Banks and Deposit Companies (Fees) Act 1975

Summary

This Bermuda Monetary Authority act sets out the licence fees and recurring annual fees payable by banks and deposit companies licensed under the Banks and Deposit Companies Act 1999. It also establishes penalties for late or non-payment of these fees.

• Licence grant fee: A one-time fee is charged when a licence is first granted: $100,000 for a bank and $2,500 for a deposit company, payable within sixty days of the grant of the licence.
• Annual fee for banks: Every bank must pay an annual fee by 31 January each year (after the year of licensing), tiered by consolidated gross assets, ranging from $400,570 (assets up to $1 billion) to $1,987,330 (assets exceeding $10 billion), as set out in the Second Schedule.
• Annual declaration: When paying the annual fee, a bank must deliver a declaration signed by two directors stating the value of its consolidated gross assets as at the end of its last complete financial year; knowingly or recklessly making a false or misleading statement in this declaration is an offence punishable by a fine of $50,000.
• Annual fee for deposit companies: Every deposit company must pay a flat annual fee of $20,000 by 31 January each year after the year it was licensed.
• Penalties for non-payment: Failure to pay the annual fee is an offence carrying a fine of $100 for every day the default continues, unless the Authority accepts late payment plus a $1,000 penalty where non-payment was not due to wilful neglect or default.
• Recovery of fees: Any annual fee or penalty due under the Act may be recovered by the Authority as a civil debt in a court of summary jurisdiction, regardless of amount.

Key obligations

• A bank or deposit company must pay the licence grant fee (First Schedule amount) within sixty days of being granted its licence.
• Every bank must pay its tiered annual fee (Second Schedule, Part I) to the Authority on or before 31 January each year following the year it was licensed.
• Every bank must deliver, at the time of paying its annual fee, a declaration signed by two directors stating its consolidated gross assets as at the end of its last complete financial year.
• Every deposit company must pay its flat annual fee of $20,000 (Second Schedule, Part II) to the Authority on or before 31 January each year following the year it was licensed.
• A bank or deposit company in default of annual fee payment may be liable to a daily fine of $100 unless the Authority accepts late payment with a $1,000 penalty.

Applies to

banks, deposit companies

Deadlines

• within sixty days of the grant of the licence: Payment of the licence grant fee under section 2.
• on or before 31st January in every year: Payment of the annual fee by banks and deposit companies to the Authority.

Related documents

• Bermuda Monetary Authority Amendment (No. 3) Act 2018 amends this document
• Consultation Paper - Proposed Amendments to the Banks and Deposit Companies Act 1999 with Illustrative Draft Bill repeals this document