Bill Text: FL S0736 | 2017 | Regular Session | Comm Sub
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-Comm_Sub.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-Comm_Sub.html
Florida Senate - 2017 CS for SB 736 By the Committee on Banking and Insurance; and Senators Mayfield and Steube 597-02146-17 2017736c1 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 violations, fines, or 168 penalties of certain entities do not necessarily 169 disqualify registrants from registration; authorizing 170 the office to consider certain factors in evaluating 171 registrations; providing that registrations are not 172 transferable or assignable; providing for deposit of 173 fees into a specified trust fund; requiring the 174 commission to adopt rules; requiring certain persons 175 or entities to be registered as limited service 176 affiliates by a specified date; creating s. 663.533, 177 F.S.; providing applicability of the financial 178 institutions codes as to limited service affiliates; 179 providing construction; creating s. 663.534, F.S.; 180 requiring a registrant to report changes of certain 181 information to the office within a specified 182 timeframe; creating s. 663.535, F.S.; requiring a 183 specified notice to customers in marketing documents, 184 advertisements, and displays at the limited service 185 affiliate’s location or at certain events; creating s. 186 663.536, F.S.; specifying recordkeeping requirements 187 relating to certain events that a registered limited 188 service affiliate participates in; creating s. 189 663.537, F.S.; authorizing the office to conduct 190 examinations or investigations of limited service 191 affiliates for certain purposes; specifying a minimum 192 interval of examinations to assess compliance; 193 authorizing the office to examine a person or entity 194 submitting a notice of registration for certain 195 purposes; requiring limited service affiliates to pay 196 specified costs of examination within a specified 197 time; defining the terms “costs” and “actual cost”; 198 providing penalties; specifying the trust fund where 199 examination fees must be deposited; requiring the 200 commission to adopt rules; creating s. 663.538, F.S.; 201 providing requirements and procedures relating to the 202 suspension, revocation, or voluntary surrender of a 203 limited service affiliate’s registration; providing a 204 penalty; authorizing the office to conduct 205 examinations under certain circumstances; prohibiting 206 the office from denying a request to terminate 207 operations except under certain circumstances; 208 providing construction; creating s. 663.539, F.S.; 209 requiring a limited service affiliate to renew its 210 registration biennially; specifying the renewal fee 211 and the trust fund where such fee must be deposited; 212 specifying requirements for the renewal registration; 213 creating s. 663.5395, F.S.; providing that limited 214 service affiliates are not required to produce certain 215 books and records under certain circumstances; 216 providing applicability; reenacting s. 663.16(4), 217 F.S., relating to definitions, to incorporate the 218 amendment made to s. 663.01, F.S., in a reference 219 thereto; providing an effective date. 220 221 Be It Enacted by the Legislature of the State of Florida: 222 223 Section 1. Paragraph (i) of subsection (1) of section 224 655.005, Florida Statutes, is amended to read: 225 655.005 Definitions.— 226 (1) As used in the financial institutions codes, unless the 227 context otherwise requires, the term: 228 (i) “Financial institution” means a state or federal 229 savings or thrift association, bank, savings bank, trust 230 company, international bank agency, international banking 231 corporation, international branch, international representative 232 office, international administrative office, international trust 233 entity, international trust company representative office, 234 limited service affiliate, credit union, or an agreement 235 corporation operating pursuant to s. 25 of the Federal Reserve 236 Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized 237 pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 238 611 et seq. 239 Section 2. Subsection (1) and paragraph (b) of subsection 240 (2) of section 655.059, Florida Statutes, are amended to read: 241 655.059 Access to books and records; confidentiality; 242 penalty for disclosure.— 243 (1) The books and records of a financial institution are 244 confidential and shall be made available for inspection and 245 examination only: 246 (a) To the office or its duly authorized representative; 247 (b) To any person duly authorized to act for the financial 248 institution; 249 (c) To any federal or state instrumentality or agency 250 authorized to inspect or examine the books and records of an 251 insured financial institution; 252 (d) With respect to an international banking corporation or 253 international trust entity, to the home-country supervisor of 254 the international banking corporation or international trust 255 entity, provided: 256 1. The home-country supervisor provides advance notice to 257 the office that the home-country supervisor intends to examine 258 the Florida office of the international banking corporation or 259 international trust entity. Such examination may be conducted 260 onsite or offsite and may include ongoing reporting by the 261 Florida office of the international banking corporation or 262 international trust entity to the home-country supervisor. 263 2. The home-country supervisor confirms to the office that 264 the purpose of the examination is to ensure the safety and 265 soundness of the international banking corporation or 266 international trust entity. 267 3. The books and records pertaining to customer deposit, 268 investment,andcustodial, and trust accounts are not disclosed 269 to the home-country supervisor. 270 4. At any time during the conduct of the examination, the 271 office reserves the right to have an examiner present,orto 272 participate jointly in the examination, or to receive copies of 273 all information provided to the home-country supervisor. 274 275 As used inFor purposes ofthis paragraph, the term “home 276 country supervisor” means the governmental entity in the 277 international banking corporation’s or international trust 278 entity’s home country with responsibility for the supervision 279 and regulation of the safety and soundness of the international 280 banking corporation or international trust entity; 281 (e) As compelled by a court of competent jurisdiction, 282 pursuant to a subpoena issued pursuant to the Florida Rules of 283 Civil Procedure, the Florida Rules of Criminal Procedure, or the 284 Federal Rules of Civil Procedure, or pursuant to a subpoena 285 issued in accordance with state or federal law. BeforePrior to286 the production of the books and records of a financial 287 institution, the party seeking production must reimburse the 288 financial institution for the reasonable costs and fees incurred 289 in compliance with the production. If the parties disagree 290 regarding the amount of reimbursement, the party seeking the 291 records may request the court or agency having jurisdiction to 292 set the amount of reimbursement; 293 (f) As compelled by legislative subpoena as provided by 294 law, in which case the provisions of s. 655.057 apply; 295 (g) Pursuant to a subpoena, to any federal or state law 296 enforcement or prosecutorial instrumentality authorized to 297 investigate suspected criminal activity; 298 (h) As authorized by the board of directors of the 299 financial institution; or 300 (i) As provided in subsection (2). 301 (2) 302 (b) The books and records pertaining to trust accounts and 303 the deposit accounts and loans of depositors, borrowers, 304 members, and stockholders of any financial institution shall be 305 kept confidential by the financial institution and its 306 directors, officers, and employees and mayshallnot be released 307 except upon express authorization of the account holder as to 308 her or his own accounts, loans, or voting rights. However, 309 information relating to any loan made by a financial institution 310 may be released without the borrower’s authorization in a manner 311 prescribed by the board of directors for the purpose of meeting 312 the needs of commerce and for fair and accurate credit 313 information. Information may also be released, without the 314 authorization of a member or depositor but in a manner 315 prescribed by the board of directors, to verify or corroborate 316 the existence or amount of a customer’s or member’s account when 317 such information is reasonably provided to meet the needs of 318 commerce and to ensure accurate credit information. In addition, 319 a financial institution, affiliate, and its subsidiaries, and 320 any holding company of the financial institution or subsidiary 321 of such holding company, may furnish to one another information 322 relating to their customers or members, subject to the 323 requirement that each corporation receiving information that is 324 confidential maintain the confidentiality of such information 325 and not provide or disclose such information to any unaffiliated 326 person or entity. Notwithstanding this paragraph,nothing in327 this subsection does not prohibit:shall prohibit328 1. A financial institution from disclosing financial 329 information as referenced in this subsection as authorized 330permittedby Pub. L. No. 106-102 (1999), as set forth in 15 331 U.S.C.A. s. 6802, as amended. 332 2. The Florida office of the international banking 333 corporation or international trust entity from sharing books and 334 records under this subsection with the home-country supervisor 335 in accordance with subsection (1). 336 Section 3. Section 663.001, Florida Statutes, is created in 337 part I of chapter 663, Florida Statutes, to read: 338 663.001 Purpose.—The purpose of this part is to establish a 339 legal and regulatory framework for the conduct by international 340 banking corporations of financial services business in this 341 state. This part is intended to: 342 (1) Support the Florida operations of international banking 343 corporations and promote the growth of international financial 344 services to benefit the economy and consumers in this state. 345 (2) Provide for appropriate supervision and regulatory 346 oversight to ensure that financial services activities of 347 international banking corporations in this state are conducted 348 responsibly and in a safe and sound manner. 349 Section 4. Subsections (6) and (9) and paragraph (b) of 350 subsection (11) of section 663.01, Florida Statutes, are amended 351 to read: 352 663.01 Definitions.—As used in this part, the term: 353 (6) “International banking corporation” means a banking 354 corporation organized and licensed under the laws of a foreign 355 country. The term“international banking corporation”includes, 356 without limitation, a foreign commercial bank, foreign merchant 357 bank, or other foreign institution that engages in banking 358 activities usual in connection with the business of banking in 359 the country where such foreign institution is organized or 360 operating, including a corporation: the sole shareholders of 361 which are one or more international banking corporations or 362 holding companies which own or control one or more international 363 banking corporations which are authorized to carry on a banking 364 business, or a central bank or government agency of a foreign 365 country and any affiliate or division thereof; which has the 366 power to receive deposits from the general public in the country 367 where it is chartered and organized; and which is under the 368 supervision of the central bank or other bank regulatory 369 authority of such country. The term also includesforeign trust370companies, or any similar business entities, including, but not371limited to,foreign banks with fiduciary powers which,that372 conduct trust business as defined in the financial institutions 373 codes. 374(9) “International trust company representative office”375means an office of an international banking corporation or trust376company organized and licensed under the laws of a foreign377country which office is established or maintained in this state378for the purpose of engaging in nonfiduciary activities described379in s. 663.0625, or any affiliate, subsidiary, or other person380that engages in such activities on behalf of such international381banking corporation or trust company from an office located in382this state.383 (10)(11)“Nonresident” means: 384 (b) A person, other than an individual, whose principal 385 place of business or domicile is outside the United States and 386 includes a person who conducts a majority of its business 387 activities in a foreign country and any foreign government and 388 its subdivision, agencies, and instrumentalities. Any person who 389 conducts business in the United States is considered to have its 390 principal place of business outside the United States if any one 391 of the following requirements is satisfied for its most recent 392 fiscal year: 393 1. Its assets located outside the United States exceed its 394 assets located within the United States; 395 2. Its gross revenues generated outside the United States 396 exceed its gross revenues generated within the United States; or 397 3. Its payroll expenses incurred outside the United States 398 exceed its payroll expenses incurred within the United States. 399 Section 5. Section 663.02, Florida Statutes, is amended to 400 read: 401 663.02 Applicability of the financial institutions codes 402state banking laws.