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Reserve Bank of Vanuatu (Amendment) Act 1997

Commencement: 13 October 1997

REPUBLIC OF VANUATU

RESERVE BANK OF VANUATU (AMENDMENT) ACT
NO. 12 OF 1997

Arrangement of Sections

1. Amendment of section 1 of Chapter 125
2. Insertion of new section 13A
3. Amendment of section 16
4. Amendment of section 27
5. Replacement of section 31
6. Insertion of new section 31A
7. Amendment of section 32
8. Amendment of section 37
9. Commencement
   

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REPUBLIC OF VANUATU

RESERVE BANK OF VANUATU (AMENDMENT) ACT
NO. 12 OF 1997

Assent: 12/09/97
Commencement: 13/10/97

An Act to provide for various amendments to various provisions of the Reserve Bank of Vanuatu Act [CAP. 125] and for matters incidental thereto.

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

AMENDMENT OF SECTION 1 OF CHAPTER 125

1. The Reserve Bank of Vanuatu Act [CAP. 125] in this Act referred to as the "principal Act" is amended in section 1 -
   
   • (a) by inserting after the definition of "bank" the following new definition -
     

"Banking Act" means the Banking Act [CAP. 63] including any amendment or re-enactment thereof;"

(b) by inserting after the definition of "General manager" the following new definition -

"licensed" means licensed under the Banking Act to conduct banking business;".

INSERTION OF NEW SECTION 13A IN THE PRINCIPAL ACT

2. The following new section is inserted after section 13 of the principal Act -

"IMMUNITIES FOR ACTS DONE IN GOOD FAITH

13A. The Board of Directors or any member thereof, the Governor and any officer, employee or person duly appointed or authorised by the Reserve Bank, shall not incur any liability or suffer any penalty as a result of anything done or for any omission made in good faith in the exercise of any power or the performance of any duty under this Act."

AMENDMENT OF SECTION 16 OF THE PRINCIPAL ACT

3. Section 16 of the principal Act is amended in paragraph (a) by inserting the words "at its discretion" immediately before the word "buy"
   

AMENDMENT OF SECTION 27 OF THE PRINCIPAL ACT

4. Section 27 of the principal Act is amended -

(a) by repealing the proviso to paragraph (d);

(b) by inserting the following new paragraph (e) after paragraph (d);

"(e) for its own account, issue bills and notes from time to time in such amounts and on such terms as it shall decide, and purchase, sell, discount and re-discount such bills and notes;

Provided that such transactions need not be restricted to account holders."

(c) by repealing subparagraph (i) of paragraph (d) and substituting the following new subparagraph:

"(i) instruments specified in paragraph (b) and (e) of this section."

REPLACEMENT OF SECTION 31 OF THE PRINCIPAL ACT

5. Section 31 of the principal Act is repealed and the following section is substituted:
   

"PROVISION OF INFORMATION BY FINANCIAL INSTITUTIONS

31. (1) Notwithstanding the provisions of any other law, the Reserve Bank may require any financial institution to furnish, within such time and in such form as the Reserve Bank specifies, such returns and information regarding its operations in Vanuatu, or that of any related company, and, in the case of such financial institution which is incorporated in Vanuatu, also in respect of its operations overseas, as the Reserve Bank considers necessary to carry out its duties and functions, and to achieve its objects, under this Act including the calculation of reserves which may be prescribed under the provisions of section 33.
    
    • (2) The Reserve Bank may require a financial institution to submit a certificate from its external auditor verifying the accuracy of any returns and information furnished under subsection (1).
      
    • (3) The Reserve Bank may in its absolute discretion impose upon any financial institution and upon any director or officer of that institution administrative fines for:
      
      • (a) failure to submit or for wilfully delaying the submission of any return or information required under subsection (1), or for wilfully submitting any false or inaccurate return or information required under subsection (1); or
        
      • (b) failure to submit the certificate of the external auditor, if required in accordance with subsection (2).
        
    • (4) The administrative fines shall be in amounts as may be determined by the Reserve Bank to be appropriate, but in no case may exceed VT100,000 for each violation or where the violation is a continuing one, may not exceed VT10,000 for every day during which the violation continues, and shall take into consideration the surrounding circumstances such as the nature and gravity of the violation. The administrative fines imposed pursuant to subsection (3) shall be a civil debt and if not paid may be enforced by action in a court of competent jurisdiction.
      
    • (5) A financial institution or any director or officer of that institution on whom an administrative fine is imposed pursuant to subsection (3) may, within 14 days of the date of notification of such fine, submit reasons to the Board why such fine should not be imposed. After consideration of such submission the Board may confirm, vary or rescind such fine.
      
    • (6) Any return or information provided by a financial institution under subsection (1), or obtained during the course of an inspection carried out pursuant to section 32, shall be regarded as confidential and shall not be disclosed except in the performance of duties under this Act, or if lawfully required by any court or other law.
      

Provided that, notwithstanding the provisions of section 13:

(a) disclosure is permitted in confidence to a supervisory authority in any other country for the purposes of the exercise of functions correspondence or similar to those conferred on the Reserve Bank under this Act:

(b) publication by the Reserve Bank in aggregated or summary form is permitted, in such a manner as to prevent any information disclosed from being identified by any person as relating to any particular.

(7) For the avoidance of doubt, sections 31 and 32 of this Act apply to the National Bank of Vanuatu, notwithstanding the provisions of section 30 of the National Bank of Vanuatu Act No. 46 of 1989."

INSERTION OF NEW SECTION 31A IN THE PRINCIPAL ACT

6. The following new section is inserted after section 31 of he principal Act -

"PUBLICATION OF FINANCIAL STATEMENTS

31A. (1) Every licensed financial institution together with its subsidiaries shall in respect of its Vanuatu operations and, in the case of any such licensed financial institution which is incorporated in Vanuatu, also in respect of its overseas operations publish in the Official Gazette and in a newspaper published and circulating in Vanuatu, and exhibit thereafter in a conspicuous position in each of its offices and branches in Vanuatu, the audited balance sheet and profit and loss account of the licensed financial institution and its subsidiaries in such form and at such time as the Reserve Bank may require; advance copies of the statements shall be forwarded to the Reserve Bank 30 days prior to the publication.

(2) For the purpose of this section, a licensed financial institution shall include the Vanuatu branch operations of a licensed financial institution incorporated outside Vanuatu."

AMENDMENT OF SECTION 32 OF THE PRINCIPAL ACT

7. Section 32 of the principal Act is amended -

(a) in subsection (1) by inserting the words "or by other persons designated as examiners by the Reserve Bank" after the word "officers";

(b) in subsection (2) by inserting the words "or by other persons designated as examiners by the Reserve Bank" after the word "officers"; and

(c) in subsection (3) by deleting the proviso thereto.

AMENDMENT OF SECTION 37 OF THE PRINCIPAL ACT

8. Section 37 of the principal Act is amended -

(a) in the last line o subsection (1) by deleting the word "Board" and substituting the word "Bank"; and

(b) by repealing subsection (4) and substituting the following new subsection (4):

"(4) Notwithstanding anything to the contrary in any provisions of this Act, the Reserve Bank may purchase or acquire or hold on its behalf Government notes, bills securities or other evidences of debt."

COMMENCEMENT

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

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