2019 US Virgin Islands Code
Title 9 - Banking
Chapter 5 - Regulation and Supervision of Banks and Foreign Banks
§ 61. Regulation and supervision of banks and foreign banks; insurance; penalty for violation; review
(a) All banks and, to the extent of and with respect to business done at any branches established in the United States Virgin Islands, all foreign banks doing business in the United States Virgin Islands shall be regulated and supervised by the Banking Board in such manner as to secure the safe and sound conduct of such business, to prevent unsound practices, and thus to maintain the public confidence in such business and protect the public interest and the interests of depositors, creditors, and stockholders.
(b) For the purpose of effectuating the policy declared in this section, the Banking Board, with the approval of the Governor of the United States Virgin Islands, may adopt regulations consistent with law and sound banking practice. Such regulations shall be brought to the attention of those affected thereby in the manner that the Banking Board may prescribed; provided, that all banks and foreign banks as a condition to doing business in the United States Virgin Islands shall secure their depositors by deposit insurance by any agency of the United States, or in the case of foreign banks not eligible for such deposit insurance, by comparable insurance or other security for depositors found satisfactory by the Banking Board; and provided further, that all banks and foreign banks doing business in the United States Virgin Islands shall provide themselves with protection and indemnity against burglary, embezzlement and other similar insurable loss; and if a bank or foreign bank refuses to comply with this requirement, the Banking Board shall make arrangements to furnish such protection and indemnity, charging the cost thereof to said bank or foreign bank.
(c) For any violation of the regulations prescribed pursuant to subsection (b) of this section, the delinquent bank or foreign bank shall be subject to an administrative fine of not more than $1,000 for the first offense, and, for the second offense, to an administrative fine of not more than $5,000, and, in any such case, to the cancellation of its license. Such fine or cancellation shall be imposed or ordered by the Banking Board, with the approval of the Governor. In any such case, the Banking Board shall send written notice of its action to the bank or foreign bank affected as quickly as circumstances will allow, and if the cancellation of the bank's or foreign bank's license has been decided upon, shall transmit a written order to such effect to the Lieutenant Governor for appropriate action. The bank or foreign bank so penalized, either by fine, or by cancellation of its license, or by both, shall be entitled to a review of such action in the District Court if it files an appeal in such court within thirty days after receiving notice of such fine or cancellation. The service of the notice of appeal upon the Lieutenant Governor or his authorized representative shall operate as a stay of such order of cancellation pending the court's decision on the appeal.