— 403 (1) International banking corporations having offices in 404 this state are subject to all the provisions of the financial 405 institutions codesand chapter 655as though such corporations 406 were state banksor trust companies, except where it may appear, 407 from the context or otherwise, that such provisions are clearly 408 applicable only to banksor trust companiesorganized under the 409 laws of this state or the United States. Without limiting the 410 foregoing general provisions, it is the intent of the 411 Legislature that the following provisions are applicable to such 412 banks or trust companies: s. 655.031, relating to administrative 413 enforcement guidelines; s. 655.032, relating to investigations, 414 subpoenas, hearings, and witnesses; s. 655.0321, relating to 415 hearings, proceedings, and related documents and restricted 416 access thereto; s. 655.033, relating to cease and desist orders; 417 s. 655.037, relating to removal by the office of an officer, 418 director, committee member, employee, or other person; s. 419 655.041, relating to administrative fines and enforcement; s. 420 655.50, relating to the control of money laundering and 421 terrorist financing; and any law for which the penalty is 422 increased under s. 775.31 for facilitating or furthering 423 terrorism. International banking corporations do not have the 424 powers conferred on domestic banks by s. 658.60, relating to 425 deposits of public funds. Chapter 687, relating to interest and 426 usury, applies to all bank loans. 427 (2) Neither an international bank agency nor an 428 international branch shall have any greater right under, or by 429 virtue of, this section than is granted to banks organized under 430 the laws of this state. Legal and financial terms used herein 431 shall be deemed to refer to equivalent terms used by the country 432 in which the international banking corporation is organized. 433 This chapter and the financial institutions codes may not be 434 construed to authorize any international banking corporationor435trust companyto conduct trust business, as defined in s. 436 658.12, from an office in this state except for those activities 437 specifically authorized by s. 663.061(5)ss. 663.061(5) and438663.0625. 439 Section 6. Subsection (1) of section 663.021, Florida 440 Statutes, is amended to read: 441 663.021 Civil action subpoena enforcement.— 442 (1) Notwithstanding s. 655.059, an international 443 representative office, international bank agency, international 444 branch,international trust company representative office,or 445 international administrative office established under this 446 chapter is not required to produce a book or record pertaining 447 to a deposit account, investment account, or loan of a customer 448 of the international banking corporation’s offices that are 449 located outside the United States or its territories in response 450 to a subpoena if the book or record is maintained outside the 451 United States or its territories and is not in the possession, 452 custody, or control of the international banking corporation’s 453 office, agency, or branch established in this state. 454 Section 7. Section 663.04, Florida Statutes, is amended to 455 read: 456 663.04 Requirements for carrying on financial institution 457 business.—An international banking corporationor trust company,458 or any affiliate, subsidiary, or other person or business entity 459 acting as an agent for, on behalf of, or for the benefit of such 460 international banking corporationor trust companywho engages 461 in such activities from an office located in this state, may not 462 transact a banking or trust business, or maintain in this state 463 any office for carrying on such business, or any part thereof, 464 unless such corporation,trust company,affiliate, subsidiary, 465 person, or business entity: 466 (1) Has been authorized by its charter to carry on a 467 banking or trust business and has complied with the laws of the 468 jurisdiction in which it is chartered. 469 (2) Has furnished to the office such proof as to the nature 470 and character of its business and as to its financial condition 471 as the commission or office requires. 472 (3) Has filed with the office a certified copy of that 473 information required to be supplied to the Department of State 474 by those provisions of part I of chapter 607 which are 475 applicable to foreign corporations. 476 (4) Has received a license duly issued to it by the office. 477 (5) Has sufficient capital in accordance with the 478 requirements ofcapital accounts no less than the minimums479required pers. 663.055 and the rules adopted thereunder and is 480 not imminently insolvent or insolvent, as those terms are 481 defined inpers. 655.005(1). 482 (6)(a) Is not in bankruptcy, conservatorship, receivership, 483 liquidation, or similar status under the laws of any country. 484 (b) Is not operating under the direct control of the 485 government, regulatory, or supervisory authority of the 486 jurisdiction of its incorporation through government 487 intervention or any other extraordinary actions. 488 (c) Has not been in such status or control at any time 489 within the 37years preceding the date of application for a 490 license. 491 492 Notwithstanding subsection (6), the office may, in its 493 discretion, permit an international branch, international bank 494 agency, international administrative office, or international 495 representative office to remain open and in operation under such 496 conditions as the office deems appropriate if the office 497 determines that it is in the public’s interest and that it 498 furthers international supervisory cooperation to allow the 499 international branch, international bank agency, international 500 administrative office, or international representative office to 501 remain open and in operation. 502 Section 8. Present subsections (4) through (8) of section 503 663.05, Florida Statutes, are redesignated as subsections (5) 504 through (9), respectively, a new subsection (4) is added to that 505 section, and present subsections (4), (5), and (6), paragraph 506 (c) of present subsection (7), and present subsection (8) are 507 amended, to read: 508 663.05 Application for license; approval or disapproval.— 509 (4) Notwithstanding subsection (1), an international 510 banking corporation that has operated an international branch, 511 international bank agency, international administrative office, 512 or international representative office in this state for a 513 minimum of 3 years in a safe and sound manner, as defined by 514 commission rule, and that is otherwise eligible to establish an 515 additional office may establish one or more additional 516 international branches, international bank agencies, 517 international administrative offices, or international 518 representative offices by providing an abbreviated application 519 and paying the appropriate license fee pursuant to s. 663.12. 520 This subsection does not permit an international banking 521 corporation to file an abbreviated application for any license 522 type whose permissible activities are broader than those in 523 which the international banking corporation is currently 524 authorized to engage. 525 (5)(4)An application filed pursuant to this section must 526shallbe made on a form prescribed by the commissionofficeand 527 mustshallcontain such information as the commission or office 528 requires. 529 (6)(5)The office may, in its discretion, approve or 530 disapprove the application, but it mayshallnot approve the 531 application unless, in its opinion, the applicant meets each and 532 every requirement of this part and any other applicable 533 provision of the financial institutions codes. The office shall 534 approve the application only if it has determined that the 535 directors, executive officers, and principal shareholders of the 536 international banking corporation are qualified by reason of 537 their financial ability, reputation, and integrity and have 538 sufficient banking and other business experience to indicate 539 that they will manage and direct the affairs of the 540 international banking corporation in a safe, sound, and lawful 541 manner. In the processing of an application filed pursuant to 542 this sectionapplications, the time limitations under the 543 Administrative Procedure Act doshallnot apply as to approval 544 or disapproval of the application. For applications filed on or 545 after January 1, 2018, the time limitations for approval or 546 disapproval of an application must be prescribed by rule of the 547 commission. 548 (7)(6)The office may not issue a license to an 549 international banking corporation unless: 550 (a) It is chartered in a jurisdiction in which any 551 financial institution licensed or chartered by any state or any 552 federal bank regulatory agency in the United Statesbank or553trust company having its principal place of business in this554statemay establish similar facilities or exercise similar 555 powers; or 556 (b) Federal law permits the appropriate federal regulatory 557 authority to issue a comparable license to the international 558 banking corporation. 559 (8)(7)The office may not issue a license to an 560 international banking corporation for the purpose of operating: 561(c) A trust representative office in this state unless the562corporation:5631. Holds an unrestricted license to conduct trust business564in the foreign country under the laws of which it is organized565and chartered.5662. Has been authorized by the foreign country’s trust567business regulatory authority to establish the proposed568international trust representative office.5693. Is adequately supervised by the central bank or trust570regulatory agency in the foreign country in which it is571organized and chartered.5724. Meets all requirements under the financial institutions573codes for the operation of a trust company or trust department574as if it were a state chartered trust company or bank authorized575to exercise fiduciary powers.576 (9)(8)The commission shall establish, by rule, the general 577 principles which shall determine the adequacy of supervision of 578 an international banking corporation’s foreign establishments. 579 These principles shall be based upon the need for cooperative 580 supervisory efforts and consistent regulatory guidelines and 581 shall address, at a minimum, the capital adequacy, asset 582 quality, management, earnings, liquidity, internal controls, 583 audits, and foreign exchange operations and positions of the 584 international banking corporation. This subsection doesshall585 not require examination by the home-country regulatory 586 authorities of any office of an international banking 587 corporation in this state. The commission may also establish, by 588 rule, other standards for approval of an application for a 589 license as considered necessary to ensure the safe and sound 590 operations of the international banking corporationbank or591trust representative officein this state. 592 Section 9. Section 663.055, Florida Statutes, is amended to 593 read: 594 663.055 Capital requirements.— 595 (1) To qualify for a license underthe provisions ofthis 596 part, the proposed capitalization of the international banking 597 corporation must be in such amount as the office determines is 598 necessary, taking into consideration the risk profile of the 599 international banking corporation and the ability of the 600 international banking corporation to operate a licensed office 601 in a safe and sound manner. In making this determination, the 602 office must consider the financial resources of the 603 international banking corporation, includingan international604banking corporation must have net capital accounts, calculated605according to United States generally accepted accounting606principles and practices, of at least: 607 (a) The international banking corporation’s current and 608 projected capital position, profitability, level of 609 indebtedness, and business and strategic plansForty million610dollars for the establishment of an international bank agency,611an international branch, or an international administrative612office;or613 (b) The financial condition of any of the international 614 banking corporation’s existing offices located in the United 615 States;Twenty million dollars for the establishment of an616international representative office or international trust617representative office.618 (c) The minimum capital requirements of the international 619 banking corporation’s home-country jurisdiction; and 620 (d) The capital ratio standards used in the United States 621 and in the international banking corporation’s home-country 622 jurisdiction. 623 (2) The proposed capitalization of the international 624 banking corporation must be in such amount as the office deems 625 adequate, but in no case may the total capital accounts of the 626 international banking corporation be less than the minimum 627 required under s. 658.21(2) to establish a state bank 628Notwithstanding the provisions of paragraph (1)(a), the office629may approve an application for a license to establish an630international bank agency, an international branch, or an631international administrative office if:632(a) The international banking corporation is licensed to633receive deposits from the general public in the country where it634is organized and licensed and to engage in such other activities635as are usual in connection with the business of banking in such636country;637(b) The office receives a certificate that is issued by the638banking or supervisory authority of the country in which the639international banking corporation is organized and licensed and640states that the international banking corporation is duly641organized and licensed and lawfully existing in good standing,642and is empowered to conduct a banking business; and643(c) The international banking corporation has been in the644business of banking for at least 10 years and is ranked by the645banking or supervisory authority of the country in which it is646organized and licensed as one of the five largest banks in that647country in terms of domestic deposits, as of the date of its648most recent statement of financial condition. However, in no649event shall the office approve an application under this650subsection for any international banking corporation with651capital accounts of less than $20 million. 