BANKING

Comptroller of the Currency

Posted on by in US Law Dictionary and tagged .
USA

The Comptroller of the Currency is the administrator of the federal banking system and chief officer of the Office of the Comptroller of the Currency (OCC).

The OCC supervises nearly 1,400 national banks, federal savings associations, and federal branches and agencies of foreign banks operating in the United States.

The mission of the OCC is to ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations.

The Comptroller also serves as a director of the Federal Deposit Insurance Corporation and member of the Financial Stability Oversight Council and the Federal Financial Institutions Examination Council.

Source: OCC

Bank Failure means

Posted on by in US Law Dictionary and tagged .
USA

A bank failure is the closing of a bank by a federal or state banking regulatory agency.
Typically, a bank is closed when it becomes critically undercapitalized or is unable to meet its obligations to depositors and others.

The FDIC is then appointed receiver (by the regulatory agency of the bank in question) and assume the tasks of:

Disposing of the failed bank’s assets in a manner that maximizes their value, and
Settling the failed bank’s debts, including claims for deposits in excess of the insured limit.

A bank failure does not change your obligation as a borrower to make payments and comply with the terms of your loan.

Source: Federal Deposit Insurance Corporation

Banking phishing

Posted on by in BANKING, Cyber Security and tagged , .
Cyber Crime,Cyber Security,Cyber Law

Banking phishing

Banking “phishing” is an attempt at impersonation where cybercriminals impersonate a company, institution or service with a good reputation, to deceive and obtain private data, such as bank details and associated credentials.

In most cases, email is used as the main means of transmitting this deception, but it can also be done through social networks, sending SMS to mobile phones and calls to landlines.

Cybercriminals select the company or service they want to impersonate, sending an alarmist message, seeking a reaction from the victim in order to end up clicking on a link or downloading attachments, often hidden.

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What is the Federal Reserve Bank (FED) and why do USA have it?

Posted on by in USA Laws and tagged , .
USA

What is the Federal Reserve Bank (FED) and why do we have it?

The FED is a central bank

Central banks are supposed to implement a country’s fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks. In theory, a central bank should be good for a country, and they might be if it wasn’t for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including our FED, operate not in the interest of the public good but for profit.

There have been three central banks in our nation’s history. The first two, while deceptive and fraudulent, pale in comparison to the scope and size of the fraud being perpetrated by our current FED. What they all have in common is an insidious practice known as “fractional banking.”

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THE MONETARY AND BANKING ACT-IRAN

Posted on by in Law of Iran and tagged , , .

THE MONETARY AND BANKING ACT

(as amended up to May 22nd, 2017)

Contents

PART ONE – THE CURRENCY

PART TWO – CENTRAL BANK of the I.R. of IRAN

Chapter 1- General

Chapter 2- Functions and Powers

Chapter 3- Organization

Chapter 4- General Provisions

PART THREE – BANKING

Chapter 1- Conditions Governing the Establishment of Banks

Chapter 2 – Terms and conditions Governing Banking Operations

Chapter 3- Dissolution and Bankruptcy of Banks

Chapter 4- Penal and Disciplinary Provisions

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India Banks have been granted permission to declare dividends by RBI-04/05/2005

Posted on by in BANKING and tagged , , , .

Declaration of dividends by banks

RBI/2004-05/451
DBOD.NO.BP.BC. 88 / 21.02.067 / 2004-05

May 04, 2005

All scheduled commercial banks (except RRBs)

Dear Sir,

Declaration of dividends by banks

The policy approach adopted by the Reserve Bank with regard to payment of dividends by banks was reviewed in consultation with the Standing Technical Advisory Committee on Financial Regulation and the regulatory focus was shifted from the ‘quantum of dividend’ to the ‘dividend payout ratio’ in terms of our guidelines issued vide our circular DBOD. No. BC.80 / 21.02.67 / 2003-04 dated April 23, 2004. These guidelines permitted banks to declare dividends subject to a ceiling of 33.33% on the dividend payout ratio, without obtaining the prior approval of RBI, subject to the fulfilment of the laid down criteria.

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Bank for International Settlements (BIS)

Posted on by in BANKING, Institutions and tagged , .

Bank for International Settlements is the oldest international financial institution. It serves central banks in their pursuit of monetary and financial stability, fosters international cooperation in those areas and acts as a bank for central banks.  BIS Established in 1930, and owned by 60 central banks hold 95% of world GDP.

