Banks and Deposit Companies Act 1999

Summary

This Act is Bermuda's principal statute governing banks and deposit companies. It establishes the licensing regime administered by the Bermuda Monetary Authority (BMA), sets minimum criteria for licensing, and gives the Authority ongoing supervisory, investigatory and disciplinary powers over licensed institutions.

• Licensing: No person may carry on deposit-taking business in or from Bermuda without a licence granted under the Act, subject to limited exemptions; licences may be restricted, revoked or surrendered, and institutions must meet minimum net asset and other licensing criteria set out in the Second Schedule.
• Controllers and shareholders: Persons must notify the Authority of new or increased control over an institution, and the Authority may object to controllers or shareholder controllers, restrict shares, or act against contraventions by a controller.
• Ongoing information duties: Institutions must submit prudential and other returns, report large exposures, and notify the Authority of changes of director, controller or senior executive and of acquisitions of significant shareholdings; the Authority may also require production of documents and reports and has rights of entry.
• Investigations: The Authority may appoint investigators, require production of documents, and enter premises where a contravention is suspected; obstruction of an investigation is an offence.
• Audit: Institutions must appoint auditors, ensure financial statements are audited, and auditors have duties to communicate certain matters directly to the Authority.
• Disciplinary measures: The Authority may impose civil penalties, issue public censures, make prohibition orders, seek injunctions, and issue warning and decision notices, following specified procedures.
• Conduct and restrictions: Institutions must comply with any code of conduct issued by the Authority, observe restrictions on advances against institution shares and on commercial activities, and comply with restrictions on use of the word 'bank'.
• Confidentiality: The Act restricts disclosure of information obtained under it, subject to specified exceptions for facilitating the Authority's or other authorities' functions, and makes it an offence to provide false documents or information to the Authority.

A Third Schedule permits institutions licensed under section 14(5)(c) to provide services to certain persons engaged in, or applying to conduct, digital asset business or digital asset issuance in Bermuda, subject to specified criteria.

Key obligations

• No person may carry on deposit-taking business in or from within Bermuda without a licence granted under the Act.
• Institutions must comply with any code of conduct issued by the Authority in the conduct of their business.
• Persons acquiring new or increased control, or a significant shareholding, in an institution must notify the Authority.
• Institutions must notify the Authority of any change of director, controller or senior executive.
• Institutions must submit prudential and other returns and reports of large exposures to the Authority as required.
• Institutions must appoint auditors and ensure their financial statements are audited in accordance with the Act.
• Auditors must communicate specified matters directly to the Authority.
• Institutions must maintain minimum net assets specified in the Second Schedule (not less than $10 million for a bank and $1 million for a deposit company, or equivalent) at the time a licence is granted.
• Institutions and other persons must produce documents and information when required by the Authority under its information-gathering or investigatory powers.
• Persons must not provide false documents or information to the Authority.
• Use of the word 'bank' is restricted and must comply with the Act's provisions.

Applies to

banks, deposit companies, institutions licensed under the Act, controllers, shareholder controllers, directors, senior executives, auditors of licensed institutions, persons conducting digital asset business or digital asset issuance receiving banking services under the Third Schedule

Related documents

• Banks and Deposit Companies (Exemption) Order 1999 amends this document
• Banks and Deposit Companies (Restricted Banks) Amendment Order 2024 amends this document
• Digital Asset Issuance Act 2020 amends this document
• Banks and Deposit Companies (Exemption) Order 2001 amends this document
• Consultation Paper - Proposed Amendments to the Banks and Deposit Companies Act 1999 with Illustrative Draft Bill amends this document
• Consultation Paper - Amendments to the Third Schedule of the Banks and Deposit Companies Act 1999 (2020-08-21) amends this document
• Explanatory Memorandum - Banks and Deposit Companies Amendment Act 2012, Trusts (Regulation of Trust Business) Amendment Act 2012, Investment Business Amendment Act 2012 amends this document
• Credit Unions Act 2010 amends this document
• NOTICE - Bermuda Monetary Authority Determination of Appeals Amendment Act 2016 (2016-05-12) amends this document
• Banks and Deposit Companies Amendment Act 2012 (Bill) amends this document
• Operational Resilience and Outsourcing Code (September 2025) is made under this document
• Banks and Deposit Companies (Exemption) Order 1999 is made under this document
• Operational Cyber Risk Management Code of Conduct (September 2022 Revised) is made under this document
• Banks and Deposit Companies (Exemption) Order 2001 is made under this document
• Banks and Deposit Companies Code of Conduct (August 2022) is made under this document
• Banks and Deposit Companies (Restricted Banks) Amendment Order 2024 is made under this document
• Banking Appeal Tribunal Regulations 2001 is made under this document
• Banks and Deposit Companies Act 1999 - Code of Conduct (August 2022) is made under this document
• Banks and Deposit Companies (Reporting Accountants) (Facts and Matters of Material Significance) Regulations 2006 is made under this document
• Operational Resilience and Outsourcing Code (September 2025) (Tracked Changes) is made under this document
• Statement of Principles - Banking and Deposit Companies Act 1999 (December 2012) is made under this document