652 (3) The office may specify such other conditions as it 653 determines are appropriate, considering the public interest and,654 the need to maintain a safe, sound, and competitive banking 655 system in this state, and the preservation of an environment656conducive to the conduct of an international banking business in657this state. In translating the capital accounts of an658international banking corporation, the office may consider659monetary corrections accounts that reflect results consistent660with the requirements of generally accepted accounting661principles in the United States. 662 (4) For the purpose of this part, the capital accounts of 663 and capital ratio standards for an international banking 664 corporation mustshallbe determined in accordance with rules 665 adopted by the commission. In adopting such rules, the 666 commission shall consider similar rules adopted by bank 667 regulatory agencies in the United States and the need to provide 668 reasonably consistent regulatory requirements for international 669 banking corporationswhich will maintain the safe and sound670condition of international banking corporationsdoing business 671 in this state, as well as capital adequacy standards of an 672 international banking corporation’s home-country jurisdiction. 673 Section 10. Subsections (1) and (3) of section 663.06, 674 Florida Statutes, are amended to read: 675 663.06 Licenses; permissible activities.— 676 (1)(a) An international banking corporation licensed to 677 operate an office in this state may engage in the business 678 authorized by this part at the office specified in such license 679 for an indefinite period. 680 (b) An international banking corporation may operate more 681 than one licensed office, each at a different place of business, 682 provided that each office isshallbeseparately licensed. 683 (c) ANolicense is not transferable or assignable. 684 However, the location of a licensed office may be changed after 685 notification of the office. 686 (d) Every such license mustshallbe, at all times, 687 conspicuously displayed in the place of business specified 688 therein. 689 (3) The license for any international banking corporation 690 office in this state may be suspended or revoked by the office, 691 with or without examination, upon its determination that the 692 international banking corporation or the licensed office does 693 not meet all requirements for original licensing. Additionally, 694 the office shall revoke the license of any licensed office that 695 the office determines has been inactive for 6 months or longer. 696 The commission may by rule prescribe additional conditions or 697 standards under which the license of an international bank 698 agency, international branch, international representative 699 office,international trust company representative office,or 700 international administrative office may be suspended or revoked. 701 Section 11. Section 663.0601, Florida Statutes, is created 702 to read: 703 663.0601 After-the-fact licensure process in the event of 704 the acquisition, merger, or consolidation of international 705 banking corporations.—If an international banking corporation 706 proposes to acquire, merge, or consolidate with an international 707 banking corporation that presently operates an international 708 branch, international bank agency, international administrative 709 office, or international representative office licensed in this 710 state, the office may authorize the currently licensed 711 international branch, international bank agency, international 712 administrative office, or international representative office to 713 remain open and in operation after consummation of the proposed 714 acquisition, merger, or consolidation, if the acquiring 715 international banking corporation files an after-the-fact 716 application and all of the following conditions are met: 717 (1) The international banking corporation or corporations 718 resulting from the acquisition, merger, or consolidation will 719 not directly or indirectly own or control more than 5 percent of 720 any class of the voting securities of, or control, a United 721 States bank. 722 (2) Before consummation of the acquisition, merger, or 723 consolidation, the international banking corporation currently 724 licensed to operate an international branch, international bank 725 agency, international administrative office, or international 726 representative office in this state must provide the office at 727 least 30 days’ advance written notice, as prescribed by rules 728 adopted by the commission, of the proposed acquisition, merger, 729 or consolidation. 730 (3) Before consummation of the acquisition, merger, or 731 consolidation, each international banking corporation commits in 732 writing that it will either: 733 (a) Comply with the conditions in subsections (1) and (2) 734 and file an after-the-fact application for a license under s. 735 663.05(1) within 60 days after consummation of the proposed 736 acquisition, merger, or consolidation; and refrain from engaging 737 in new lines of business and from otherwise expanding the 738 activities of such establishment in this state until the 739 disposition of the after-the-fact license application, in 740 accordance with chapter 120; or 741 (b) Promptly wind down and close any international branch, 742 international bank agency, international administrative office, 743 or international representative office in this state if the 744 international banking corporations that are party to the 745 acquisition, merger, or consolidation elect not to file an 746 application for a license in accordance with paragraph (a); and, 747 before such wind-down and closure, refrain from engaging in new 748 lines of business or otherwise expanding the activities of such 749 establishment in this state. 750 Section 12. Subsection (1) of section 663.061, Florida 751 Statutes, is amended to read: 752 663.061 International bank agencies; permissible 753 activities.— 754 (1) An international bank agency licensed under this part 755 may make any loan, extension of credit, or investment which it 756 could make if incorporated and operating as a bank organized 757 under the laws of this state. An international bank agency may 758 act as custodian and may furnish investment management, and 759 investment advisory services authorized under rules adopted by 760 the commission, to nonresident entities or persons whose 761 principal places of business or domicile are outside the United 762 States and to resident entities or persons with respect to 763 international,orforeign, or domestic investments. An 764 international banking corporation thatwhichhas an 765 international bank agency licensed under the terms of this part 766 isshall beexempt from the registration requirements of s. 767 517.12. An international bank agency licensed by the office may 768 engage in any activity permissible for an international 769 administrative office or international representative office. 770 Section 13. Section 663.062, Florida Statutes, is amended 771 to read: 772 663.062 International representative offices; permissible 773 activities.—An international representative office may promote 774 or assist the deposit-taking, lending, or other financial or 775 banking activities of an international banking corporation. An 776 international representative office may serve as a liaison in 777 Florida between an international banking corporation and its 778 existing and potential customers. Representatives and employees 779 based at such office may solicit business for the international 780 banking corporation and its subsidiaries and affiliates, provide 781 information to customers concerning their accounts, answer 782 questions, receive applications for extensions of credit and 783 other banking services, transmit documents on behalf of 784 customers, and make arrangements for customers to transact 785 business on their accounts, but a representative office may not 786 conduct any banking or trust business in this state. An 787 international representative office of an international banking 788 corporation that has fiduciary powers may engage in the 789 international trust representative office activities enumerated 790 in s. 663.409. 791 Section 14. Subsection (2) of section 663.063, Florida 792 Statutes, is amended to read: 793 663.063 International administrative offices.— 794 (2) An office established pursuant tothe provisions of795 this section maynotengage only inany activity exceptthose 796 activities set forth in subsection (1) and the activities 797 permissible for an international representative office pursuant 798 to s. 663.062. 799 Section 15. Section 663.064, Florida Statutes, is amended 800 to read: 801 663.064 International branches; permissible activities; 802 requirements.— 803 (1) An international banking corporation that meets the 804 requirements of ss. 658.26, 663.04, and 663.05 may, with the 805 approval of the office, establish one or more branches in this 806 state.An international branch shall have the same rights and807privileges as a federally licensed international branch.The 808 operations of an international branch shall be conducted 809 pursuant to requirements determined by the office as necessary 810 to ensure compliance with the provisions of the financial 811 institutions codes, including requirements for the maintenance 812 of accounts and records separate from those of the international 813 banking corporation of which it is a branch. 814 (2) An international branch has the same rights and 815 privileges as a federally licensed international branch. The 816 permissible deposits of an international branch must be 817 determined in accordance with rules adopted by the commission. 818 In adopting such rules, the commission shall consider the 819 similar deposit-taking authority of a federally licensed 820 international branch and the need to provide reasonably 821 consistent regulatory requirements for international banking 822 corporations doing business in this state. 823 (3) An international branch licensed by the office may 824 engage in any activity permissible for an international bank 825 agency, international administrative office, or international 826 representative office. 827 Section 16. Subsection (3) of section 663.09, Florida 828 Statutes, is amended, and subsection (5) is added to that 829 section, to read: 830 663.09 Reports; records.— 831 (3) Each international banking corporation thatwhich832 operates an office licensed under this part shall cause to be 833 kept, at a location accepted by the office: 834 (a) Correct and complete books and records of account of 835 the business operations transacted by such office. All policies 836 and procedures relating specifically togoverningthe operations 837 of such office, as well as any existing general ledger or 838 subsidiary accounts, mustshallbe maintained in the English 839 language. Any policies and procedures of the international 840 banking corporation which are not specific to the operations of 841 such office may be maintained in a language other than English 842The office may require that any other document not written in843the English language which the office deems necessary for the844purposes of its regulatory and supervisory functions be845translated into English at the expense of the international846banking corporation. 847 (b) Current copies of the charter and bylaws of the 848 international banking corporation, relative to the operations of 849 the office, and minutes of the proceedings of its directors, 850 officers, or committees relative to the business of the office. 851 Such records may be maintained in a language other than English 852 and mustshallbe kept pursuant to s. 655.91 andshall bemade 853 available to the office, upon request, at any time during 854 regular business hours of the office. Any failure to keep such 855 records as aforesaid or any refusal to produce such records upon 856 request by the office isshall begrounds for suspension or 857 revocation of any license issued under this part. 858 (5) The office may require at any time that any document 859 not written in the English language which the office deems 860 necessary for the purposes of its regulatory and supervisory 861 functions be translated into English at the expense of the 862 international banking corporation. 863 Section 17. Section 663.11, Florida Statutes, is amended to 864 read: 865 663.11 Termination of international banking corporation’s 866 charter or authority.— 867 (1)(a) An international banking corporation that is 868 licensed to maintain an office in this state may not continue to 869 conduct its licensed business in this state if the international 870 banking corporation: 871 1. Is dissolved, or its authority or existence is otherwise 872 terminated or canceled in the jurisdiction of its 873 incorporation;,874 2. Is in bankruptcy, conservatorship, receivership, 875 liquidation, or similar status under the laws of any country;,876 or 877 3. Is operating under the direct control of the government 878 or the regulatory or supervisory authority of the jurisdiction 879 of its incorporation through government intervention or any 880 other extraordinary actions. 