2019 US Virgin Islands Code
Title 9 - Banking
Chapter 5 - Regulation and Supervision of Banks and Foreign Banks
§ 62. Examination of banks and foreign banks
Right of inspection; examiners
(a) Every bank and every branch thereof, and every branch established in the United States Virgin Islands by a foreign bank doing business in the United States Virgin Islands, and every other entity engaged in the business of banking as provided in this title, shall be subject to inspection and supervision of the Banking Board, which shall either personally or through some competent person or persons appointed or approved by it, to be known as examiners, visit and examine the bank or branches thereof, or the branches of a foreign bank at least once a year.
Scope of examination; confidential reports
(b) On such examinations, inquiry shall be made as to the condition and resources of the bank or, to the extent of and with respect to business done at any branches established in the United States Virgin Islands, the foreign bank, the mode of conducting and managing its affairs, the action of its directors, the investment of its funds, the safety and prudence of its management, and the security offered for compliance with its contracted obligations; and whether the requirements of its charter and of the laws have been complied with in the administration of its affairs, and also as to such other matters as the Banking Board may prescribe. Reports rendered by examiners to the Banking Board, in connection with an examination made of any bank or branches thereof, or any branches established in the United States Virgin Islands of a foreign bank, shall be deemed to be of a confidential nature, except as provided in subsection (j) of this section.
Board's power with respect to possible losses
(c) The Banking Board shall have the power to direct any bank or foreign bank under the Board's supervision to charge against its undistributed profits, legal reserve fund or capital account in paid-in stock, any loan or part of loan, assets or part of assets, that in the Board's judgment constitutes a possible loss for the bank under examination, and it may direct, also, the segregation of any portion of future profits that it may deem advisable, until said capital account in paid-in stock and reserve fund have been restored to the original total amount thereof, and/or direct the creation of any asset valuation reserves that the Board may deem advisable. The Banking Board may impose an administrative fine up to $1,000 for each 5 days that the bank or foreign bank fails to comply with the orders issued under the provisions of this subsection; provided, however, that the bank or a foreign bank shall have 15 days after each order has been issued to comply therewith. If any bank or foreign bank on which an administrative fine is imposed under this subsection fails to pay the same within the term of 15 days following the date of notice thereof, the Banking Board may file civil action in the District Court to collect said administrative fine, for which purpose exclusive jurisdiction is hereby vested in the District Court.
Oath of examiner; penalty for violation
(d) Each bank examiner shall take an oath not to divulge the results of his investigations, except to the Banking Board, and in case of failure to keep such oath he shall be fined not more than $5,000 or imprisoned not more than one year, or both.
Attendance and oath of witnesses
(e) The Banking Board and every such examiner shall have power to administer oaths to any person whose testimony may be required on any such examinations, and to compel the attendance of any such person at any such examination.
Certificate of results of examination
(f) The Banking Board shall issue to every bank, or foreign bank, or branch thereof, examined by it personally or through its employees or examiners, a certificate setting forth the result of such examination, which certificate shall be presented to the Board of Directors at the first regular or special meeting of the said board held subsequent to the date of its receipt by such bank or foreign bank.
Appointment and compensation of bank examiners
(g) For the purposes of such examination, the Banking Board shall have power to appoint the bank examiners and fix their salaries.
Examination fees
(h) As an examination fee each bank so examined shall pay, with respect to itself and each of its branches so examined, each foreign bank shall pay, with respect to each of it branches in the United States Virgin Islands so examined, one third of the total cost of such examination and the sum so paid shall be covered into the Treasury of the United States Virgin Islands. The fees paid for such examination shall be established by regulations promulgated by the Banking Board, pursuant to title 3 Virgin Islands Code, chapter 35.
Acceptance of examinations by federal agencies
(i) The Banking Board of the United States Virgin Islands may accept, in lieu of an examination required or authorized herein, an examination made in the same year by the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System or a Federal Reserve Bank or in the case of a foreign bank an examination acceptable by the government by which that bank is first licensed. The Banking Board may accept, in lieu of any report of condition which may be required hereunder, a report of condition obtained by said Corporation, Board of Governors or Federal Reserve Bank.
Furnishing information to federal agencies
(j) The Banking Board of the United States Virgin Islands may furnish to the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System or a Federal Reserve Bank, or to any official or examiner thereof, a copy or copies of any or all examinations made of any banking organization and of any or all reports made by same and may give access to and disclose to said Corporation, Board of Governors or Federal Reserve Bank, or any official or examiner thereof, any and all information possessed by the Banking Board with reference to the conditions or affairs of any banking organization.
