The main objective of Financial Control Service or FCS is defined by the FCS Act of 2013 and states that this Authority must monitor and regulate the businesses of financial non-bank sector that are active on the territory of Grenada. These actions are performed in order to help the region prosper and secure it from financial crimes of any type.
That is why the FCS always has to keep an eye on such things, as:
- Making sure to protect both the financial structure and its consumers
- Supporting the reputation of Grenada
- Preventing the cases of crime that harm the businesses of financial services
So as to prevent any inconveniences, the Authority is ready to apply such restrictions and perform the following steps:
- Make an inspection about recent actions of a licensee
- Hire an examiner for looking after the business from a neutral point
- Involve the direction for solving the issue
- Suspend either the status or the license of a suspect
- Remove any suspicious figure involved
- and other actions that may be required in order to make the financial industry safe
And it should be remembered that FCS, maintaining various sections that monitor each component of a financial sector, is ready to do whatever it takes with all its resources so that the licensees strictly adhere to the prescribed rules of fair trade.
What happens to unauthorized financial business
It is necessary to get a proper license and register entry if the person wants to have a legal business on the territory of Grenada, and in case the procedures are omitted, making the issue illegal, then there will be a corresponding punishment for violating the rules.
The Financial Control Service Act gives the FCS a right to take the proper enforcement according to the matter for any current or former licensee. This includes the businesses which carried and carry on with no license, the ones who trick the Authority and act as if they hold the license and the ones who abuse their rights after getting the license.
After revocation and suspension of license
The Authority has the full right to act against a business representative who violated the rules with the help of revoking or suspending a license given earlier. This may happen in such cases, when:
- The actions of a licensee are controversial to the rules established by FCS Act or any other code that is supported by the FCS
- The licensee violated the Anti-Money Laundering Act or any other law on the territory of Grenada
- The business seems unreliable for publicity and partnership
- The established check-ups by the FCS or cooperating authorities are failed or constantly omitted
- The information provided by the licensee appeared to be false or misleading
The procedure of surrendering the license
It is possible for a licensee to surrender his license, but beforehand he has to send a letter to the FCS with describing his reasons for doing so. For that there should be provided such information, as true and full justification, the date for effective termination and following points that are better to be clarified through the phone or e-mail letter.
Disciplinary measures that may be used
For FCS it may be necessary to use several disciplinary measures against a licensee that violated the prescribed regulations.
The directives are used as a disciplinary tool in such way: stopping the licensee from performing any other contracts and concluding partnerships, replacing or removing the unreliable persons for a licensee, ensuring that all the property entrusted to the licensee is safe and sound.
The direction can be provided by Authority in case if: the licensee violated the points prescribed by the FCS Act, the business is ruled in the inappropriate way, the direction is required for protection of the clients. The refusal to cooperate with the Authority is interpreted as an offence of FCS.
The administrative penalties can be provided by FCS accordingly to the Act or any other financial services regulators.
Removal or suspension of fit and proper of an individual
The removal of any suspicious to the Authority individuals and replacing them with proper figures is also one of the tools that are used by FCS in order to protect the financial industry from negative impact.
Order of protection
The Authority is ready to apply to the Court for the licensees who fall under such categories: the ones who have their licenses soon to be revoked, the former licensees whose permissions were terminated and the individuals who perform the illegal business action.
It is the responsibility of the Court to make the decisions which are crucial for the protection of the business issued and its clients and partners. So there may be applied such solutions, as appointing a neutral person who is going to be responsible for managing the business before suspension of a license, giving the corresponding warrants that help to perform a research about business that broke the code, restricting the offender from performing the further actions in business sphere, preventing the abusers from dealing with property that was entrusted by the clients or partners and so on.
FINANCIAL SERVICES APPEALS BOARD
It is important to know there is the FCS Appeals Board that can perform as a licensees’ salvation in case they were unfairly affected by the Court decisions and want to restore the justice. The Board was established under the FCS Act and gives the right for appeal to any licensee within 90 days.
The Appeals Board is consisted of five independent from FCS members, including two lawyers-practitioners and three professionals from the financial services industry that are competent enough to investigate the case given.
In case you need to create an appeal, there is a corresponding application form that comes as a proper example for the licensee: Notice-of-Appeal.pdf
And you can also pass it or have a consultation on the issue given through the phone call or e-mailing to the [email protected]