881 (b) Notwithstanding subparagraphs (a)2. and 3., the office 882 may, in its discretion, permit an international branch, 883 international bank agency, international administrative office, 884 or international representative office to remain open and in 885 operation under such conditions as the office deems appropriate, 886 if the office determines that it is in the public’s interest and 887 that it furthers international supervisory cooperation to allow 888 the international branch, international bank agency, 889 international administrative office, or international 890 representative office to remain open and in operation. 891 (2)A certificate of the official who is responsible for892records of banking corporations of the jurisdiction of893incorporation of such international banking corporation,894attesting to the occurrence of any such event, or a certified895copy of an order or decree of a court of such jurisdiction,896directing the dissolution of such international banking897corporation, the termination of its existence, or the898cancellation of its authority, or declaring its status in899bankruptcy, conservatorship, receivership, liquidation, or900similar proceedings, or other reliable documentation that the901international banking corporation is operating under the direct902control of its government or a regulatory or supervisory903authority, shall be delivered byThe international banking 904 corporation or its surviving officers and directors shall 905 deliver to the office:.906 (a) A certificate of the official who is responsible for 907 records of banking corporations of the jurisdiction of 908 incorporation of such international banking corporation, 909 attesting to the occurrence of any event described in paragraph 910 (1)(a); 911 (b) A certified copy of an order or decree of a court of 912 such jurisdiction, directing the dissolution of such 913 international banking corporation, the termination of its 914 existence, or the cancellation of its authority or declaring its 915 status in bankruptcy, conservatorship, receivership, 916 liquidation, or similar proceedings; or 917 (c) Other reliable documentation evidencing that the 918 international banking corporation is operating under the direct 919 control of its government or a regulatory or supervisory 920 authority. 921 (3) The filing of the certificate, order, documentation, or 922 decree hasshall havethe same effect as the revocation of the 923 license of such international banking corporation as provided in 924 s. 663.06, unless the office has permitted the international 925 branch, international bank agency, international administrative 926 office, or international representative office to remain open 927 and in operation pursuant to paragraph (1)(b). 928 Section 18. Subsection (1) of section 663.12, Florida 929 Statutes, is amended to read: 930 663.12 Fees; assessments; fines.— 931 (1) Each application for a license underthe provisions of932 this part mustshallbe accompanied by a nonrefundable filing 933 fee payable to the office in the following amount: 934 (a) Ten thousand dollars for establishing a state-chartered 935 investment company. 936 (b) Ten thousand dollars for establishing an international 937 bank agency or branch. 938 (c) Five thousand dollars for establishing an international 939 administrative office. 940 (d) Five thousand dollars for establishing an international 941 representative office. 942(e) Five thousand dollars for establishing an international943trust company representative office.944 (e)(f)An amount equal to the initial filing fee for an 945 application to convert from one type of license to another. The 946 commission may increase the filing fee for any type of license 947 to an amount established by rule and calculated in a manner so 948 as to cover the direct and indirect cost of processing such 949 applications. 950 Section 19. Subsection (11) of section 663.17, Florida 951 Statutes, is amended to read: 952 663.17 Liquidation; possession of business and property; 953 inventory of assets; wages; depositing collected assets; 954 appointing agents; appointment of judges.— 955 (11) The compensation of agents and any other employees 956 appointed by the office to assist in the liquidation of an 957 international banking corporation, or any of the corporation’s 958 licensed offices located in this state, the distribution of its 959 assets, or the expenses of supervision, mustshallbe paid out 960 of the assets of the corporation in the possessionhandsof the 961 office. Expenses of liquidation and approved claims for fees and 962 assessments due the office mustshallbe given first priority 963 among unsecured creditors. 964 Section 20. The Division of Law Revision and Information is 965 directed to create part III of chapter 663, Florida Statutes, 966 consisting of ss. 663.4001-663.416, Florida Statutes, to be 967 entitled “International Trust Company Representative Offices.” 968 Section 21. Section 663.4001, Florida Statutes, is created 969 to read: 970 663.4001 Purpose.—The purpose of this part is to establish 971 a legal and regulatory framework for the conduct by 972 international trust entities of financial services business in 973 this state. This part is intended to: 974 (1) Support the Florida operations of international trust 975 entities and promote the growth of international financial 976 services to benefit the economy and consumers in this state. 977 (2) Provide for appropriate supervision and regulatory 978 oversight to ensure that financial services activities of 979 international trust entities in this state are conducted 980 responsibly and in a safe and sound manner. 981 Section 22. Section 663.401, Florida Statutes, is created 982 to read: 983 663.401 Definitions.— 984 (1) “Affiliate” means a person or business or a group of 985 persons or businesses acting in concert which controls, is 986 controlled by, or is under common control of an international 987 trust entity. 988 (2) “International trust company representative office” 989 means an office of an international trust entity which is 990 established or maintained in this state for the purpose of 991 engaging in nonfiduciary activities described in s. 663.409, or 992 any affiliate, subsidiary, or other person that engages in such 993 activities on behalf of such international trust entity from an 994 office located in this state. 995 (3) “International trust entity” means an international 996 trust company or organization, or any similar business entity; 997 or an affiliated or subsidiary entity that is licensed, 998 chartered, or similarly permitted to conduct trust business in a 999 foreign country or countries under the laws where such entity is 1000 organized and supervised. 1001 Section 23. Section 663.402, Florida Statutes, is created 1002 to read: 1003 663.402 Applicability of the financial institutions codes.— 1004 (1) An international trust entity that operates an office 1005 licensed under this part is subject to all the financial 1006 institutions codes as though such international trust entity 1007 were a state trust company, except when it appears, from the 1008 context or otherwise, that such provisions are clearly 1009 applicable only to trust companies organized under the laws of 1010 this state or the United States. Without limiting the foregoing 1011 general provisions, it is the intent of the Legislature that the 1012 following provisions are applicable to such international trust 1013 entities having offices in this state: s. 655.031, relating to 1014 administrative enforcement guidelines; s. 655.032, relating to 1015 investigations, subpoenas, hearings, and witnesses; s. 655.0321, 1016 relating to restricted access hearings, proceedings, and related 1017 documents; s. 655.033, relating to cease and desist orders; s. 1018 655.037, relating to removal of a financial institution-related 1019 party by the office; s. 655.041, relating to administrative 1020 fines and enforcement; s. 655.50, the Florida Control of Money 1021 Laundering and Terrorist Financing in Financial Institutions 1022 Act; and any law for which the penalty is increased under s. 1023 775.31 for facilitating or furthering terrorism. 1024 (2) An international trust entity does not have any greater 1025 right under, or by virtue of, this section than is granted to 1026 trust companies organized under the laws of this state. Legal 1027 and financial terms used in this chapter are deemed to refer to 1028 equivalent terms used by the country in which the international 1029 trust entity is organized. This chapter and the financial 1030 institutions codes may not be construed to authorize any 1031 international trust entity to conduct trust business, as defined 1032 in s. 658.12, from an office in this state. 1033 Section 24. Section 663.403, Florida Statutes, is created 1034 to read: 1035 663.403 Applicability of the Florida Business Corporation 1036 Act.—Notwithstanding s. 607.01401(12), the provisions of part I 1037 of chapter 607 which are not in conflict with the financial 1038 institutions codes and which relate to foreign corporations 1039 apply to all international trust entities and their offices 1040 doing business in this state. 1041 Section 25. Section 663.404, Florida Statutes, is created 1042 to read: 1043 663.404 Requirements for conducting financial institution 1044 business.—An international trust entity, or any affiliated, 1045 subsidiary, or other person or business entity acting as an 1046 agent for, on behalf of, or for the benefit of such 1047 international trust entity, who engages in such activities from 1048 an office located in this state, may not transact a trust 1049 business, or maintain in this state any office for carrying on 1050 such business, or any part thereof, unless such international 1051 trust entity, affiliate, subsidiary, person, or business entity: 1052 (1) Has been authorized by charter, license, or similar 1053 authorization by operation of law to carry on trust business and 1054 has complied with the laws of each jurisdiction in which it is 1055 chartered, licensed, or otherwise authorized and created under 1056 operation of law. 1057 (2) Has furnished to the office such proof as to the nature 1058 and character of its business and as to its financial condition 1059 as the commission or office requires. 1060 (3) Has filed with the office a certified copy of that 1061 information required to be supplied to the Department of State 1062 by those provisions of part I of chapter 607 which are 1063 applicable to foreign corporations. 1064 (4) Has received a license duly issued to it by the office. 1065 (5) Has sufficient capital in accordance with the 1066 requirements of s. 663.407 and the rules adopted thereunder and 1067 is not imminently insolvent or insolvent, as those terms are 1068 defined under s. 655.005(1). 1069 (6)(a) Is not in bankruptcy, conservatorship, receivership, 1070 liquidation, or similar status under the laws of any country. 1071 (b) Is not operating under the direct control of the 1072 government or the regulatory or supervisory authority of the 1073 home jurisdiction in which it has been chartered, licensed, or 1074 otherwise authorized and created under operation of law, through 1075 government intervention or any other extraordinary actions. 1076 (c) Has not been in such status or control at any time 1077 within the 3 years preceding the date of application for a 1078 license. 1079 1080 Notwithstanding subsection (6), the office may, in its 1081 discretion, permit an international trust company representative 1082 office to remain open and in operation under such conditions as 1083 the office deems appropriate if the office determines that it is 1084 in the public’s interest and that it furthers international 1085 supervisory cooperation to allow the international trust company 1086 representative office to remain open and in operation. 1087 Section 26. Section 663.405, Florida Statutes, is created 1088 to read: 1089 663.405 Civil action subpoena enforcement.— 1090 (1) Notwithstanding s. 655.059, an international trust 1091 company representative office established under this chapter is 1092 not required to produce a book or record pertaining to a deposit 1093 account, investment account, trust account, or loan of a 1094 customer of the international trust entity’s offices that are 1095 located outside the United States or its territories in response 1096 to a subpoena, if the book or record is maintained outside the 1097 United States or its territories and is not in the possession, 1098 custody, or control of the international trust entity’s 1099 representative office established in this state. 1100 (2) This section applies only to a subpoena issued pursuant 1101 to the Florida Rules of Civil Procedure, the Federal Rules of 1102 Civil Procedure, or other similar law or rule of civil procedure 1103 in another state. This section does not apply to a subpoena 1104 issued by or on behalf of a federal, state, or local government 1105 law enforcement agency, administrative or regulatory agency, 1106 legislative body, or grand jury and does not limit the power of 1107 the office to access all books and records in the exercise of 1108 the office’s regulatory and supervisory powers under the 1109 financial institutions codes. 1110 Section 27. Section 663.406, Florida Statutes, is created 1111 to read: 1112 663.406 Application for license; approval or disapproval.— 1113 (1) An international trust entity, before being licensed by 1114 the office to maintain any office in this state, must subscribe 1115 and acknowledge, and submit to the office, an application that 1116 contains all of the following: 1117 (a) The name of the international trust entity. 1118 (b) The proposed location, by street and post office 1119 address and county, where its business is to be transacted in 1120 this state and the name of the person who will be in charge of 1121 the business and affairs of the office. 1122 (c) The location where its initial registered office will 1123 be located in this state. 1124 (d) The total amount of the capital accounts of the 1125 international trust entity. 