Bill Text: FL S0736 | 2017 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: International Financial Institutions
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-05-02 - Laid on Table, companion bill(s) passed, see CS/CS/HB 435 (Ch. 2017-83), CS/CS/HB 437 (Ch. 2017-84) [S0736 Detail]
Download: Florida-2017-S0736-Introduced.html
Bill Title: International Financial Institutions
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-05-02 - Laid on Table, companion bill(s) passed, see CS/CS/HB 435 (Ch. 2017-83), CS/CS/HB 437 (Ch. 2017-84) [S0736 Detail]
Download: Florida-2017-S0736-Introduced.html
Florida Senate - 2017 SB 736 By Senator Mayfield 17-00475A-17 2017736__ 1 A bill to be entitled 2 An act relating to international financial 3 institutions; amending s. 655.005, F.S.; redefining 4 the term “financial institution” to include 5 international trust entities and limited service 6 affiliates; amending s. 655.059, F.S.; specifying 7 conditions under which confidential books and records 8 of international trust entities may be disclosed to 9 their home-country supervisors; revising conditions 10 for such disclosure for international banking 11 corporations; redefining the term “home-country 12 supervisor”; requiring books and records pertaining to 13 trust accounts to be kept confidential by financial 14 institutions and their directors, officers, and 15 employees; providing an exception; providing 16 construction; creating s. 663.001, F.S.; providing 17 legislative intent; amending s. 663.01, F.S.; 18 redefining terms; deleting the definition of the term 19 “international trust company representative office”; 20 amending s. 663.02, F.S.; revising applicability of 21 the financial institutions codes as to international 22 banking corporations; amending s. 663.021, F.S.; 23 conforming a provision to changes made by the act; 24 amending s. 663.04, F.S.; deleting international trust 25 companies from requirements for carrying on financial 26 institution business; conforming a provision to 27 changes made by the act; authorizing the Office of 28 Financial Regulation to permit certain entities that 29 would otherwise be prohibited from carrying on 30 financial institution business to remain open and in 31 operation under certain circumstances; amending s. 32 663.05, F.S.; providing for an abbreviated application 33 procedure for certain entities established by an 34 international banking corporation; specifying that the 35 Financial Services Commission, rather than the office, 36 prescribes a certain application form; requiring the 37 commission to adopt rules for a time limitation for an 38 application decision after a specified date; revising 39 conditions for the office to issue an international 40 banking corporation license; conforming a provision to 41 changes made by the act; amending s. 663.055, F.S.; 42 revising capital requirements for international 43 banking corporations; amending s. 663.06, F.S.; making 44 technical changes; conforming a provision to changes 45 made by the act; creating s. 663.0601, F.S.; providing 46 an after-the-fact licensure process in the event of 47 the acquisition, merger, or consolidation of 48 international banking corporations; specifying 49 conditions for such license; amending s. 663.061, 50 F.S.; providing additional permissible activities for 51 international bank agencies; amending s. 663.062, 52 F.S.; providing additional permissible activities for 53 certain international representative offices; amending 54 s. 663.063, F.S.; providing additional permissible 55 activities for international administrative offices; 56 amending s. 663.064, F.S.; requiring the commission to 57 adopt rules relating to permissible deposits of 58 international branches; providing additional 59 permissible activities for international branches; 60 amending s. 663.09, F.S.; revising requirements for 61 the maintenance of books and records of international 62 banking corporations; authorizing the office to 63 require international banking corporations to 64 translate certain documents into English at the 65 expense of the international banking corporations; 66 amending s. 663.11, F.S.; authorizing the office to 67 permit certain entities that would otherwise be 68 prohibited from continuing business to remain open and 69 in operation under certain circumstances; making 70 technical and conforming changes; amending s. 663.12, 71 F.S.; conforming a provision to changes made by the 72 act; amending s. 663.17, F.S.; making technical 73 changes; providing a directive to the Division of Law 74 Revision and Information; creating part III of ch. 75 663, F.S., entitled “International Trust Company 76 Representative Offices”; creating s. 663.4001, F.S.; 77 providing legislative intent; creating s. 663.401, 78 F.S.; defining terms; creating s. 663.402, F.S.; 79 providing applicability of the financial institutions 80 codes as to international trust entities; creating s. 81 663.403, F.S.; providing applicability of the Florida 82 Business Corporation Act as to international trust 83 entities; creating s. 663.404, F.S.; specifying 84 requirements for an international trust entity or 85 certain related entities to conduct financial 86 institution business; authorizing the office to permit 87 an international trust company representative office 88 that would otherwise be prohibited from continuing 89 business to remain open and in operation under certain 90 circumstances; creating s. 663.405, F.S.; providing 91 that an international trust company representative 92 office is not required to produce certain books and 93 records under certain circumstances; providing 94 applicability; creating s. 663.406, F.S.; providing 95 requirements for applications for an international 96 trust entity license; requiring the office to disallow 97 certain financial resources from capitalization 98 requirements; requiring the international trust entity 99 to submit to the office a certain certificate; 100 providing an abbreviated application process for 101 certain international trust entities to establish 102 international trust company representative offices; 103 specifying parameters and requirements for the office 104 in determining whether to approve or disapprove an 105 application; requiring the commission to adopt by rule 106 general principles regarding the adequacy of 107 supervision of an international trust entity’s foreign 108 establishments rules; creating s. 663.407, F.S.; 109 providing capital requirements for an international 110 trust entity; requiring the commission to adopt rules; 111 creating s. 663.408, F.S.; providing permissible 112 activities under and requirements and limitations for 113 international trust entity licenses; providing 114 procedures, conditions, and requirements for the 115 suspension, revocation, or surrender of an 116 international trust entity license; creating s. 117 663.4081, F.S.; providing for an after-the-fact 118 licensure process in the event of the acquisition, 119 merger, or consolidation of international trust 120 entities; specifying conditions for such licensure; 121 transferring, renumbering, and amending s. 663.0625; 122 adding prohibited activities of representatives and 123 employees of an international trust company 124 representative office; conforming provisions to 125 changes made by the act; creating s. 663.410, F.S.; 126 requiring international trust entities to certify to 127 the office the amount of their capital accounts at 128 specified intervals; providing construction; creating 129 s. 663.411, F.S.; specifying reporting and 130 recordkeeping requirements for international trust 131 entities; providing penalties; authorizing the office 132 to require an international trust entity to translate 133 certain documents into English at the international 134 trust entity’s expense; creating s. 663.412, F.S.; 135 prohibiting an international trust entity from 136 conducting business under certain circumstances; 137 authorizing the office to permit the international 138 trust entity to remain open and in operation under 139 certain circumstances; requiring an international 140 trust entity or its surviving officers and directors 141 to deliver specified documents to the office; 142 providing construction; creating s. 663.413, F.S.; 143 specifying application and examination fees for 144 international trust company representative offices; 145 creating s. 663.414, F.S.; authorizing the commission 146 to adopt certain rules; providing an exemption from 147 statement of estimated regulatory costs requirements; 148 creating s. 663.415, F.S.; requiring international 149 trust company representative offices that are under 150 examination to reimburse domestic or foreign travel 151 expenses of the office; providing a directive to the 152 Division of Law Revision and Information; creating 153 part IV of ch. 663, F.S., entitled “Limited Service 154 Affiliates of International Trust Entities”; creating 155 s. 663.530, F.S.; defining terms; creating s. 663.531, 156 F.S.; specifying permissible and impermissible 157 activities of a limited service affiliate; requiring 158 specified notices to be posted on an international 159 trust entity’s or limited service affiliate’s website; 160 authorizing enforcement actions by the office; 161 providing construction; creating s. 663.532, F.S.; 162 specifying registration notice requirements and a fee 163 for limited service affiliates; providing requirements 164 and procedures for additional information requested by 165 the office; providing summary suspension requirements 166 and procedures; specifying grounds for denying a 167 registration; providing that registrations are not 168 transferable or assignable; providing for deposit of 169 fees into a specified trust fund; requiring the 170 commission to adopt rules; requiring certain persons 171 or entities to be registered as limited service 172 affiliates by a specified date; creating s. 663.533, 173 F.S.; providing applicability of the financial 174 institutions codes as to limited service affiliates; 175 providing construction; creating s. 663.534, F.S.; 176 requiring a registrant to report changes of certain 177 information to the office within a specified 178 timeframe; creating s. 663.535, F.S.; requiring a 179 specified notice to customers in marketing documents, 180 advertisements, and displays at the limited service 181 affiliate’s location or at certain events; creating s. 182 663.536, F.S.; specifying recordkeeping requirements 183 relating to certain events that a registered limited 184 service affiliate participates in; creating s. 185 663.537, F.S.; authorizing the office to conduct 186 examinations or investigations of limited service 187 affiliates for certain purposes; specifying a minimum 188 interval of examinations to assess compliance; 189 authorizing the office to examine a person or entity 190 submitting a notice of registration for certain 191 purposes; requiring limited service affiliates to pay 192 specified costs of examination within a specified 193 time; defining the terms “costs” and “actual cost”; 194 providing penalties; specifying the trust fund where 195 examination fees must be deposited; requiring the 196 commission to adopt rules; creating s. 663.538, F.S.; 197 providing requirements and procedures relating to the 198 suspension, revocation, or voluntary surrender of a 199 limited service affiliate’s registration; providing a 200 penalty; authorizing the office to conduct 201 examinations under certain circumstances; prohibiting 202 the office from denying a request to terminate 203 operations except under certain circumstances; 204 providing construction; creating s. 663.539, F.S.; 205 requiring a limited service affiliate to renew its 206 registration biennially; specifying the renewal fee 207 and the trust fund where such fee must be deposited; 208 specifying requirements for the renewal registration; 209 reenacting s. 663.16(4), F.S., relating to 210 definitions, to incorporate the amendment made to s. 211 663.01, F.S., in a reference thereto; providing an 212 effective date. 213 214 Be It Enacted by the Legislature of the State of Florida: 215 216 Section 1. Paragraph (i) of subsection (1) of section 217 655.005, Florida Statutes, is amended to read: 218 655.005 Definitions.— 219 (1) As used in the financial institutions codes, unless the 220 context otherwise requires, the term: 221 (i) “Financial institution” means a state or federal 222 savings or thrift association, bank, savings bank, trust 223 company, international bank agency, international banking 224 corporation, international branch, international representative 225 office, international administrative office, international trust 226 entity, international trust company representative office, 227 limited service affiliate, credit union, or an agreement 228 corporation operating pursuant to s. 25 of the Federal Reserve 229 Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized 230 pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 231 611 et seq. 232 Section 2. Subsection (1) and paragraph (b) of subsection 233 (2) of section 655.059, Florida Statutes, are amended to read: 234 655.059 Access to books and records; confidentiality; 235 penalty for disclosure.— 236 (1) The books and records of a financial institution are 237 confidential and shall be made available for inspection and 238 examination only: 239 (a) To the office or its duly authorized representative; 240 (b) To any person duly authorized to act for the financial 241 institution; 242 (c) To any federal or state instrumentality or agency 243 authorized to inspect or examine the books and records of an 244 insured financial institution; 245 (d) With respect to an international banking corporation or 246 international trust entity, to the home-country supervisor of 247 the international banking corporation or international trust 248 entity, provided: 249 1. The home-country supervisor provides advance notice to 250 the office that the home-country supervisor intends to examine 251 the Florida office of the international banking corporation or 252 international trust entity. Such examination may be conducted 253 onsite or offsite and may include ongoing reporting by the 254 Florida office of the international banking corporation or 255 international trust entity to the home-country supervisor. 256 2. The home-country supervisor confirms to the office that 257 the purpose of the examination is to ensure the safety and 258 soundness of the international banking corporation or 259 international trust entity. 260 3. The books and records pertaining to customer deposit, 261 investment,andcustodial, and trust accounts are not disclosed 262 to the home-country supervisor. 