International Banking Act - Vanuatu Financial Services Commission

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LAWS OF THE REPUBLIC OF VANUATU INTERNATIONAL BANKING (b) the interest, directly or indirectly: (i) (ii) (iii) enables the person to control 10 percent or more of the voting rights of the company at a general meeting of the company; or entitles the person to a share of 10 percent or more in dividends declared and paid by the company; or entitles the person to a share of 10 percent or more in any distribution of the surplus assets of the company; whether or not the person holds the interest alone or with one or more other persons. 2. Banking business (1) A person is carrying on banking business if the person: (a) (b) accepts deposits of money that are withdrawable, or payable upon demand, after a fixed period or after notice; or undertakes the frequent sale or placement of bonds, certificates or other securities; and uses such deposits or the proceeds of such sales or placements, either in whole or in part, for loans or investments for the account and at the risk of the person. (2) A person is taken to be carrying on banking business if the person: (a) (b) advertises for or solicits deposits of money, or offers to sell or place bonds, certificates or other securities; and uses or intends to use the funds so acquired, either in whole or part, for making loans or investments, or any other activity authorised by law or customary banking practice, for the account and at the risk of the person. (3) Banking business does not include the acceptance of a deposit of money which is paid by a company (“the paying company”) to another company if: (a) (b) the paying company is a subsidiary of the other company; or the paying company and the other company are both subsidiaries of a third company. 3. Application of Act (1) This Act does not apply to financial institutions licensed under the Financial Institutions Act No. 2 of 1999. (2) This Act has effect despite the Companies Act [CAP 191] and the International Companies Act No. 32 of 1992 and if there is any conflict between the provisions of this Act and the provisions of the Companies Act [CAP 191] or the International Companies Act No. 32 of 1992, the provisions of this Act prevail. 6
LAWS OF THE REPUBLIC OF VANUATU INTERNATIONAL BANKING (3) However, nothing in this Act exempts a licensee from complying with the provisions of the Companies Act [CAP 191] or the International Companies Act No. 32 of 1992. PART 2 - LICENSING OF INTERNATIONAL BANKING BUSINESS 4. Licence needed to carry on international banking business (1) A person must not carry on international banking business unless the person is licensed under this Act. (2) If a person contravenes subsection (1), the person is guilty of an offence punishable on conviction: (a) if an individual by a fine not exceeding $150,000 or imprisonment for a term not exceeding 10 years or both; (b) if a body corporate a fine not exceeding $750,000. 5. Existing exempted banks and exempted financial institutions (1) On 1 January 2003 each exempted entity is taken to have been issued with a licence under this section to carry on international banking business and the Reserve Bank must as soon as possible after that date issue each exempted entity with the licence. (2) A licence under this section is to be in such form as is approved by the Reserve Bank and the licensee must pay to the Reserve Bank on or before 31 January 2003 the prescribed annual licence fee. (3) While a licence under this section remains in force an exempted entity is subject to the provisions of this Act, other than sections 20, 21 and 22. (4) A licence under this section ceases to be in force on 31 December 2003. (5) If an exempted entity wishes to carry on international banking business after 31 December 2003, the exempted entity must before 1 August 2003 apply to the Reserve Bank under section 6 for a licence to carry on international banking business. (6) To avoid doubt, an application by an exempted entity under section 6 is an application for a new licence and the fact that the exempted entity has a licence under this section is not to be taken into account by the Reserve Bank in determining the application for a licence under section 6. (7) Despite the provisions of any other Act, an exempted entity ceases to be subject to the Banking Act [CAP 63] on 1 January 2003 and any licence issued under that Act to the exempted entity ceases to be in force on 1 January 2003. (8) In this section, exempted entity means a company that on 31 December 2002 was licensed as an exempted bank or exempted financial institution under the Banking Act [CAP 63]. 6. Application for licence to carry on international banking business. (1) A company must apply in writing to the Reserve Bank for a licence to carry on international banking business. 7
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International Banking Act - Vanuatu Financial Services Commission

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