1126 (e) A complete and detailed statement of its financial 1127 condition as of a date within 180 days before the date of such 1128 application, except that the office in its discretion may, when 1129 necessary or expedient, accept such statement of financial 1130 condition as of a date within 240 days before the date of such 1131 application. The office in its discretion may, when necessary or 1132 expedient, require an independent opinion audit or the 1133 equivalent satisfactory to the office. 1134 (f) A listing of any occasion within the 10 year period 1135 before the application on which either the international trust 1136 entity or any of its directors, executive officers, or principal 1137 shareholders have been arrested for, charged with, convicted of, 1138 or pled guilty or nolo contendere to, regardless of 1139 adjudication, any offense with respect to which the penalties 1140 include the possibility of imprisonment for 1 year or more, or 1141 to any offense involving money laundering, currency transaction 1142 reporting, facilitating or furthering terrorism, or fraud, or 1143 otherwise related to the operation of a financial institution. 1144 (2) The office shall disallow any illegally obtained 1145 currency, monetary instruments, funds, or other financial 1146 resources from the capitalization requirements of this section, 1147 and the existence of such illegally obtained resources is 1148 grounds for denial of the application for license. 1149 (3) An international trust entity that submits an 1150 application to the office shall concurrently submit a 1151 certificate issued by the supervisory authority of the country 1152 in which the international trust entity is chartered or 1153 organized which states that the international trust entity is 1154 duly organized and licensed, or otherwise authorized by 1155 operation of law to transact business as a trust entity, and 1156 lawfully existing in good standing. 1157 (4) An international trust entity that has operated an 1158 international trust company representative office in this state 1159 for at least 3 years in a safe and sound manner, as defined by 1160 commission rule, and that is otherwise eligible to establish an 1161 additional office may establish one or more international trust 1162 company representative offices by providing an abbreviated 1163 application, and paying the appropriate license fee pursuant to 1164 s. 663.413. 1165 (5) An application filed pursuant to this section must be 1166 made on a form prescribed by the commission and must contain 1167 such information as the commission or office requires. 1168 (6) The office may, in its discretion, approve or 1169 disapprove the application, but it may not approve the 1170 application unless, in its opinion, the applicant meets each and 1171 every requirement of this part and any other applicable 1172 provision of the financial institutions codes. The office may 1173 approve the application only if it has determined that the 1174 directors, executive officers, and principal shareholders of the 1175 international trust entity are qualified by reason of their 1176 financial ability, reputation, and integrity and have sufficient 1177 trust company and other business experience to indicate that 1178 they will manage and direct the affairs of the international 1179 trust entity in a safe, sound, and lawful manner. In the 1180 processing of any application filed pursuant to this section, 1181 the time limitations under the Administrative Procedure Act do 1182 not apply as to approval or disapproval of the application. For 1183 applications filed on or after January 1, 2018, the time 1184 limitations for approval or disapproval of an application must 1185 be prescribed by rule of the commission. 1186 (7) The office may not issue a license to an international 1187 trust entity unless it is chartered, licensed, or similarly 1188 authorized by operation of law in a jurisdiction in which any 1189 financial institution licensed or chartered by any state or 1190 federal regulatory agency in the United States may establish 1191 similar facilities or exercise similar powers. 1192 (8) The office may not issue a license to an international 1193 trust entity for the purpose of operating an international trust 1194 company representative office in this state unless the trust 1195 entity: 1196 (a) Holds an unrestricted license to conduct trust business 1197 in the foreign country under whose laws it is organized and 1198 chartered; 1199 (b) Has been authorized by the foreign country’s 1200 appropriate regulatory authority to establish the proposed 1201 international trust company representative office; and 1202 (c) Is adequately supervised by the appropriate regulatory 1203 agency in the foreign country in which it is organized and 1204 chartered. 1205 (9) The commission shall establish, by rule, the general 1206 principles that determine the adequacy of supervision of an 1207 international trust entity’s foreign establishments. These 1208 principles must be based upon the need for cooperative 1209 supervisory efforts and consistent regulatory guidelines and 1210 must address, at a minimum, the capital adequacy, asset quality, 1211 management, earnings, liquidity, internal controls, audits, and 1212 foreign exchange operations and positions of the international 1213 trust entity. This subsection does not require examination by 1214 the home-country regulatory authorities of any office of an 1215 international trust entity in this state. The commission may 1216 also establish, by rule, other standards for approval of an 1217 application for a license as considered necessary to ensure the 1218 safe and sound operations of the international trust entity in 1219 this state. 1220 Section 28. Section 663.407, Florida Statutes, is created 1221 to read: 1222 663.407 Capital requirements.— 1223 (1) For an international trust entity to qualify for a 1224 license under this part, the proposed capitalization of the 1225 international trust entity must be in such amount as the office 1226 determines is necessary, taking into consideration the risk 1227 profile of the international trust entity and the ability of the 1228 international trust entity to operate a licensed office in a 1229 safe and sound manner. In making this determination, the office 1230 shall consider the financial resources of the international 1231 trust entity, including: 1232 (a) The international trust entity’s current and projected 1233 capital position, profitability, level of indebtedness, business 1234 and strategic plans, and off-balance sheet asset management and 1235 administration activities; 1236 (b) The financial condition of any of the international 1237 trust entity’s existing offices located in the United States; 1238 (c) The minimum capital requirements of the international 1239 trust entity’s home-country jurisdiction; and 1240 (d) The capital ratio standards used in the United States 1241 and in the international trust entity’s home-country 1242 jurisdiction. 1243 (2) The proposed capitalization of the international trust 1244 entity must be in such amount as the office deems adequate, but 1245 in no case may the total capital accounts of the international 1246 trust entity be less than $1 million. 1247 (3) The office may specify such other conditions as it 1248 determines are appropriate, considering the public interest and 1249 the need to maintain a safe, sound, and competitive financial 1250 marketplace in this state. 1251 (4) For purposes of this part, the capital accounts of and 1252 capital ratio standards for an international trust entity must 1253 be determined in accordance with rules adopted by the 1254 commission. In adopting such rules, the commission shall 1255 consider similar rules adopted by regulatory agencies in the 1256 United States and the need to provide reasonably consistent 1257 regulatory requirements for international trust entities doing 1258 business in this state, as well as capital adequacy standards of 1259 an international trust entity’s home-country jurisdiction. 1260 Section 29. Section 663.408, Florida Statutes, is created 1261 to read: 1262 663.408 Licenses; permissible activities of licensees.— 1263 (1)(a) An international trust entity licensed to operate an 1264 office in this state may engage in the business authorized by 1265 this part at the office specified in such license for an 1266 indefinite period. 1267 (b) An international trust entity may operate more than one 1268 licensed office, each at a different place of business, provided 1269 that each office is separately licensed. 1270 (c) A license is not transferable or assignable. However, 1271 the location of a licensed office may be changed after 1272 notification to the office. 1273 (d) A license must at all times be conspicuously displayed 1274 in the place of business specified therein. 1275 (2) An international trust entity that proposes to 1276 terminate the operations of a licensed office in this state must 1277 surrender its license to the office and comply with such 1278 procedures as the commission may prescribe by rule. 1279 (3) The license for an international trust company 1280 representative office in this state may be suspended or revoked 1281 by the office, with or without examination, upon its 1282 determination that the international trust entity or the 1283 licensed office does not meet all requirements for original 1284 licensing. Additionally, the office shall revoke the license of 1285 any licensed office that the office determines has been inactive 1286 for 6 months or longer. The commission may by rule prescribe 1287 additional conditions or standards under which the license of an 1288 international trust company representative office may be 1289 suspended or revoked. 1290 (4) If any such license is surrendered by the international 1291 trust entity or is suspended or revoked by the office, all 1292 rights and privileges of the international trust entity to 1293 transact the business under the license cease. The commission 1294 shall prescribe by rule procedures for the surrender of a 1295 license and for the orderly cessation of business by an 1296 international trust entity in a manner that is not harmful to 1297 the interests of its customers or of the public. 1298 Section 30. Section 663.4081, Florida Statutes, is created 1299 to read: 1300 663.4081 After-the-fact licensure process in the event of 1301 the acquisition, merger, or consolidation of international trust 1302 entities.—If an international trust entity proposes to acquire, 1303 merge, or consolidate with an international trust entity that 1304 presently operates an international trust company representative 1305 office licensed in this state, the office may allow the 1306 currently licensed international trust company representative 1307 office to remain open and in operation after consummation of the 1308 proposed acquisition, merger, or consolidation, subject to the 1309 filing with the office of an after-the-fact license application 1310 in accordance with all of the following conditions: 1311 (1) The international trust entity or entities resulting 1312 from the acquisition, merger, or consolidation will not directly 1313 or indirectly own or control more than 5 percent of any class of 1314 the voting securities of, or control, a United States bank. 1315 (2) Before consummation of the acquisition, merger, or 1316 consolidation, the international trust entity currently licensed 1317 to operate an international trust company representative office 1318 in this state must provide the office at least 30 days’ advance 1319 written notice, as prescribed by rules adopted by the 1320 commission, of the proposed acquisition, merger, or 1321 consolidation. 1322 (3) Before consummation of the acquisition, merger, or 1323 consolidation, each international trust entity commits in 1324 writing that it will: 1325 (a) Comply with the conditions in subsections (1) and (2) 1326 and file an after-the-fact application for a license under s. 1327 663.406(1) within 60 days after consummation of the proposed 1328 acquisition, merger, or consolidation and refrain from engaging 1329 in new lines of business and from otherwise expanding the 1330 activities of such establishment in this state until the 1331 disposition of the after-the-fact license application, in 1332 accordance with chapter 120; or 1333 (b) Promptly wind down and close any international trust 1334 company representative office in this state if the international 1335 trust entities that are party to the acquisition, merger, or 1336 consolidation elect not to file an application for a license in 1337 accordance with paragraph (a) and, before such wind-down and 1338 closure, refrain from engaging in new lines of business or 1339 otherwise expanding the activities of such establishment in this 1340 state. 1341 Section 31. Section 663.0625, Florida Statutes, is 1342 transferred, renumbered as section 663.409, Florida Statutes, 1343 and amended to read: 1344 663.409663.0625International trust company representative 1345 offices; permissible activities; requirements.— 1346 (1) An international trust company representative office 1347 may conduct any nonfiduciary activities that are ancillary to 1348 the fiduciary business of its international trust entitybanking1349corporation or trust company, but may not act as a fiduciary. 1350 Permissible activities include advertising, marketing, and 1351 soliciting for fiduciary business on behalf of an international 1352 trust entitybanking corporation or trust company; contacting 1353 existing or potential customers, answering questions, and 1354 providing information about matters related to their accounts; 1355 serving as a liaison in this state between the international 1356 trust entitybanking corporation or trust companyand its 1357 existing or potential customers; and engaging in any other 1358 activities approved by the office or under rules of the 1359 commission. 