263 4. At any time during the conduct of the examination, the 264 office reserves the right to have an examiner present,orto 265 participate jointly in the examination, or to receive copies of 266 all information provided to the home-country supervisor. 267 268 As used inFor purposes ofthis paragraph, the term “home 269 country supervisor” means the governmental entity in the 270 international banking corporation’s or international trust 271 entity’s home country with responsibility for the supervision 272 and regulation of the safety and soundness of the international 273 banking corporation or international trust entity; 274 (e) As compelled by a court of competent jurisdiction, 275 pursuant to a subpoena issued pursuant to the Florida Rules of 276 Civil Procedure, the Florida Rules of Criminal Procedure, or the 277 Federal Rules of Civil Procedure, or pursuant to a subpoena 278 issued in accordance with state or federal law. BeforePrior to279 the production of the books and records of a financial 280 institution, the party seeking production must reimburse the 281 financial institution for the reasonable costs and fees incurred 282 in compliance with the production. If the parties disagree 283 regarding the amount of reimbursement, the party seeking the 284 records may request the court or agency having jurisdiction to 285 set the amount of reimbursement; 286 (f) As compelled by legislative subpoena as provided by 287 law, in which case the provisions of s. 655.057 apply; 288 (g) Pursuant to a subpoena, to any federal or state law 289 enforcement or prosecutorial instrumentality authorized to 290 investigate suspected criminal activity; 291 (h) As authorized by the board of directors of the 292 financial institution; or 293 (i) As provided in subsection (2). 294 (2) 295 (b) The books and records pertaining to trust accounts and 296 the deposit accounts and loans of depositors, borrowers, 297 members, and stockholders of any financial institution shall be 298 kept confidential by the financial institution and its 299 directors, officers, and employees and mayshallnot be released 300 except upon express authorization of the account holder as to 301 her or his own accounts, loans, or voting rights. However, 302 information relating to any loan made by a financial institution 303 may be released without the borrower’s authorization in a manner 304 prescribed by the board of directors for the purpose of meeting 305 the needs of commerce and for fair and accurate credit 306 information. Information may also be released, without the 307 authorization of a member or depositor but in a manner 308 prescribed by the board of directors, to verify or corroborate 309 the existence or amount of a customer’s or member’s account when 310 such information is reasonably provided to meet the needs of 311 commerce and to ensure accurate credit information. In addition, 312 a financial institution, affiliate, and its subsidiaries, and 313 any holding company of the financial institution or subsidiary 314 of such holding company, may furnish to one another information 315 relating to their customers or members, subject to the 316 requirement that each corporation receiving information that is 317 confidential maintain the confidentiality of such information 318 and not provide or disclose such information to any unaffiliated 319 person or entity. Notwithstanding this paragraph,nothing in320 this subsection does not prohibit:shall prohibit321 1. A financial institution from disclosing financial 322 information as referenced in this subsection as authorized 323permittedby Pub. L. No. 106-102 (1999), as set forth in 15 324 U.S.C.A. s. 6802, as amended. 325 2. The Florida office of the international banking 326 corporation or international trust entity from sharing books and 327 records under this subsection with the home-country supervisor 328 in accordance with subsection (1). 329 Section 3. Section 663.001, Florida Statutes, is created in 330 part I of chapter 663, Florida Statutes, to read: 331 663.001 Purpose.—The purpose of this part is to establish a 332 legal and regulatory framework for the conduct by international 333 banking corporations of financial services business in this 334 state. This part is intended to: 335 (1) Support the Florida operations of international banking 336 corporations and promote the growth of international financial 337 services to benefit the economy and consumers in this state. 338 (2) Provide for appropriate supervision and regulatory 339 oversight to ensure that financial services activities of 340 international banking corporations in this state are conducted 341 responsibly and in a safe and sound manner. 342 Section 4. Subsections (6) and (9) and paragraph (b) of 343 subsection (11) of section 663.01, Florida Statutes, are amended 344 to read: 345 663.01 Definitions.—As used in this part, the term: 346 (6) “International banking corporation” means a banking 347 corporation organized and licensed under the laws of a foreign 348 country. The term“international banking corporation”includes, 349 without limitation, a foreign commercial bank, foreign merchant 350 bank, or other foreign institution that engages in banking 351 activities usual in connection with the business of banking in 352 the country where such foreign institution is organized or 353 operating, including a corporation: the sole shareholders of 354 which are one or more international banking corporations or 355 holding companies which own or control one or more international 356 banking corporations which are authorized to carry on a banking 357 business, or a central bank or government agency of a foreign 358 country and any affiliate or division thereof; which has the 359 power to receive deposits from the general public in the country 360 where it is chartered and organized; and which is under the 361 supervision of the central bank or other bank regulatory 362 authority of such country. The term also includesforeign trust363companies, or any similar business entities, including, but not364limited to,foreign banks with fiduciary powers which,that365 conduct trust business as defined in the financial institutions 366 codes. 367(9) “International trust company representative office”368means an office of an international banking corporation or trust369company organized and licensed under the laws of a foreign370country which office is established or maintained in this state371for the purpose of engaging in nonfiduciary activities described372in s. 663.0625, or any affiliate, subsidiary, or other person373that engages in such activities on behalf of such international374banking corporation or trust company from an office located in375this state.376 (10)(11)“Nonresident” means: 377 (b) A person, other than an individual, whose principal 378 place of business or domicile is outside the United States and 379 includes a person who conducts a majority of its business 380 activities in a foreign country and any foreign government and 381 its subdivision, agencies, and instrumentalities. Any person who 382 conducts business in the United States is considered to have its 383 principal place of business outside the United States if any one 384 of the following requirements is satisfied for its most recent 385 fiscal year: 386 1. Its assets located outside the United States exceed its 387 assets located within the United States; 388 2. Its gross revenues generated outside the United States 389 exceed its gross revenues generated within the United States; or 390 3. Its payroll expenses incurred outside the United States 391 exceed its payroll expenses incurred within the United States. 392 Section 5. Section 663.02, Florida Statutes, is amended to 393 read: 394 663.02 Applicability of the financial institutions codes 395state banking laws.— 396 (1) International banking corporations having offices in 397 this state are subject to all the provisions of the financial 398 institutions codesand chapter 655as though such corporations 399 were state banksor trust companies, except where it may appear, 400 from the context or otherwise, that such provisions are clearly 401 applicable only to banksor trust companiesorganized under the 402 laws of this state or the United States. Without limiting the 403 foregoing general provisions, it is the intent of the 404 Legislature that the following provisions are applicable to such 405 banks or trust companies: s. 655.031, relating to administrative 406 enforcement guidelines; s. 655.032, relating to investigations, 407 subpoenas, hearings, and witnesses; s. 655.0321, relating to 408 hearings, proceedings, and related documents and restricted 409 access thereto; s. 655.033, relating to cease and desist orders; 410 s. 655.037, relating to removal by the office of an officer, 411 director, committee member, employee, or other person; s. 412 655.041, relating to administrative fines and enforcement; s. 413 655.50, relating to the control of money laundering and 414 terrorist financing; and any law for which the penalty is 415 increased under s. 775.31 for facilitating or furthering 416 terrorism. International banking corporations do not have the 417 powers conferred on domestic banks by s. 658.60, relating to 418 deposits of public funds. Chapter 687, relating to interest and 419 usury, applies to all bank loans. 420 (2) Neither an international bank agency nor an 421 international branch shall have any greater right under, or by 422 virtue of, this section than is granted to banks organized under 423 the laws of this state. Legal and financial terms used herein 424 shall be deemed to refer to equivalent terms used by the country 425 in which the international banking corporation is organized. 426 This chapter and the financial institutions codes may not be 427 construed to authorize any international banking corporationor428trust companyto conduct trust business, as defined in s. 429 658.12, from an office in this state except for those activities 430 specifically authorized by s. 663.061(5)ss. 663.061(5) and431663.0625. 432 Section 6. Subsection (1) of section 663.021, Florida 433 Statutes, is amended to read: 434 663.021 Civil action subpoena enforcement.— 435 (1) Notwithstanding s. 655.059, an international 436 representative office, international bank agency, international 437 branch,international trust company representative office,or 438 international administrative office established under this 439 chapter is not required to produce a book or record pertaining 440 to a deposit account, investment account, or loan of a customer 441 of the international banking corporation’s offices that are 442 located outside the United States or its territories in response 443 to a subpoena if the book or record is maintained outside the 444 United States or its territories and is not in the possession, 445 custody, or control of the international banking corporation’s 446 office, agency, or branch established in this state. 447 Section 7. Section 663.04, Florida Statutes, is amended to 448 read: 449 663.04 Requirements for carrying on financial institution 450 business.—An international banking corporationor trust company,451 or any affiliate, subsidiary, or other person or business entity 452 acting as an agent for, on behalf of, or for the benefit of such 453 international banking corporationor trust companywho engages 454 in such activities from an office located in this state, may not 455 transact a banking or trust business, or maintain in this state 456 any office for carrying on such business, or any part thereof, 457 unless such corporation,trust company,affiliate, subsidiary, 458 person, or business entity: 459 (1) Has been authorized by its charter to carry on a 460 banking or trust business and has complied with the laws of the 461 jurisdiction in which it is chartered. 462 (2) Has furnished to the office such proof as to the nature 463 and character of its business and as to its financial condition 464 as the commission or office requires. 465 (3) Has filed with the office a certified copy of that 466 information required to be supplied to the Department of State 467 by those provisions of part I of chapter 607 which are 468 applicable to foreign corporations. 469 (4) Has received a license duly issued to it by the office. 470 (5) Has sufficient capital in accordance with the 471 requirements ofcapital accounts no less than the minimums472required pers. 663.055 and the rules adopted thereunder and is 473 not imminently insolvent or insolvent, as those terms are 474 defined inpers. 655.005(1). 475 (6)(a) Is not in bankruptcy, conservatorship, receivership, 476 liquidation, or similar status under the laws of any country. 477 (b) Is not operating under the direct control of the 478 government, regulatory, or supervisory authority of the 479 jurisdiction of its incorporation through government 480 intervention or any other extraordinary actions. 481 (c) Has not been in such status or control at any time 482 within the 37years preceding the date of application for a 483 license. 484 485 Notwithstanding subsection (6), the office may, in its 486 discretion, permit an international branch, international bank 487 agency, international administrative office, or international 488 representative office to remain open and in operation under such 489 conditions as the office deems appropriate if the office 490 determines that it is in the public’s interest and that it 491 furthers international supervisory cooperation to allow the 492 international branch, international bank agency, international 493 administrative office, or international representative office to 494 remain open and in operation. 495 Section 8. Present subsections (4) through (8) of section 496 663.05, Florida Statutes, are redesignated as subsections (5) 497 through (9), respectively, a new subsection (4) is added to that 498 section, and present subsections (4), (5), and (6), paragraph 499 (c) of present subsection (7), and present subsection (8) are 500 amended, to read: 501 663.05 Application for license; approval or disapproval.— 502 (4) Notwithstanding subsection (1), an international 503 banking corporation that has operated an international branch, 504 international bank agency, international administrative office, 505 or international representative office in this state for a 506 minimum of 3 years in a safe and sound manner, as defined by 507 commission rule, and that is otherwise eligible to establish an 508 additional office may establish one or more additional 509 international branches, international bank agencies, 510 international administrative offices, or international 511 representative offices by providing an abbreviated application 512 and paying the appropriate license fee pursuant to s. 663.12. 