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Banking (Amendment) Act 1995

Commencement: 28 August 1995

REPUBLIC OF VANUATU

BANKING (AMENDMENT) ACT
NO. 7 OF 1995

Arrangement of Sections

1. Amendment of the Banking Act [CAP. 63].
2. Amendment of section 1 of the principal Act.
3. Amendment of section 3 of the principal Act.
4. Amendment of section 4 of the principal Act.
5. Amendment of section 9 of the principal Act.
6. Amendment of section 10 of the principal Act.
7. Amendment of section 13 of the principal Act.
8. Amendment of section 15 of the principal Act.
9. Amendment of section 16 of the principal Act.
10. Amendment of section 17 of the principal Act.
11. Amendment of section 21 of the principal Act.
12. Amendment of section 21A of the principal Act.
13. Replacement of section 24 of the principal Act.
14. Commencement
    

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REPUBLIC OF VANUATU

Assent: 11/08/95
Commencement: 28/08/95

BANKING (AMENDMENT) ACT
NO. 7 OF 1995

An Act to amend the Banking Act [CAP. 63].

BE IT ENACTED by the President and Parliament as follows: -

AMENDMENT OF THE BANKING ACT [CAP. 63]

1. The Banking Act [CAP. 63], in this Act referred to as the "principal Act", is amended by making the deletions and substitutions specified in the Schedule to this Act.
   

AMENDMENT OF SECTION 1 OF THE PRINCIPAL ACT

2. Section 1 of the principal Act is amended in subsection (1) -
   
   • (a) by inserting after the definition of "company" the following new definition: -
     

""Commission" means the Vanuatu Financial Services Commission established by the Vanuatu Financial Services Commission Act No. 35 of 1993;" and

(b) by inserting after the definition of "director" the following new definition: -

""dollars" and "$" means dollars of the currency of the United States of America;".

AMENDMENT OF SECTION OF THE PRINCIPAL ACT

3. Section 3 of the principal Act is amended -

(a) by deleting subsection (2) and substituting the following subsection: -

"(2) An application for a licence under this Act shall be made to the Commission in such form and in such manner as it may specify and shall be accompanied by such other information as the Commission shall require."; and

(b) by adding after subsection (2) the following new subsection: -

"(3) Where application is made to the Commission for a licence under this Act, other than a licence to carry on business as an exempted bank or financial institution, the Commission shall as soon as possible provide a copy of the application together with all accompanying information and its recommendation to the Minister and the Reserve Bank of Vanuatu."

AMENDMENT OF SECTION 4 OF THE PRINCIPAL ACT

4. Section 4 of the principal Act is amended -

(a) in subsection (1) by inserting the words "after consultation with the Commission and the Reserve Bank" between the words "the Minister may, at his discretion" and the words "grant a licence".;

(b) in subsection (4) -

(i) by inserting the words "after consultation with the Commission and the Reserve Bank" between the words "The Minister" and the words "may at any time";

(ii) by deleting the full stop at the end of paragraph (f) and substituting a semi colon;

(iii) by adding the word "or" after the semi colon at the end of paragraph (f); and

(iv) by adding after paragraph (f) the following new paragraph : -

"(g) if the licensed financial institution concerned, being a company registered under the Companies Act [CAP. 191], is a breach of any of its obligations under that Act."

AMENDMENT OF SECTION 9 OF THE PRINCIPAL ACT

5. Section 9 of the principal Act is amended in subsection (1) by inserting the words "or section 4(4)" after the words "section 17(c)" in paragraph (a).
   

AMENDMENT OF SECTION 10 OF THE PRINCIPAL ACT

6. Section 10 of the principal Act is amended in subsection (1) by inserting the words "acting on the advice of the Commission" between the words "Minister" and "no person".
   

AMENDMENT OF SECTION 13 OF THE PRINCIPAL ACT

7. Section 13 of the principal Act is amended in subsection (1) by inserting after the word "Minister" in paragraph (a) the words "after consultation with the Commission".
   

