Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69U - FSC - Financial Institution Regulation › Chapter 69U-140 - INTERNATIONAL BANKS › Section 69U-140.008 - Permissible Activities for an International Bank Agency

Current through Reg. 50, No. 138; July 16, 2024
(1) Generally, permissible activities shall
				include those activities permissible for corporations engaged in international
				banking or financial operations under the Edge Act,
				12 U.S.C. sections
				611-631, except such of those
				activities that are contrary to or inconsistent with any of the provisions of
				chapter 663, F.S., or these rules. An international bank agency may engage in
				any activity permissible for an international administrative office or
				international representative office.
(2) An international bank agency may maintain
				for the account of others credit balances necessarily incidental to, or arising
				out of, the exercise of its lawful powers. Provided that such credit balances
				are disbursed in accordance with subsection (3) of this rule, they shall not be
				considered to be functionally equivalent to demand deposits for purposes of
				section 663.061(2),
				F.S. Credit balances may include proceeds of loans to customers where such
				proceeds are not immediately disbursed; proceeds of incoming remittances;
				proceeds of collections made for customers' accounts; funds delivered by
				customers to settle letters of credit accounts with the international bank
				agency prior to settlement date; proceeds of export bills negotiated (i.e.,
				drafts drawn under letters of credit issued by and received from other
				financial institutions); cash collateral resulting from any permissible
				activity with a customer; undisbursed proceeds of a loan retained by the
				international bank agency in the nature of a compensating balance from the
				borrowing customer; funds delivered prior to execution of money transfers
				undertaken on behalf of customers; funds delivered or received on account of
				the purchase or sale of securities for the account of customers; and funds
				received from customers to cover currency transactions or as the result of
				currency transactions on behalf of customers.
(3) A credit balance may be fully or
				partially disbursed either to the customers for whose accounts it is maintained
				or to third parties designated by the customer. Such disbursements may be made
				by check, draft, pre-authorized transfer, or otherwise. Disbursements by the
				customer to third parties, however made, shall not exceed an average of twenty
				per day per calendar month. Disbursements to the customer maintaining the
				credit balance and disbursements by the international bank agency on behalf of
				the customer to third parties may be made without limitation.
(4) To insure compliance with subsection (3)
				of this rule, an international bank agency which maintains credit balances for
				the account of customers shall adopt procedures to monitor credit balance
				disbursements to third parties and promptly notify customers who exceed the
				limitations established in subsection (3) of this rule. Customers who are
				notified as provided in this subsection and who subsequently exceed the
				limitations established in subsection (3) of this rule, shall be prohibited by
				the international bank agency at which their accounts are maintained from
				making further credit balance disbursements to third parties.
(5) An international bank agency may provide
				financing and banking services to foreign businesses and foreign individuals in
				their foreign operations, and also in their operations in the United States or
				elsewhere, where such operations are in the stream of international business
				and commerce. An international bank agency may also provide financing and
				banking services to United States businesses and customers in their foreign
				operations and in their operations in Florida and elsewhere that are clearly
				related to international commerce, such as operations directly connected with
				the production, storage, transportation and sale of goods for export or import
				if the importation or exportation of the goods is financed by the international
				bank agency.
(6) Deposits.
(a) An international bank agency licensed by
				this state may accept, pursuant to section
				663.061, F.S., only the
				following deposits:
1. Deposits from
				non-resident entities whose principal places of business are outside the United
				States. For purposes of this subsection, the phrase "non-resident entities
				whose principal places of business are outside the United States" shall mean
				entities which conduct a majority of their business activities in a foreign
				county, a territory of the United States, Puerto Rico, Guam, American Samoa or
				the Virgin Islands. The term shall include foreign governments and their
				sub-divisions, agencies and instrumentalities. An entity which conducts
				business in the United States shall be deemed to have its principal place of
				business outside the United States if any one of the following requirements are
				satisfied for the last fiscal year of such entity:
a. The assets of such entity located outside
				the United States exceed its assets located within the United States;
b. The gross revenues of such entity
				generated outside the United States exceed its gross revenues generated within
				the United States; or
c. The
				payroll expenses of such entity incurred outside the United States exceed its
				payroll expenses incurred within the United States.