513 This subsection does not permit an international banking 514 corporation to file an abbreviated application for any license 515 type whose permissible activities are broader than those in 516 which the international banking corporation is currently 517 authorized to engage. 518 (5)(4)An application filed pursuant to this section must 519shallbe made on a form prescribed by the commissionofficeand 520 mustshallcontain such information as the commission or office 521 requires. 522 (6)(5)The office may, in its discretion, approve or 523 disapprove the application, but it mayshallnot approve the 524 application unless, in its opinion, the applicant meets each and 525 every requirement of this part and any other applicable 526 provision of the financial institutions codes. The office shall 527 approve the application only if it has determined that the 528 directors, executive officers, and principal shareholders of the 529 international banking corporation are qualified by reason of 530 their financial ability, reputation, and integrity and have 531 sufficient banking and other business experience to indicate 532 that they will manage and direct the affairs of the 533 international banking corporation in a safe, sound, and lawful 534 manner. In the processing of an application filed pursuant to 535 this sectionapplications, the time limitations under the 536 Administrative Procedure Act doshallnot apply as to approval 537 or disapproval of the application. For applications filed on or 538 after January 1, 2018, the time limitations for approval or 539 disapproval of an application must be prescribed by rule of the 540 commission. 541 (7)(6)The office may not issue a license to an 542 international banking corporation unless: 543 (a) It is chartered in a jurisdiction in which any 544 financial institution licensed or chartered by any state or any 545 federal bank regulatory agency in the United Statesbank or546trust company having its principal place of business in this547statemay establish similar facilities or exercise similar 548 powers; or 549 (b) Federal law permits the appropriate federal regulatory 550 authority to issue a comparable license to the international 551 banking corporation. 552 (8)(7)The office may not issue a license to an 553 international banking corporation for the purpose of operating: 554(c) A trust representative office in this state unless the555corporation:5561. Holds an unrestricted license to conduct trust business557in the foreign country under the laws of which it is organized558and chartered.5592. Has been authorized by the foreign country’s trust560business regulatory authority to establish the proposed561international trust representative office.5623. Is adequately supervised by the central bank or trust563regulatory agency in the foreign country in which it is564organized and chartered.5654. Meets all requirements under the financial institutions566codes for the operation of a trust company or trust department567as if it were a state chartered trust company or bank authorized568to exercise fiduciary powers.569 (9)(8)The commission shall establish, by rule, the general 570 principles which shall determine the adequacy of supervision of 571 an international banking corporation’s foreign establishments. 572 These principles shall be based upon the need for cooperative 573 supervisory efforts and consistent regulatory guidelines and 574 shall address, at a minimum, the capital adequacy, asset 575 quality, management, earnings, liquidity, internal controls, 576 audits, and foreign exchange operations and positions of the 577 international banking corporation. This subsection doesshall578 not require examination by the home-country regulatory 579 authorities of any office of an international banking 580 corporation in this state. The commission may also establish, by 581 rule, other standards for approval of an application for a 582 license as considered necessary to ensure the safe and sound 583 operations of the international banking corporationbank or584trust representative officein this state. 585 Section 9. Section 663.055, Florida Statutes, is amended to 586 read: 587 663.055 Capital requirements.— 588 (1) To qualify for a license underthe provisions ofthis 589 part, the proposed capitalization of the international banking 590 corporation must be in such amount as the office determines is 591 necessary, taking into consideration the risk profile of the 592 international banking corporation and the ability of the 593 international banking corporation to operate a licensed office 594 in a safe and sound manner. In making this determination, the 595 office must consider the financial resources of the 596 international banking corporation, includingan international597banking corporation must have net capital accounts, calculated598according to United States generally accepted accounting599principles and practices, of at least: 600 (a) The international banking corporation’s current and 601 projected capital position, profitability, level of 602 indebtedness, and business and strategic plansForty million603dollars for the establishment of an international bank agency,604an international branch, or an international administrative605office;or606 (b) The financial condition of any of the international 607 banking corporation’s existing offices located in the United 608 States;Twenty million dollars for the establishment of an609international representative office or international trust610representative office.611 (c) The minimum capital requirements of the international 612 banking corporation’s home-country jurisdiction; and 613 (d) The capital ratio standards used in the United States 614 and in the international banking corporation’s home-country 615 jurisdiction. 616 (2) The proposed capitalization of the international 617 banking corporation must be in such amount as the office deems 618 adequate, but in no case may the total capital accounts of the 619 international banking corporation be less than the minimum 620 required under s. 658.21(2) to establish a state bank 621Notwithstanding the provisions of paragraph (1)(a), the office622may approve an application for a license to establish an623international bank agency, an international branch, or an624international administrative office if:625(a) The international banking corporation is licensed to626receive deposits from the general public in the country where it627is organized and licensed and to engage in such other activities628as are usual in connection with the business of banking in such629country;630(b) The office receives a certificate that is issued by the631banking or supervisory authority of the country in which the632international banking corporation is organized and licensed and633states that the international banking corporation is duly634organized and licensed and lawfully existing in good standing,635and is empowered to conduct a banking business; and636(c) The international banking corporation has been in the637business of banking for at least 10 years and is ranked by the638banking or supervisory authority of the country in which it is639organized and licensed as one of the five largest banks in that640country in terms of domestic deposits, as of the date of its641most recent statement of financial condition. However, in no642event shall the office approve an application under this643subsection for any international banking corporation with644capital accounts of less than $20 million. 645 (3) The office may specify such other conditions as it 646 determines are appropriate, considering the public interest and,647 the need to maintain a safe, sound, and competitive banking 648 system in this state, and the preservation of an environment649conducive to the conduct of an international banking business in650this state. In translating the capital accounts of an651international banking corporation, the office may consider652monetary corrections accounts that reflect results consistent653with the requirements of generally accepted accounting654principles in the United States. 655 (4) For the purpose of this part, the capital accounts of 656 and capital ratio standards for an international banking 657 corporation mustshallbe determined in accordance with rules 658 adopted by the commission. In adopting such rules, the 659 commission shall consider similar rules adopted by bank 660 regulatory agencies in the United States and the need to provide 661 reasonably consistent regulatory requirements for international 662 banking corporationswhich will maintain the safe and sound663condition of international banking corporationsdoing business 664 in this state, as well as capital adequacy standards of an 665 international banking corporation’s home-country jurisdiction. 666 Section 10. Subsections (1) and (3) of section 663.06, 667 Florida Statutes, are amended to read: 668 663.06 Licenses; permissible activities.— 669 (1)(a) An international banking corporation licensed to 670 operate an office in this state may engage in the business 671 authorized by this part at the office specified in such license 672 for an indefinite period. 673 (b) An international banking corporation may operate more 674 than one licensed office, each at a different place of business, 675 provided that each office isshallbeseparately licensed. 676 (c) ANolicense is not transferable or assignable. 677 However, the location of a licensed office may be changed after 678 notification of the office. 679 (d) Every such license mustshallbe, at all times, 680 conspicuously displayed in the place of business specified 681 therein. 682 (3) The license for any international banking corporation 683 office in this state may be suspended or revoked by the office, 684 with or without examination, upon its determination that the 685 international banking corporation or the licensed office does 686 not meet all requirements for original licensing. Additionally, 687 the office shall revoke the license of any licensed office that 688 the office determines has been inactive for 6 months or longer. 689 The commission may by rule prescribe additional conditions or 690 standards under which the license of an international bank 691 agency, international branch, international representative 692 office,international trust company representative office,or 693 international administrative office may be suspended or revoked. 694 Section 11. Section 663.0601, Florida Statutes, is created 695 to read: 696 663.0601 After-the-fact licensure process in the event of 697 the acquisition, merger, or consolidation of international 698 banking corporations.—If an international banking corporation 699 proposes to acquire, merge, or consolidate with an international 700 banking corporation that presently operates an international 701 branch, international bank agency, international administrative 702 office, or international representative office licensed in this 703 state, the office may authorize the currently licensed 704 international branch, international bank agency, international 705 administrative office, or international representative office to 706 remain open and in operation after consummation of the proposed 707 acquisition, merger, or consolidation, if the acquiring 708 international banking corporation files an after-the-fact 709 application and all of the following conditions are met: 710 (1) The international banking corporation or corporations 711 resulting from the acquisition, merger, or consolidation will 712 not directly or indirectly own or control more than 5 percent of 713 any class of the voting securities of, or control, a United 714 States bank. 715 (2) Before consummation of the acquisition, merger, or 716 consolidation, the international banking corporation currently 717 licensed to operate an international branch, international bank 718 agency, international administrative office, or international 719 representative office in this state must provide the office at 720 least 30 days’ advance written notice, as prescribed by rules 721 adopted by the commission, of the proposed acquisition, merger, 722 or consolidation. 723 (3) Before consummation of the acquisition, merger, or 724 consolidation, each international banking corporation commits in 725 writing that it will either: 726 (a) Comply with the conditions in subsections (1) and (2) 727 and file an after-the-fact application for a license under s. 728 663.05(1) within 60 days after consummation of the proposed 729 acquisition, merger, or consolidation; and refrain from engaging 730 in new lines of business and from otherwise expanding the 731 activities of such establishment in this state until the 732 disposition of the after-the-fact license application, in 733 accordance with chapter 120; or 734 (b) Promptly wind down and close any international branch, 735 international bank agency, international administrative office, 736 or international representative office in this state if the 737 international banking corporations that are party to the 738 acquisition, merger, or consolidation elect not to file an 739 application for a license in accordance with paragraph (a); and, 740 before such wind-down and closure, refrain from engaging in new 741 lines of business or otherwise expanding the activities of such 742 establishment in this state. 743 Section 12. Subsection (1) of section 663.061, Florida 744 Statutes, is amended to read: 745 663.061 International bank agencies; permissible 746 activities.— 747 (1) An international bank agency licensed under this part 748 may make any loan, extension of credit, or investment which it 749 could make if incorporated and operating as a bank organized 750 under the laws of this state. An international bank agency may 751 act as custodian and may furnish investment management, and 752 investment advisory services authorized under rules adopted by 753 the commission, to nonresident entities or persons whose 754 principal places of business or domicile are outside the United 755 States and to resident entities or persons with respect to 756 international,orforeign, or domestic investments. An 757 international banking corporation thatwhichhas an 758 international bank agency licensed under the terms of this part 759 isshall beexempt from the registration requirements of s. 760 517.12. An international bank agency licensed by the office may 761 engage in any activity permissible for an international 762 administrative office or international representative office. 