Exchange Control Act 1972

[30 June 1972]

[preamble and words of enactment omitted]

Interpretation

1 In this Act, unless the context otherwise requires —

"authorised dealer" means, in relation to gold or any foreign cur rency, a person for the time being authorised by or under the regulations to act for the purposes of the regulations in rela tion to gold or, as the case may be, that foreign currency;

"bearer certificate" means a certificate of title to securities by the delivery of which (with or without endorsement) the title to the securities is transferable;

"Bermuda area currency" means any currency of Bermuda and any prescribed currency;

"blocked account" means an account opened as a blocked ac count at an office or branch in Bermuda in favour of any per son by a banker authorised by the Minister to open blocked accounts;

"certificate of title to securities" means any document of title whereby a person recognises the title of another to securities issued or to be issued by the first-mentioned person, and in the case of any such document with coupons (whether at tached or on separate coupon sheets) includes any coupons which have not been detached;

"Controller of Foreign Exchange" means such officer of the Bermuda Monetary Authority as constituted by the Bermuda Monetary Authority Act 1969 [title 16 item 11] as the Bermuda Monetary Authority shall, with the approval of the Minister, designate Controller of Foreign Exchange;

"foreign currency" includes any currency, other than Bermuda currency or any prescribed currency, and any notes of a class which are or have at any time been legal tender in any terri tory outside Bermuda, and any reference to foreign cur rency includes a reference to any right to receive foreign cur rency in respect of any credit or balance at a bank;

"gold" means gold coins or gold bullion;

"Minister" means the Minister of Finance;

"policy of assurance" means any policy securing the payment of a capital sum or annuity on the occurrence of a specified event which is certain to happen and includes —

(a) any policy by which the payment of money is assured on death (except death by accident only) or on the happen ing of any contingency dependent on human life; and

(b) any policy securing the payment of an immediate annu ity,

and the reference in this definition to the occurrence of a specified event which is certain to happen shall include the occurrence, which is certain to happen, of one of specified events none of which by itself is certain to happen;

"securities" means shares, stock, bonds, notes (other than promissory notes), debentures, debenture stock, units under a unit trust scheme and shares in an oil royalty;

"unit trust scheme" means any arrangements made for the pur pose, or having the effect, of providing for persons having funds available for investment, facilities for the participation by them, as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or dis posal of any property whatsoever;

"unit" means, in relation to a unit trust scheme, a right or inter est (whether described as a unit, as a sub-unit or otherwise) which may be acquired under the scheme.

Minister of Finance may make regulation for exchange control

2 (1) The Minister may make regulations providing for all or any of the following matters —

(a) controlling dealings in gold and foreign currency;

(b) requiring the surrender to authorised dealers of gold and foreign currency;

(c) controlling payments to or for the credit of persons resi dent outside Bermuda and the placing of sums to the credit of such persons, including sums required to be paid by any judgment or order of any court or by any award;

(d) controlling the issue and transfer of securities to or to the nominees of persons resident outside Bermuda, and other dealings in or with or in relation to securities or capital monies payable thereon;

(e) controlling the issue of bearer certificates and coupons;

(f) controlling the importation and exportation of gold, cur rency notes, bills, certificates of title to securities and other documents and of any article;

(g) controlling payment for goods exported from Bermuda;

(h) imposing obligations on persons entitled to receive any foreign currency or a payment in any foreign currency and on persons entitled to sell or procure the sale of goods;

(i) controlling the transfer of policies of assurance and an nuities;

(j) controlling the settlement of property on persons resi dent outside Bermuda;

(k) imposing duties on persons in relation to the acts of for eign companies;

(l) requiring monies to be paid to blocked accounts only;

(m) implying conditions in contracts;

(n) empowering the Controller of Foreign Exchange to give directions for the purpose of the due administration and enforcement of the regulations;

(o) the declarations to be made on any occasion, the per sons by whom such declarations shall be made and the manner in which the same shall be verified;

(p) prescribing anything which is to be or may be pre scribed;

(q) any other matter connected with exchange control; and

(r) generally for the better carrying out of the purposes of this Act.