In outline, the BIS pursues this mission by:

• facilitating dialogue and collaboration among central banks and other authorities
that are responsible for promoting financial stability;
• conducting research on policy issues confronting central banks and financial
supervisory authorities;
• acting as a prime counterparty for central banks in their financial transactions; and
• serving as an agent or trustee in connection with international financial operations.

The Basel III framework is a central element of the Basel Committee’s response to the global financial crisis developed  by Basel Committee on Banking Supervision in response to the financial crisis of 2007-09.

Sixty central banks and monetary authorities are currently members of the BIS :

  1. Bank of Algeria
  2. Central Bank of Argentina
  3. Reserve Bank of Australia
  4. Central Bank of the Republic of Austria
  5. National Bank of Belgium
  6. Central Bank of Bosnia and Herzegovina
  7. Central Bank of Brazil
  8. Bulgarian National Bank
  9. Bank of Canada
  10. Central Bank of Chile
  11. People’s Bank of China
  12. Central Bank of Colombia
  13. Croatian National Bank
  14. Czech National Bank
  15. Danmarks Nationalbank (Denmark)
  16. Bank of Estonia
  17. European Central Bank
  18. Bank of Finland
  19. Bank of France
  20. Deutsche Bundesbank (Germany)
  21. Bank of Greece
  22. Hong Kong Monetary Authority
  23. Magyar Nemzeti Bank (Hungary)
  24. Central Bank of Iceland
  25. Reserve Bank of India
  26. Bank Indonesia
  27. Central Bank of Ireland
  28. Bank of Israel
  29. Bank of Italy
  30. Bank of Japan
  31. Bank of Korea
  32. Bank of Latvia
  33. Bank of Lithuania
  34. Central Bank of Luxembourg
  35. National Bank of the Republic of North Macedonia
  36. Central Bank of Malaysia
  37. Bank of Mexico
  38. Netherlands Bank
  39. Reserve Bank of New Zealand
  40. Central Bank of Norway
  41. Central Reserve Bank of Peru
  42. Bangko Sentral ng Pilipinas (Philippines)
  43. National Bank of Poland
  44. Bank of Portugal
  45. National Bank of Romania
  46. Central Bank of the Russian Federation
  47. Saudi Arabian Monetary Authority
  48. National Bank of Serbia
  49. Monetary Authority of Singapore
  50. National Bank of Slovakia
  51. Bank of Slovenia
  52. South African Reserve Bank
  53. Bank of Spain
  54. Sveriges Riksbank (Sweden)
  55. Swiss National Bank
  56. Bank of Thailand
  57. Central Bank of the Republic of Turkey
  58. Central Bank of the United Arab Emirates
  59. Bank of England
  60. Board of Governors of the Federal Reserve System (United States)

The BIS has its head office in Basel, Switzerland, and representative offices in
the Hong Kong Special Administrative Region of the People’s Republic of China
(Hong Kong SAR) and in Mexico City.

Unregulated Deposit Scheme

Posted on by in Statutory definitions and tagged .

“Unregulated Deposit Scheme” means a Scheme or an arrangement under which deposits are accepted or solicited by any deposit taker by way of business and which is not a Regulated Deposit Scheme, as specified under column (3) of the First Schedule. [S.2 17]

Regulated Deposit Schemes

(1) The Regulator and Regulated Deposit Scheme refers to the regulators and schemes and arrangements listed in the following Table, namely: –

Table

Sl. No.

Regulator

Regulated Deposit Scheme

(1)

(2)

(3)

1.

The Securities and Exchange Board of India

(i) Any scheme or an arrangement [as defined under section 11AA of the Securities and Exchange Board of India Act, 1992 (15 of 1992)] launched, sponsored or carried out by a Collective Investment Management Company registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Collective Investment Scheme) Regulations, 1999.

(ii) Any scheme or an arrangement registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.

(iii) Any scheme or an arrangement, pursuant to which funds are managed by a portfolio manager, registered under the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993.

(iv) Any scheme or an arrangement regulated under the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 or providing for employee benefits as permitted under the Companies Act, 2013 (18 of 2013).

(v) Any other scheme or an arrangement registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992), or the regulations made thereunder.

(vi) Any amount received as contributions in the nature of subscriptions to a mutual fund registered with Securities and Exchange Board of India under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

2.

The Reserve Bank of India

(i) Any scheme under which deposits are accepted by Non-Banking Financial Companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) and registered with the Reserve Bank of India; or any other scheme or an arrangement registered under the Reserve Bank of India Act, 1934.

(ii) Any scheme or an arrangement under which funds are accepted by individuals or entities engaged as Business Correspondents and Facilitators by banks subject to the guidelines and circulars issued by the Reserve Bank of India from time to time.