763 Section 13. Section 663.062, Florida Statutes, is amended 764 to read: 765 663.062 International representative offices; permissible 766 activities.—An international representative office may promote 767 or assist the deposit-taking, lending, or other financial or 768 banking activities of an international banking corporation. An 769 international representative office may serve as a liaison in 770 Florida between an international banking corporation and its 771 existing and potential customers. Representatives and employees 772 based at such office may solicit business for the international 773 banking corporation and its subsidiaries and affiliates, provide 774 information to customers concerning their accounts, answer 775 questions, receive applications for extensions of credit and 776 other banking services, transmit documents on behalf of 777 customers, and make arrangements for customers to transact 778 business on their accounts, but a representative office may not 779 conduct any banking or trust business in this state. An 780 international representative office of an international banking 781 corporation that has fiduciary powers may engage in the 782 international trust representative office activities enumerated 783 in s. 663.409. 784 Section 14. Subsection (2) of section 663.063, Florida 785 Statutes, is amended to read: 786 663.063 International administrative offices.— 787 (2) An office established pursuant tothe provisions of788 this section maynotengage only inany activity exceptthose 789 activities set forth in subsection (1) and the activities 790 permissible for an international representative office pursuant 791 to s. 663.062. 792 Section 15. Section 663.064, Florida Statutes, is amended 793 to read: 794 663.064 International branches; permissible activities; 795 requirements.— 796 (1) An international banking corporation that meets the 797 requirements of ss. 658.26, 663.04, and 663.05 may, with the 798 approval of the office, establish one or more branches in this 799 state.An international branch shall have the same rights and800privileges as a federally licensed international branch.The 801 operations of an international branch shall be conducted 802 pursuant to requirements determined by the office as necessary 803 to ensure compliance with the provisions of the financial 804 institutions codes, including requirements for the maintenance 805 of accounts and records separate from those of the international 806 banking corporation of which it is a branch. 807 (2) An international branch has the same rights and 808 privileges as a federally licensed international branch. The 809 permissible deposits of an international branch must be 810 determined in accordance with rules adopted by the commission. 811 In adopting such rules, the commission shall consider the 812 similar deposit-taking authority of a federally licensed 813 international branch and the need to provide reasonably 814 consistent regulatory requirements for international banking 815 corporations doing business in this state. 816 (3) An international branch licensed by the office may 817 engage in any activity permissible for an international bank 818 agency, international administrative office, or international 819 representative office. 820 Section 16. Subsection (3) of section 663.09, Florida 821 Statutes, is amended, and subsection (5) is added to that 822 section, to read: 823 663.09 Reports; records.— 824 (3) Each international banking corporation thatwhich825 operates an office licensed under this part shall cause to be 826 kept, at a location accepted by the office: 827 (a) Correct and complete books and records of account of 828 the business operations transacted by such office. All policies 829 and procedures relating specifically togoverningthe operations 830 of such office, as well as any existing general ledger or 831 subsidiary accounts, mustshallbe maintained in the English 832 language. Any policies and procedures of the international 833 banking corporation which are not specific to the operations of 834 such office may be maintained in a language other than English 835The office may require that any other document not written in836the English language which the office deems necessary for the837purposes of its regulatory and supervisory functions be838translated into English at the expense of the international839banking corporation. 840 (b) Current copies of the charter and bylaws of the 841 international banking corporation, relative to the operations of 842 the office, and minutes of the proceedings of its directors, 843 officers, or committees relative to the business of the office. 844 Such records may be maintained in a language other than English 845 and mustshallbe kept pursuant to s. 655.91 andshall bemade 846 available to the office, upon request, at any time during 847 regular business hours of the office. Any failure to keep such 848 records as aforesaid or any refusal to produce such records upon 849 request by the office isshall begrounds for suspension or 850 revocation of any license issued under this part. 851 (5) The office may require at any time that any document 852 not written in the English language which the office deems 853 necessary for the purposes of its regulatory and supervisory 854 functions be translated into English at the expense of the 855 international banking corporation. 856 Section 17. Section 663.11, Florida Statutes, is amended to 857 read: 858 663.11 Termination of international banking corporation’s 859 charter or authority.— 860 (1)(a) An international banking corporation that is 861 licensed to maintain an office in this state may not continue to 862 conduct its licensed business in this state if the international 863 banking corporation: 864 1. Is dissolved, or its authority or existence is otherwise 865 terminated or canceled in the jurisdiction of its 866 incorporation;,867 2. Is in bankruptcy, conservatorship, receivership, 868 liquidation, or similar status under the laws of any country;,869 or 870 3. Is operating under the direct control of the government 871 or the regulatory or supervisory authority of the jurisdiction 872 of its incorporation through government intervention or any 873 other extraordinary actions. 874 (b) Notwithstanding subparagraphs (a)2. and 3., the office 875 may, in its discretion, permit an international branch, 876 international bank agency, international administrative office, 877 or international representative office to remain open and in 878 operation under such conditions as the office deems appropriate, 879 if the office determines that it is in the public’s interest and 880 that it furthers international supervisory cooperation to allow 881 the international branch, international bank agency, 882 international administrative office, or international 883 representative office to remain open and in operation. 884 (2)A certificate of the official who is responsible for885records of banking corporations of the jurisdiction of886incorporation of such international banking corporation,887attesting to the occurrence of any such event, or a certified888copy of an order or decree of a court of such jurisdiction,889directing the dissolution of such international banking890corporation, the termination of its existence, or the891cancellation of its authority, or declaring its status in892bankruptcy, conservatorship, receivership, liquidation, or893similar proceedings, or other reliable documentation that the894international banking corporation is operating under the direct895control of its government or a regulatory or supervisory896authority, shall be delivered byThe international banking 897 corporation or its surviving officers and directors shall 898 deliver to the office:.899 (a) A certificate of the official who is responsible for 900 records of banking corporations of the jurisdiction of 901 incorporation of such international banking corporation, 902 attesting to the occurrence of any event described in paragraph 903 (1)(a); 904 (b) A certified copy of an order or decree of a court of 905 such jurisdiction, directing the dissolution of such 906 international banking corporation, the termination of its 907 existence, or the cancellation of its authority or declaring its 908 status in bankruptcy, conservatorship, receivership, 909 liquidation, or similar proceedings; or 910 (c) Other reliable documentation evidencing that the 911 international banking corporation is operating under the direct 912 control of its government or a regulatory or supervisory 913 authority. 914 (3) The filing of the certificate, order, documentation, or 915 decree hasshall havethe same effect as the revocation of the 916 license of such international banking corporation as provided in 917 s. 663.06, unless the office has permitted the international 918 branch, international bank agency, international administrative 919 office, or international representative office to remain open 920 and in operation pursuant to paragraph (1)(b). 921 Section 18. Subsection (1) of section 663.12, Florida 922 Statutes, is amended to read: 923 663.12 Fees; assessments; fines.— 924 (1) Each application for a license underthe provisions of925 this part mustshallbe accompanied by a nonrefundable filing 926 fee payable to the office in the following amount: 927 (a) Ten thousand dollars for establishing a state-chartered 928 investment company. 929 (b) Ten thousand dollars for establishing an international 930 bank agency or branch. 931 (c) Five thousand dollars for establishing an international 932 administrative office. 933 (d) Five thousand dollars for establishing an international 934 representative office. 935(e) Five thousand dollars for establishing an international936trust company representative office.937 (e)(f)An amount equal to the initial filing fee for an 938 application to convert from one type of license to another. The 939 commission may increase the filing fee for any type of license 940 to an amount established by rule and calculated in a manner so 941 as to cover the direct and indirect cost of processing such 942 applications. 943 Section 19. Subsection (11) of section 663.17, Florida 944 Statutes, is amended to read: 945 663.17 Liquidation; possession of business and property; 946 inventory of assets; wages; depositing collected assets; 947 appointing agents; appointment of judges.— 948 (11) The compensation of agents and any other employees 949 appointed by the office to assist in the liquidation of an 950 international banking corporation, or any of the corporation’s 951 licensed offices located in this state, the distribution of its 952 assets, or the expenses of supervision, mustshallbe paid out 953 of the assets of the corporation in the possessionhandsof the 954 office. Expenses of liquidation and approved claims for fees and 955 assessments due the office mustshallbe given first priority 956 among unsecured creditors. 957 Section 20. The Division of Law Revision and Information is 958 directed to create part III of chapter 663, Florida Statutes, 959 consisting of ss. 663.4001-663.416, Florida Statutes, to be 960 entitled “International Trust Company Representative Offices.” 961 Section 21. Section 663.4001, Florida Statutes, is created 962 to read: 963 663.4001 Purpose.—The purpose of this part is to establish 964 a legal and regulatory framework for the conduct by 965 international trust entities of financial services business in 966 this state. This part is intended to: 967 (1) Support the Florida operations of international trust 968 entities and promote the growth of international financial 969 services to benefit the economy and consumers in this state. 970 (2) Provide for appropriate supervision and regulatory 971 oversight to ensure that financial services activities of 972 international trust entities in this state are conducted 973 responsibly and in a safe and sound manner. 974 Section 22. Section 663.401, Florida Statutes, is created 975 to read: 976 663.401 Definitions.— 977 (1) “Affiliate” means a person or business or a group of 978 persons or businesses acting in concert which controls, is 979 controlled by, or is under common control of an international 980 trust entity. 981 (2) “International trust company representative office” 982 means an office of an international trust entity which is 983 established or maintained in this state for the purpose of 984 engaging in nonfiduciary activities described in s. 663.409, or 985 any affiliate, subsidiary, or other person that engages in such 986 activities on behalf of such international trust entity from an 987 office located in this state. 988 (3) “International trust entity” means an international 989 trust company or organization, or any similar business entity; 990 or an affiliated or subsidiary entity that is licensed, 991 chartered, or similarly permitted to conduct trust business in a 992 foreign country or countries under the laws where such entity is 993 organized and supervised. 994 Section 23. Section 663.402, Florida Statutes, is created 995 to read: 996 663.402 Applicability of the financial institutions codes.— 997 (1) An international trust entity that operates an office 998 licensed under this part is subject to all the financial 999 institutions codes as though such international trust entity 1000 were a state trust company, except when it appears, from the 1001 context or otherwise, that such provisions are clearly 1002 applicable only to trust companies organized under the laws of 1003 this state or the United States. Without limiting the foregoing 1004 general provisions, it is the intent of the Legislature that the 1005 following provisions are applicable to such international trust 1006 entities having offices in this state: s. 655.031, relating to 1007 administrative enforcement guidelines; s. 655.032, relating to 1008 investigations, subpoenas, hearings, and witnesses; s. 655.0321, 1009 relating to restricted access hearings, proceedings, and related 1010 documents; s. 655.033, relating to cease and desist orders; s. 1011 655.037, relating to removal of a financial institution-related 1012 party by the office; s. 655.041, relating to administrative 1013 fines and enforcement; s. 655.50, the Florida Control of Money 1014 Laundering and Terrorist Financing in Financial Institutions 1015 Act; and any law for which the penalty is increased under s. 1016 775.31 for facilitating or furthering terrorism. 1017 (2) An international trust entity does not have any greater 1018 right under, or by virtue of, this section than is granted to 1019 trust companies organized under the laws of this state. Legal 1020 and financial terms used in this chapter are deemed to refer to 1021 equivalent terms used by the country in which the international 1022 trust entity is organized. This chapter and the financial 1023 institutions codes may not be construed to authorize any 1024 international trust entity to conduct trust business, as defined 1025 in s. 658.12, from an office in this state. 