(2) Regulations made under this section may provide —

(a) that a contravention or breach thereof shall be an of fence and for the punishment of persons convicted of any such offence, so, however, that, save as provided in paragraph (b) —

(i) the punishment so provided on summary con viction shall not exceed a fine of one thousand dollars or imprisonment for three months or both such fine and imprisonment;

(ii) the punishment so provided on conviction on indictment shall not exceed a fine of five thou sand dollars or imprisonment for two years or
both such fine and imprisonment;

(b) in the case of an offence which is concerned with any currency, security, payment, gold, goods or other prop erty, and does not consist only of a failure to give infor mation or produce books, accounts or other documents with respect thereto when required to do so by or under the regulations, for the punishment of persons convicted of such offence, whether summarily or on indictment by a larger fine not exceeding three times the amount or value of the currency, security, payment, gold, goods or property; and

(c) for the forfeiture of any currency, security, gold, goods or other property with which an offence under the regula tions is concerned.

(3) Regulations made under this section may also provide that the obligations and prohibitions imposed thereby shall apply to all per sons, notwithstanding that they are not in Bermuda and are not Com monwealth citizens.

(4) The negative resolution procedure shall apply to regulations made under this section.

Search warrants

3 (1) If a magistrate is satisfied by information on oath given by a person authorised by the Controller of Foreign Exchange to act for the purposes of this section either —

(a) that there is reasonable ground for suspecting that an offence against the regulations made under this Act has been or is being committed and that evidence of the commission of the offence is to be found at any premises specified in the information, or in any vehicle, vessel or aircraft so specified; or

(b) that any documents which ought to have been produced pursuant to directions given under regulations made under this Act, and have not been produced, are to be found at any such premises or in any such vehicle, ves sel or aircraft,

he may issue a search warrant authorising any police officer, together with any other persons named in the warrant and any other police offi cers, to enter the premises specified in the information or, as the case may be, any premises upon which the vehicle, vessel or aircraft so speci fied may be, at any time within one month from the date of the warrant, and to search the premises, or, as the case may be, the vehicle, vessel or aircraft.

(2) A person authorised by any such warrant to search any premises or any vehicle, vessel or aircraft may search every person who is found in, or whom he has reasonable ground to believe to have re cently left or to be about to enter, those premises or that vehicle, vessel or aircraft, as the case may be, and may seize any article found in the premises or in the vehicle, vessel or aircraft which he has reasonable ground for believing to be evidence of the commission of any offence against the regulations made under this Act or any document which he has reasonable ground for believing ought to have been produced pur suant to directions given under the regulations, made under this Act.

(3) No female shall, in pursuance of any such warrant, be searched except by a female.

Power to detain evidence

4 (1) Any article coming into the possession of an executive au thority (whether in consequence of the seizure of the article under or by virtue of this Act or otherwise) which the authority has reasonable ground for believing to be evidence of the commission of an offence against the regulations made under this Act may be retained for a period of three months or, if within that period there are commenced proceed ings in respect of such an offence in which the article is, or can properly be, adduced in evidence, until the final determination of those proceed ings.

(2) For the purposes of subsection (1) —

(a) any person to whom any powers of the Minister or the Controller of Foreign Exchange under the regulations made under this Act are delegated or on whom any functions are conferred by or by virtue of such regula tions, including any police officer, shall be deemed to be an executive authority;

(b) any proceedings shall be deemed not to have been finally determined so long as there is pending any appeal in the matter of the proceedings, and an appeal in that matter shall be deemed to be pending during the ordinary time within which such an appeal may be lodged, and, if such an appeal is duly lodged, the appeal

Bermuda Consolidated Legislation

Exchange Control Act 1972