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The Florida Senate

2017 Florida Statutes

Title XXXVIII BANKS AND BANKING
Chapter 663 INTERNATIONAL BANKING Entire Chapter
SECTION 532
Qualification.
F.S. 663.532
663.532 Qualification.—
(1) To qualify as a qualified limited service affiliate under this part, a proposed qualified limited service affiliate must file a written notice with the office, in the manner and on a form prescribed by the commission. Such written notice must include:
(a) The name under which the proposed qualified limited service affiliate will conduct business in this state.
(b) A copy of the articles of incorporation or articles of organization, or the equivalent, of the proposed qualified limited service affiliate.
(c) The physical address where the proposed qualified limited service affiliate will conduct business.
(d) The mailing address of the proposed qualified limited service affiliate.
(e) The name and biographical information of each director, executive officer, manager, managing member, or equivalent position of the proposed qualified limited service affiliate, to be submitted on a form prescribed by the commission.
(f) The number of officers and employees of the proposed qualified limited service affiliate.
(g) A detailed list and description of the activities to be conducted by the proposed qualified limited service affiliate. The detailed list and description must include:
1. The services and activities of the proposed qualified limited service affiliate;
2. An explanation of how the services and activities of the proposed qualified limited service affiliate serve the business purpose of each international trust entity; and
3. An explanation of how the services and activities of the proposed qualified limited service affiliate are distinguishable from those of the permissible activities of an international trust company representative office described under s. 663.409.
(h) Disclosure of any instance occurring within the prior 10 years when the proposed qualified limited service affiliate’s director, executive officer, principal shareholder, manager, managing member, or equivalent position was:
1. Arrested for, charged with, or convicted of, or 1pled guilty or nolo contendere to, regardless of adjudication, any offense that is punishable by imprisonment for a term exceeding 1 year, or to any offense that involves money laundering, currency transaction reporting, tax evasion, facilitating or furthering terrorism, fraud, theft, larceny, embezzlement, fraudulent conversion, misappropriation of property, dishonesty, breach of trust, breach of fiduciary duty, or moral turpitude, or that is otherwise related to the operation of a financial institution;
2. Fined or sanctioned as a result of a complaint to the office or any other state or federal regulatory agency; or
3. Ordered to pay a fine or penalty in a proceeding initiated by a federal, state, foreign, or local law enforcement agency or an international agency related to money laundering, currency transaction reporting, tax evasion, facilitating or furthering terrorism, fraud, theft, larceny, embezzlement, fraudulent conversion, misappropriation of property, dishonesty, breach of trust, breach of fiduciary duty, or moral turpitude, or that is otherwise related to the operation of a financial institution.
(i) A declaration under penalty of perjury signed by the executive officer, manager, or managing member of the proposed qualified limited service affiliate that, to the best of his or her knowledge:
1. No employee, representative, or agent provides, or will provide, banking services; promotes or sells, or will promote or sell, investments; or accepts, or will accept, custody of assets.
2. No employee, representative, or agent acts, or will act, as a fiduciary in this state, which includes, but is not limited to, accepting the fiduciary appointment, executing the fiduciary documents that create the fiduciary relationship, or making discretionary decisions regarding the investment or distribution of fiduciary accounts.
3. The jurisdiction of the international trust entity or its offices, subsidiaries, or any affiliates that are directly involved in or facilitate the financial services functions, banking, or fiduciary activities of the international trust entity is not listed on the Financial Action Task Force Public Statement or on its list of jurisdictions with deficiencies in anti-money laundering or counterterrorism.
(j) For each international trust entity that the proposed qualified limited service affiliate will provide services for in this state, the following:
1. The name of the international trust entity;
2. A list of the current officers and directors of the international trust entity;
3. Any country where the international trust entity is organized or authorized to do business;
4. The name of the home-country regulator;
5. Proof that the international trust entity has been authorized by charter, license, or similar authorization by its home-country regulator to engage in trust business;
6. Proof that the international trust entity lawfully exists and is in good standing under the laws of the jurisdiction where it is chartered, licensed, or organized;
7. A statement that the international trust entity is not in bankruptcy, conservatorship, receivership, liquidation, or in a similar status under the laws of any country;
8. Proof that the international trust entity is not operating under the direct control of the government or the regulatory or supervisory authority of the jurisdiction of its incorporation, through government intervention or any other extraordinary actions, and confirmation that it has not been in such a status or under such control at any time within the prior 3 years;
9. Proof and confirmation that the proposed qualified limited service affiliate is affiliated with the international trust entities provided in the notice; and
10. Proof that the jurisdictions where the international trust entity or its offices, subsidiaries, or any affiliates that are directly involved in or that facilitate the financial services functions, banking, or fiduciary activities of the international trust entity are not listed on the Financial Action Task Force Public Statement or on its list of jurisdictions with deficiencies in anti-money laundering or counterterrorism.
(k) A declaration under penalty of perjury, signed by an executive officer, manager, or managing member of each affiliated international trust entity, declaring that the information provided to the office is true and correct to the best of his or her knowledge.

The proposed qualified limited service affiliate may provide additional information in the form of exhibits when attempting to satisfy any of the qualification requirements. All information that the proposed qualified limited service affiliate desires to present to support the written notice must be submitted with the notice.

(2) The office may request additional information as the office reasonably requires. Any request for additional information must be made by the office within 30 days after initial receipt of the written notice. Additional information must be submitted within 60 days after a request has been made by the office. Failure to respond to such request within 60 days after the date of the request is a ground for denial of the qualification. A notice is not deemed complete until all requested information has been submitted to the office. Upon deeming the notice complete, the office has 120 days to qualify the proposed qualified limited service affiliate or issue a denial. An order denying a qualification must contain notice of opportunity for a hearing pursuant to ss. 120.569 and 120.57.
(3) A qualification under this part must be summarily suspended by the office if the qualified limited service affiliate made a material false statement in the written notice. The summary suspension must remain in effect until a final order is entered by the office. For purposes of s. 120.60(6), a material false statement made in the qualified limited service affiliate’s written notice constitutes an immediate and serious danger to the public health, safety, and welfare. If a qualified limited service affiliate made a material false statement in the written notice, the office must enter a final order revoking the qualification and may issue a fine as prescribed by s. 655.041 or issue an order of suspension, removal, or prohibition under s. 655.037 to a financial institution-affiliated party of the qualified limited service affiliate.
(4) Upon the filing of a completed qualification notice under this section, the office shall make an investigation of the character, reputation, business experience, and business qualifications of the proposed qualified limited service affiliate’s proposed directors, executive officers, principal shareholder, managers, managing members, or equivalent positions. The office shall approve the qualification only if it has determined that such persons are qualified by reason of their ability, reputation, and integrity and have sufficient experience to manage and direct the affairs of the qualified limited service affiliate in a lawful manner and in accordance with the requirements for obtaining and maintaining a qualification under this part. When evaluating a qualification notice, the office may consider factors reasonably related to an offense or related to a violation, fine, or penalty, such as mitigating factors, history of multiple violations, severity of the offense, and showings of rehabilitation.
(5) A qualification is not transferable or assignable.
(6) No later than March 31, 2018, a person or entity that previously qualified under the moratorium in s. 663.041 must seek qualification as a qualified limited service affiliate or cease doing business in this state. Notwithstanding the expiration of the moratorium under s. 663.041, a person or entity that previously qualified under such moratorium may remain open and in operation but shall refrain from engaging in new lines of business in this state until qualified as a qualified limited service affiliate under this part.
History.—ss. 41, 42, ch. 2017-83.
1Note.—The word “who” preceding the word “pled” was deleted by the editors.