Office of the Lieutenant Governor

Division of Banking, Insurance and

Financial Regulation



#5049 Kongens Gade, Charlotte Amalie, St. Thomas, USVI 00802-6487 @ (340) 774-7166 @ Fax (340) 774-9458

1131 King Street, Suite 101, Christiansted, St. Croix, USVI 00820 @ (340) 773-6459 @ Fax (340) 719-3801

ltg.gov.vi



BULLETIN NO. 2018-02



To: All Banks in the Territory Regulated by the U.S. Virgin Islands Banking

Board and the Division of Banking, Insurance and Financial Regulation



RE: Written Catastrophe Response Plans - “



In light of the passage of Hurricane Irma and Hurricane Maria on September 6,

2017 and September 19, 2017 respectively, which devastated the St. Thomas - St. John

District and St. Croix District, the Honorable Osbert E. Potter, who serves as Lieutenant

Governor and Chairman of the Virgin Islands Banking Board (“Board”), is requiring

banks licensed and authorized to conduct business in the Territory, to maintain a

catastrophe plan for the benefit of its customers in the event of a disaster or emergency.

The Board’s authority to require a written catastrophe plan from the local banks is

established in Title 9, Virgin Islands Code, Chapter 5, Section 61(a) and (b).



Hurricane Irma and Hurricane Maria caused massive destruction to the lives,

livelihoods, and property of many citizens of this Territory. These storms crippled the

U.S. Virgin Islands communications and transportation systems, making it virtually

impossible for local banks’ customers to make cash withdrawals and gain access to

their bank’s electronic products and services. As a result of the devastation caused by

Hurricane Irma and Hurricane Maria and the resulting negative impact on the Territory,

the Board recognized that the interest of the public demands that banks have a

catastrophe plan in place should a similar emergency arise again.



Moreover, each local bank had a senior official in attendance at the February 7,

2018 meeting between the Office of the Lieutenant Governor, Division of Banking,

Insurance and Financial Regulation (“Division”) and the Virgin Islands Bankers


Bulletin 2018-02

June 11, 2018

Page 3 of 3



e Procedures for the manual! processing of customers’ requests for products and

services;

Loan payment moratorium procedures (for each type of loan offered);

Procedures for training of bank staff, on the implementation of the bank's written

catastrophe plan; and any other information that may be useful to the customer

and the Division.



As such, all local banks licensed and regulated by the Board are required to file a

copy of its plan annually with the Division of Banking, Insurance and Financial

Regulation as a condition for license renewal. A copy of this plan shall be placed in

each Branch of the Bank and will be reviewed by the Division. The plan will be

maintained by the Division and shall be given confidential treatment. Moreover, it will

not be subject to public records disclosure, nor shall it be made public by the Board.



A local bank’s failure to maintain a plan (and submit a copy to the Division) will be

deemed a violation of this action taken by the Board.



Questions regarding this bulletin should be directed to Attorney Glendina Matthew,

Division of Banking, Insurance and Financial Regulation, at (340) 773 6459 and/or by e-

mail at glendina.matthew@lqo.vi.gov.



Dated this {/ day of June, 2018 at St. Thomas, U.S. Virgin Islands.



OsbertE. Potter

Lieutenant Governor/

Chairman, Virgin Islands Banking Board