Professional Documents
Culture Documents
22.
BANK OF JAMICA
PART IVA. Dealings in Foreign Currency
Foreign currency transactions.
Ministerial directions to certain classes of persons.
Exemption.
Offences.
punishmint without prosecution of offences in connection with
directions.
Fees.
PART 1VB. Money Transfers and Remittances
Money transfer and remittance agency or agent.
PART V. Banking
Powers of the Bank.
Restrictions on business of the Bank.
Minimum discount and re-discount rates.
Bank as bankers' banker.
-.
BANK OF J A M ICA
Secrecy.
Verifying false statement, account or list.
Transmitting false statement.
Trial of offences.
Service of notice.
PART IX. Transitional Provisions
Transitional.
SCHEDULE
'
'
[ I st ~ctobe;,1960.]
Law
32 of 1960.
Acts
37of1964.
31 of 1966,
7 of 1969
IS of 1984.
4 or 1985,
8 of 1989.
32of1991,
11 of 1992
Seh..
Sch.,
I 2 of 1971,
22 of 1971.
18 of 1973.
44 of 1975.
33 of 1976.
10 of 1977.
17 of 1978.
21 of 1978,
PART I. Preliminary
Short tide.
1. This Act may be cited as the Bank of Jamaica Act.
Interpreta2. In this Act unless the context otherwise requirestion.
"approved foreign currency" 'means any foreign currency 1811973
declared ,by 'order of the Minister after consultation S. 2.
with the Bank to'be an'approved foreign currency;
"approved money transfer and remittance agency or agent" inoolr
means a company which is approved by the Minister to S. 2.
carry on the business of transferring or transmitting
money or any representation of monetary value, by any
means fiom or to J q a i c a ;
BANK OF JAMAICA
'
1111992
Sch.
1111992
Sch.
1111992
Sch.
i511992
S . 2 (d).
I
BANK OF JAUAICA
211995
S. *.
(2) The Bank shall be a body corporate having perpetual succession and a common seal and, subject to the provisions
of this Act, with power to acquire, hold and dispose of land and
other property of whatever kind and to enter into contracts and
to do all things necessary for the purposes of its functions.
Establishment of
Bank of
Jamaica.
BANK OF JAMAICA
Place of
business.
General
objects of
Bank.
Board of
Directors.
0511992
S. 4 (a).
BANK OF JAMAICA
-95/1997j
10
Power to
appoinl
ancers,
agcnts and
IcCYantA
15/1992
8 5 (1).
lBl1973
S. 4.
15/19SQ
S. 5 (b).
lJ/1992
s. 5 (b).
15/1992
S. 5 (b).
ChpiUl of
the Bank.
BANK OF JAMAICA
BANK OF JAMAICA
;~~~
BANK OF JAMAICA
'5/'992
s. 7 (c).
of &e
Island.
1st SEh.
dollar.
2211971
S.'2.
1511992
S 8.
,,/,,,
s. 2.
(2) An order made under subsection (1) may contain such consequential, supplemental or ancillary provisions (including mdications of the provisions of this
Act) as the Minister may consider necessary or expedient
for the purposes of the order.
BANK OF JAUAICA
12.--(I) Subject to section 14, the Bank shdl have the sole
right and authority to issue notes and coins in the Island.
13
3111%6
S. 2.
sole riel
to issue
notes and
wins
,o
1y,973
1511992
S.9(b).
(6) on conviction in a Circuit Court to a fine or to imprisonment for a term not exceeding five years or to both such
fine and imprisonment.
13. Notes issued by the u2lnk sbll be exempt from the payment of stamp duties.
Exempti~n
fmm stamp
duty on
notcs.
hamin*
tions and
Bank;
(b) by order determine the standard weight and composition of coins to Be issued by the Bank and the
amount of remedy (or variation from the standard
weight and composition) which may be allowed in the
making of such coins.
(Tk f d m h e l (bb page b rotholtrcd by LN. tu/sottl
forms of
notes and
wins.
l"1973
S. 8 (a).
BANK OF J A M ICA
1811973
S.8 (c).
Bank.
-1
lemdzr.
711969
1st Sch.
notes and
coins.
BANK OF JAMAICA
i,1,,f978
BANK OF JAMAICA
16
Functiom
of Bank in
rclalion to
currency.
19. The Bank shall(a) arrange for the printing of notes and the minting
of coins for circulation in Jamaica;
of
~n
rclatlan1o
Furrency
IS~UC.
18:1973
S. 11.
s.
