Director's reasonable discretion.. These fines shall be deposited into the general treasury of the U.S. Virgin Islands and checks shall be made payable (h) In construing and enforcing the provisions of this schedule, the act, omission, or failure of any officer, agent, or person acting for or employed by any Beneficiary, acting within the scope of employment, shall, in every case be deemed to be an act, omission, or failure of such Beneficiary. (i) These fines shall be deposited into the general treasury of the U.S. Virgin Islands and checks shall be made payable (j) The Attorney General of the U.S. Virgin Islands, at the request of the Director, shall forthwith bring appropriate action to compel adherence to, or enjoin violations of any lawful orders of the Director issued pursuant to Title 9 V.I.C. Chapter 25 and the Rules and Regulations promulgated there under, and to recover in the name of the Government of the U.S. Virgin Islands the penalties provided herein. (k) In addition to the imposition of any fine or fines, the Director may also impose any other penalty authorized by law or these regulations, including but not limited to revocation, suspension or modification of a Beneficiary's certificate. SUBSECTION 751-1. APPEALS Any applicant or Beneficiary aggrieved by any action of the Director or the Lt. Governor under the provisions of the Code or these Rules and Regulations, after exhaustion of administrative remedies, shall be entitled to judicial review thereof by appealing to the Superior Court of the United States Virgin Islands within 30 days after final decision by the Director or Lt. Governor. Page 101 of 104 EFTA00601435

SUBSECTION 752-1. EFFECT OF OTHER LAWS (a) Insofar as the laws of Virgin Islands are not inconsistent with the provisions of §§ 715 et seq. of this title, the laws of the Virgin Islands shall prevail. (b) Insofar as the provisions of §§ 715 et seq. of this title are inconsistent with any other laws of Virgin Islands, the provisions of §§ 715 et seq. of this title shall prevail. (c) The banking-related authority granted to an IBE under the provisions of §§ 715 et seq. of this title are related to and pursuant to the federal banking laws of the United States as applicable to the Virgin Islands. Provided, nothing herein, shall be construed to limit the non- banking-related authority granted to an IBE under the provisions of §§ 715 et seq. of this title. Without limitation of the foregoing, an IBE, whether insured or uninsured by the Federal Deposit Insurance Corporation (FDIC), is authorized to take, receive, reserve, and charge interest as agreed upon by the parties under the laws of the Virgin Islands notwithstanding any state laws to the contrary. This means, for example, that an IBE may export interest rates on a preemptive basis. (d) Notwithstanding any state laws to the contrary, the Division of Banking shall have exclusive jurisdiction to license and regulate an IBE. This means, for example, that an IBE is not required to be licensed in or regulated by the laws of a state. (e) Notwithstanding any state laws to the contrary, an IBE's choice of the laws of the Virgin Islands to govern a transaction shall be deemed reasonable, enforceable, and valid for all purposes, including, without limitation, regulatory and contract purposes. This means, for example, that an IBE can effectively choose the laws of the Virgin Islands to apply to a transaction without concern that its choice might be invalid. (0 Under the Revised Organic Act of the Virgin Islands, 48 U.S.C. § 1541 et seq., the Government of the Virgin Islands is an instrumentality of the Federal government. The Act and these regulations have the full force and effect of federal law. SUBSECTION 752-1 Any section or provision of this rule held by the court to be invalid or unconstitutional will not Page 102 of 104 EFTA00601436

affect the validity of any other section or provision. SUBSECTION 753-1. BACKGROUND REQUIREMENTS Before the granting of an IBE license under this chapter, the company and all principals having an ownership interest in excess of five percent are subject to a due diligence background inquiry in which they must demonstrate that they are lawful and productive business persons. In addition, they must demonstrate that their purported use of the tax benefits granted under this title are lawful and consistent with the income sourcing rules promulgated by the U.S. Internal Revenue Service. The background investigation must be outsourced and conducted by a Virgin Islands company with law enforcement and tax experience as per Subsection 736-5, 736-6 and 736-7. The cost of the investigation must be borne by the applicant. SUBSECTION 754-1. TAP ROOTS PROGRAM As prescribed in § 717, five percent (5%) of the net income obtained from the Director's functions related to §§ 715 et seq. of this title for any given fiscal year must be remitted to the non-profit foundation, Taproots, Inc., and ten percent (10%) to the Cancer Care Fund administered by the Department of Health and Human Services. The remittance must be made within 30 days of the end of each fiscal year. Taproots is an organization designed to train and educate individuals and families in self-help, self-improvement, and entrepreneurial techniques to render them capable of developing resources for themselves. In the event that Taproots ceases to function or is formally dissolved, the Director shall remit the applicable funds to the Virgin Islands Treasury. SECTION 3-1. OFFICE OF FOREIGN ASSETS CONTROL The Division of Banking and Insurance shall utilize the services of the federal Office of Foreign Assets Control (OFAC) to obtain information on all foreign transactions, foreign licensing and reporting. Page 103 of 104 EFTA00601437

SECTION 4-1. BANK SECRECY ACT OFFICER The Division of Banking and Insurance shall employ a Bank Secrecy Act (BSA) Officer, in an effort to comply with the requirements of the federal Bank Secrecy Act of 1970, as amended from time to time. The Director may issue a job description for the BSA Officer as follows: The Bank Secrecy (BSA) Officer is responsible for coordinating the development, implementation and administration of all aspects of the Bank Secrecy Act Compliance. This position monitors compliance among licensed IBEs and licensed banking institutions in the Virgin Islands with the federal Bank Secrecy Act, the USA PATRIOT Act, the Anti-Money Laundering (AML) laws and regulations, and the Office of Foreign Assets Control laws and regulations. The main duties of the BSA Officer will be: • Oversee all aspects of the Division of Banking and Insurance Bank Secrecy Act and Anti- Money-Laundering programs. • Coordinate and assist in the administration of independent, territorial and federal regulator and auditor examinations and reviews. • Coordinate responses to regulatory BSA and AML examinations and audits and actions taken to insure deficiencies are corrected. • Make recommendations to the Director regarding BSA and AML compliance among IBE's and banks licensed in the Virgin Islands. • Maintain proficient knowledge of the applicable rules and regulations, including but not limited to: the Bank Secrecy Act (BSA), the USA PATRIOT Act, and the Office of Foreign Assets Control (OFAC). • Work closely with operations units and employees of licensed IBE's and banks to investigate transactions that are suspicious in nature. • Submit Suspicious Activity Reports for BSA-AML-related activities. • Monitor and track BSA-AML high-risk customers and accounts. • Assist licensed IBEs and banks in implementing processes necessary to comply with regulations. Page 104 of 104 EFTA00601438