own fund rules.

A licensee (bank or financial institution) must have a minimum paid-up share capital of fifteen million dollars (approximately US$2.4 million) or such larger amount as may be specified from time to time by Order of the Minister on the advice of the Central Bank. A licensee may not acquire, deal, underwrite or provide financing for underwriting or dealing in its own shares. All banks and non-bank financial institutions are required to maintain a reserve fund to be known as the Statutory Reserve Fund into which no less than ten per cent of the net profit of that licensee after deduction of taxes shall be transferred at the end of each financial year until the amount standing to the credit of the Statutory Reserve Fund is not less than the paid-up capital of the licensee.

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Thailand © Copyright Lex Mundi Ltd. 2007 In addition, the Financial Institutions Act requires each bank to maintain as a deposit with the Central Bank a cash reserve balance known as a Reserve Account which must bear a ratio to the prescribed liabilities of the bank in such a form and to such an extent as published by the Central Bank from time to time. From May 16, 2001 to October 15, 2003, the ratio for banks was 18% of the prescribed liabilities. For other non-bank financial institutions, the ratio is 9% of the prescribed liabilities. On October 15, 2003, the ratio for banks was lowered to 14% and on September 9, 2004, it was further lowered to 11% (effective September 15, 2004). It was expected that the ratio for banks would have been lowered to 9% to match the ratio for non-bank financial institutions but this measure has been put on hold because of increasing inflation. c)

Transfer of control and ownership regime. Is it regulated?

Under the Financial Institutions Act, a person or a person on whose behalf shares are held in trust or by a nominee may not become a controlling shareholder of a bank without first obtaining a permit from the Central Bank. In determining whether or not a permit should be granted, the Central Bank must take into account whether the proposed shareholder is a “fit and proper person” in accordance with certain specified criteria or may be such as to prejudice the interest of the bank’s depositors, and whether ownership by a controlling shareholder, who is part of a group or an affiliate of another person or company dependent on the same source of income, would be likely to prejudice the interests of depositors of the bank. If a controlling shareholder is deemed to be no longer a fit and proper person, the Central Bank notifies that person and requires it to take such steps as may be specified by the Central Bank to dispose of such shares as are in excess of 25% of the issued shares of the bank or its parent company. d)

Personal requirements and restrictions that may apply in each case for officers, directors, shareholders, etc.

In order to obtain a license, a bank must be directed by at least two individuals with sufficient experience and knowledge of banking to direct effectively the business of the bank. The Central Bank may require an additional number of directors without executive management responsibility as it considers appropriate for the circumstances of the bank and the nature and scale of its operations. The restrictions in the Financial Institutions Act placed on persons who are controlling shareholders with regard to being “fit and proper persons” also apply to individuals who are directors, controllers or managers of banks or concerned in any way in the management of a bank (see 8(c) above). If a bank fails to take the appropriate action when notified, the bank’s license may be restricted or revoked or the bank may be fined if any of these persons are deemed not to be a fit and proper person. Any person deemed unfit may not, without the express approval of the Central Bank, act or continue to act as a director, controller or manager of, or be concerned in any way in the management of, any licensed institution. Any person who: (a) has been a director, controller or manager of a company which has been wound up by a court or has been placed in receivership; or (b) has been convicted by a court for an offence involving dishonesty; or (c) has been adjudged a bankrupt under the Bankruptcy Act; or (d) has been a director, controller or manager of a former licensee, the license of which has been revoked, unless such revocation was due to(i) its amalgamation with another licensed institution or company; or

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© Copyright Lex Mundi Ltd. 2007 (ii) its voluntary winding up; (e) is or was convicted of an offence under this Act; or (f) is not a fit and proper person in accordance with the criteria specified in the Second Schedule of the Financial Institutions Act;

may not, without the express approval of the Central Bank, act or continue to act as a director, controller or manager of, or be concerned in any way in the management of any licensed institution. A director, controller or manager of a bank or of a financial institution that is an affiliate thereof shall not act or continue to act as a director, controller or manager, or be concerned in any way in the management of another bank or of a financial institution that is an affiliate thereof, unless the bank or the financial institution has first been granted a permit to be a controlling shareholder. (e)

Special requirements/restrictions for foreigners either individuals or legal entities (including short description of WTO/GATS commitments and exemptions).

(i)

The Foreign Investment Act, 1990, permits foreign investors, including companies deemed to be controlled by foreign investors, to own 100% of the shares in a private company, provided that the Minister of Finance is notified prior to the investment. Foreign investors may own up to up to 30% of the voting shares in a public company and up to 5 acres of land for business purposes without a license.

(ii)

WTO Specific Commitments– Limitations on Market Access − − − − −

(iii)

A licence is required for the acquisition of land, the area of which exceeds five acres for trade or business or one acre for residential purposes. A licence is required for the acquisition of shares in a local public company where the holding of such shares either directly or indirectly results in 30 per cent or more of the total cumulative shareholding of the company being held by foreign investors. A foreign investor wishing to invest in Trinidad and Tobago (including in the Financial Services Sector) must register with the Registrar of Companies and provide the notification to the Minister of Finance in (i) above. The entry and residence of foreign natural persons is subject to Trinidad and Tobago's Immigration Laws. The employment of foreign natural persons in excess of thirty days is subject to the obtainment of a work permit, which is granted on a base-by-case basis. Foreign natural persons shall be employed only as managers, executives, specialists and experts. WTO Exemptions

- Trinidad and Tobago is a party to the UN Code of Conduct on Liner Conferences (Maritime Transport Sector) under which there are certain cargo reservations. - Bilateral investment promotion and protection treaties as a co-signatory to existing and future treaties. 9.

