Bahamas: Suisse Security Bank and Trust Claims New Bank And Trust Companies Act Is 'Unconstitutional'

Amanda Banks, Tax-news.com, London

05 April 2001

Following a failed bid by the Suisse Security Bank and Trust (SSBT) to challenge in court the Bahamas Central Bank's decision to suspend its licence, the beleaguered SSBT is still insisting that it will not go down without a fight as it has now decided to attempt to undermine the authority of the Central Bank Governor, which was awarded to him by the recently enacted Bank and Trust Companies Regulations Act.

According to a report in the Nassau Guardian the SSBT has addressed the Supreme Court with a plea to find the Act unconstitutional thus removing the Governor's new powers. It was under these new powers that the Governor, Julian Francis, suspended SSBT's licence on March 5, and on Monday April 2 formally revoked it.

This is the first time the Act has been brought into question and reflects the determination of the SSBT to retrieve its banking licence. Litigation was filed by SSBT on March 29 against the Central Bank, the Attorney-General and the bank's Receiver, accountant Raymond Winder.

Representing the bank in court was Raynard Rigby, who told the Nassau Guardian: 'The case is the first to be filed challenging the constitutionality of the Banks & Trust Companies Regulations Act ... The action raises several fundamental and constitutional issues and is a case of first impression ... Suisse Security is also hoping that the Court finds that the actions of the receiver amounted to a trespass, an unlawful search and seizure of its property, and that its fundamental rights were breached by the Governor of the Central Bank.'

When the Central Bank suspended SSTB's licence on March 5, and seized physical control of the bank, it did so, it said, because of the 'inability of said bank, at this time, to normally fulfill certain prudential requirements and satisfy the Central Bank of the Bahamas as to its affairs.'

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