(e) securities issued by international financial institutions of which Jamaica is a member and which
[The inclusion of this page is authorized by LN.421 19951
BANK OF JAMAICA
Power qf
Ministet to
make rygulations.
1111993
Sch.
:uy'Ep
transactions.
BANK OF J M I C A
18
,,
211995
s. 3(b).
J
I
BANK OF JAMAICA
19
1/2004i
S.3(b)J
1/2004,
S. 3(W
moo41
S. 3(b)1
(4 foreign securities;
(e) any other assets located outside of Jamaica.
22C. The Minister may by order exempt any person or class of
persons from any obligation or prohibition imposed under or
pursuant to any provision of this Part or Part IVB and such
exemption may be either absolute or conditional.
I
I
~xem$ion.
~
l/zooq
S. 4. '
BANK OF JAMAICA
d"
I
1
I
( a ) in relation to an offence
involving
currency or foreign currency
foreign currency or foreign
as the case may be, to be forfeited; and
( b ) impose a larger fine not exceeding three t'mes the
amount or value of the currency or instru ~ ent, as
the case may be.
1
I
S. 5(a).
BANK OF JAMAICA
20.01
BANK OF JAMAICA
I
\
Appendix
l.
+'$% <. .
BANK OF JRMAICA
21
Appeedix.
22F. A person who, with the approval of the Minister, operates Fees.
21 19915
an exchange bureau, a money transfer and remittance agency or s. 4. ,
as a money transfer and remittance agent, shall pay, in respect of S.
1/2O04
6. 1
such operation, such annual fee as the Bank, with the approval of
the Minister, may by notice determine.
PART IVB . Money Transfers and Remittances
226.-(1)
Except with the approval of the Minister, no person
shall carry on the business of a money transfer and remittance
agency or operate as a money transfer and remittance agent.
(2) Any person who carries on the business of a money
transfer and remittance agency or who operates as a money
transfer and remittance agent shall do so in accordance with such
directions as may be issued by the Minister from time to time,
and the provisions of section 22B(3) shall apply with necessary
modifications in relation to directions issued under this
subsection.
PART V. Bankmg
23. Subject to the provisions of this Act, the Bank may for the
purpose of the performance of its functions(a) accept deposits of money;
(b) pay money whether by demand drafts or other
instrument payable at its own offices or at the offices
of its agents or correspondents;
(c) buy and sell gold coin and gold bullion;
(d) buy, sell, discount and re-discount(i) inland or foreign bills of exchange or promissory
notes maturing within two hundred and seventy
[The inclusion of this page is authorized by L.N.1 1 1/2005]
1/zoC/4
S.7.
"On? erand
trans
remittance
agen y a
a w l
S. 1 (a).
I
BANK OF JAMAICA
15 1992
13 (a)
18 1973
s 13 (b)
1511992
S 13 (b).
I
I
18'1973
S. 13 (c).
1811973
S. 13 (d)
I5ll992
S. 13 (c).
to borrow in such
upon such other
any foreign currency
expedient to acquire;
[The inclusion of this page is authorized by L.N. 1 1 112005j
BANK OF JAMAICA
6') with
--
-~
:gFz
business of
the Bank.
1511992
S. 14(b).
BANK OF JAMAICA
1011977
5 6
IS/19%
S. 14(a).
1511992
S. 14(b).
hfinimum
dmount
and
re-discount
rates
Bank as
bankers'
banker.
BANK OF J A M ICA
25
27.-(1)
~~'~~~~g!:::
'.
"central counter-party" means a , partnership, agency, association, body corporate or other entity in a payment or
securities clearing and . settlement system which is
interposed between the participants, and which acts as the
exclusive counter-party of these entities with regard to
their transfer orders;
I
I
'
BANK OF J A M I C A
26
'
I
I
,
I
Reserve
requirements
1511922
S. 15 (a).
'
t
I
-I
I
1
I
BANK OF J A M ICA
26.01
(b) it shall be the duty of the Bank to give all commercial 1511992
I5 (b).
banks or, as the case may be, specified financial insti- S.1711978
tutions at least fifteen days' notice of the date on which s. 2.
the increase is to take effect.
(3) A notice under subsection (1) may make different 1811973
S. IS.
provisions as respects different types of prescribed liabilities ,,,,,
specified in the notice, so, however, that if any such notice pres- s. 2.
cribes marginal cash reserve requirements for increases in specified prescribed liabilities such requirements shall,not exceed one
hundred per centum of the increase in such liabilities.
