Financial Crime World

The Banking Act of Saint Christopher and Nevis

Introduction

This article provides an overview of the Banking Act of Saint Christopher and Nevis, a comprehensive legislation that governs banking activities in the territory.

Key Provisions

Definition of Key Terms

  • Banking Business: Defined as the business of receiving deposits, making payments or settling transactions on behalf of clients.
  • Financial Institution: Includes banks, credit unions, and other institutions that provide financial services.
  • Licensed Financial Institution: A financial institution that has been granted a licence to operate by the Central Bank.
  • Related Party: A person who has a close relationship with the licensed financial institution, such as a shareholder or director.
  • Significant Shareholder: A person who holds 10% or more of the shares in a licensed financial institution.

Requirement for Licence

  • To carry on banking business in Saint Christopher and Nevis, an individual must obtain a licence from the Central Bank.
  • Any person intending to carry on banking business must apply for a licence before commencing such activities.

Examination of Books

  • The Central Bank has the power to enter and search premises where it suspects someone is carrying on banking business without a licence.
  • Relevant documents and cash related to the conduct of banking business may be seized.

Appointment of Receiver

  • If a person is found to be conducting banking business without a licence, the Central Bank may appoint a receiver to take control of their assets.

Repayment of Funds

  • Any person holding funds obtained through unauthorized banking activities must repay these funds according to directions from the Central Bank.

Conclusion

The Banking Act of Saint Christopher and Nevis aims to regulate and supervise banking activities in the territory, ensuring that only licensed financial institutions operate within the area. The Act provides for enforcement mechanisms, including the power to inspect and seize documents, appoint receivers, and require repayment of improperly obtained funds.