PART VII
POWERS OF CONTROL OVER BANKS
Interpretation of this Part
40A.
In
this Part —"customer"
, in relation to a bank, includes
the Authority or any monetary authority or central bank of any other
country or territory, but does not include any company which carries
on banking business or such other financial institution as may be
designated by the Authority by notice in writing;
"customer
information"
, in relation to
a bank, means —
(a)
any information relating to, or any
particulars of, an account of a customer of the bank, whether the
account is in respect of a loan, investment or any other type of
transaction, but does not include any information that is not referable
to any named customer or group of named customers; or
(b)
deposit information;
"deposit
information"
, in relation to
a bank, means any information relating to —
(a)
any deposit of a customer of the
bank;
(b)
funds of a customer under management
by the bank; or
(c)
any safe deposit box maintained by,
or any safe custody arrangements made by, a customer with the bank,
but does not include any information
that is not referable to any named person or group of named persons;
"funds of a customer under management"
means any funds or assets of a customer
(whether of the bank or any financial institution) placed with that
bank for the purpose of management or investment.
Regulation of interest rates of banks
41.
—(1)
The
Authority may from time to time determine and announce the rates of
interest payable to or by banks in Singapore, the rates of discount
chargeable by banks in Singapore, or the rates of commission and
other charges payable to banks in Singapore.
[23/2001]
(2)
Subsection (1) shall not apply to
transactions between banks in Singapore.
Recommendations to banks concerning credits and investments
42.
—(1)
The
Authority may, in respect of loans and advances or investments of banks
in Singapore, make recommendations to the banks in respect of the
following:(a)
the purposes for which they may or
may not be granted or made;
(b)
the maximum maturities or, in the
case of loans and advances, the type and minimum amount of security
which shall be required and, in the case of letters of credit, the
minimum or margin deposit; or
(c)
the limits for any particular category
of loans, advances or investments or for the total amount outstanding
in respect of those loans, advances or investments.
[23/2001]
(2)
Any recommendation made under subsection
(1) shall apply uniformly to all banks in Singapore engaging in
the transactions covered by the recommendation.
[23/2001]
(3)
Where the Authority has made a recommendation
under subsection (1) and the banks have accepted it without objections,
or have failed to notify the Authority of their objections or have
failed to forward their representations to the Authority within
the time specified in subsection (4), the Authority may issue a
direction in writing to each bank on any of the matters referred
to in subsection (1) requiring that effect be given to the recommendation
within a reasonable time, and the banks shall comply with that direction.
(4)
Where the Authority has made a recommendation
and the banks have, or any bank has, notified the Authority within
14 days of the receipt of the recommendation that the banks object,
or any bank objects, to the recommendation, the Authority shall
call upon the banks or bank, as the case may be, to make representations
in writing within one month of the notification concerning those
objections.
(5)
Upon receipt of such representations,
the Authority shall consider them and may —(a)
reject the representations; or
(b)
amend or modify the recommendation
in accordance with the representations, or otherwise,
and in either event, the Authority
shall thereupon issue a direction in writing to the banks or bank,
as the case may be, requiring that effect be given to the original
recommendation or to the recommendation as subsequently amended
or modified by the Authority within a reasonable time.
(6)
The banks or any bank, as the case
may be, shall comply with the direction under subsection (5).
Inspection of banks
43.
—(1)
The
Authority shall, from time to time, inspect under conditions of
secrecy, the books of
each bank in Singapore and of any branch, agency or office outside
Singapore opened by a bank incorporated in Singapore.
[23/2001]
(2)
Without prejudice to the generality
of subsection (1), such inspection may be conducted in respect of
activities of the bank that are regulated or licensed by the Authority
under any other Act.
[23/2001]
Special investigation of banks
44.
The
Authority may at any time make an investigation, under conditions
of secrecy, of the books of
any bank in Singapore, if it has reason to believe that any bank —(a)
is carrying on its business in a
manner likely to be detrimental to the interests of its depositors
and other creditors;
(b)
has insufficient assets to cover
its liabilities to the public; or
(c)
is contravening the provisions of
this Act.
[23/2001]
Provisions supplementary to sections 43 and 44
44A.
—(1)
For
the purposes of an inspection under section 43 or an investigation under
section 44, the bank under inspection or investigation shall —(a)
produce
its books to the
Authority and afford the Authority access thereto; and
(b)
provide such information or facilities
as may be required by the Authority to conduct the inspection or
investigation.
[23/2001]
(2)
The
books referred
to in subsection (1) shall not be required to be produced at such
times or at such places as would unduly interfere with the proper
conduct of the normal daily business of that bank.
[23/2001]
(3)
The Authority may appoint an auditor,
other than the auditor appointed by the bank or by the Authority
under section 58, to exercise the powers of the Authority under
section 43 or 44.
[23/2001]
(3A)
The
remuneration and expenses of any auditor appointed under subsection (3)
shall be paid by the bank.