1360 (2) Representatives and employees at such office may not 1361 act as a fiduciary, including, but not limited to, accepting the 1362 fiduciary appointment, executing the fiduciary documents that 1363 create the fiduciary relationship,ormaking discretionary 1364 decisions regarding the investment or distribution of fiduciary 1365 accounts, or accepting custody of any trust property or any 1366 other good, asset, or thing of value on behalf of the affiliated 1367 international trust entity, its subsidiaries or affiliates, or 1368 subsidiaries and affiliates of the international trust company 1369 representative office. 1370 (3) An international trust company representative office 1371 licensed by the office may engage in any activities permissible 1372 for a limited service affiliate under part IV of this chapter. 1373 Section 32. Section 663.410, Florida Statutes, is created 1374 to read: 1375 663.410 Certification of capital accounts.—Before opening 1376 an office in this state, and annually thereafter so long as an 1377 international trust company representative office is maintained 1378 in this state, an international trust entity licensed pursuant 1379 to this part must certify to the office the amount of its 1380 capital accounts, expressed in the currency of the home 1381 jurisdiction where it has been authorized by charter, license, 1382 or similar authorization by operation of law to carry on trust 1383 business. The dollar equivalent of these amounts, as determined 1384 by the office, is deemed to be the amount of its capital 1385 accounts. The annual certification of capital accounts must be 1386 received by the office on or before June 30 of each year. 1387 Section 33. Section 663.411, Florida Statutes, is created 1388 to read: 1389 663.411 Reports; records.— 1390 (1) An international trust entity that operates an office 1391 licensed under this part shall, at such times and in such form 1392 as the commission prescribes, make written reports in the 1393 English language to the office, under the oath of one of its 1394 officers, managers, or agents transacting business in this 1395 state, showing the amount of its assets and liabilities and 1396 containing such other matters as the commission or office 1397 requires. An international trust entity that maintains two or 1398 more representative offices may consolidate such information in 1399 one report unless the office requires otherwise for purposes of 1400 its supervision of the condition and operations of each such 1401 office. The late filing of such reports is subject to an 1402 administrative fine as prescribed under s. 655.045(2). If the 1403 international trust entity fails to make such report as directed 1404 by the office or if such report contains a false statement 1405 knowingly made, the same are grounds for revocation of the 1406 license of the international trust entity. 1407 (2) An international trust entity that operates an office 1408 licensed under this part shall cause to be kept, at a location 1409 accepted by the office: 1410 (a) Correct and complete books and records of account of 1411 the business operations transacted by such office. All policies 1412 and procedures relating specifically to the operations of such 1413 office, as well as any existing general ledger or subsidiary 1414 accounts, must be maintained in the English language; however, 1415 any policies and procedures of the international trust entity 1416 which are not specific to the operations of such office may be 1417 maintained in a language other than English. 1418 (b) Current copies of the charter or statement of operation 1419 and bylaws of the international trust entity, relative to the 1420 operations of the international trust company representative 1421 office, and minutes of the proceedings of its directors, 1422 officers, or committees relative to the business of the 1423 international trust company representative office. Such records 1424 may be maintained in a language other than English and must be 1425 kept pursuant to s. 655.91 and be made available to the office, 1426 upon request, at any time during regular business hours of the 1427 international trust company representative office. 1428 (3) Any failure to keep such records as required in 1429 subsection (2) or any refusal to produce such records upon 1430 request by the office is grounds for suspension or revocation of 1431 any license issued under this part. 1432 (4) The office may require at any time that any document 1433 not written in the English language which the office deems 1434 necessary for the purposes of its regulatory and supervisory 1435 functions be translated into English at the expense of the 1436 international trust entity. 1437 Section 34. Section 663.412, Florida Statutes, is created 1438 to read: 1439 663.412 Termination of international trust entity’s charter 1440 or authority.— 1441 (1)(a) An international trust entity that is licensed to 1442 maintain an office in this state may not continue to conduct its 1443 licensed business in this state if the international trust 1444 entity: 1445 1. Is dissolved, or its authority or existence is otherwise 1446 terminated or canceled in the home jurisdiction where it has 1447 been authorized by charter, license, or similar authorization by 1448 operation of law to carry on trust business; 1449 2. Is in bankruptcy, conservatorship, receivership, 1450 liquidation, or similar status under the laws of any country; or 1451 3. Is operating under the direct control of the government 1452 or the regulatory or supervisory authority of the jurisdiction 1453 where it has been authorized by charter, license, or similar 1454 authorization by operation of law to carry on trust business 1455 through government intervention or any other extraordinary 1456 actions. 1457 (b) Notwithstanding subparagraphs (a)2. and 3., the office 1458 may, in its discretion, permit an international trust company 1459 representative office to remain open and in operation under such 1460 conditions as the office deems appropriate, if the office 1461 determines that it is in the public’s interest and that it 1462 furthers international supervisory cooperation to allow the 1463 international trust company representative office to remain open 1464 and in operation. 1465 (2) The international trust entity or its surviving 1466 officers and directors shall deliver to the office: 1467 (a) A certificate of the official who is responsible for 1468 records of trust companies in the jurisdiction where the 1469 international trust entity has been authorized by charter, 1470 license, or similar authorization by operation of law to carry 1471 on trust business of the international trust entity, attesting 1472 to the occurrence of any event described in paragraph (1)(a); 1473 (b) A certified copy of an order or decree of a court of 1474 such jurisdiction, directing the dissolution of such 1475 international trust entity, the termination of its existence, or 1476 the cancellation of its authority, or declaring its status in 1477 bankruptcy, conservatorship, receivership, liquidation, or 1478 similar proceedings; or 1479 (c) Other reliable documentation evidencing that the 1480 international trust entity is operating under the direct control 1481 of its government or a regulatory or supervisory authority. 1482 (3) The filing of the certificate, order, documentation, or 1483 decree has the same effect as the revocation of the license of 1484 such international trust entity as provided in s. 663.408, 1485 unless the office has permitted the international trust company 1486 representative office to remain open and in operation pursuant 1487 to paragraph (1)(b). 1488 Section 35. Section 663.413, Florida Statutes, is created 1489 to read: 1490 663.413 Application and examination fees.— 1491 (1) An application for a license to establish an 1492 international trust company representative office under this 1493 part must be accompanied by a nonrefundable $5,000 filing fee, 1494 payable to the office. 1495 (2) An international trust entity that maintains an office 1496 licensed under this part must pay to the office examination fees 1497 that are determined by the commission by rule and that are 1498 calculated in a manner so as to be equal to the actual cost of 1499 each examiner’s participation in the examination, as measured by 1500 the examiner’s pay scale, plus any other expenses directly 1501 incurred in the examination. However, the examination fees may 1502 not be less than $200 per day for each examiner participating in 1503 the examination. 1504 Section 36. Section 663.414, Florida Statutes, is created 1505 to read: 1506 663.414 Rules; exemption from statement of estimated 1507 regulatory costs requirements.—In addition to any other 1508 rulemaking authority it has under the financial institutions 1509 codes, the commission may adopt reasonable rules that it deems 1510 advisable for the administration of international trust 1511 companies under this part in the interest of protecting 1512 depositors, creditors, borrowers, or the public interest and in 1513 the interest of maintaining a sound banking and trust system in 1514 this state. Because of the difficulty in obtaining economic data 1515 with regard to such trusts, ss. 120.54(3)(b) and 120.541 do not 1516 apply to the adoption of rules pursuant to this section. 1517 Section 37. Section 663.415, Florida Statutes, is created 1518 to read: 1519 663.415 Travel expenses.—If domestic or foreign travel is 1520 deemed necessary by the office to effectuate the purposes of 1521 this part, the office must be reimbursed for actual, reasonable, 1522 and necessary expenses incurred in such domestic or foreign 1523 travel by the international trust company representative office 1524 under examination. 1525 Section 38. The Division of Law Revision and Information is 1526 directed to create part IV of chapter 663, Florida Statutes, 1527 consisting of ss. 663.530-663.540, Florida Statutes, to be 1528 entitled “Limited Service Affiliates of International Trust 1529 Entities.” 1530 Section 39. Section 663.530, Florida Statutes, is created 1531 to read: 1532 663.530 Definitions.— 1533 (1) As used in ss. 663.531-663.539, the term: 1534 (a) “Foreign country” means a country other than the United 1535 States and includes any colony, dependency, or possession of 1536 such country notwithstanding any definitions in chapter 658, and 1537 any territory of the United States, including Guam, American 1538 Samoa, the Virgin Islands, and the Commonwealth of Puerto Rico. 1539 (b) “Home-country regulator” means the supervisory 1540 authority or equivalent or other similarly sanctioned body, 1541 organization, governmental entity, or recognized authority, 1542 which has similar responsibilities in a foreign country in which 1543 and by whom an international trust entity is licensed, 1544 chartered, or has similar authorization to organize and operate. 1545 (c) “International trust entity” means an international 1546 trust company or any international business, international 1547 business organization, or an affiliated or subsidiary entity 1548 that is licensed, chartered, or similarly permitted to conduct 1549 trust business in a foreign country or countries under the laws 1550 of which it is organized and supervised. 1551 (d) “Limited service affiliate” means a marketing and 1552 liaison office that engages in the permissible activities 1553 enumerated in s. 663.531 for the benefit of an international 1554 trust entity. 1555 (e) “Nonresident” has the same meaning as in s. 663.01. 1556 (f) “Professional” means an accountant, attorney, or other 1557 financial services and wealth planning professional who is 1558 licensed by a governing body or affiliated with a licensed, 1559 chartered, or similarly authorized entity. 1560 (g) “Registrant” means a person or entity that is 1561 registered to perform the permissible activities outlined in s. 1562 663.531 related to or for the benefit of an affiliated 1563 international trust entity. 1564 (2) As used in ss. 663.531-663.539, the terms “affiliate,” 1565 “commission,” “executive officer,” “financial institution,” 1566 “financial institution-affiliated party,” “financial 1567 institutions codes,” “office,” “officer,” “state,” and 1568 “subsidiary” have the same meaning as provided in s. 655.005. 1569 Section 40. Section 663.531, Florida Statutes, is created 1570 to read: 1571 663.531 Permissible activities; prohibited activities.— 1572 (1) Registration as a limited service affiliate under this 1573 part does not provide any exemption from licensure, 1574 registration, application, and requirements to conduct licensed 1575 business activities in this state. A limited service affiliate 1576 may engage in any of the following permissible activities, which 1577 are not meant to be restrictive unless an activity is prohibited 1578 under subsection (2): 1579 (a) Marketing and liaison services related to or for the 1580 benefit of the affiliated international trust entities, directed 1581 exclusively at professionals and current or prospective 1582 nonresident clients of an affiliated international trust entity; 1583 (b) Advertising and marketing at trade, industry, or 1584 professional events; 1585 (c) Transmission of documents between the international 1586 trust entity and its current or prospective clients or a 1587 designee of such clients; and 1588 (d) Transmission of information about the trust or trust 1589 holdings of current clients between current clients or their 1590 designees and the international trust entity. 