(3A) Without prejudice to the generality of subsection (3),
a notice under subse'ction (1) varying minimum cash reserves
may require that where a portion of the prescribed liabilities in
foreign currency then such percentage of the prescribed liabilities
so payable as is specified in the notice shall be held in foreign
currency so, however, that the percentage so specified shall not be
less than five nor more than twenty-five per centum.
[The inclusion of this page is authorized by L.N. 92c/2012]
1511992
S. 15 (c).
BANK OF JAMAICA
26.02
I
1811973
s. 15.
441197s
s. 2.
1511992
S.I5(d).
special
deposits by
commercial
bank and
specified
financial
instimion.
1511992
S. 16.
(4) In subsection (3) "marginal cash reserve .requirements" means in relation to any increases in specified prescribed
liabilities, such percentage of the increase as is required to be
maintained with the Bank for the purposes of section 14 of the
Banking Act or, as the case may be, section 14 of the Financial
Institutions Act.
28A.+1) Without prejudice to the provisions of section 28,
and subject to subsection (2) of this section, the Bank may, with
the approval in writing of the Minister, require(a) a commercial bank; and
I
to maintain with the Bank in the form of a deposit (in this section
referred to as a "special deposit") an amount not exceeding
twknty-five per centurn of the amount of the prescribed liabilities
of such bank or such specified financial institution.
I
(2) A commercial bank or specified financial institution may comply, in whole or part, with a requirement made
pursuant to subsection(1) by investments in the form of -
'
r.
*.
-'
BAA7K OF JAMAICA
y*,: ,
is autaorizsd by L N . 95119971
BANK OF JAMAICA
32jlr)i
s. ?(a).
IS! 1
,,,
~ 3
S. 16(b).
S. 3.
(2) Where any such percentage is to be increased(a) the increase shall be so effected as not to exceed
five percentage points in any one period of thirty
days; and
( b ) it shall be the duty of the Bank to give to all
commercial banks or, as the case may he, specitied
financial institutions at least fifteen days' notice of
the date on which the increase is to take effect.
( 2 ~ Until
)
other provision is made pursuant to subsection (I), the percentage of prescribed liabilities which a
commercial bank is required to maintain as liquid assets
shall, with effect from the 23rd of December, 1991, be the
percentage maintained by that bank on the 20th of
November, 1991.
(3) A notice under subsection (1) may make different
provisions as respects different types of prescribed liabilities
specified in the notice, so, however, that if any such notice
prescribes marginal liquid assets requirements for increases
in specified prescribed liabilities such requirements shall not
13
- ---
BANK OF IAMAlCA
29
IF
mtho~izedby 1 N 95119971
BANK OF JAMAICA
Power of
Bank l o
require
information Irom
commercial
banks and
spccilied
finaocial
institutions
1811973
S. 17.
1511W
S. 18.
211995
S. 5 @).
30.-(I) The Bank may(a) require any commercial bank or specified financial
institution to furnish, within such time and in
such form as the Bank thinks necessary, such
information as the Bank thinks requisite for the
purpose of ascertaining whether that bank or specified financial institution is complying with the
provisions of section 14 or 15 of the Banking Act,
or section 14 or 15 of the Financial Institutions
Act, or section 28,28A or 29 of this Act;
(b) require any commercial bank or specified financial
institution to furnish, within such time and in such
form as the Bank thinks necessary, such information of any prescribed class as the Bank considers
requisite for the proper discharge of its functions
and responsibilities;
(c) require any person mentioned in section 22B (1)
to furnish, within such time and in such form as
the Bank thinks necessary, such information as the
Barrk thinks requisite for the purpose of ascertaining whether that person is complying with the
provisions of section 22B.
BANK OF JAMALCA
31
;q:(gcii).
:$,?),
Winclaaiond~hiagagoa~byLN.95/1997]
BANK OF JAMAICA
S. 21 (d) (i).
BANK OF JAMAICA
33
1511992
S. 21 (d) (3).
Power of
34.-(1) The Bank may from time to timeBank to
fix rnaxi(a) by instrument in writing fix, or prescribe the ,
,
manner of determination of, the maximum amount ,ft$eE",,
of the working balances which commercial banks $)yYz
and specified financial institutions may hold in s. 19.
1511992
foreign currencies generally or in any specified S.23 (a).
foreign currency or currencies;
(b) require commercial banks and specified financial
institutions to exchange with the Bank all or any
specified part of the surpluses in excess of such
maximum amount for an equivalent amount of
Jamaican currency.
