Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698137000111.pdf (Marshall Islands)
Banking (AmendmenQ Act, 2020 BILL No: 09 P.L.

2O2O- 9A lndex NITIIETA OF THE REPUBLIC OF THE MARSHALL ISLANDS 41ST CONSTITUTION REGULAR SESSION, 2O2O Republic of the Marshall Islands lepilpilin Ke Ejukaan BANKING (AMENDMENT) ACT, 2O2O Index Section s101.

s102.

s103.

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s1 01 NITIIELA OF THE REPUBLIC OF THE MARSHALL ISLANDS 41ST CONSTITUTION REGULAR SESSION, 2O2O Republic of the Marshall Islands lepilpilin Ke Ejukaan BANKING (AMENDMENT) ACT, 2O2O AN ACT to amend Title 77, Chapter 1 of the Marshall Islands Revised Code to clarify certain requirements of the Chapter in line with international standards for anti-money laundering and countering the financing of terrorism.

BE IT ENACTED BY THE NITIIELA OF THE REPUBLIC OF THE MARSHALL ISLANDS 5101.

Short title.
Short title.

This Act may be cited as the Banking (Amendment) Act,2020.

5102.

Amendments.

(1) Section 102(t), (dd), and ff) of the Republic of the lll4archall Islands Banking Act1987 are hereby amended as follows: S102.

Interpretation.
(0 "financial services providers" means any person, other than a bank, who carries on a business as a domestic financial institution as defined in section 102(n) or who carries on a business as a cash dealer as defined in section 702(e), including a person who offers financial products, which may include virtual assets, or advises, provides mediation services, provides reinsurance mediation services, or moneyienders, or acts as an authorized agent in respect of financial products such as fund managers, pension or retirement funds, credit unions, financial advisers, investment managers or providers, ffiRepublicof the ffiMa'rshall Islands Page 3 BILL No: 09 P.L.
2O2O- Oa s123 Banking (Amendmen$ Act, 2020 insurers, development finance instifutions privately operated or government-owned, finance companies; (dd) "serious offense" means an offense against a provision of: (i) Any law in the Republic for which the maximum penalty is imprisonment or other deprivation of liberty for a period of not less than 12 months or imposition of a fine of $5,000 or more; or (ii) a law of a foreign State, in relation to acts or omissions, which, had they occurred in the Republic, would have constituted an offense for which the maximum penalty is imprisonment or other deprivation of liberty for a period of not less than 12 months or imposition of a fine of $5,000 or more.
(f0 "tainted property": (i) property used, or intended to be used, in the commission of a serious offense, or in connection with the commission of a serious offense; (ii) proceeds of crime, as defined in paragraph (x) of this section; or (iii) property of corresponding value; (2) Section 123 of the Republic of the Marshall Islands Banking Act 1987 is hereby amended as follows: 51-23.

Requirement of license and prudentift supervision of financial services provider.
(1) No financial services provider business shall be transacted in the Republic except by a corporation or entity which is in possession of a valid license issued by the Commissioner of Banking, authorizing the transaction of financiai services provider business in or within the Republic.

Page 4 Republicofthe & Mdrshall Islandsffi Banking (Amendment) Act, 2020 BILL No: 09 P.L.
2O2O--O7 s124 (2) Any person desirous of obtaining approval for licensing as a financial services provider shall apply in writing to the Commissioner in such manner as the Commissioner may specify by Regulation.

(3) The Commissioner of Banking shall be authorized to conduct prudential supervision of all licensed financial services providers and issue new prudential standards by way of Regulations for this purpose.
(4) If the Commissioner has reasonable ground to believe that any person is transacting financial services provider business without a license, the Commissioner may examine, or authorize an officer in writing to examine, the books, accounts and records of such person for the purpose of ascertaining whether such person has contravened or is contravening any of the provisions of this Chapter.
Any refusal by such person to submit such books, accounts or records to the Commissioner or authorized officer shall be prima facie evidence that such person is transacting financial services provider business without a license.

(5) Any person transacting financial services provider business without a license shall be guilty of an offense and shall upon conviction be liable to a fine not exceeding $10,000.
(3) Section 124 of the Republic of the Marshall Islands Banking Act 1987 is hereby amended to add a ne'u) Subsection (3) as follows: 5124.

Grant or refusal of license.


(3) (4) Any applicant who knowingly or recklessly furnishes any material information which is false or misleading in connection with an application for licensing as a financial services provider shall be guilty of an offense and shall upon conviction be liable to a fine not exceeding $10,000 or to a term of imprisonment not exceeding six (6) months, or both.
Section 139 of the Republic of the Marshall Islands Banking Act 1987 is hereby amended to amend Subsections (1) and (2) and add a new Subsection (3) as follows: ffir,"*llri$:*, Page 5 BILL No: 09 P.L.

2O2O--94 s1 39 Banking (Amendment) Act, 2020 5L39.

Directors.
Directors.

(1) No person shall be appointed or elected as a director of a licensed domestic bank if: (a) he is a member of the Nitijela; (b) he becomes bankrupt, suspends paymenf or compounds with his creditors; or (c) he is convicted of any offense involving dishonesty or fraud.
(2) A director of a licensed domestic bank shall cease to be a director if: (c) he is convicted of any act or thing which is of a fraudulent or illegal character, or which is manifestly opposed to the objectives and interests of the licensed bank.

(3) No person shall be appointed or elected as a director of a licensed financial services provider if he is convicted of any act or thing which is of a fraudulent or illegal character.
A director of a licensed financial services provider shall cease to be a director if convicted of such an offense.

