Fla. Admin. Code Ann. R. 69U-140.008 - Permissible Activities for an International Bank Agency

(1) Generally, permissible activities shall include those activities permissible for corporations engaged in international banking or financial operations under the Edge Act, 12 U.S.C. sections 611-631, except such of those activities that are contrary to or inconsistent with any of the provisions of chapter 663, F.S., or these rules. An international bank agency may engage in any activity permissible for an international administrative office or international representative office.

(2) An international bank agency may maintain for the account of others credit balances necessarily incidental to, or arising out of, the exercise of its lawful powers. Provided that such credit balances are disbursed in accordance with subsection (3) of this rule, they shall not be considered to be functionally equivalent to demand deposits for purposes of section 663.061(2), F.S. Credit balances may include proceeds of loans to customers where such proceeds are not immediately disbursed; proceeds of incoming remittances; proceeds of collections made for customers' accounts; funds delivered by customers to settle letters of credit accounts with the international bank agency prior to settlement date; proceeds of export bills negotiated (i.e., drafts drawn under letters of credit issued by and received from other financial institutions); cash collateral resulting from any permissible activity with a customer; undisbursed proceeds of a loan retained by the international bank agency in the nature of a compensating balance from the borrowing customer; funds delivered prior to execution of money transfers undertaken on behalf of customers; funds delivered or received on account of the purchase or sale of securities for the account of customers; and funds received from customers to cover currency transactions or as the result of currency transactions on behalf of customers.

(3) A credit balance may be fully or partially disbursed either to the customers for whose accounts it is maintained or to third parties designated by the customer. Such disbursements may be made by check, draft, pre-authorized transfer, or otherwise. Disbursements by the customer to third parties, however made, shall not exceed an average of twenty per day per calendar month. Disbursements to the customer maintaining the credit balance and disbursements by the international bank agency on behalf of the customer to third parties may be made without limitation.

(4) To insure compliance with subsection (3) of this rule, an international bank agency which maintains credit balances for the account of customers shall adopt procedures to monitor credit balance disbursements to third parties and promptly notify customers who exceed the limitations established in subsection (3) of this rule. Customers who are notified as provided in this subsection and who subsequently exceed the limitations established in subsection (3) of this rule, shall be prohibited by the international bank agency at which their accounts are maintained from making further credit balance disbursements to third parties.

(5) An international bank agency may provide financing and banking services to foreign businesses and foreign individuals in their foreign operations, and also in their operations in the United States or elsewhere, where such operations are in the stream of international business and commerce. An international bank agency may also provide financing and banking services to United States businesses and customers in their foreign operations and in their operations in Florida and elsewhere that are clearly related to international commerce, such as operations directly connected with the production, storage, transportation and sale of goods for export or import if the importation or exportation of the goods is financed by the international bank agency.

(6) Deposits.

(a) An international bank agency licensed by this state may accept, pursuant to section 663.061, F.S., only the following deposits:

1. Deposits from non-resident entities whose principal places of business are outside the United States. For purposes of this subsection, the phrase "non-resident entities whose principal places of business are outside the United States" shall mean entities which conduct a majority of their business activities in a foreign county, a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands. The term shall include foreign governments and their sub-divisions, agencies and instrumentalities. An entity which conducts business in the United States shall be deemed to have its principal place of business outside the United States if any one of the following requirements are satisfied for the last fiscal year of such entity:

a. The assets of such entity located outside the United States exceed its assets located within the United States;

b. The gross revenues of such entity generated outside the United States exceed its gross revenues generated within the United States; or

c. The payroll expenses of such entity incurred outside the United States exceed its payroll expenses incurred within the United States.

2. Deposits from non-resident persons whose principal places of domicile are outside the United States. For purposes of this subsection, the phrase "non-resident persons whose principal places of domicile are outside the United States" shall mean individuals, including United States citizens, who reside within the United States for less than 183 days during a calendar year.

3. Interbank deposits, interbank borrowing, or similar interbank obligations. For purposes of this subsection, the phrase "interbank deposits, interbank borrowing, or similar interbank obligations" shall mean activities represented by a certificate of deposit, promissory note, acknowledgement of advance, or other similar instrument, between the international bank agency and any financial institution, as defined in section 655.50, F.S., which institution is located in the United States.

4. International banking facility deposits, as defined by rule 69U-100.003, F.A.C.

(b) An international bank agency shall be entitled to presume that an entity or person meets the requirements of subparagraphs (a)1. or 2., respectively, if such entity or person furnishes to the international bank agency a written statement which:

1. Sets forth the specific facts which indicate that the requirements of the applicable subparagraph have been met; and,

2. Acknowledges an affirmative duty on the part of the entity or person furnishing the written statement to advise management of the agency in the event that such entity or person ceases to meet the applicable requirements.

(7) Pursuant to the authority contained in section 663.061, F.S., notwithstanding the limitations set forth above, the operations of an international banking corporation at its international bank agency licensed in Florida by OFR:

(a) May be conducted with the same rights and privileges as a state bank including, but not limited to, maintaining credit balances incidental to or arising out of the exercise of its banking powers, paying checks and lending money, except that it shall not exercise fiduciary powers or accept deposits other than the deposits defined in this rule; provided, however, that if at any time any of the same or substantially similar rights and privileges herein granted are, with respect to their exercise by a federal agency, denied or limited by federal law or regulation, or by judicial action, the exercise thereof by an international bank agency licensed by OFR shall to the same extent be limited or denied unless expressly permitted by provisions of chapter 663, F.S., other than the parts thereof initially cited in this paragraph; and,

(b) Shall be subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the Financial Institutions Codes to a state bank doing business in Florida.

Notes

Fla. Admin. Code Ann. R. 69U-140.008

Rulemaking Authority 655.012(2), 663.061(3), 663.13 FS. Law Implemented 663.061, 663.06(5) FS.

New 5-4-78, Amended 2-24-80, 7-21-81, 12-2-85, Formerly 3C-15.03, Amended 5-27-87, 5-18-88, Formerly 3C-15.003, Amended 11-5-97, Formerly 3C-140.008, Amended 10-29-12, Amended by Florida Register Volume 43, Number 220, November 14, 2017 effective 1/1/2018.

New 5-4-78, Amended 2-24-80, 7-21-81, 12-2-85, Formerly 3C-15.03, Amended 5-27-87, 5-18-88, Formerly 3C-15.003, Amended 11-5-97, Formerly 3C-140.008, Amended 10-29-12, 1-1-18.