Is there a Deposits Insurance? Is it mandatory or based on self-regulation? Provide a brief explanation of how it operates.

A Deposit Insurance Fund exists for the protection of depositors of licensed banks and financial institutions (licensed under the Act). Membership in the Deposit Insurance Fund is mandatory for such institutions.

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Thailand © Copyright Lex Mundi Ltd. 2007 Each member is required to pay a compulsory initial contribution to the Fund, which is based upon a percentage rate of deposits prescribed by the Minister of Finance after consultation with the Central Bank. In addition to the initial contribution, members are required to pay an annual premium to the Fund, which is also based upon a percentage rate of deposits of each member. Members may also be called upon to make special contributions to the Fund when the Deposit Insurance Corporation has made or is likely to make payments to depositors which have exhausted or is likely to exhaust the Fund. The Central Bank matches the initial contributions and special contributions made by member institutions. Taxable refunds are made pro rata to the members when the Fund has reached a satisfactory level and has excess money. The Deposit Insurance Corporation insures each TT dollar deposit in a member institution up to an amount prescribed by the Minister of Finance; however, where a depositor maintains deposits in more than one institution or in different capacities or rights, the limit applies to the total amount maintained on deposit in each institution in each capacity and right. The current prescribed insured amount is TT$50,000. 10. Interest Rate. Is it regulated? Should the answer be affirmative, explain briefly its regulatory framework. The Central Bank may fix the maximum and minimum interest rates payable on deposits received and the maximum and minimum rates, fees and charges to be charged on loans, advances or other credit facilities. The Central Bank, after consultation with the Minister of Finance, may also set the maximum spread between interest rates chargeable on loans and interest rates payable on deposits which a financial institution may earn, carry or charge. The Central Bank, with effect from January 1, 1994, removed the previously imposed maximum rate of interest of 4% above a bank’s prime rate. Currently, there are no prescribed maximum and minimum interest rates issued by the Central Bank. The Central Bank also fixes the overnight “Repo” rate, which stands at 6.75% as at March 28, 2006. 11. Sanctions (civil, administrative, or criminal) for violations of the legal and regulatory dispositions. There are various civil, administrative and criminal penalties attached to various sections of the act with fines ranging from $10,000 to $500,000 and prison sentences ranging from twelve months to twenty years upon summary conviction. The Act further provides that any person who fails to comply with any provision of this Act or regulations or bye-laws made there under for which no penalty is expressly provided, is liable on summary conviction to a fine of fifty thousand dollars and to imprisonment for two years. There have been recent proposals to vary the sanctions provided in conjunction with a revision to the Financial Institutions Act currently being reviewed. The proposal increases the fines to be charged (which will be dependent on the asset base of the institution) as well as the prison sentences to be imposed in the case of individuals.

III.

BANK SECRECY LAWS

12.

Is clients’ information protected? Are there any restrictions for its use?

There are provisions in the Financial Institutions Act as well as English common law provisions (which form part of the laws of Trinidad and Tobago) to protect client information.

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Thailand © Copyright Lex Mundi Ltd. 2007 13. Should answer to number Error! Reference source not found. be affirmative, please describe the legal framework, i.e. scope, limitation, exceptions. (i) The Act provides that the Inspector of Financial Institutions, or any person acting in his place, or any assistant to the Inspector shall not disclose any information regarding the operation of a licensee or person registered under the Insurance Act or a customer of a licensee to any person other than the Governor or such other person as may be designated by him. Where information is provided to a third party, the person on whom information is given must be advised of the fact that such information was disclosed and of the person to whom it was disclosed, except in the case of criminal charges court proceedings or in matters involving national security. (ii) Except as provided in (i) above, no person who under or for the purposes of the Financial Institutions Act receives information relating to the business or other affairs of any person; and no person who obtains any such information directly or indirectly from a person who has received it as aforesaid, may disclose the information without the consent of the person to whom it relates and, (if different) the person from whom it was received as aforesaid. This section (ii) does not apply to information which at the time of the disclosure is or has already been made available to the public from other sources or to information in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it. (iii) Subject to the money laundering regulations, banks owe a duty of client confidentiality which is governed by the common law obligation as to secrecy. Implied into the terms of a contract between a banker and a customer is the requirement that the banker will not divulge to third persons, without the express or implied consent of the customer, information regarding either the state of the customer’s account, or any of his transactions with the bank or any information relating to the customer acquired through the keeping of his account, unless the banker is compelled to do so by order of a court, or the circumstances give rise to a public duty of disclosure or the protection of the banker’s own interests requires it. The Central Bank has issued to banks and financial institutions a Guideline on Security Systems for Safeguarding Customer Information as of May 2005 which is intended to set out a standardized framework for an effective customer information security program intent on preserving the integrity and confidentiality of customer records and information. Under the Electronic Transfer of Funds Crime Act, 2000, financial institutions are prohibited from making available any list of card holders to any person without the proper approval of the card holders except another financial institution for the purpose of credit rating. 14.

Sanctions (civil, administrative, or criminal) for violations.

A person who contravenes any of the provisions of section 13(i) above shall be guilty of an offence and liable on summary conviction to a fine of thirty thousand dollars or imprisonment for twelve months or to both. Any person who discloses information in contravention of 13(ii) above will be guilty of an offence and liable on summary conviction to a fine of thirty thousand dollars or imprisonment for twelve months.

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