AMENDMENT OF SECTION 15 OF THE PRINCIPAL ACT

8. Section 15 of the principal Act is amended -

(a) by repealing subsection (1) and substituting the following subsection: -

"(1) The Commission may at its discretion from time to time make examinations under conditions of secrecy of the books and affairs of all licensed financial institutions.";

(b) in subsection (2) by deleting the words "appoint one or more qualified persons to"; and

(c) by adding after subsection (2) the following new subsection: -

"(3) The Commission may appoint one or more qualified persons to carry out the examinations referred to in subsection (1) and subsection (2) on its behalf.".

AMENDMENT OF SECTION 16 OF THE PRINCPAL ACT

9. Section 16 of the principal Act is amended -

(a) in subsection (1) -

• (i) by deleting the words "produce to the person" and substituting the words "produce to the Commission or to the person;"; and
  
• (ii) be deleting the words "such person" wherever they appear and substituting the words "the Commission or such person;"; and
  

(b) by deleting subsection (3) and substituting the following subsection: -

"(3) As soon as practicable after the conclusion of an examination under section 15(2), the Commission, or such person or persons who may have been appointed under section 15(3) to carry out an examination on the Commission's behalf, shall prepare a full report on such examination and the Commission shall forward a copy of the report to the principal office of the financial institution concerned, the Minister and the Reserve Bank."

AMENDMENT OF SECTION 17 OF THE PRINCIPAL ACT

10. Section 17 of the principal Act is amended -
    
    • (i) in the first line by deleting the word "Minister" and replacing it with the word "Commission"; and
      
    • (ii) in paragraph (a) by deleting the words "he may consider" and substituting the words "the Commission may consider"; and
      
    • (iii) in paragraph (b) by deleting the words "in his opinion" and substituting the words "in the Commission's opinion".
      

AMENDMENT OF SECTION 21 OF THE PRINCIPAL ACT

11. Section 21 of the principal Act is amended -
    
    • (a) in subsection (1) by deleting the words "pay to the Government a fee of VT200,000" and substituting the words "pay to the Commission the prescribed fee";
      
    • (b) in subsection (2) by deleting the words "pay to the Government a fee of VT300,000" and substituting the words "pay to the Commission the prescribed fee;"; and
      
    • (c) by adding after subsection (4) the following new subsection: -
      

"(5) The Commission shall retain 5% of each fee paid pursuant to this section as its income and shall remit the balance to the Treasury on account of the Revenue Fund."

AMENDMENT OF SECTION 21A OF THE PRINCIPAL ACT

12. Section 21A of the principal Act is amended -

(a) by deleting the words "section 21(2)" and substituting the words "section 21";

(b) by deleting paragraph (b) and substituting the following paragraph: -

"(b) where such fee remains unpaid for a period exceeding 60 days but not exceeding 120 days, 25% of the fee payable;"

(c) by adding after paragraph (b) the following new paragraph: -

"(c) where such fee remains unpaid for a period exceeding 120 days 50% of the fee payable;";

(d) by numbering the present provisions as "subsection (1)"; and

(e) by adding after subsection (1) the following new subsection: -

"(2) The Commission shall retain 50% of all penalties paid pursuant to this section as its income and shall remit the balance to the Treasury on account of the Revenue Fund."

REPLACEMENT OF SECTION 24 OF THE PRINCIPAL ACT

13. Section 24 of the principal Act is repealed and the following section is substituted:
    

"RULES

24. The Minister may by order make such rules as may be necessary for the purpose of carrying into effect the provisions of this Act including rules prescribing the fees to be paid under section 21."
    

COMMENCEMENT

14. This Act shall come into force on the date of its publication in the Gazette.

SCHEDULE
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Wherever each word specified in the following table appears in the sections listed under that word in the table, the appropriate deletion and substitution shall take effect as follows:

(a) the word "Minister" shall be deleted and the word "Commission" shall be substituted;

(b) the word "he" shall be deleted and the word "it" shall be substituted;

TABLE

MINISTER HE

3(1) 15(2)

4(2) 16(4)

4(3) 18

4(4)(b)

4(4)(c)

4(4)(d)

5(1)

5(3)

5(4)

5(7)

7

9

12

13(2)

13(3)

13(4)

14

15(2)

16(4)

18

19

21(4)

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