Financial Crime World

BANKING LICENCE TERMS AND CONDITIONS

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The Financial Services Commission has released a notice outlining the terms and conditions for banking licences issued under the Banking Act. These terms remain in force until they are revoked or suspended by the Commission, or surrendered by the licensee.

Key Provisions

  • No Assignment or Transfer: No assignment or transfer of a licence is permitted.
  • Compliance with Terms and Conditions: A licensee must comply with all terms and conditions imposed on its licence, as well as this Act and regulations.
  • Variation or Revocation of Terms and Conditions: The Commission may vary or revoke a term or condition of a licence, or impose further terms or conditions. Any changes will be subject to a notice period and an opportunity for the licensee to respond.

Power of the Commission

  • Suspension of Licence: The Commission has the power to suspend a licence without notice if it determines that such action is necessary to protect depositors or maintain stability in the financial system.
  • Revocation or Suspension: A revocation or suspension of a licence takes effect on the date the notice is given to the licensee, unless a later date is specified.

Appeal Process

  • Appeal to High Court: Licensees have the right to appeal a decision to revoke or suspend their licence to the High Court.

Surrender of Licence

  • Approval by Commission: The Commission may approve the surrender of a licence if a licensee has ceased to carry on banking business and meets certain conditions, such as repaying all deposits held or administered by it.
  • Publication of Surrender: The surrender of a licence will be published in any publication considered appropriate.

Purpose of the Banking Act

The Banking Act aims to maintain stability and confidence in the financial system of the Cook Islands by regulating the banking industry and ensuring that licensees operate in a prudent and responsible manner.

Contact Information

For more information, please contact the Financial Services Commission at [insert contact details].