The Central Bank has published on its Web site a draft Credit Union Bill, which places the thrift and savings institutions under the control of Central Bank. In a circular to all credit unions and other bodies relating to the management and operation of credit unions, Inspector of Financial Institutions, Carl Hiralal, said that the draft bill had been developed based on the policy proposal document that was approved by Cabinet in November 2009. Credit unions have until March 28, 2012 to submit their comments on the draft to the Central Bank. Under the proposed legislation, the Central Bank will assume responsibility for determining the financial soundness of credit unions, supervising credit unions to ensure their compliance with the Act, protecting members' deposits and shares from undue loss and ensuring compliance of credit unions with legislation to combat money laundering and terrorist financing.
The proposed legislation allows the Central Bank or the Inspector of Financial Institutions, in the performance of its duties under the Act, at all reasonable times to have "access to all books, records, accounts, vouchers, minutes of meetings, securities and any other documents, including documents stored in electronic form, of any credit union and the right to call upon any member of the board of a credit union, officer, external auditor or employee of the credit union for any information or explanation the Bank considers necessary for the due performance of its duties.
The proposed legislation also allows the Central Bank, for the purpose of determining the financial condition of a credit union and its compliance with this Act, to "call upon the current or any former external auditor or any member of the board or officer of the credit union to provide such information that is related to or may affect the financial condition of the credit union."
