Prohibition on carrying on banking business without a licence

(1) No person shall carry on banking business from within Belize without holding a valid licence granted under this Act and being a member of the Deposit Insurance Fund under the Deposit Insurance Act. CAP. 251:01. (2) A person who not being duly licensed under this Act– (a) acts as a bank, whether on his own account, in partnership or otherwise; (b) holds himself out as being licensed as a bank; or (c) takes or uses any name, title, addition, or description implying or likely to lead another person to believe that he is licensed as a bank, commits an offence and is liable on summary conviction to a fine not exceeding one hundred thousand dollars or to a term of imprisonment not exceeding four years, or to both such fine and term of imprisonment. 36 (3) No person other than a licensed bank or an international bank licensed under the International Banking Act shall use or continue to use the word “bank” or any of its derivatives, either in English or in any other language, in the description or title under which such person is carrying on business in or from within Belize. CAP. 267. (4) No person other than a licensee or an international bank licensed under the International Banking Act shallCAP. 267. (a) make or continue to make any representation in any letter, letterhead, circular, paper, advertisement, computer-based information system or in any other manner whatsoever that such person is carrying on a banking business or financial business; or (b) issue or cause to be issued any advertisement inviting the public to deposit money on current account, deposit account or other similar account or enter into any agreement connected thereto. (5) The Central Bank, may, by written directive, require any person who contravenes sub-sections (1), (2), (3) or (4) to cease doing the acts prohibited by those sub-sections and may take over the affairs of such person and appoint itself or any person specified in section 86 as liquidator or administrator thereof, and wind up such person’s affairs, as provided in this Act. (6) Wherever the Central Bank has reason to believe that any (a) is conducting a banking business or financial business in Belize without a valid licence under this Act; or 37 (b) has acquired an investment in, or control of a local licensee or increased an investment in a local licensee without the prior approval of the Bank pursuant to section 29 (Acquisition and holding of shares in a licensee), it may, by notice in writing, require that person to produce to the Central Bank any books, accounts, financial statements or other records of any kind to determine whether such person is conducting such business or has acquired such investment or control. (7) Any person who contravenes any of sub-sections (1), (3) or (4) or causes any person to contravene any of the said sub- sections commits an offence, and is liable on summary conviction thereof to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding four years, and in the case of a continuing offence, to an additional fine not exceeding ten thousand dollars for each day during which the offence continues. In addition, the court shall direct such person to immediately cease conducting banking business or financial (8) Any person who fails or refuses to comply with any written directive delivered under sub-section (6) within five business days of the delivery thereof shall, on being called upon in writing by the Central Bank, pay a fine not exceeding ten thousand dollars for every day during which the offence continues. (9) Every building society existing at the commencement of this Act shall, if it intends to continue conducting such business, apply to the Central Bank for a licence as a financial institution within three months of such commencement, and shall, if the licence is refused, immediately cease to operate as a building society or to conduct any financial business. 38