FINANCIAL INSTITUTIONS ACT, 2004

PART VIII - MISCELLANEOUS

64. (1) With the approval of the Minister, the Central Bank may, by notice published in the Gazette and in at least one local newspaper, declare any day to be a bank holiday.

(2) No financial institution shall transact any business with the public on any public holiday or a bank holiday without the approval of the Central Bank.

(3) A bank holiday declared under this section is not a public holiday unless the date so declared is also a public holiday by virtue of the Public Holidays Act, and, except for subsection (2), nothing in this section affects the provisions of that Act relating to public holidays.

65. Except where expressly stated in this Act, nothing in this Act shall affect the operation of the Companies Act in respect of the incorporation and winding up of any financial institution to which that Act and this Act apply.

66. (1) Schedule 1 applies with respect to the amalgamation and transfer of assets or liabilities of a financial institution.

(2) Schedule 2, Parts I and II apply with respect to the winding up of a local financial institution in place of the provisions of the Companies Act specified in Part III of the Schedule.

(3) Schedule 3 applies with respect to the seizure by the Central Bank of a financial institution.

(4) Schedule 4, Part I applies with respect to the reorganisation of a local financial institution in place of sections 196 to 198 (compromises, arrangements, reconstructions and amalgamations) of the Companies Act, and Schedule 4 Part II applies with respect to the reorganisation of a foreign financial institution.

(5) Schedule 5 applies with respect to the closure of a foreign financial institution in place of sections 318 (winding up of overseas companies), 319(2) (investigations) and 320 (orders to cease carrying on business) of the Companies Act.

(6) If there is any inconsistency between any provision of Schedules 1 to 5 and any other law of Seychelles, that provision prevails to the extent of the inconsistency.

67. Neither the Central Bank nor any member of its Board nor any officer, employee or agent of the Central Bank shall be subject to any action, claim or demand by or liability to any person in respect of anything done or omitted to be done in good faith under, or in execution or intended execution or in connection with the execution of, any power or duty conferred on the Central Bank by or under this Act.

68. The acts, directions, orders, determinations or decisions of the Minister or the Central Bank under this Act shall be subject to judicial review.

69. The Central Bank may, in consultation with the Minister, make regulations for the better carrying out of the objects and purposes of this Act including –

(a) prescribing any matter which is to be or may be prescribed under this Act; and

(b) prescribing fees or charges-

(i) for applications, objections, appeals or certificates; or

(ii) for or in connection with services provided under this Act.

70. (1) The Chief Justice may make rules of court relating to proceedings in court under this Act, including –

(a) prescribing the fees and costs payable in any proceedings before a court;

(b) providing generally for matters of practice and procedure and incidental matters arising in connection with any proceedings.

(2) Subject to any rules of court made under subsection (1), the forms to be used and the practice and procedure to be followed in proceedings in court under this Act shall be as near as practicable to those in ordinary civil cases before the court.

71. (1) Except where it is otherwise expressly stated in this Act or any other written law, the provisions of this Act shall not apply to –

(a) a cooperative established under the Cooperatives Act;

(b) a body corporate established directly by an Act of Seychelles;

(c) the Housing Finance Company Limited;

(d) the Development Bank of Seychelles;

(e) a company incorporated under the Companies Act or an overseas company registered under section 310 of that Act registered to carry on insurance business under section 9 of the Insurance Act, 1994.

(2) Notwithstanding subsection (1), if the President after consultation with the Central Bank is satisfied that prevailing conditions justify such action, the President may, by Order published in the Gazette, declare that all or any of the provisions of this Act shall, from the date specified in the Order, apply to all or any of the institutions specified in subsection (1) or to any other person specified in the Order.

72. (1) Where a financial institution or any other person agrees in writing to the compounding of a contravention of this Act which is an offence punishable on conviction only by a fine, the Central Bank, in consultation with the Attorney General, may compound the offence by accepting a sum of money amounting to at least one-third of the maximum fine but not exceeding the maximum fine specified for the offence.

(2) Where an offence is compounded under subsection (1), no proceedings shall be instituted in relation to that offence against the financial institution or the person referred to in subsection (1).

73. (1) The laws specified in Schedule 6 shall not apply to a financial institution or to a separate unit of a financial institution solely conducting offshore banking business under this Act.

(2) Subsection (1) shall, in relation to a financial institution referred to in that subsection, continue in force for a period of 20 years from the date of the licence granted to that financial institution under section 6.

(3) Notwithstanding subsection (1), a financial institution referred to in that subsection may, within a period of 3 months or such extended period as may be allowed by the Commissioner of Taxes from the commencement of a year of assessment, elect in the form approved by the Commissioner of Taxes, for the levy of business tax under the Business Tax Act on the taxable income of the offshore banking business of the financial institution for that year of assessment at a rate to be agreed upon between the financial institution and the Commissioner of Taxes.

74. The provisions of sections 24(1), 25, 26, 29(1) to (4), 30, 44, 45, 49(2), 55, 56(2) to (4), 59, 60, 61 and 64(1) shall not apply to a financial institution or a person licensed to solely conduct foreign exchange business under this Act.

75. (1) Any person who is the holder of a banking licence or foreign exchange licence on the date of commencement of this Act may continue to conduct the activities authorised by the licence.

(2) Any additional activities as set out in section 4(1), in particular financial leasing, buying and selling for the account of customers and portfolio management, may only be conducted once an extension of the banking licence to include such activities has been granted by the Central Bank on being satisfied as to the staffing, operational and financial resources, and pursuant to the procedures and requirements specified by the Central Bank.

(3) Notwithstanding section 23(4), the Central Bank may authorise a bank to maintain, for such period of up to one year as the Central Bank may determine, its capital adequacy ratio at the rate which was in existence prior to the date of commencement of this Act.

(4) Notwithstanding section 29(1) and (2), the Central Bank may authorise a bank to maintain with regard to existing credits outstanding on the date of commencement of this Act, for such period of up to two years as the Central Bank may determine, its single large exposure at the rate which was applicable prior to such date of commencement.

(5) Notwithstanding section 30(2), (4) and (5), the Central Bank may authorise a bank to maintain with regard to existing credits outstanding through connected lending on the date of commencement of this Act, for such period not exceeding two years as the Central Bank may determine, its exposures through connected lending at the level existing on such date of commencement.

76. The Banking (Special Provisions) Act is hereby repealed.

77. (1) The Financial Institutions Act, 1984 is hereby repealed.

(2) Notwithstanding subsection (1) regulations made under the Financial Institutions Act, 1984 shall, to the extent that they are not inconsistent with the provisions of this Act, continue to have effect until amended or replaced by regulations made under this Act.