The Banks and Deposit Companies Act 1999 (the Act) provides details regarding licensing for banks and deposit companies in Bermuda. Relevant financial institutions are in particular referred to Section 14(5) and 14(6) of the Act with regards to minimum services to be provided to the public in order to conduct banking or deposit-taking business in Bermuda. The Authority’s Statement of Principles (SoP) was drafted pursuant to Section 9 of the Act, and outline, amongst others, the minimum licensing criteria (Second Schedule) for banks and deposit companies in Bermuda.
Under the provisions of the Act, a person carries on deposit-taking business if:
a. in the course of the business, he lends money received by way of deposit to others; or
b. he finances any other activity of the business wholly or to any material extent, out of the capital of, or the interest on money received by way of deposit.
Only companies incorporated in Bermuda are eligible to apply for a licence under the Act. Therefore foreign companies must incorporate a local subsidiary to be able to establish a banking presence in Bermuda.
A copy of the Banking SoP is available in the Regulatory Legislative Documents under Policy and Guidance. Applicants should refer to the Guidance for Prospective Applicants in addition to the documents available for additional resources to assist them with the completion of the application process.