2.6.1An existing Licensed Person, who currently does not comply with the minimum paid-up capital and bank guarantee requirements as per Paragraphs 2.3 and 2.4.1 of this Chapter, must:
a)increase its paid-up capital and bank guarantee to comply with the requirements of Paragraphs 2.3 and 2.4.1 of this Chapter on or before 29th September 2019 in three (3) equal annual instalments subject to the conditions under Paragraphs 2.6.1 (c) and 2.6.2 of this Chapter;
b)provide its action plan along with a letter of undertaking to the Central Bank within fourteen (14) calendar days from the date of issuance of the Standards confirming their binding commitment to comply with the requirements of Paragraph 2.6.1 (a) of this Chapter; and
c)comply with the following deadlines in phased manner for increasing the paid-up capital and bank guarantee as required under Paragraph 2.6.1 (a) of this Chapter:
•1st instalment of the increase (i.e. 33.33% of the amount to be increased) must be made on or before 29th September 2017;
•2nd instalment of the increase (i.e. 33.33% of the amount to be increased) must be made on or before 29th September 2018; and
•3rd instalment of the increase (balance of the amount to be increased) to be in full compliance must be made on or before 29th September 2019.
2.6.2If 5% of the monthly remittance average value based on the actual values during the financial year 2016 exceeds the value of its existing bank guarantee favouring the Central Bank, the Licensed Person must immediately comply with Paragraph 2.4.1 (b) of this Chapter regardless of the grace period granted and timelines set under Paragraphs 2.6.1 (a) and (c) of this Chapter. The Central Bank will advise the Licensed Person about the additional bank guarantee in writing. The additional bank guarantee must be submitted to the Central Bank in accordance with Paragraph 2.4.4 of this Chapter prior to the deadline stipulated in the correspondence from the Central Bank;
2.6.3If the Licensed Person fails to or is unable to provide the additional bank guarantee in accordance with Paragraph 2.6.2 of this Chapter, the Licensed Person must limit its monthly remittance average value to twenty (20) times the value of its existing bank guarantee favouring the Central Bank;
2.6.4Existing Licensed Persons who are not willing to increase the minimum paid-up capital and bank guarantee to comply with the requirements of Paragraph 2.6.1 of this Chapter must contact the Licensing Division of the Banking Supervision Department to confirm their license status within thirty (30) calendar days from the date of issuance of the Standards. The Central Bank reserves the right to direct such Licensed Persons to:
a)seek the Central Bank’s approval to downgrade its Exchange Business license to a category where the minimum paid-up capital and bank guarantee requirements are lower; and/or
b)seek the Central Bank’s approval to change the legal form where the minimum paid-up capital and bank guarantee requirements are lower; or
c)surrender its Exchange Business license to the Central Bank.
2.6.5In case the current paid-up capital or/and the value of existing bank guarantee is/are higher than the value required under Paragraphs 2.3 and 2.4.1 of this Chapter, the Licensed Person must obtain a Letter of No Objection from the Central Bank in order to reduce the respective value to the required minimum level;
2.6.6Regardless of the grace period granted and timelines set under Paragraphs 2.6.1 (a) and (c) of this Chapter, the Licensed Person must comply with Paragraphs 4.1, 4.18 and 4.19 of Chapter 4 at all times; and
2.6.7The Central Bank reserves the right to revoke the license to conduct Exchange Business in case the Licensed Person fails and/or shows inability to comply with Paragraphs 2.6.1 to 2.6.4 of this Chapter.