Revocation of licence

(1) The Central Bank, with the approval of the Minister, may at any time by order revoke a licence– (a) for any failure to pay the fee for the continuation of such licence within the time specified in section 26; (b) for any contravention of any provision of this Act or any other law to which the licensee is subject, or of any regulation made hereunder; (ba) if membership of the domestic bank in the Deposit Insurance Fund is cancelled; (c) for any failure to comply with any directive issued by the Central Bank under this Act; (d) for any failure to comply with any terms and conditions of its licence issued under this Act; (e) if the licensee to which a licence has been issued under this Act fails to commence operations under the terms of such licence within six months following the issuance of that licence, or such longer period as the Central Bank may approve in writing; (f) if the licensee concerned has ceased to carry on all banking business or financial business; (g) is conducting its affairs in a manner that is detrimental to the national interest or to the interest of its depositors; 48 (h) if the licensee concerned is insolvent as determined by the Central Bank or goes into liquidation or is wound up or otherwise dissolved; (i) if the Central Bank has been provided with false, misleading or inaccurate information by or on behalf of the licensee or, in connection with an application for a licence, by or on behalf of a person who is or is to be a director or officer of the licensee; (ia) if the Deposit Insurance Corporation has been provided with false, misleading or inaccurate information by or on behalf of a domestic bank in connection with deposit insurance under the Deposit Insurance Act; (j) if in the opinion of the Central Bank the interest of depositors or potential depositors of the licensee are in any way threatened, whether by the manner in which the licensee is conducting or proposes to conduct its affairs or for any other reason; (k) if the licensee has merged or has been amalgamated with another company or licensee and the licence in no longer required; (l) the business of the licensee is no longer the business for which it was licensed; (m) if the licensee’s assets, capital or liquidity are inadequate or insufficient to meet its liabilities as they mature or become due; or 49 (n) for any failure to comply with the requirements of sections 36 and section 37 and the Central Bank determines that the licensee has no substantial prospect of bringing itself into compliance with the requirements of those sections. (2) Subject to section 25, before a licence is revoked the Central Bank shall give to the licensee written notice of its intention to do so, specifying the grounds upon which the Central Bank, with the approval of the Minister, proposes to revoke the licence and the date on which such proposed revocation is to take effect, and shall require the licensee to submit to the Central Bank within a specified period a written statement of any objections to the revocation of the licence. (3) The Central Bank shall inform the licensee, by notice in writing, of the final decision. (4) After serving a notice of intention to revoke a licence, and after taking into account any objection under sub-section (2), the Central Bank shall decide whether to– (a) revoke the licence; (b) take further action; or (c) restrict the licence instead. (5) Where the Central Bank decides to revoke the licence, the notice of revocation shall include the date on which the revocation takes effect, a statement of the grounds for the decision and the rights of the licensee under sub-section (9) and section 129. (6) When the Central Bank serves a notice of intention to revoke a licence under this section, it may, with the approval of 50 the Minister, take charge of all books, records and assets of the licensee or any portion thereof and appoint a liquidator, and to do all such things as may be necessary to safeguard the interests of depositors, creditors and shareholders of the licensee until any appeal filed pursuant to sub-section (9) has been determined. (7) The Central Bank may incur expenses to carry out the provision of sub-section (6), including, without limitation, costs in connection with– (a) utilities; (b) rent; and (c) necessary expenses of maintaining the business of the licensee, and any such costs shall be paid by the licensee. (8) Where the licensee does not have adequate liquidity to meet the costs referred to in sub-section (7), the Central Bank may provide funding to cover such costs, which funding shall be treated as a loan by the Central Bank to the licensee and shall be repaid out of the funds of the licensee or, in the event that the licensee is liquidated, shall be a first charge on the assets of the licensee. Notwithstanding any provision to the contrary in the Central Bank of Belize Act, loan funding provided to a licensee by the Central Bank in accordance with this sub-section may be provided, with the prior written approval of the Minister, without collateral. (9) A licensee which has submitted a statement of objections as provided in sub-section (2) and is dissatisfied with the decision thereon, may apply to the Appeal Board within thirty days to challenge that decision on the grounds that none of the circumstances referred to in sub-section (1) exists. 51 (10) Where a decision is made to revoke a licence under sub- section (3), the licensee shall cease carrying on business as from the date notified to it as the date on which the revocation shall take effect. (11) When a decision is made to revoke a licence and such decision is not set aside by the Appeal Board, the Central Bank shall apply to the Supreme Court for an order for the winding- up of the licensee. (12) Where in the case of a licensee having an affiliate located outside Belize, the relevant supervisory authority in that country has withdrawn from the affiliate an authorization or licence corresponding to any which may be conferred by this Act, the Central Bank may restrict or revoke the licence granted under this Act. (13) Where in the case of an affiliate, wherever incorporated, of a licensee– (a) a winding-up order has been made; (b) a resolution for its voluntary winding-up has been made; or (c) an order for the appointment of a receiver has been made, the Central Bank may restrict or revoke the licence if it considers that the winding-up of the affiliate is likely to adversely affect the licensee or its depositors. (14) The Central Bank shall revoke the licence of a licensee if– (a) a winding-up order has been made against it; 52 (b) all its assets have passed into the ownership of another person; or (c) a resolution for its voluntary winding-up has been passed in accordance with section 100. (15) Where the Central Bank revokes a licence under this section, notice of such revocation shall be published in the Gazette and a newspaper of general circulation in Belize.