(5) Section 14L 0f the Republic of the Marshall Islands Banking Act 1987 is hereby amended to amend Subsection (1) add a new Subsection (3) as follows: 514L.

Officers.
Officers.

(1) (3) Notwithstanding anything contained in any other written law, a person shall be disqualified for employment or appointments as the manager or other official in a licensed bank, and such manager or other official shall cease to be so empioyed if: (b) he is convicted of any offense involving dishonesty or fraud.
Notwithstanding anything contained in any other written Iaw, a person shall be disqualified for employment or appointment as the manager or other official in a licensed financial services provider, and such manager or other official shall cease to be so employed, if he is convicted of any offense involving dishonesty or fraud.

Page 6 fr"f,:flti,ll*"@ Banking (Amendment) Act, 2020 BILL No: 9 P.L.
2O2O-Jfl s166 (6) Section 141A of the Republic of the Marshall lslands Banking Act 1987 is hereby amended as foliows: 5L41A.

Other requirements The Commissioner shall issue fit and proper requirements, in addition to those set forth under Sections 139, 1,40 and 1.41, for banks and financial services providers from time to time and as necessary.

(7) Section 166 of the Republic of the Marshall Islands Banking Act 1987 is hereby amended as folloras: 51,66.

Money laundering offenses and penalties.
(1) A person commits the offense of money laundering if the person intentionally: (a) acquires, possesses or uses property, knowing or having reason to believe that the property is the proceeds of crime; (b) converts or transfers property, knowing or having reason to believe that the property is the proceeds of crime, for the purpose of: (i) concealing or disguising the illicit origin of that property or (ii) aiding and abetting any person who is involved in the commission of the predicate offense to evade the iegal consequences of his or her action; or (c) conceals or disguises the true nature, source, locatiory disposition, movement or ownership of or rights with respect to property, knowing or having reason to believe that the property is the proceeds of crime.
(2) The intent and knowledge required to prove the offense of money laundering may be inferred from objective factual circumstances.

(3) (4) Nothing in this offense that an offense of crime;.

A person who a other person to offense and is lia this section;.
shall prevents a person that committed any other the proceeds of crime from being convicted of laundering in respect of those proceeds of facilitates, conspires, or aids and abets any t an offense of money laundering commits an on conviction to the penalties specified under lh Reoublic of the ffiMdrshall Islands BILL No:9 P.L.
2O2O-01 s167 Banking (Amendment) Act, 2020 (5) For the purpose of this section, when proving that property is the proceeds of crime, it is not necessary that a person is convicted of the serious offence that generated the proceeds of crime;.

(6) For the purposes of this section, it is not necessary that the serious offense that generated the proceeds of crime was committed within the Marshall Islands.
(7) Where a person is convicted of any of the offenses specified under this Section, in the case of a natural person, such person shall be liable to imprisonment for a term of imprisonment not exceeding twenty (20) years or a fine not exceeding $2,000,000, or both, and in the case of a body corporate five (5) times sudr a fine or double the amount of money involved in the offense scheme, whichever is greater.
(8) Section L67(1)(a) of the Republic of the Marshall Islands Banking Act \987 is hereby amended as follows: 51,67.

Commissioner's authority in prohibiting money laundering activity.
(1) The Commissioner, amongst other duties: (a) sha1l receive, analyze, and disseminate reports of transactions issued by banks, DNFBPs, and financial services providers pursuant to Section 170 md Section L70Aof this Act; (9) Section 170(4) of the Republic of the Marshall lslands Banking Act 1.987 is hereby amended as follows: 5L70.

Banks, DNFBPs, and Financial Services Provider to report suspicious transactions.
(4) Banks, DNFBPs, and financial services providers, and their employees, officers and directors, shall not notify any person or entity, other than the Commissioner or Attorney-Generaf a court of competent jurisdiction upon process issued, or other person as may be authoraed by law, that a suspicion has been formed or that a suspicious transaction report or related information is being or has been provided in accordance with this section.
Any person, bank, DNFBP, or financial services provider who improperly discloses such information commits an offense, punishable by a fine of not more Page 8 Reoublicofthe & Mdrshall Islandsffi Banking (Amendment) Act, 2020 BILL No: Og P.L.

2O2O- Ol s184 than $2,000,000.00 or imprisonment for not more than 20 years, or both.

(10) Section l-Ba of the Republic of the Marshall Islands Banking Act 1987 is hereby amended as follows: 51-84.

Power to Examine.
Power to Examine.

The Banking Commissioner or any person authorized in writing by the Commissioner may examine the records and inquire into the business and affairs of any bank, DNFBP, or financial services provider for the purposes of ensuring compliance with Sections 168, 769, 170,770A, and 180 of Part XIII of this Chapter.

s103.

Effective Date.

This 8i11, and all Acts contained hereiry shall take effect in accordance with the Constitution and the Rules of Procedures of the Nitijela.
CERTIFICATE I hereby certify: 1.. That Nitijela Bill No: 09 was passed by the Marshall Islands on the aDlL aay of Marah 2.

That I am satisfied that Nitijela Bill No: 09 was passed in accordance with the relevant provisions of the Constitution of the Republic of the Marshall Islands and the Rules of Procedures of the Nitijela.

I hereby place my signature before the Clerk U,ris OQfi day of A?r'rl Nitijela of the Republic of the 2020; and 2020.

Hon.
Hon.

Attest: Clerk Nitijela of the Marshall lslands Nitijela of the Marshall lslands d6 Reoublic of the rffiMdrshall Islands Page 9