Fit and proper person

(1) For the purposes of this Act, and subject to sub-section (2), whether a natural person is a fit and proper person to hold shares or any particular position in a body corporate that applies for or holds a licence as defined in this Act shall be determined by the Central Bank, and in making such determination, the Central Bank shall make such investigations and inquiries as it deems necessary, and shall consider– (a) the probity of the person; (b) the background, experience, integrity, competence and soundness of judgment of the (c) the diligence with which the person is fulfilling or is likely to fulfill the responsibilities of the position in question; (d) whether the interest of depositors or potential depositors of the licensee are, or are likely to be, in any way threatened by the person holding the position; and (e) any other matters that the Central Bank deems appropriate. (2) Without prejudice to the generality of sub-section (1), in determining whether a person is a fit and proper person the Central Bank may have regard to the previous or existing conduct and activities in business or financial matters of the person in question, and, in particular, to any evidence that the (a) has had any judgment (including a consent judgment) made against him or any penalty or fine imposed upon him by any court or other competent judicial authority in any country in any matter involving fraud, deception, dishonesty or breach of trust; 29 (b) engaged in any business practices appearing to the Central Bank to be deceitful or oppressive or otherwise improper (whether unlawful or not) or which otherwise discredit his method of conducting business; (c) has an employment record which leads the Central Bank to believe that the person carried out an act of impropriety in the handling of his employer’s business; (d) engaged in or been associated with any other business practices or otherwise conducted himself in such a way as to cast doubt on his competence and soundness of judgment; (e) has, in the opinion of the Central Bank, as a director or senior officer of a bank or financial institution, insurance, or investment company participated in or contributed to decisions or other actions which seriously threatened the continued financial viability of that bank or financial institution, insurance, or investment (3) In determining whether a company is a fit and proper person to be a controlling shareholder or substantial shareholder, regard shall be had to, but not limited by, the following criteria– (a) whether the directors of the company have satisfied the fit and proper criteria set out in paragraphs (1) to (2); (b) whether the company has been found guilty of insider trading or fraud involving trading in securities by local or foreign authorities; 30 (c) whether the company has been convicted of an offence under this Act; (d) whether in the opinion of the Central Bank the company has not carried on its business in a prudent manner; (e) whether in the opinion of the Central Bank the company is insolvent or is likely to become (f) whether the company has suspended or is about to suspend payment in respect of, or is unable to meet its obligations, as they fall due; (g) whether in the opinion of the Central Bank the affairs of the company or any associated person are being conducted in a manner prejudicial to the soundness of the financial institution in question or the financial system of Belize; and (h) any other matter which the Central Bank may prescribe.