1591 (2) A limited service affiliate may not engage in any of 1592 the following activities: 1593 (a) Advertising and marketing related to or for the benefit 1594 of the international trust entity which are directed to the 1595 general public; 1596 (b) Acting as a fiduciary, including, but not limited to, 1597 accepting the fiduciary appointment, executing the fiduciary 1598 documents that create the fiduciary relationship, or making 1599 discretionary decisions regarding the investment or distribution 1600 of fiduciary accounts; 1601 (c) Accepting custody of any trust property or any other 1602 good, asset, or thing of value on behalf of the affiliated 1603 international trust entity, its subsidiaries or affiliates, or 1604 subsidiaries and affiliates of the international trust company 1605 representative office; 1606 (d) Soliciting business within this state from the general 1607 public related to or for the benefit of an affiliated 1608 international trust entity; 1609 (e) Adding a financial institution-affiliated party to the 1610 limited service affiliate without prior written notification to 1611 the office; 1612 (f) Commencing services for an international trust entity 1613 without complying with the requirements of s. 663.532; 1614 (g) Providing services for any international trust entity 1615 that is in bankruptcy, conservatorship, receivership, 1616 liquidation, or a similar status under the laws of any country; 1617 or 1618 (h) Otherwise conducting banking or trust business. 1619 (3) The provisions of subsection (2) are not deemed to 1620 prevent the limited service affiliate’s use of an international 1621 trust entity’s website, or its own website, if the posted 1622 information or communication includes the following: 1623 (a) The following statement: “Certain described services 1624 are not offered to the general public in Florida, but are 1625 marketed by ...(insert name of limited service affiliate)... 1626 exclusively to professionals and current or prospective non-U.S. 1627 resident clients of the affiliated international trust entity or 1628 entities.” 1629 (b) The notice required by s. 663.535. 1630 (4) In addition to any other power conferred upon it to 1631 enforce and administer this chapter and the financial 1632 institutions codes, the office may impose any remedy or penalty 1633 pursuant to s. 655.033, relating to cease and desist orders; s. 1634 655.034, relating to injunctions; s. 655.037, relating to 1635 removal of a financial institution-affiliated party by the 1636 office; or s. 655.041, relating to administrative fines and 1637 enforcement, if a limited service affiliate engages in any of 1638 the impermissible activities in subsection (2). 1639 Section 41. Section 663.532, Florida Statutes, is created 1640 to read: 1641 663.532 Registration.— 1642 (1) To register as a limited service affiliate, a proposed 1643 registrant must file a written notice with the office, in the 1644 manner and on a form prescribed by the commission, together with 1645 a nonrefundable $2,500 registration fee. Such written notice 1646 must include: 1647 (a) The name under which the proposed registrant will 1648 conduct business in this state; 1649 (b) A copy of the articles of incorporation or articles of 1650 organization, or the equivalent, of the proposed registrant; 1651 (c) The physical address where the proposed registrant will 1652 conduct business; 1653 (d) The mailing address of the proposed registrant; 1654 (e) The name and biographical information of the executive 1655 officer or managing member of the proposed registrant, to be 1656 submitted on a form prescribed by the commission; 1657 (f) The number of officers and employees of the proposed 1658 registrant; 1659 (g) A detailed list and description of the activities to be 1660 conducted by the proposed registrant. The detailed list and 1661 description must include: 1662 1. The services and activities of the proposed registrant; 1663 2. An explanation of how the services and activities of the 1664 proposed registrant serve the business purpose of each 1665 international trust entity; and 1666 3. An explanation of how the services and activities of the 1667 proposed registrant are distinguishable from those of the 1668 permissible activities of an international trust company 1669 representative office described under s. 663.409; 1670 (h) Disclosure of any instance occurring within the prior 1671 10 years of a director, executive officer, principal 1672 shareholder, manager, or the equivalent who was arrested for, 1673 charged with, or convicted of, or who pled guilty or nolo 1674 contendere to, regardless of adjudication, any offense that is 1675 punishable by imprisonment for a term exceeding 1 year, or to 1676 any offense that involves money laundering, currency transaction 1677 reporting, tax evasion, facilitating or furthering terrorism, 1678 fraud, theft, larceny, embezzlement, fraudulent conversion, 1679 misappropriation of property, dishonesty, breach of trust, 1680 breach of fiduciary duty, or moral turpitude, or that is 1681 otherwise related to the operation of a financial institution 1682 and caused or is likely to cause more than a minimal financial 1683 loss to, or a significant adverse effect on, the financial 1684 institution; 1685 (i) A declaration under penalty of perjury, signed by the 1686 executive officer or managing member of the proposed registrant, 1687 that, to the best of his or her knowledge: 1688 1. No financial institution-affiliated party of the 1689 proposed registrant or financial institution-affiliated party of 1690 any affiliated international trust entity: 1691 a. Has been fined or sanctioned as a result of a complaint 1692 to the office or any other state or federal regulatory agency; 1693 b. Has been convicted of a felony; or 1694 c. Has been ordered to pay a fine or penalty within the 1695 prior 10 years in a proceeding initiated by a federal, state, 1696 foreign, or local law enforcement agency or an international 1697 agency which is related to money laundering, currency 1698 transaction reporting, tax evasion, facilitating or furthering 1699 terrorism, fraud, theft, larceny, embezzlement, fraudulent 1700 conversion, misappropriation of property, dishonesty, breach of 1701 trust, breach of fiduciary duty, moral turpitude, or which is 1702 otherwise related to the operation of a financial institution 1703 and is related to any offense that caused or is likely to cause 1704 more than a minimal financial loss to, or a significant adverse 1705 effect on, the financial institution. 1706 2. No financial institution-affiliated party of the 1707 proposed registrant: 1708 a. Provides, or will provide, banking services; promotes or 1709 sells, or will promote or sell, investments; or accepts, or will 1710 accept, custody of assets; and 1711 b. Acts, or will act, as a fiduciary in this state, which 1712 includes, but is not limited to, accepting the fiduciary 1713 appointment, executing the fiduciary documents that create the 1714 fiduciary relationship, or making discretionary decisions 1715 regarding the investment or distribution of fiduciary accounts. 1716 3. The jurisdiction of the international trust entity or 1717 its offices, subsidiaries, or any affiliates that are directly 1718 involved in or facilitate the financial services functions, 1719 banking, or fiduciary activities of the international trust 1720 entity is not listed on the Financial Action Task Force Public 1721 Statement or on its list of jurisdictions with deficiencies in 1722 anti-money laundering or counterterrorism; 1723 (j) For each international trust entity that the proposed 1724 registrant will provide services for in this state, the 1725 following: 1726 1. The name of the international trust entity; 1727 2. A list of the current officers and directors of the 1728 international trust entity; 1729 3. Any country where the international trust entity is 1730 organized or authorized to do business; 1731 4. The name of the home-country regulator; 1732 5. Proof that the international trust entity has been 1733 authorized by charter, license, or similar authorization by its 1734 home-country regulator to engage in trust business; 1735 6. Proof that the international trust entity lawfully 1736 exists and is in good standing under the laws of the 1737 jurisdiction where it is chartered, licensed, or organized; 1738 7. A statement that the international trust entity is not 1739 in bankruptcy, conservatorship, receivership, liquidation, or a 1740 similar status under the laws of any country; 1741 8. Proof that the international trust entity is not 1742 operating under the direct control of the government or the 1743 regulatory or supervisory authority of the jurisdiction of its 1744 incorporation, through government intervention or any other 1745 extraordinary actions, and confirmation that it has not been in 1746 such a status or under such control at any time within the prior 1747 3 years; 1748 9. Proof and confirmation that the proposed registrant is 1749 affiliated with the international trust entities provided in the 1750 notice; and 1751 10. Proof that the jurisdictions where the international 1752 trust entity or its offices, subsidiaries, or any affiliates 1753 that are directly involved in or that facilitate the financial 1754 services functions, banking, or fiduciary activities of the 1755 international trust entity are not listed on the Financial 1756 Action Task Force Public Statement or on its list of 1757 jurisdictions with deficiencies in anti-money laundering or 1758 counterterrorism; and 1759 (k) A declaration under penalty of perjury, signed by an 1760 executive officer or managing member of each affiliated 1761 international trust entity, declaring that the information 1762 provided to the office is true and correct to the best of his or 1763 her knowledge. 1764 1765 The proposed registrant may provide additional information in 1766 the form of exhibits when attempting to satisfy any of the 1767 registration requirements. All information that the proposed 1768 registrant desires to present to support the written notice must 1769 be submitted with the notice. 1770 (2) The office may request additional information as the 1771 office reasonably requires. Any request for additional 1772 information must be made by the office within 30 days after 1773 initial receipt of the written notice and the full amount of the 1774 fee specified in subsection (1). Additional information must be 1775 submitted within 60 days after a request has been made by the 1776 office. Failure to respond to such request within 60 days after 1777 the date of the request is a ground for denial of the 1778 registration. A notice is not deemed complete until all 1779 requested information has been submitted to the office. Upon 1780 deeming the notice complete, the office has 120 days to register 1781 the limited service affiliate or issue a denial. An order 1782 denying a registration must contain notice of opportunity for a 1783 hearing pursuant to ss. 120.569 and 120.57. 1784 (3) A registration under this part must be summarily 1785 suspended by the office if the limited service affiliate made a 1786 material false statement in the written notice. The summary 1787 suspension must remain in effect until a final order is entered 1788 by the office. For purposes of s. 120.60(6), a material false 1789 statement made in the limited service affiliate’s written notice 1790 constitutes an immediate and serious danger to the public 1791 health, safety, and welfare. If a limited service affiliate made 1792 a material false statement in the written notice, the office 1793 must enter a final order revoking the registration and may 1794 impose a fine as prescribed by s. 655.041 or issue an order of 1795 suspension, removal, or prohibition under s. 655.037 to a 1796 financial institution-affiliated party of the limited service 1797 affiliate. 1798 (4) Any instance in which a director, executive officer, 1799 principal shareholder, manager, or the equivalent has ever been 1800 arrested for, charged with, convicted of, or pled guilty or nolo 1801 contendere to, regardless of adjudication, any offense that 1802 involves money laundering, currency transaction reporting, tax 1803 evasion, facilitating or furthering terrorism, fraud, theft, 1804 larceny, embezzlement, fraudulent conversion, misappropriation 1805 of property, dishonesty, breach of trust, breach of fiduciary 1806 duty, or moral turpitude, or that is otherwise related to the 1807 operation of a financial institution and caused or is likely to 1808 cause more than a minimal financial loss to, or a significant 1809 adverse effect on, the financial institution, is a ground for 1810 denial of the registration. 1811 (5) The existence of any previous violation, fine, or 1812 penalty of a financial institution-affiliated party of a limited 1813 service affiliate or the affiliated international trust entity 1814 does not necessarily disqualify a registrant under this part. 1815 When evaluating a registration, the office may consider factors 1816 reasonably related to the violation, fine, or penalty, such as 1817 mitigating factors, a history of multiple violations, the 1818 severity of the offense, and a showing of rehabilitation. 1819 (6) A registration is not transferable or assignable. 1820 (7) Fees collected under this section must be submitted in 1821 the manner prescribed by the commission and must be deposited 1822 into the Financial Institutions’ Regulatory Trust Fund pursuant 1823 to s. 655.049 for the purpose of administering this part. 1824 (8) A person or entity in operation as of January 1, 2018, 1825 which meets the definition of a limited service affiliate under 1826 s. 663.530 must, on or before March 31, 2018, apply for 1827 registration as a limited service affiliate or cease doing 1828 business in this state. 1829 (9) No later than March 31, 2018, a person or entity that 1830 previously qualified under the moratorium in s. 663.041 must 1831 register under this part or cease doing business in this state. 