(2) The Bank may by instrument in writing and
subject to such terms and conditions as it may deem fit,
permit any commercial bank or specified financial institu- ;sJ;;f
tion to hold working balances in any specified foreign currency in excess of such maximum amount fixed or determined for such currency under subsection (1).
(3) In ascertaining whether the working balances of
any commercial bank or specified financial institution in any 1511992
foreign currency or currencies are in excess of the maximum S. 23 (b).
amount fixed or determined under subsection (11 there may
be deducted from such balances the liabilities in foreign
currencies into which such currency or currencies are
convertible.
L:li:g),
gxy
%=
-t.
34
BANK OF IAMAICA
Supervisory
Dcmrtment.
D'"'O'ur~
of interest
in the bank.
BANK OF JAMAICA
35
Semecyof
>:y
lomol
S. 2.
BANK OF JAMAICA
(2) Any person who contravenes the provisions of
subsection (1) shall be guilty of an offence and shall be liable on
(a) the Bank has satisfied itself that the overseas regulatory
authority is subject to adequate legal restrictions on
further disclosures, including the provision to the Bank
of(i) an undertaking of confidentiality on the part of
the authority; or
(ii) an undertaking by the authority not to disclose
the information provided without the consent of
the Bank;
(b) the Bank is satisfied that the assistance requested by
the overseas regulatory authority is required for the
purposes of that authority's regulatory functions,
including the conduct of civil or administrative investigations or proceedings to enforce laws administered by
the authority; and
lThe inrluaiun of this page i s authorized by L.N. I8OAiZOO6l
BANK OF JAMAICA
(c) the Bank
in criminal proceedings; or
2%'
(a) immediately notify the Attorney General of the particulars of the request; and
(b) send him copies of all documents relating to the
request,
and the Attorney General shall be entitled to appear or take part
in any proceedings in Jamaica, or in any appeal from such
proceedings, arising directly or indirectly from any such request.
(7) Where pursuant to subsection (3), the Bank
properly supplies information to a requesting party, the
information supplied shall be deemed to be legally and lawhlly
given under this Act; and every person liable to be proceeded
against on the ground that such information was unauthorized or
unlawfully given, or was otherwise acting illegally or
improperly, for any such reason only, is hereby acquitted, freed,
discharged and indemnified as against all persons whatsoever
and whomsoever, from liability arising from the supply of that
information.
(The inelu~lonof this page ir authorlmrl by L.N. 180N20061
T$5
36.02
Indcrnnm
2 1995
BANK OF.JAMAICA
Second
Schedule.
211995
Re~'"tionS
S.6 .
( h ) the Minister;
(c) any person appointed pursuant to section 34B (4);
(4 any person appointed by the Minister pursuant to
regulations made under this Act or pursuant to
paragraph 1 (4) of Part D of the Second Schedule to the
Banking Act or the Financial Institutions Act, as the
case may be, to perform hnctions and duties in
connection with the temporary management of a
commercial bank or specified financial institution.
34F.-(1) The Minister may, in accordance with the
recommendations of the Bank, make regulations prescribing prudential criteria and minimum solvency standards to
be complied with by commercial banks and specified
financial institutions.
HANK OF JAMAICA
(i)
BANK OF JAMAICA
36.04
17 2002
2 (a$
(s)
I8
aulharlzed by
L.N.
180A12006l
C)
BANK OF JAMAICA
37
*bankerto
~ ~ ~ , " ~ O n
authorities.
d5:,'
1511992
S . 25 (b).
1511992
S. 25 (b).
Advances to
the
Government
3311976
S.2.
BANK OF JAMAlCA
(2) Where such advances are not duly repaid the power
s. 7.
Limitationon
power of Bank
topurchase
Managemed
ofthe public
debt.
Power of Bank
to act as
loanstolocal
authorities.
37/19,
S. 14.
Power of Bank
toactasagent
for the
(;ovmt,
Power of
Minister to
givegeneral
directions.
38. The Bank shall, at the request c-fthe Minister and subject
to such terms and conditions as may be agreed between the
Minister and the Bank, act as agent for the Government in the
payment of interest and principal and generally in respect of the
management of the public debt of Jamaica.
39. Where regulations made under the Loans (Local
Authorities) Act provide for a Registrar in relation to registered
stock issued pursuant to that Act, the Bank may, at the request of
the Minister perform the fbnctions of such Registrar.
