Policies and procedures for transactions with related parties

(1) The board of directors of a licensee and a financial holding company shall– (a) establish and maintain written policies and procedures for transactions between the licensee, a financial holding company and– (i) a related party; (ii) a related party group; (iii) an employee who is not a related party; and (b) review annually such policies, procedures and transactions, to ensure compliance. (2) The Board of directors of a licensee and financial holding company shall provide to the Central Bank– (a) upon request, copies of the licensee and financial holding company’s policies and procedures; and (b) annually, the results of the compliance reviews, referred to in sub-section (1). (3) The board of directors that fails to comply with sub- sections (1) or (2) commits an offence for which the licensee or financial holding company is liable on summary conviction to a fine not exceeding one hundred thousand dollars. 105 (4) Where, in the opinion of the Central Bank, the policies and procedures referred to in this section are inadequate, the Central Bank may require the board of directors of the licensee to take all necessary action to change the policies and (5) The board of directors of a licensee or financial holding company that fails to make the changes required by the Central Bank referred to in sub-section (4) commits an offence and the licensee or financial holding company shall be liable on summary conviction to a fine not exceeding one hundred thousand dollars.