Section 5Part 1 — Banks and Trust Companies Act
Licence or registration required to carry on banking or trust business
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No banking business may be transacted from within the Islands, whether or not such business is carried on in the Islands, except by a person who is in possession of a valid licence granted by the Authority authorising that person to carry on such business.
Subject to subsection
and to such other exemptions and conditions as may be prescribed by regulations made by the Cabinet under this subsection, no trust company may carry on trust business from within the Islands, whether or not such business is carri ed on in the Islands, unless it is in possession of a valid licence granted by the Authority authorising it to carry on such business. ( 3 ) A trust company that is a controlled subsidiary does not require a licence to carry on the business of issuing debt i nstruments or to carry on other trust business that is —
connected with the trust business of the licensee by which the controlled subsidiary is owned; and
within the scope of that licensee ’ s Trust licence.
Notwithstanding subsection (3), a con trolled subsidiary to which that subsection refers shall register with the Authority; and, in order to be registered, such controlled subsidiary shall —
at the time of registration and on or before the 31st day of January every year thereafter during t he continuation of the registration, file with the Authority an annual declaration, in such form as the Authority may approve, declaring —
the name of the controlled subsidiary;
the name of the licensee of which the controlled subsidiary is a subs idiary;
the names of the directors and senior officers of the controlled subsidiary; and
that the controlled subsidiary is a controlled subsidiary to which subsection (3) applies; and
at the time of registration and on or before the 31st day of January every year thereafter during the continuation of the registration, pay to the Government the prescribed fee.
A controlled subsidiary that is registered under subsection (4) may, on payment of the prescribed fee, act as a trustee of a trust that is registered as a mutual fund under the Mutual Funds Act (2025 Revision) without being licensed as a mutual fund administrator under that Act , if the licensee by which the controlled subsidiary is owned is itself licensed under that Act to administer such trust.
A person who contravenes this section or any regulations made under subsection (2) commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for one year, and in the case of a continuing o ffence to a fine of one thousand dollars for each day during which the offence continues.