1026 Section 24. Section 663.403, Florida Statutes, is created 1027 to read: 1028 663.403 Applicability of the Florida Business Corporation 1029 Act.—Notwithstanding s. 607.01401(12), the provisions of part I 1030 of chapter 607 which are not in conflict with the financial 1031 institutions codes and which relate to foreign corporations 1032 apply to all international trust entities and their offices 1033 doing business in this state. 1034 Section 25. Section 663.404, Florida Statutes, is created 1035 to read: 1036 663.404 Requirements for conducting financial institution 1037 business.—An international trust entity, or any affiliated, 1038 subsidiary, or other person or business entity acting as an 1039 agent for, on behalf of, or for the benefit of such 1040 international trust entity, who engages in such activities from 1041 an office located in this state, may not transact a trust 1042 business, or maintain in this state any office for carrying on 1043 such business, or any part thereof, unless such international 1044 trust entity, affiliate, subsidiary, person, or business entity: 1045 (1) Has been authorized by charter, license, or similar 1046 authorization by operation of law to carry on trust business and 1047 has complied with the laws of each jurisdiction in which it is 1048 chartered, licensed, or otherwise authorized and created under 1049 operation of law. 1050 (2) Has furnished to the office such proof as to the nature 1051 and character of its business and as to its financial condition 1052 as the commission or office requires. 1053 (3) Has filed with the office a certified copy of that 1054 information required to be supplied to the Department of State 1055 by those provisions of part I of chapter 607 which are 1056 applicable to foreign corporations. 1057 (4) Has received a license duly issued to it by the office. 1058 (5) Has sufficient capital in accordance with the 1059 requirements of s. 663.407 and the rules adopted thereunder and 1060 is not imminently insolvent or insolvent, as those terms are 1061 defined under s. 655.005(1). 1062 (6)(a) Is not in bankruptcy, conservatorship, receivership, 1063 liquidation, or similar status under the laws of any country. 1064 (b) Is not operating under the direct control of the 1065 government or the regulatory or supervisory authority of the 1066 home jurisdiction in which it has been chartered, licensed, or 1067 otherwise authorized and created under operation of law, through 1068 government intervention or any other extraordinary actions. 1069 (c) Has not been in such status or control at any time 1070 within the 3 years preceding the date of application for a 1071 license. 1072 1073 Notwithstanding subsection (6), the office may, in its 1074 discretion, permit an international trust company representative 1075 office to remain open and in operation under such conditions as 1076 the office deems appropriate if the office determines that it is 1077 in the public’s interest and that it furthers international 1078 supervisory cooperation to allow the international trust company 1079 representative office to remain open and in operation. 1080 Section 26. Section 663.405, Florida Statutes, is created 1081 to read: 1082 663.405 Civil action subpoena enforcement.— 1083 (1) Notwithstanding s. 655.059, an international trust 1084 company representative office established under this chapter is 1085 not required to produce a book or record pertaining to a deposit 1086 account, investment account, trust account, or loan of a 1087 customer of the international trust entity’s offices that are 1088 located outside the United States or its territories in response 1089 to a subpoena, if the book or record is maintained outside the 1090 United States or its territories and is not in the possession, 1091 custody, or control of the international trust entity’s 1092 representative office established in this state. 1093 (2) This section applies only to a subpoena issued pursuant 1094 to the Florida Rules of Civil Procedure, the Federal Rules of 1095 Civil Procedure, or other similar law or rule of civil procedure 1096 in another state. This section does not apply to a subpoena 1097 issued by or on behalf of a federal, state, or local government 1098 law enforcement agency, administrative or regulatory agency, 1099 legislative body, or grand jury and does not limit the power of 1100 the office to access all books and records in the exercise of 1101 the office’s regulatory and supervisory powers under the 1102 financial institutions codes. 1103 Section 27. Section 663.406, Florida Statutes, is created 1104 to read: 1105 663.406 Application for license; approval or disapproval.— 1106 (1) An international trust entity, before being licensed by 1107 the office to maintain any office in this state, must subscribe 1108 and acknowledge, and submit to the office, an application that 1109 contains all of the following: 1110 (a) The name of the international trust entity. 1111 (b) The proposed location, by street and post office 1112 address and county, where its business is to be transacted in 1113 this state and the name of the person who will be in charge of 1114 the business and affairs of the office. 1115 (c) The location where its initial registered office will 1116 be located in this state. 1117 (d) The total amount of the capital accounts of the 1118 international trust entity. 1119 (e) A complete and detailed statement of its financial 1120 condition as of a date within 180 days before the date of such 1121 application, except that the office in its discretion may, when 1122 necessary or expedient, accept such statement of financial 1123 condition as of a date within 240 days before the date of such 1124 application. The office in its discretion may, when necessary or 1125 expedient, require an independent opinion audit or the 1126 equivalent satisfactory to the office. 1127 (f) A listing of any occasion within the 10 year period 1128 before the application on which either the international trust 1129 entity or any of its directors, executive officers, or principal 1130 shareholders have been arrested for, charged with, convicted of, 1131 or pled guilty or nolo contendere to, regardless of 1132 adjudication, any offense with respect to which the penalties 1133 include the possibility of imprisonment for 1 year or more, or 1134 to any offense involving money laundering, currency transaction 1135 reporting, facilitating or furthering terrorism, or fraud, or 1136 otherwise related to the operation of a financial institution. 1137 (2) The office shall disallow any illegally obtained 1138 currency, monetary instruments, funds, or other financial 1139 resources from the capitalization requirements of this section, 1140 and the existence of such illegally obtained resources is 1141 grounds for denial of the application for license. 1142 (3) An international trust entity that submits an 1143 application to the office shall concurrently submit a 1144 certificate issued by the supervisory authority of the country 1145 in which the international trust entity is chartered or 1146 organized which states that the international trust entity is 1147 duly organized and licensed, or otherwise authorized by 1148 operation of law to transact business as a trust entity, and 1149 lawfully existing in good standing. 1150 (4) An international trust entity that has operated an 1151 international trust company representative office in this state 1152 for at least 3 years in a safe and sound manner, as defined by 1153 commission rule, and that is otherwise eligible to establish an 1154 additional office may establish one or more international trust 1155 company representative offices by providing an abbreviated 1156 application, and paying the appropriate license fee pursuant to 1157 s. 663.413. 1158 (5) An application filed pursuant to this section must be 1159 made on a form prescribed by the commission and must contain 1160 such information as the commission or office requires. 1161 (6) The office may, in its discretion, approve or 1162 disapprove the application, but it may not approve the 1163 application unless, in its opinion, the applicant meets each and 1164 every requirement of this part and any other applicable 1165 provision of the financial institutions codes. The office may 1166 approve the application only if it has determined that the 1167 directors, executive officers, and principal shareholders of the 1168 international trust entity are qualified by reason of their 1169 financial ability, reputation, and integrity and have sufficient 1170 trust company and other business experience to indicate that 1171 they will manage and direct the affairs of the international 1172 trust entity in a safe, sound, and lawful manner. In the 1173 processing of any application filed pursuant to this section, 1174 the time limitations under the Administrative Procedure Act do 1175 not apply as to approval or disapproval of the application. For 1176 applications filed on or after January 1, 2018, the time 1177 limitations for approval or disapproval of an application must 1178 be prescribed by rule of the commission. 1179 (7) The office may not issue a license to an international 1180 trust entity unless it is chartered, licensed, or similarly 1181 authorized by operation of law in a jurisdiction in which any 1182 financial institution licensed or chartered by any state or 1183 federal regulatory agency in the United States may establish 1184 similar facilities or exercise similar powers. 1185 (8) The office may not issue a license to an international 1186 trust entity for the purpose of operating an international trust 1187 company representative office in this state unless the trust 1188 entity: 1189 (a) Holds an unrestricted license to conduct trust business 1190 in the foreign country under whose laws it is organized and 1191 chartered; 1192 (b) Has been authorized by the foreign country’s 1193 appropriate regulatory authority to establish the proposed 1194 international trust company representative office; and 1195 (c) Is adequately supervised by the appropriate regulatory 1196 agency in the foreign country in which it is organized and 1197 chartered. 1198 (9) The commission shall establish, by rule, the general 1199 principles that determine the adequacy of supervision of an 1200 international trust entity’s foreign establishments. These 1201 principles must be based upon the need for cooperative 1202 supervisory efforts and consistent regulatory guidelines and 1203 must address, at a minimum, the capital adequacy, asset quality, 1204 management, earnings, liquidity, internal controls, audits, and 1205 foreign exchange operations and positions of the international 1206 trust entity. This subsection does not require examination by 1207 the home-country regulatory authorities of any office of an 1208 international trust entity in this state. The commission may 1209 also establish, by rule, other standards for approval of an 1210 application for a license as considered necessary to ensure the 1211 safe and sound operations of the international trust entity in 1212 this state. 1213 Section 28. Section 663.407, Florida Statutes, is created 1214 to read: 1215 663.407 Capital requirements.— 1216 (1) For an international trust entity to qualify for a 1217 license under this part, the proposed capitalization of the 1218 international trust entity must be in such amount as the office 1219 determines is necessary, taking into consideration the risk 1220 profile of the international trust entity and the ability of the 1221 international trust entity to operate a licensed office in a 1222 safe and sound manner. In making this determination, the office 1223 shall consider the financial resources of the international 1224 trust entity, including: 1225 (a) The international trust entity’s current and projected 1226 capital position, profitability, level of indebtedness, business 1227 and strategic plans, and off-balance sheet asset management and 1228 administration activities; 1229 (b) The financial condition of any of the international 1230 trust entity’s existing offices located in the United States; 1231 (c) The minimum capital requirements of the international 1232 trust entity’s home-country jurisdiction; and 1233 (d) The capital ratio standards used in the United States 1234 and in the international trust entity’s home-country 1235 jurisdiction. 1236 (2) The proposed capitalization of the international trust 1237 entity must be in such amount as the office deems adequate, but 1238 in no case may the total capital accounts of the international 1239 trust entity be less than $1 million. 1240 (3) The office may specify such other conditions as it 1241 determines are appropriate, considering the public interest and 1242 the need to maintain a safe, sound, and competitive financial 1243 marketplace in this state. 1244 (4) For purposes of this part, the capital accounts of and 1245 capital ratio standards for an international trust entity must 1246 be determined in accordance with rules adopted by the 1247 commission. In adopting such rules, the commission shall 1248 consider similar rules adopted by regulatory agencies in the 1249 United States and the need to provide reasonably consistent 1250 regulatory requirements for international trust entities doing 1251 business in this state, as well as capital adequacy standards of 1252 an international trust entity’s home-country jurisdiction. 1253 Section 29. Section 663.408, Florida Statutes, is created 1254 to read: 1255 663.408 Licenses; permissible activities of licensees.— 1256 (1)(a) An international trust entity licensed to operate an 1257 office in this state may engage in the business authorized by 1258 this part at the office specified in such license for an 1259 indefinite period. 1260 (b) An international trust entity may operate more than one 1261 licensed office, each at a different place of business, provided 1262 that each office is separately licensed. 1263 (c) A license is not transferable or assignable. However, 1264 the location of a licensed office may be changed after 1265 notification to the office. 1266 (d) A license must at all times be conspicuously displayed 1267 in the place of business specified therein. 