ECCU countries to debate new banking legislation

ST GEORGE’S (CMC):

The Grenada Parliament will debate next week legislation that will provide for administrative fines of EC$10,000 (EC $1=US$0.37 cents) for financial institutions that violate a code or codes of conduct under the new legislation.

Among the codes are prevention of over-indebtedness; privacy of financial consumer data and collection and use of personal information, including means of collection, purpose, and types of data that might be collected and retained

The amendment is set to be approved by all parliaments in the Eastern Caribbean Currency Union (ECCU) namely Antigua and Barbuda, Dominica, Grenada, St. Kitt-Nevis, St. Lucia, St. Vincent and the Grenadines and Montserrat.

It will be debated on June 17.

“This Bill seeks to amend the Banking Act, No. 20 of 2015 to enhance the regulatory framework of the banking sector by incorporating banking and supervisory best practices; and to introduce a new area of market conduct supervision which supports consumer protection, promotes financial literacy, financial inclusion and market integrity,” according to the explanatory notes.

According to the amendment, the St. Kitts-based Eastern Caribbean Central Bank (ECCB) may issue Codes of Conduct to licensed financial institutions on financial market conduct.

“A licensed financial institution that fails to comply with a Code of Conduct issued … is liable to an administrative penalty of $10,000,” according to the amended law which mandates that all codes of conduct shall be published in the gazette of each member territory. Codes of Conduct shall have the force of law.