(iii) Any scheme or an arrangement under which funds are received by a system provider operating as an authorised payment system under the Payment and Settlement Systems Act, 2007 (51 of 2007).

(iv) Any other scheme or an arrangement regulated under the Reserve Bank of India Act, 1934 (2 of 1934), or the guidelines or circulars of the Reserve Bank of India.

3.

The Insurance Regulatory and Development Authority of India

A contract of insurance pursuant to a certificate of registration obtained in accordance with the Insurance Act, 1938 (4 of 1938).

4.

The State Government or Union territory Government

(i) Any scheme or an arrangement made or offered by a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State or Union territory.

(ii) Any scheme or an arrangement commenced or conducted as a chit business with the previous sanction of the State Government in accordance with the provisions of the Chit Funds Act, 1982 (40 of 1982).

(iii) Any scheme or an arrangement regulated by any enactment relating to money lending which is for the time being in force in any State or Union territory.

(iv) Any scheme or an arrangement by a prize chit or money circulation scheme under section 11 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (43 of 1978).

5.

The National Housing Bank

Any scheme or an arrangement for acceptance of deposits registered under the National Housing Bank Act, 1987 (53 of 1987).

6.

The Pension Fund Regulatory and Development Authority

Any scheme or an arrangement under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013).

7.

The Employees’ Provident Fund Organisation

Any scheme, Pension Scheme or Insurance Scheme framed under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (19 of 1952).

8.

The Central Registrar, Multi-State Co-operative Societies

Any scheme or an arrangement for acceptance of deposits from voting members by a Multi-State Co-operative Society registered under the Multi-State Co-operative Societies Act, 2002 (39 of 2002).

9.

The Ministry of Corporate Affairs, Government of India

(i) Deposits accepted or permitted under the provisions of Chapter V of the Companies Act, 2013 (18 of 2013).

(ii) Any scheme or an arrangement under which deposits are accepted by a company declared as a Nidhi or a Mutual Benefit Society under section 406 of the Companies Act, 2013 (18 of 2013).

(2) The following shall also be treated as Regulated Deposit Schemes under this Act, namely: –

(a) deposits accepted under any scheme or an arrangement registered with any regulatory body in India constituted or established under a statute; and

(b) any other scheme as may be notified by the Central Government under this Act.

Banning of Unregulated Deposit Schemes

3. Banning of Unregulated Deposit Schemes. – On and from the date of commencement of this Act, –

(a) the Unregulated Deposit Schemes shall be banned; and

(b) no deposit taker shall, directly or indirectly, promote, operate, issue any advertisement soliciting participation or enrolment in or accept deposits in pursuance of an Unregulated Deposit Scheme.

4. Fraudulent default in Regulated Deposit Schemes. – No deposit taker, while accepting deposits pursuant to a Regulated Deposit Scheme, shall commit any fraudulent default in the repayment or return of deposit on maturity or in rendering any specified service promised against such deposit.

5. Wrongful inducement in relation to Unregulated Deposit Schemes. – No person by whatever name called shall knowingly make any statement, promise or forecast which is false, deceptive or misleading in material facts or deliberately conceal any material facts, to induce another person to invest in, or become a member or participant of any Unregulated Deposit Scheme.

6. Certain scheme to be Unregulated Deposit Scheme. – A prize chit or a money circulation scheme banned under the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 shall be deemed to be an Unregulated Deposit Scheme under this Act.

Banning of Unregulated Deposit Schemes Act, 2019

Shell bank

Posted on by in BANKING, Judicial Dictionary and tagged .

Shell bank means a bank that has no physical presence in the country in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision.

Physical presence means meaningful mind and management located within a country. The existence simply of a local agent or low level staff does not constitute physical presence.

[Ref: FATF (2012-2019), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, FATF, Paris, France]

Funds

Posted on by in Judicial Dictionary and tagged .

Funds

The term funds refers to assets of every kind, whether corporeal or incorporeal, tangible or intangible, movable or immovable, however acquired, and legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such assets.

Funds or other assets

The term funds or other assets means any assets, including, but not limited to, financial assets, economic resources (including oil and other natural resources), property of every kind, whether tangible or intangible, movable or immovable, however acquired, and legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such funds or other assets, including, but not limited to, bank credits, travellers cheques, bank cheques, money orders, shares, securities, bonds, drafts, or letters of credit, and any interest, dividends or other income on or value accruing from or generated by such funds or other assets, and any other assets which potentially may be used to obtain funds, goods or services.

[Ref: FATF (2012-2019), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, FATF, Paris, France]