1268 (2) An international trust entity that proposes to 1269 terminate the operations of a licensed office in this state must 1270 surrender its license to the office and comply with such 1271 procedures as the commission may prescribe by rule. 1272 (3) The license for an international trust company 1273 representative office in this state may be suspended or revoked 1274 by the office, with or without examination, upon its 1275 determination that the international trust entity or the 1276 licensed office does not meet all requirements for original 1277 licensing. Additionally, the office shall revoke the license of 1278 any licensed office that the office determines has been inactive 1279 for 6 months or longer. The commission may by rule prescribe 1280 additional conditions or standards under which the license of an 1281 international trust company representative office may be 1282 suspended or revoked. 1283 (4) If any such license is surrendered by the international 1284 trust entity or is suspended or revoked by the office, all 1285 rights and privileges of the international trust entity to 1286 transact the business under the license cease. The commission 1287 shall prescribe by rule procedures for the surrender of a 1288 license and for the orderly cessation of business by an 1289 international trust entity in a manner that is not harmful to 1290 the interests of its customers or of the public. 1291 Section 30. Section 663.4081, Florida Statutes, is created 1292 to read: 1293 663.4081 After-the-fact licensure process in the event of 1294 the acquisition, merger, or consolidation of international trust 1295 entities.—If an international trust entity proposes to acquire, 1296 merge, or consolidate with an international trust entity that 1297 presently operates an international trust company representative 1298 office licensed in this state, the office may allow the 1299 currently licensed international trust company representative 1300 office to remain open and in operation after consummation of the 1301 proposed acquisition, merger, or consolidation, subject to the 1302 filing with the office of an after-the-fact license application 1303 in accordance with all of the following conditions: 1304 (1) The international trust entity or entities resulting 1305 from the acquisition, merger, or consolidation will not directly 1306 or indirectly own or control more than 5 percent of any class of 1307 the voting securities of, or control, a United States bank. 1308 (2) Before consummation of the acquisition, merger, or 1309 consolidation, the international trust entity currently licensed 1310 to operate an international trust company representative office 1311 in this state must provide the office at least 30 days’ advance 1312 written notice, as prescribed by rules adopted by the 1313 commission, of the proposed acquisition, merger, or 1314 consolidation. 1315 (3) Before consummation of the acquisition, merger, or 1316 consolidation, each international trust entity commits in 1317 writing that it will: 1318 (a) Comply with the conditions in subsections (1) and (2) 1319 and file an after-the-fact application for a license under s. 1320 663.406(1) within 60 days after consummation of the proposed 1321 acquisition, merger, or consolidation and refrain from engaging 1322 in new lines of business and from otherwise expanding the 1323 activities of such establishment in this state until the 1324 disposition of the after-the-fact license application, in 1325 accordance with chapter 120; or 1326 (b) Promptly wind down and close any international trust 1327 company representative office in this state if the international 1328 trust entities that are party to the acquisition, merger, or 1329 consolidation elect not to file an application for a license in 1330 accordance with paragraph (a) and, before such wind-down and 1331 closure, refrain from engaging in new lines of business or 1332 otherwise expanding the activities of such establishment in this 1333 state. 1334 Section 31. Section 663.0625, Florida Statutes, is 1335 transferred, renumbered as section 663.409, Florida Statutes, 1336 and amended to read: 1337 663.409663.0625International trust company representative 1338 offices; permissible activities; requirements.— 1339 (1) An international trust company representative office 1340 may conduct any nonfiduciary activities that are ancillary to 1341 the fiduciary business of its international trust entitybanking1342corporation or trust company, but may not act as a fiduciary. 1343 Permissible activities include advertising, marketing, and 1344 soliciting for fiduciary business on behalf of an international 1345 trust entitybanking corporation or trust company; contacting 1346 existing or potential customers, answering questions, and 1347 providing information about matters related to their accounts; 1348 serving as a liaison in this state between the international 1349 trust entitybanking corporation or trust companyand its 1350 existing or potential customers; and engaging in any other 1351 activities approved by the office or under rules of the 1352 commission. 1353 (2) Representatives and employees at such office may not 1354 act as a fiduciary, including, but not limited to, accepting the 1355 fiduciary appointment, executing the fiduciary documents that 1356 create the fiduciary relationship,ormaking discretionary 1357 decisions regarding the investment or distribution of fiduciary 1358 accounts, or accepting custody of any trust property or any 1359 other good, asset, or thing of value on behalf of the affiliated 1360 international trust entity, its subsidiaries or affiliates, or 1361 subsidiaries and affiliates of the international trust company 1362 representative office. 1363 (3) An international trust company representative office 1364 licensed by the office may engage in any activities permissible 1365 for a limited service affiliate under part IV of this chapter. 1366 Section 32. Section 663.410, Florida Statutes, is created 1367 to read: 1368 663.410 Certification of capital accounts.—Before opening 1369 an office in this state, and annually thereafter so long as an 1370 international trust company representative office is maintained 1371 in this state, an international trust entity licensed pursuant 1372 to this part must certify to the office the amount of its 1373 capital accounts, expressed in the currency of the home 1374 jurisdiction where it has been authorized by charter, license, 1375 or similar authorization by operation of law to carry on trust 1376 business. The dollar equivalent of these amounts, as determined 1377 by the office, is deemed to be the amount of its capital 1378 accounts. The annual certification of capital accounts must be 1379 received by the office on or before June 30 of each year. 1380 Section 33. Section 663.411, Florida Statutes, is created 1381 to read: 1382 663.411 Reports; records.— 1383 (1) An international trust entity that operates an office 1384 licensed under this part shall, at such times and in such form 1385 as the commission prescribes, make written reports in the 1386 English language to the office, under the oath of one of its 1387 officers, managers, or agents transacting business in this 1388 state, showing the amount of its assets and liabilities and 1389 containing such other matters as the commission or office 1390 requires. An international trust entity that maintains two or 1391 more representative offices may consolidate such information in 1392 one report unless the office requires otherwise for purposes of 1393 its supervision of the condition and operations of each such 1394 office. The late filing of such reports is subject to an 1395 administrative fine as prescribed under s. 655.045(2). If the 1396 international trust entity fails to make such report as directed 1397 by the office or if such report contains a false statement 1398 knowingly made, the same are grounds for revocation of the 1399 license of the international trust entity. 1400 (2) An international trust entity that operates an office 1401 licensed under this part shall cause to be kept, at a location 1402 accepted by the office: 1403 (a) Correct and complete books and records of account of 1404 the business operations transacted by such office. All policies 1405 and procedures relating specifically to the operations of such 1406 office, as well as any existing general ledger or subsidiary 1407 accounts, must be maintained in the English language; however, 1408 any policies and procedures of the international trust entity 1409 which are not specific to the operations of such office may be 1410 maintained in a language other than English. 1411 (b) Current copies of the charter or statement of operation 1412 and bylaws of the international trust entity, relative to the 1413 operations of the international trust company representative 1414 office, and minutes of the proceedings of its directors, 1415 officers, or committees relative to the business of the 1416 international trust company representative office. Such records 1417 may be maintained in a language other than English and must be 1418 kept pursuant to s. 655.91 and be made available to the office, 1419 upon request, at any time during regular business hours of the 1420 international trust company representative office. 1421 (3) Any failure to keep such records as required in 1422 subsection (2) or any refusal to produce such records upon 1423 request by the office is grounds for suspension or revocation of 1424 any license issued under this part. 1425 (4) The office may require at any time that any document 1426 not written in the English language which the office deems 1427 necessary for the purposes of its regulatory and supervisory 1428 functions be translated into English at the expense of the 1429 international trust entity. 1430 Section 34. Section 663.412, Florida Statutes, is created 1431 to read: 1432 663.412 Termination of international trust entity’s charter 1433 or authority.— 1434 (1)(a) An international trust entity that is licensed to 1435 maintain an office in this state may not continue to conduct its 1436 licensed business in this state if the international trust 1437 entity: 1438 1. Is dissolved, or its authority or existence is otherwise 1439 terminated or canceled in the home jurisdiction where it has 1440 been authorized by charter, license, or similar authorization by 1441 operation of law to carry on trust business; 1442 2. Is in bankruptcy, conservatorship, receivership, 1443 liquidation, or similar status under the laws of any country; or 1444 3. Is operating under the direct control of the government 1445 or the regulatory or supervisory authority of the jurisdiction 1446 where it has been authorized by charter, license, or similar 1447 authorization by operation of law to carry on trust business 1448 through government intervention or any other extraordinary 1449 actions. 1450 (b) Notwithstanding subparagraphs (a)2. and 3., the office 1451 may, in its discretion, permit an international trust company 1452 representative office to remain open and in operation under such 1453 conditions as the office deems appropriate, if the office 1454 determines that it is in the public’s interest and that it 1455 furthers international supervisory cooperation to allow the 1456 international trust company representative office to remain open 1457 and in operation. 1458 (2) The international trust entity or its surviving 1459 officers and directors shall deliver to the office: 1460 (a) A certificate of the official who is responsible for 1461 records of trust companies in the jurisdiction where the 1462 international trust entity has been authorized by charter, 1463 license, or similar authorization by operation of law to carry 1464 on trust business of the international trust entity, attesting 1465 to the occurrence of any event described in paragraph (1)(a); 1466 (b) A certified copy of an order or decree of a court of 1467 such jurisdiction, directing the dissolution of such 1468 international trust entity, the termination of its existence, or 1469 the cancellation of its authority, or declaring its status in 1470 bankruptcy, conservatorship, receivership, liquidation, or 1471 similar proceedings; or 1472 (c) Other reliable documentation evidencing that the 1473 international trust entity is operating under the direct control 1474 of its government or a regulatory or supervisory authority. 1475 (3) The filing of the certificate, order, documentation, or 1476 decree has the same effect as the revocation of the license of 1477 such international trust entity as provided in s. 663.408, 1478 unless the office has permitted the international trust company 1479 representative office to remain open and in operation pursuant 1480 to paragraph (1)(b). 1481 Section 35. Section 663.413, Florida Statutes, is created 1482 to read: 1483 663.413 Application and examination fees.— 1484 (1) An application for a license to establish an 1485 international trust company representative office under this 1486 part must be accompanied by a nonrefundable $5,000 filing fee, 1487 payable to the office. 1488 (2) An international trust entity that maintains an office 1489 licensed under this part must pay to the office examination fees 1490 that are determined by the commission by rule and that are 1491 calculated in a manner so as to be equal to the actual cost of 1492 each examiner’s participation in the examination, as measured by 1493 the examiner’s pay scale, plus any other expenses directly 1494 incurred in the examination. However, the examination fees may 1495 not be less than $200 per day for each examiner participating in 1496 the examination. 1497 Section 36. Section 663.414, Florida Statutes, is created 1498 to read: 1499 663.414 Rules; exemption from statement of estimated 1500 regulatory costs requirements.—In addition to any other 1501 rulemaking authority it has under the financial institutions 1502 codes, the commission may adopt reasonable rules that it deems 1503 advisable for the administration of international trust 1504 companies under this part in the interest of protecting 1505 depositors, creditors, borrowers, or the public interest and in 1506 the interest of maintaining a sound banking and trust system in 1507 this state. Because of the difficulty in obtaining economic data 1508 with regard to such trusts, ss. 120.54(3)(b) and 120.541 do not 1509 apply to the adoption of rules pursuant to this section. 1510 Section 37. Section 663.415, Florida Statutes, is created 1511 to read: 1512 663.415 Travel expenses.—If domestic or foreign travel is 1513 deemed necessary by the office to effectuate the purposes of 1514 this part, the office must be reimbursed for actual, reasonable, 1515 and necessary expenses incurred in such domestic or foreign 1516 travel by the international trust company representative office 1517 under examination. 