Banks and Deposit Companies (Restricted Banks) Amendment Order 2024

Summary

This Bermuda Order amends the Banks and Deposit Companies Act 1999 to update the minimum capital thresholds for licensing and to expand the criteria that exclude an institution from being treated as a 'restricted bank'. It took effect on 26 July 2024.

• Minimum net assets at licensing: Second Schedule paragraph 7 is replaced to require initial net assets of not less than $10 million for a bank, $5 million for a restricted bank, or $1 million for a deposit company (or an equivalent amount in another currency).
• New restricted bank exclusions: Third Schedule paragraph 1 is amended to add two new disqualifying criteria: an institution licensed as a casino under the Casino Gaming Act 2014, or an institution that is not ordinarily resident, incorporated, registered or formed in Bermuda.
• New definition added: A definition of 'casino', referencing section 2 of the Casino Gaming Act 2014, is inserted into the Third Schedule.

The changes affect the eligibility and classification criteria applied when licensing banks, restricted banks and deposit companies under the Banks and Deposit Companies Act 1999; they do not impose new ongoing reporting duties on existing licensees.

Key obligations

• An institution seeking to be licensed as a bank must hold initial net assets of not less than $10 million (or equivalent).
• An institution seeking to be licensed as a restricted bank must hold initial net assets of not less than $5 million (or equivalent).
• An institution seeking to be licensed as a deposit company must hold initial net assets of not less than $1 million (or equivalent).
• An institution licensed as a casino under the Casino Gaming Act 2014 is excluded from qualifying under Third Schedule paragraph 1.
• An institution that is not ordinarily resident, incorporated, registered or formed in Bermuda is excluded from qualifying under Third Schedule paragraph 1.

Applies to

banks, restricted banks, deposit companies

Deadlines

• 26 July 2024: Operative date on which the amendments to the Second and Third Schedules of the Banks and Deposit Companies Act 1999 take effect.

Related documents

• This document amends Banks and Deposit Companies Act 1999
• This document is made under Banks and Deposit Companies Act 1999