1832 A person or entity that previously qualified under the 1833 moratorium in s. 663.041 may remain open and in operation until 1834 March 31, 2018, without registering under this part, but shall 1835 refrain from engaging in new lines of business in this state 1836 until the disposition of registration under this part. 1837 Section 42. Section 663.533, Florida Statutes, is created 1838 to read: 1839 663.533 Applicability of the financial institutions codes. 1840 A limited service affiliate is subject to the financial 1841 institutions codes. Without limiting the foregoing, the 1842 following provisions are applicable to a limited service 1843 affiliate: 1844 (1) Section 655.012, relating to general supervisory powers 1845 of the office. 1846 (2) Section 655.031, relating to administrative enforcement 1847 guidelines. 1848 (3) Section 655.032, relating to investigations, subpoenas, 1849 hearings, and witnesses. 1850 (4) Section 655.0321, relating to restricted access to 1851 certain hearings, proceedings, and related documents. 1852 (5) Section 655.033, relating to cease and desist orders. 1853 (6) Section 655.034, relating to injunctions. 1854 (7) Section 655.037, relating to removal of a financial 1855 institution-affiliated party by the office. 1856 (8) Section 655.041, relating to administrative fines and 1857 enforcement. 1858 (9) Section 655.057, relating to restrictions on access to 1859 public records. 1860 (10) Section 655.059, relating to access to books and 1861 records. 1862 (11) Section 655.0591, relating to trade secret documents. 1863 (12) Section 655.91, relating to records of institutions 1864 and copies thereof; retention and destruction. 1865 (13) Section 655.968, relating to financial institutions; 1866 transactions relating to Iran or terrorism. 1867 1868 This section does not prohibit the office from investigating or 1869 examining an entity to ensure that it is not in violation of 1870 this chapter or applicable provisions of the financial 1871 institutions codes. 1872 Section 43. Section 663.534, Florida Statutes, is created 1873 to read: 1874 663.534 Events that require notice to be provided to the 1875 office.—A registrant must report to the office, within 15 days 1876 of its knowledge of the occurrence, any changes to the 1877 information previously relied upon by the office when 1878 registering or renewing a registration under this part. 1879 Section 44. Section 663.535, Florida Statutes, is created 1880 to read: 1881 663.535 Notice to customers.—All marketing documents and 1882 advertisements and any display at the location of the limited 1883 service affiliate or at any trade or marketing event must 1884 contain the following statement in a contrasting color in at 1885 least 10-point type: “The Florida Office of Financial Regulation 1886 DOES NOT provide safety and soundness oversight of this company, 1887 does not provide any opinion as to any affiliated companies or 1888 products, and does not provide the oversight of this company’s 1889 affiliated international trust entities or the jurisdictions 1890 within which they operate. This company may not act as a 1891 fiduciary and may not accept the fiduciary appointment, execute 1892 or transmit fiduciary documents, take possession of any assets, 1893 create a fiduciary relationship, make discretionary decisions 1894 regarding the investment or distribution of fiduciary accounts, 1895 provide banking services, or promote or sell investments.” 1896 Section 45. Section 663.536, Florida Statutes, is created 1897 to read: 1898 663.536 Recordkeeping requirements for trade, industry, or 1899 professional events.—A registrant registered only under this 1900 part who participates in a trade, industry, or professional 1901 event pursuant to s. 663.531 must keep a record of its 1902 participation in the event. The record must be maintained for at 1903 least 2 years following the event and must contain the following 1904 information: 1905 (1) The date, time, and location of the event; 1906 (2) To the extent known or available, a list of 1907 participants in the event, including other vendors, presenters, 1908 attendees, and targeted attendees; 1909 (3) The nature and purpose of the event; 1910 (4) The registrant’s purpose for participating in the 1911 event; and 1912 (5) Samples of materials or, when samples are unavailable, 1913 descriptions of materials provided by the registrant to 1914 attendees and other participants. 1915 Section 46. Section 663.537, Florida Statutes, is created 1916 to read: 1917 663.537 Examination or investigation of a limited service 1918 affiliate.— 1919 (1) The office may conduct an examination or investigation 1920 of a limited service affiliate at any time that it deems 1921 necessary to determine whether the limited service affiliate or 1922 financial institution-affiliated party thereof has violated, or 1923 is about to violate, any provision of this chapter, any 1924 applicable provision of the financial institutions codes, or any 1925 rule adopted by the commission pursuant to this chapter or the 1926 financial institutions codes. The office shall conduct an 1927 examination of each limited service affiliate at least once 1928 every 18 months to assess compliance with this part and the 1929 financial institutions codes. The office may conduct an 1930 examination, before or after registration, of any person or 1931 entity that submits a notice for registration to confirm 1932 information provided in the registration filing and to confirm 1933 the activities of the person or entity seeking registration. 1934 (2) For each examination of a limited service affiliate 1935 authorized under this part, the limited service affiliate shall 1936 pay a fee for the costs of the examination by the office. As 1937 used in this section, the term “costs” means the salary and 1938 travel expenses of field staff which are directly attributable 1939 to the examination of the registrant and the travel expenses of 1940 any supervisory and support staff required as a result of 1941 examination findings. The costs of examination must be 1942 determined as follows: 1943 (a) The office shall charge each limited service affiliate 1944 in this state an examination fee equal to the actual cost of 1945 each examiner’s participation during each examination of such 1946 limited service affiliate. The examination fee must equal the 1947 actual cost of the examination, but such fees, inclusive of 1948 travel expenses and other incidental expenses, may not be less 1949 than $200 per day for each examiner participating in the 1950 examination. 1951 (b) As used in this section, the term “actual cost” means 1952 the direct salary, excluding employee benefits; travel expenses; 1953 and other incidental expenses required as a result of the 1954 examination staff’s onsite and offsite examination of the 1955 limited service affiliate. In addition, the term includes the 1956 travel expenses of any supervisory staff required as a result of 1957 examination findings. 1958 (3) All examination fee payments must be received within 30 1959 days after receipt of an invoice from the office and must be 1960 submitted in a manner prescribed by the commission. The office 1961 may levy a late fee of up to $100 per day that a payment is 1962 overdue, unless waived by the office for good cause. However, if 1963 the late payment of costs is intentional, the office may levy an 1964 administrative fine of up to $1,000 per day for each day the 1965 payment is overdue. 1966 (4) All fees collected under this section must be submitted 1967 in the manner prescribed by the commission and must be deposited 1968 into the Financial Institutions’ Regulatory Trust Fund pursuant 1969 to s. 655.049 for the purpose of administering this part. 1970 Section 47. Section 663.538, Florida Statutes, is created 1971 to read: 1972 663.538 Suspension, revocation, or voluntary surrender of 1973 registration.— 1974 (1) A registrant that proposes to terminate operations in 1975 this state shall surrender its registration to the office and 1976 comply with such procedures as required by rule of the 1977 commission. 1978 (2) A registrant that fails to renew its registration may 1979 be subject to a fine and penalty; however, such registrant may 1980 renew its registration within 30 days after expiration or may 1981 surrender the registration in accordance with procedures 1982 prescribed by commission rule. 1983 (3) The registration of a limited service affiliate in this 1984 state may be suspended or revoked by the office, with or without 1985 examination, upon the office’s determination that the registrant 1986 does not meet all requirements for original or renewal 1987 registration. 1988 (4) If a registrant surrenders its registration or its 1989 registration is suspended or revoked by the office, all rights 1990 and privileges afforded by this part to the registered limited 1991 service affiliate cease. 1992 (5) At least 60 days before a proposed date of voluntary 1993 termination of a registration, a registrant must provide to the 1994 office written notice by letter of its intention to surrender 1995 its registration and terminate operations. The notice must 1996 include the proposed date of termination and the name of the 1997 officer in charge of the termination procedures. 1998 (6) The office may conduct an examination of the books and 1999 records of a limited service affiliate at any time after receipt 2000 of the notice of surrender of registration to confirm the 2001 winding down of operations. 2002 (7) Operations of a registrant are deemed terminated 2003 effective upon the later of the expiration of 60 days from the 2004 date of the filing of the notice of voluntary surrender or upon 2005 the date provided in the notice of voluntary surrender, unless 2006 the office provides written notice specifying the grounds for 2007 denial of such proposed termination. The office may not deny a 2008 request to terminate unless it learns of the existence of any 2009 outstanding claim or claims against the registrant, it finds 2010 that the requirements to terminate operations have not been 2011 satisfied, or there is an immediate and serious danger to the 2012 public health, safety, and welfare if the termination occurred. 2013 Section 48. Section 663.539, Florida Statutes, is created 2014 to read: 2015 663.539 Biennial registration renewal.—A registration must 2016 be renewed every 2 years. A registration must be renewed by 2017 furnishing such information as the commission requires, together 2018 with payment of a $500 nonrefundable renewal fee. All fees 2019 received by the office pursuant to this section must be 2020 submitted in the manner prescribed by the commission and must be 2021 deposited into the Financial Institutions’ Regulatory Trust Fund 2022 pursuant to s. 655.049 for the purpose of administering this 2023 part. A complete biennial renewal of registration must include a 2024 declaration under penalty of perjury, signed by the executive 2025 officer or managing member of the registrant, declaring that the 2026 information submitted for the purposes of renewal is true and 2027 correct to the best of his or her knowledge, and confirming or 2028 providing all of the following: 2029 (1) That the registrant is in compliance with this part. 2030 (2) The physical location of the principal place of 2031 business of the registrant. 2032 (3) The telephone number of the registrant. 2033 (4) A list of current financial institution-affiliated 2034 parties operating under the registration to be renewed. 2035 (5) Any updates or changes in information which were not 2036 previously provided either in the initial registration or in 2037 subsequent registration renewals or which were not previously 2038 disclosed to the office. 2039 Section 49. Section 663.5395, Florida Statutes, is created 2040 to read: 2041 663.5395 Civil action subpoena enforcement.— 2042 (1) Notwithstanding s. 655.059, a limited service affiliate 2043 established under this chapter is not required to produce a book 2044 or record pertaining to a customer of an affiliated 2045 international trust entity that is located outside the United 2046 States or its territories in response to a subpoena if the book 2047 or record is maintained outside the United States or its 2048 territories and is not in the possession, custody, or control of 2049 the affiliated limited service affiliate established in this 2050 state. 2051 (2) This section applies only to a subpoena issued pursuant 2052 to the Florida Rules of Civil Procedure, the Federal Rules of 2053 Civil Procedure, or other similar law or rule of civil procedure 2054 in another state or territory of the United States. This section 2055 does not apply to a subpoena issued by or on behalf of a 2056 federal, state, or local government law enforcement agency, 2057 administrative or regulatory agency, legislative body, or grand 2058 jury and does not limit the power of the office to access all 2059 books and records in the exercise of the office’s regulatory and 2060 supervisory powers under the financial institutions codes. 2061 Section 50. For the purpose of incorporating the amendment 2062 made by this act to section 663.01, Florida Statutes, in a 2063 reference thereto, subsection (4) of section 663.16, Florida 2064 Statutes, is reenacted to read: 2065 663.16 Definitions; ss. 663.17-663.181.—As used in ss. 2066 663.17-663.181, the term: 2067 (4) Except where the context otherwise requires, 2068 “international banking corporation” or “corporation” has the 2069 same meaning as that provided in s. 663.01 and includes any 2070 licensed office of an international banking corporation 2071 operating in this state. 2072 Section 51. This act shall take effect January 1, 2018.