1518 Section 38. The Division of Law Revision and Information is 1519 directed to create part IV of chapter 663, Florida Statutes, 1520 consisting of ss. 663.530-663.540, Florida Statutes, to be 1521 entitled “Limited Service Affiliates of International Trust 1522 Entities.” 1523 Section 39. Section 663.530, Florida Statutes, is created 1524 to read: 1525 663.530 Definitions.— 1526 (1) As used in ss. 663.531-663.539, the term: 1527 (a) “Foreign country” means a country other than the United 1528 States and includes any colony, dependency, or possession of 1529 such country notwithstanding any definitions in chapter 658, and 1530 any territory of the United States, including Guam, American 1531 Samoa, the Virgin Islands, and the Commonwealth of Puerto Rico. 1532 (b) “Home-country regulator” means the supervisory 1533 authority or equivalent or other similarly sanctioned body, 1534 organization, governmental entity, or recognized authority, 1535 which has similar responsibilities in a foreign country in which 1536 and by whom an international trust entity is licensed, 1537 chartered, or has similar authorization to organize and operate. 1538 (c) “International trust entity” means an international 1539 trust company or any international business, international 1540 business organization, or an affiliated or subsidiary entity 1541 that is licensed, chartered, or similarly permitted to conduct 1542 trust business in a foreign country or countries under the laws 1543 of which it is organized and supervised. 1544 (d) “Limited service affiliate” means a marketing and 1545 liaison office that engages in the permissible activities 1546 enumerated in s. 663.531 for the benefit of an international 1547 trust entity. 1548 (e) “Nonresident” has the same meaning as in s. 663.01. 1549 (f) “Professional” means an accountant, attorney, or other 1550 financial services and wealth planning professional who is 1551 licensed by a governing body or affiliated with a licensed, 1552 chartered, or similarly authorized entity. 1553 (g) “Registrant” means a person or entity that is 1554 registered to perform the permissible activities outlined in s. 1555 663.531 related to or for the benefit of an affiliated 1556 international trust entity. 1557 (2) As used in ss. 663.531-663.539, the terms “affiliate,” 1558 “commission,” “executive officer,” “financial institution,” 1559 “financial institution-affiliated party,” “financial 1560 institutions codes,” “office,” “officer,” “state,” and 1561 “subsidiary” have the same meaning as provided in s. 655.005. 1562 Section 40. Section 663.531, Florida Statutes, is created 1563 to read: 1564 663.531 Permissible activities; prohibited activities.— 1565 (1) Registration as a limited service affiliate under this 1566 part does not provide any exemption from licensure, 1567 registration, application, and requirements to conduct licensed 1568 business activities in this state. A limited service affiliate 1569 may engage in any of the following permissible activities, which 1570 are not meant to be restrictive unless an activity is prohibited 1571 under subsection (2): 1572 (a) Marketing and liaison services related to or for the 1573 benefit of the affiliated international trust entities, directed 1574 exclusively at professionals and current or prospective 1575 nonresident clients of an affiliated international trust entity; 1576 (b) Advertising and marketing at trade, industry, or 1577 professional events; 1578 (c) Transmission of documents between the international 1579 trust entity and its current or prospective clients or a 1580 designee of such clients; and 1581 (d) Transmission of information about the trust or trust 1582 holdings of current clients between current clients or their 1583 designees and the international trust entity. 1584 (2) A limited service affiliate may not engage in any of 1585 the following activities: 1586 (a) Advertising and marketing related to or for the benefit 1587 of the international trust entity which are directed to the 1588 general public; 1589 (b) Acting as a fiduciary, including, but not limited to, 1590 accepting the fiduciary appointment, executing the fiduciary 1591 documents that create the fiduciary relationship, or making 1592 discretionary decisions regarding the investment or distribution 1593 of fiduciary accounts; 1594 (c) Accepting custody of any trust property or any other 1595 good, asset, or thing of value on behalf of the affiliated 1596 international trust entity, its subsidiaries or affiliates, or 1597 subsidiaries and affiliates of the international trust company 1598 representative office; 1599 (d) Soliciting business within this state from the general 1600 public related to or for the benefit of an affiliated 1601 international trust entity; 1602 (e) Adding a financial institution-affiliated party to the 1603 limited service affiliate without prior written notification to 1604 the office; 1605 (f) Commencing services for an international trust entity 1606 without complying with the requirements of s. 663.532; 1607 (g) Providing services for any international trust entity 1608 that is in bankruptcy, conservatorship, receivership, 1609 liquidation, or a similar status under the laws of any country; 1610 or 1611 (h) Otherwise conducting banking or trust business. 1612 (3) The provisions of subsection (2) are not deemed to 1613 prevent the limited service affiliate’s use of an international 1614 trust entity’s website, or its own website, if the posted 1615 information or communication includes the following: 1616 (a) The following statement: “Certain described services 1617 are not offered to the general public in Florida, but are 1618 marketed by ...(insert name of limited service affiliate)... 1619 exclusively to professionals and current or prospective non-U.S. 1620 resident clients of the affiliated international trust entity or 1621 entities.” 1622 (b) The notice required by s. 663.535. 1623 (4) In addition to any other power conferred upon it to 1624 enforce and administer this chapter and the financial 1625 institutions codes, the office may impose any remedy or penalty 1626 pursuant to s. 655.033, relating to cease and desist orders; s. 1627 655.034, relating to injunctions; s. 655.037, relating to 1628 removal of a financial institution-affiliated party by the 1629 office; or s. 655.041, relating to administrative fines and 1630 enforcement, if a limited service affiliate engages in any of 1631 the impermissible activities in subsection (2). 1632 Section 41. Section 663.532, Florida Statutes, is created 1633 to read: 1634 663.532 Registration.— 1635 (1) To register as a limited service affiliate, a proposed 1636 registrant must file a written notice with the office, in the 1637 manner and on a form prescribed by the commission, together with 1638 a nonrefundable $2,500 registration fee. Such written notice 1639 must include: 1640 (a) The name under which the proposed registrant will 1641 conduct business in this state; 1642 (b) A copy of the articles of incorporation or articles of 1643 organization, or the equivalent, of the proposed registrant; 1644 (c) The physical address where the proposed registrant will 1645 conduct business; 1646 (d) The mailing address of the proposed registrant; 1647 (e) The name and biographical information of the executive 1648 officer or managing member of the proposed registrant, to be 1649 submitted on a form prescribed by the commission; 1650 (f) The number of officers and employees of the proposed 1651 registrant; 1652 (g) A detailed list and description of the activities to be 1653 conducted by the proposed registrant. The detailed list and 1654 description must include: 1655 1. The services and activities of the proposed registrant; 1656 2. An explanation of how the services and activities of the 1657 proposed registrant serve the business purpose of each 1658 international trust entity; and 1659 3. An explanation of how the services and activities of the 1660 proposed registrant are distinguishable from those of the 1661 permissible activities of an international trust company 1662 representative office described under s. 663.409; 1663 (h) Disclosure of any instance occurring within the prior 1664 10 years of a director, executive officer, principal 1665 shareholder, manager, or the equivalent who was arrested for, 1666 charged with, or convicted of, or who pled guilty or nolo 1667 contendere to, regardless of adjudication, any offense that is 1668 punishable by imprisonment for a term exceeding 1 year, or to 1669 any offense that involves money laundering, currency transaction 1670 reporting, tax evasion, facilitating or furthering terrorism, 1671 fraud, theft, larceny, embezzlement, fraudulent conversion, 1672 misappropriation of property, dishonesty, breach of trust, 1673 breach of fiduciary duty, or moral turpitude, or that is 1674 otherwise related to the operation of a financial institution; 1675 (i) A declaration under penalty of perjury, signed by the 1676 executive officer or managing member of the proposed registrant, 1677 that, to the best of his or her knowledge: 1678 1. No financial institution-affiliated party of the 1679 proposed registrant or financial institution-affiliated party of 1680 any affiliated international trust entity: 1681 a. Has been fined or sanctioned as a result of a complaint 1682 to the office or any other state or federal regulatory agency; 1683 b. Has been convicted of a felony; or 1684 c. Has been ordered to pay a fine or penalty within the 1685 prior 10 years in a proceeding initiated by a federal, state, 1686 foreign, or local law enforcement agency or an international 1687 agency related to money laundering, currency transaction 1688 reporting, tax evasion, facilitating or furthering terrorism, 1689 fraud, theft, larceny, embezzlement, fraudulent conversion, 1690 misappropriation of property, dishonesty, breach of trust, 1691 breach of fiduciary duty, moral turpitude, or that is otherwise 1692 related to the operation of a financial institution. 1693 2. No financial institution-affiliated party of the 1694 proposed registrant: 1695 a. Provides, or will provide, banking services; promotes or 1696 sells, or will promote or sell, investments; or accepts, or will 1697 accept, custody of assets; and 1698 b. Acts, or will act, as a fiduciary in this state, which 1699 includes, but is not limited to, accepting the fiduciary 1700 appointment, executing the fiduciary documents that create the 1701 fiduciary relationship, or making discretionary decisions 1702 regarding the investment or distribution of fiduciary accounts. 1703 3. The jurisdiction of the international trust entity or 1704 its offices, subsidiaries, or any affiliates that are directly 1705 involved in or facilitate the financial services functions, 1706 banking, or fiduciary activities of the international trust 1707 entity is not listed on the Financial Action Task Force Public 1708 Statement or on its list of jurisdictions with deficiencies in 1709 anti-money laundering or counterterrorism; 1710 (j) For each international trust entity that the proposed 1711 registrant will provide services for in this state, the 1712 following: 1713 1. The name of the international trust entity; 1714 2. A list of the current officers and directors of the 1715 international trust entity; 1716 3. Any country where the international trust entity is 1717 organized or authorized to do business; 1718 4. The name of the home-country regulator; 1719 5. Proof that the international trust entity has been 1720 authorized by charter, license, or similar authorization by its 1721 home-country regulator to engage in trust business; 1722 6. Proof that the international trust entity lawfully 1723 exists and is in good standing under the laws of the 1724 jurisdiction where it is chartered, licensed, or organized; 1725 7. A statement that the international trust entity is not 1726 in bankruptcy, conservatorship, receivership, liquidation, or a 1727 similar status under the laws of any country; 1728 8. Proof that the international trust entity is not 1729 operating under the direct control of the government or the 1730 regulatory or supervisory authority of the jurisdiction of its 1731 incorporation, through government intervention or any other 1732 extraordinary actions, and confirmation that it has not been in 1733 such a status or under such control at any time within the prior 1734 3 years; 1735 9. Proof and confirmation that the proposed registrant is 1736 affiliated with the international trust entities provided in the 1737 notice; and 1738 10. Proof that the jurisdictions where the international 1739 trust entity or its offices, subsidiaries, or any affiliates 1740 that are directly involved in or that facilitate the financial 1741 services functions, banking, or fiduciary activities of the 1742 international trust entity are not listed on the Financial 1743 Action Task Force Public Statement or on its list of 1744 jurisdictions with deficiencies in anti-money laundering or 1745 counterterrorism; and 1746 (k) A declaration under penalty of perjury, signed by an 1747 executive officer or managing member of each affiliated 1748 international trust entity, declaring that the information 1749 provided to the office is true and correct to the best of his or 1750 her knowledge. 1751 1752 The proposed registrant may provide additional information in 1753 the form of exhibits when attempting to satisfy any of the 1754 registration requirements. All information that the proposed 1755 registrant desires to present to support the written notice must 1756 be submitted with the notice. 1757 (2) The office may request additional information as the 1758 office reasonably requires. Any request for additional 1759 information must be made by the office within 30 days after 1760 initial receipt of the written notice and the full amount of the 1761 fee specified in subsection (1). Additional information must be 1762 submitted within 60 days after a request has been made by the 1763 office. Failure to respond to such request within 60 days after 1764 the date of the request is a ground for denial of the 1765 registration. A notice is not deemed complete until all 1766 requested information has been submitted to the office. Upon 1767 deeming the notice complete, the office has 120 days to register 1768 the limited service affiliate or issue a denial. An order 1769 denying a registration must contain notice of opportunity for a 1770 hearing pursuant to ss. 120.569 and 120.57. 