40. The Bank may act generally as agent for the Government
where it can do so appropriately and consistently with its
fbnctions under this Act.
BANK OF JAMAICA
39
Depository
of securities
and other
instruments.
,,,,,,
S. 3.
~ank's
tinancial
year.
Accounts
and audit.
BANK OF JAMAICA
I
Reports.
!
I
receiptI
4I
3711964
S. 15.
I
Power to
make by-laws.
Secrecy.
. ,
BANK OF JAMICA
41
1511992
S. 28(a).
7/2005
S. 4.
(3) Every officer and servant of the Bank and every ,511992
s 28 (b).
auditor of the Bank-
-,
BANK OF JAU4ICA
(a) on summary conviction before a Resident Magistrate to a fine not exceeding fifty thousand dollars or
or to imprisonment with or without hard labour
for a term not exceeding two years;
( b ) on conviction before a Circuit Court to a fine or
to imprisonment for a term not exceeding five
years or to both such fine and imprisonment.
Transmitting
false statement.
1811973
S.22.
1511992
S. 29(a).
, 49. Any person who transmits or is concerned with transmitting any statement to the Bank pursuant to this Act
knowing the same to be false in a material particular
shall be guilty of an offence and liable(a) on summary conviction before a Resident Magistrate to a fine not exceeding fifty thousand dollars
or to imprisonment with or without hard labour for a
term not exceeding two years;
(b) on conviction before a Circuit Court to a fine or to
imprisonment for a term not exceeding five years or to
both such fine and imprisonment.
Trial of
offences.
Service of
notice.
Translt~onal.
Cap.88
1953Edtn.
(Repealed).
Cap.89
1953~ d t n
(Repealed)
50. Every offence under this Act may be tried summarily before a Resident Magistrate, so, however, that the
maximum penalty which may be imposed on a person
summarily convicted shall be a fine of fifty thousand
dollars or imprisonment with or without hard labour for
a term of two years.
,51. Every notice under this Act by the Bank may be
BANK OF JAMAICA
43
SCHEDULE
(Section 6)
1. The term of office of every director shall be specified in the Tenureof
instrument appointing him andoffice.
1011977
(a) for the Governor, Senior Deputy Governor and Deputy Governors s, 9 (,I.
shall not exceed five years;
1511992
(b) for every other director shall not exceed three years,
S. 30 (a).
but any director retiring on the expiration of his term of office shall, subject to
paragraph 2: be eligible for reappointment.
2. A person may not be appointed or remain a director who(a) is a member of either House of Parliament;
(6) is a director, officer or employee of any commercial bank or any
specified financial institution;
(c) is a member of thc Kingston and St. Andrew Corporation
or of any Parish Council.
3. The Minister rnay appoint any person who might be appointed
a director to act temporarily in the place of any director who is absent
or unable to act.
Disqualification of
directors.
1511992
S.30(b).
1811973
S. 24.
3711964
S 16(a)
Res,gndt,oil,
4.-(1) Any director other than the Governor may at any time resign his
office by instrument in writing addressed to the Minister and transmitted
through thc Govcrnor and from thc datc of thc rcccipt by tlic Ministcr of such
instrument such director shall cease to be a director of the Bank.
3711964
(2) The Governor rnay at any timc resign his officc by instrument in
s. 16(b).
writing addressed to the Minister.
S. 30 (c).
to death.
44
BANK OF JAMAICA
1511992
S. 30(d)(ii).
determines.
(2) The Governor, or in the event of his absence or inability to act,
the Senior Deputy Governor shall preside at the meetings of the Board.
(3) The quorum of the Board shall be four directors: including
the person presiding pursuant to sub-paragraph (2). and such person
shall have a casting vote where the voting is equal.
(4) The validity of any proceeding of the Board shall not be affected by
any vacancy amongst the directors or by any defect in the appointment of a
director.
Remuneration of
directors.
3711964
S. 16 (b).
8. There shall be paid to the Governor and the other directors such
remuneration: if any (whether by way of salaries or travelling or other
allowances), as the Minister may determine.
1511992
S. 30 (d)( i)
211995
S. 7.
(Section 22E)
APPENDIX
Offence
Fixed Penalty
PART A
1. Purchase of foreign currency in breach of directions given under section 22B, by an exchange
bureau operated in a hotel
...
...
$5,000.00
$10,000.00
$5,000.00
$ 5,000.00
BANK OF J A M ICA
APPENDIX,
contd.
Offence
-
Fixed Pendty
112004
S. 8 (b)