—(1) In relation to a bank incorporated outside Singapore or a foreign-owned bank incorporated in Singapore, a parent supervisory authority may, with the prior written approval of the Authority and under conditions of secrecy, conduct an inspection in Singapore of the books of any branch or office of that bank in Singapore in accordance with this section if the following conditions are satisfied:
the inspection is required by the parent supervisory authority for the sole purpose of carrying out its supervisory functions;
the parent supervisory authority —
is prohibited by the laws applicable to the parent supervisory authority from disclosing information obtained by it in the course of the inspection to any other person; or
has given to the Authority such written undertaking, as to the confidentiality of the information obtained, as the Authority may determine; and
the parent supervisory authority has given a written undertaking to the Authority to comply with the provisions of this Act and such conditions as the Authority may impose under subsection (2).
(2) The Authority may at any time, whether before, on or after giving written approval for an inspection under this section, require the parent supervisory authority to comply with conditions relating to —
the classes of information to which the parent supervisory authority shall or shall not have access in the course of the inspection;
the conduct of the inspection;
the use or disclosure of any information obtained in the course of the inspection; and
such other matters as the Authority may determine.
(3) Subject to compliance by a parent supervisory authority with such conditions as the Authority may impose under subsection (2), a bank under inspection —
shall afford the parent supervisory authority access to such books of the branch or office of the bank under inspection, and provide such information (including information relating to the bank’s internal control systems) and facilities as may be required to conduct the inspection; and
shall not be required to afford the parent supervisory authority access to its books or to provide information or facilities at such times or at such places as would unduly interfere with the proper conduct of the normal daily business of the bank.
(4) A parent supervisory authority may, with the prior written approval of the Authority —
in the case of a bank incorporated outside Singapore, request the auditors of its head office or appoint any person; or
in the case of a foreign-owned bank incorporated in Singapore, request the auditors of its parent bank or appoint any person,
to conduct the inspection under subsection (1) and in such event, this section (other than this subsection) shall apply to the auditors or the person, as the case may be, as if a reference to the parent supervisory authority or any official of the parent supervisory authority in this section includes a reference to the auditors or the person.
(5) For the purposes of ensuring the confidentiality of any information obtained in the course of an inspection by a parent supervisory authority under this section, section 47(1) shall, with the necessary modifications, apply to any official of the parent supervisory authority as if the official is an officer of a bank.
(6) Any bank which refuses or neglects, without reasonable excuse, to afford access to any book or provide any information or facility as may be required by this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
(7) In this section, “parent bank”, in relation to a foreign-owned bank incorporated in Singapore, means a bank incorporated outside Singapore of which the foreign-owned bank is a subsidiary.