1771 (3) A registration under this part must be summarily 1772 suspended by the office if the limited service affiliate made a 1773 material false statement in the written notice. The summary 1774 suspension must remain in effect until a final order is entered 1775 by the office. For purposes of s. 120.60(6), a material false 1776 statement made in the limited service affiliate’s written notice 1777 constitutes an immediate and serious danger to the public 1778 health, safety, and welfare. If a limited service affiliate made 1779 a material false statement in the written notice, the office 1780 must enter a final order revoking the registration and may 1781 impose a fine as prescribed by s. 655.041 or issue an order of 1782 suspension, removal, or prohibition under s. 655.037 to a 1783 financial institution-affiliated party of the limited service 1784 affiliate. 1785 (4) Any instance in which a director, executive officer, 1786 principal shareholder, manager, or the equivalent has ever been 1787 arrested for, charged with, convicted of, or pled guilty or nolo 1788 contendere to, regardless of adjudication, any offense that 1789 involves money laundering, currency transaction reporting, tax 1790 evasion, facilitating or furthering terrorism, fraud, theft, 1791 larceny, embezzlement, fraudulent conversion, misappropriation 1792 of property, dishonesty, breach of trust, breach of fiduciary 1793 duty, or moral turpitude, or that is otherwise related to the 1794 operation of a financial institution, is a ground for denial of 1795 the registration. 1796 (5) A registration is not transferable or assignable. 1797 (6) Fees collected under this section must be submitted in 1798 the manner prescribed by the commission and must be deposited 1799 into the Financial Institutions’ Regulatory Trust Fund pursuant 1800 to s. 655.049 for the purpose of administering this part. 1801 (7) A person or entity in operation as of January 1, 2018, 1802 which meets the definition of a limited service affiliate under 1803 s. 663.530 must, on or before March 31, 2018, apply for 1804 registration as a limited service affiliate or cease doing 1805 business in this state. 1806 (8) No later than March 31, 2018, a person or entity that 1807 previously qualified under the moratorium in s. 663.041 must 1808 register under this part or cease doing business in this state. 1809 A person or entity that previously qualified under the 1810 moratorium in s. 663.041 may remain open and in operation until 1811 March 31, 2018, without registering under this part, but shall 1812 refrain from engaging in new lines of business in this state 1813 until the disposition of registration under this part. 1814 Section 42. Section 663.533, Florida Statutes, is created 1815 to read: 1816 663.533 Applicability of the financial institutions codes. 1817 A limited service affiliate is subject to the financial 1818 institutions codes. Without limiting the foregoing, the 1819 following provisions are applicable to a limited service 1820 affiliate: 1821 (1) Section 655.012, relating to general supervisory powers 1822 of the office. 1823 (2) Section 655.031, relating to administrative enforcement 1824 guidelines. 1825 (3) Section 655.032, relating to investigations, subpoenas, 1826 hearings, and witnesses. 1827 (4) Section 655.0321, relating to restricted access to 1828 certain hearings, proceedings, and related documents. 1829 (5) Section 655.033, relating to cease and desist orders. 1830 (6) Section 655.034, relating to injunctions. 1831 (7) Section 655.037, relating to removal of a financial 1832 institution-affiliated party by the office. 1833 (8) Section 655.041, relating to administrative fines and 1834 enforcement. 1835 (9) Section 655.057, relating to restrictions on access to 1836 public records. 1837 (10) Section 655.059, relating to access to books and 1838 records. 1839 (11) Section 655.0591, relating to trade secret documents. 1840 (12) Section 655.91, relating to records of institutions 1841 and copies thereof; retention and destruction. 1842 (13) Section 655.968, relating to financial institutions; 1843 transactions relating to Iran or terrorism. 1844 1845 This section does not prohibit the office from investigating or 1846 examining an entity to ensure that it is not in violation of 1847 this chapter or applicable provisions of the financial 1848 institutions codes. 1849 Section 43. Section 663.534, Florida Statutes, is created 1850 to read: 1851 663.534 Events that require notice to be provided to the 1852 office.—A registrant must report to the office, within 15 days 1853 of its knowledge of the occurrence, any changes to the 1854 information previously relied upon by the office when 1855 registering or renewing a registration under this part. 1856 Section 44. Section 663.535, Florida Statutes, is created 1857 to read: 1858 663.535 Notice to customers.—All marketing documents and 1859 advertisements and any display at the location of the limited 1860 service affiliate or at any trade or marketing event must 1861 contain the following statement in a contrasting color in at 1862 least 10-point type: “The Florida Office of Financial Regulation 1863 DOES NOT provide safety and soundness oversight of this company, 1864 does not provide any opinion as to any affiliated companies or 1865 products, and does not provide the oversight of this company’s 1866 affiliated international trust entities or the jurisdictions 1867 within which they operate. This company may not act as a 1868 fiduciary and may not accept the fiduciary appointment, execute 1869 or transmit fiduciary documents, take possession of any assets, 1870 create a fiduciary relationship, make discretionary decisions 1871 regarding the investment or distribution of fiduciary accounts, 1872 provide banking services, or promote or sell investments.” 1873 Section 45. Section 663.536, Florida Statutes, is created 1874 to read: 1875 663.536 Recordkeeping requirements for trade, industry, or 1876 professional events.—A registrant registered only under this 1877 part who participates in a trade, industry, or professional 1878 event pursuant to s. 663.531 must keep a record of its 1879 participation in the event. The record must be maintained for at 1880 least 2 years following the event and must contain the following 1881 information: 1882 (1) The date, time, and location of the event; 1883 (2) To the extent known or available, a list of 1884 participants in the event, including other vendors, presenters, 1885 attendees, and targeted attendees; 1886 (3) The nature and purpose of the event; 1887 (4) The registrant’s purpose for participating in the 1888 event; and 1889 (5) Samples of materials or, when samples are unavailable, 1890 descriptions of materials provided by the registrant to 1891 attendees and other participants. 1892 Section 46. Section 663.537, Florida Statutes, is created 1893 to read: 1894 663.537 Examination or investigation of a limited service 1895 affiliate.— 1896 (1) The office may conduct an examination or investigation 1897 of a limited service affiliate at any time that it deems 1898 necessary to determine whether the limited service affiliate or 1899 financial institution-affiliated party thereof has violated, or 1900 is about to violate, any provision of this chapter, any 1901 applicable provision of the financial institutions codes, or any 1902 rule adopted by the commission pursuant to this chapter or the 1903 financial institutions codes. The office shall conduct an 1904 examination of each limited service affiliate at least once 1905 every 18 months to assess compliance with this part and the 1906 financial institutions codes. The office may conduct an 1907 examination, before or after registration, of any person or 1908 entity that submits a notice for registration to confirm 1909 information provided in the registration filing and to confirm 1910 the activities of the person or entity seeking registration. 1911 (2) For each examination of a limited service affiliate 1912 authorized under this part, the limited service affiliate shall 1913 pay a fee for the costs of the examination by the office. As 1914 used in this section, the term “costs” means the salary and 1915 travel expenses of field staff which are directly attributable 1916 to the examination of the registrant and the travel expenses of 1917 any supervisory and support staff required as a result of 1918 examination findings. The costs of examination must be 1919 determined as follows: 1920 (a) The office shall charge each limited service affiliate 1921 in this state an examination fee equal to the actual cost of 1922 each examiner’s participation during each examination of such 1923 limited service affiliate. The examination fee must equal the 1924 actual cost of the examination, but such fees, inclusive of 1925 travel expenses and other incidental expenses, may not be less 1926 than $200 per day for each examiner participating in the 1927 examination. 1928 (b) As used in this section, the term “actual cost” means 1929 the direct salary, excluding employee benefits; travel expenses; 1930 and other incidental expenses required as a result of the 1931 examination staff’s onsite and offsite examination of the 1932 limited service affiliate. In addition, the term includes the 1933 travel expenses of any supervisory staff required as a result of 1934 examination findings. 1935 (3) All examination fee payments must be received within 30 1936 days after receipt of an invoice from the office and must be 1937 submitted in a manner prescribed by the commission. The office 1938 may levy a late fee of up to $100 per day that a payment is 1939 overdue, unless waived by the office for good cause. However, if 1940 the late payment of costs is intentional, the office may levy an 1941 administrative fine of up to $1,000 per day for each day the 1942 payment is overdue. 1943 (4) All fees collected under this section must be submitted 1944 in the manner prescribed by the commission and must be deposited 1945 into the Financial Institutions’ Regulatory Trust Fund pursuant 1946 to s. 655.049 for the purpose of administering this part. 1947 Section 47. Section 663.538, Florida Statutes, is created 1948 to read: 1949 663.538 Suspension, revocation, or voluntary surrender of 1950 registration.— 1951 (1) A registrant that proposes to terminate operations in 1952 this state shall surrender its registration to the office and 1953 comply with such procedures as required by rule of the 1954 commission. 1955 (2) A registrant that fails to renew its registration may 1956 be subject to a fine and penalty; however, such registrant may 1957 renew its registration within 30 days after expiration or may 1958 surrender the registration in accordance with procedures 1959 prescribed by commission rule. 1960 (3) The registration of a limited service affiliate in this 1961 state may be suspended or revoked by the office, with or without 1962 examination, upon the office’s determination that the registrant 1963 does not meet all requirements for original or renewal 1964 registration. 1965 (4) If a registrant surrenders its registration or its 1966 registration is suspended or revoked by the office, all rights 1967 and privileges afforded by this part to the registered limited 1968 service affiliate cease. 1969 (5) At least 60 days before a proposed date of voluntary 1970 termination of a registration, a registrant must provide to the 1971 office written notice by letter of its intention to surrender 1972 its registration and terminate operations. The notice must 1973 include the proposed date of termination and the name of the 1974 officer in charge of the termination procedures. 1975 (6) The office may conduct an examination of the books and 1976 records of a limited service affiliate at any time after receipt 1977 of the notice of surrender of registration to confirm the 1978 winding down of operations. 1979 (7) Operations of a registrant are deemed terminated 1980 effective upon the later of the expiration of 60 days from the 1981 date of the filing of the notice of voluntary surrender or upon 1982 the date provided in the notice of voluntary surrender, unless 1983 the office provides written notice specifying the grounds for 1984 denial of such proposed termination. The office may not deny a 1985 request to terminate unless it learns of the existence of any 1986 outstanding claim or claims against the registrant, it finds 1987 that the requirements to terminate operations have not been 1988 satisfied, or there is an immediate and serious danger to the 1989 public health, safety, and welfare if the termination occurred. 1990 Section 48. Section 663.539, Florida Statutes, is created 1991 to read: 1992 663.539 Biennial registration renewal.—A registration must 1993 be renewed every 2 years. A registration must be renewed by 1994 furnishing such information as the commission requires, together 1995 with payment of a $500 nonrefundable renewal fee. All fees 1996 received by the office pursuant to this section must be 1997 submitted in the manner prescribed by the commission and must be 1998 deposited into the Financial Institutions’ Regulatory Trust Fund 1999 pursuant to s. 655.049 for the purpose of administering this 2000 part. A complete biennial renewal of registration must include a 2001 declaration under penalty of perjury, signed by the executive 2002 officer or managing member of the registrant, declaring that the 2003 information submitted for the purposes of renewal is true and 2004 correct to the best of his or her knowledge, and confirming or 2005 providing all of the following: 2006 (1) That the registrant is in compliance with this part. 2007 (2) The physical location of the principal place of 2008 business of the registrant. 2009 (3) The telephone number of the registrant. 2010 (4) A list of current financial institution-affiliated 2011 parties operating under the registration to be renewed. 2012 (5) Any updates or changes in information which were not 2013 previously provided either in the initial registration or in 2014 subsequent registration renewals or which were not previously 2015 disclosed to the office. 2016 Section 49. For the purpose of incorporating the amendment 2017 made by this act to section 663.01, Florida Statutes, in a 2018 reference thereto, subsection (4) of section 663.16, Florida 2019 Statutes, is reenacted to read: 2020 663.16 Definitions; ss. 663.17-663.181.—As used in ss. 2021 663.17-663.181, the term: 2022 (4) Except where the context otherwise requires, 2023 “international banking corporation” or “corporation” has the 2024 same meaning as that provided in s. 663.01 and includes any 2025 licensed office of an international banking corporation 2026 operating in this state. 2027 Section 50. This act shall take effect January 1, 2018.