(4)
Customer
information that is obtained by the Authority from a bank incorporated
outside Singapore or a foreign-owned bank incorporated
in Singapore during an inspection under section 43 or an investigation
under section 44 may be disclosed by the Authority to the parent
supervisory authority of the bank where —(a)
the customer information does not
consist of deposit information;
(b)
the customer information is required
by the parent supervisory authority for the sole purpose of carrying
out its supervisory functions; and
(c)
the parent supervisory authority —(i)
is prohibited by the laws applicable
to the parent supervisory authority from disclosing the customer
information obtained by it to any other person; or
(ii)
has given to the Authority such written
undertaking, as to the confidentiality of the information obtained,
as the Authority may determine.
[23/2001]
(5)
Any bank which, without reasonable
excuse, contravenes subsection (1) 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.
[23/2001]
(6)
For
the purposes of this section, a reference to a parent bank in the
definition of “foreign-owned bank incorporated in Singapore” in
section 2 (1) is a reference to a bank incorporated outside Singapore
of which the foreign-owned bank is a subsidiary.
Inspection in Singapore by parent supervisory authority
45.
—(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:(a)
the inspection is required by the
parent supervisory authority for the sole purpose of carrying out
its supervisory functions;
(b)
the parent supervisory authority —(i)
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
(ii)
has given to the Authority such written
undertaking, as to the confidentiality of the information obtained,
as the Authority may determine; and
(c)
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).
[23/2001]
(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 —(a)
the classes of information to which
the parent supervisory authority shall or shall not have access
in the course of the inspection;
(b)
the conduct of the inspection;
(c)
the use or disclosure of any information
obtained in the course of the inspection; and
(d)
such other matters as the Authority
may determine.
[23/2001]
(3)
Subject to compliance by a parent
supervisory authority with such conditions as the Authority may
impose under subsection (2), a bank under inspection —(a)
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
(b)
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.
[23/2001]
(4)
A
parent supervisory authority may, with the prior written approval
of the Authority —(a)
in the case of the bank incorporated
outside Singapore, request the auditors of its head office or appoint
any person; or
(b)
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.
[23/2001]
(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.
[23/2001]
(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.
Confidentiality of inspection and investigation reports
46.
—(1)
Where
a written report or any part thereof (referred to in this section
as the report) has been produced in respect of any bank in Singapore —(a)
by the Authority upon an inspection
under section 43 or an investigation under section 44; or
(b)
by a parent supervisory authority
upon an inspection under section 45,
the report shall not be disclosed by
the bank, or any officer or auditor of the bank, to any other person
except in the circumstances provided under subsection (2).
[23/2001]
(2)
Disclosure of the report referred
to in subsection (1) may be made(a)
by the bank in Singapore to any officer
or auditor of that bank solely in connection with the performance
of the duties of the officer or auditor, as the case may be, in
that bank;
(b)
by any officer or auditor of the
bank in Singapore to any other officer or auditor of that bank,
solely in connection with the performance of their duties in that
bank;
(c)
to the Authority if requested by
the Authority, where the report has been produced by a parent supervisory
authority; or
(d)
to any other person as the Authority
may approve in writing.
[23/2001]
(3)
In granting written approval for any
disclosure under subsection (2) (d), the Authority
may impose such conditions as it considers appropriate.
[23/2001]
(4)
The obligation on an officer or auditor
referred to in subsection (1) shall continue after the termination
or cessation of his employment or appointment at the bank.
[23/2001]
(5)
Any person who contravenes subsection
(1) or fails to comply with any condition imposed by the Authority
under subsection (3) shall be guilty of an offence and shall be
liable on conviction —(a)
in the case of an individual, to
a fine not exceeding $125,000 or to imprisonment for a
term not exceeding 3 years or to both; or
(b)
in any other case, to a fine not
exceeding $250,000.
[23/2001]
(6)
Any person to whom the report is disclosed
and who knows or has reasonable grounds for believing, at the time
of the disclosure, that the report was disclosed to him in contravention
of subsection (1) shall be guilty of an offence, unless he proves that —(a)
the disclosure was made contrary
to his desire;
(b)
where the disclosure was made in
any written form, he has as soon as practicable surrendered or
taken all reasonable steps to surrender the report and all copies
thereof to the Authority; and
(c)
where the disclosure was made in
an electronic form, he has as soon as practicable taken all reasonable
steps to ensure that all electronic copies of the report have been
deleted and that the report and all copies thereof in other forms
have been surrendered to the Authority.
[23/2001]
Banking secrecy
47.
—(1)
Customer
information shall not, in any way, be disclosed by a bank in Singapore
or any of its officers to any other person except as expressly provided
in this Act.
[23/2001]
(2)
A bank in Singapore or any of its
officers may, for such purpose as may be specified in the first
column of the Third Schedule, disclose customer information to such
persons or class of persons as may be specified in the second column
of that Schedule, and in compliance with such conditions as may
be specified in the third column of that Schedule.
[23/2001]
(3)
Where customer information is likely
to be disclosed in any proceedings referred to in item 3 or 4 of
Part I of the Third Schedule, the court may, either of its own motion,
or on the application of any party to the proceedings or the customer
to which the customer information relates —(a)
direct that the proceedings be held
in camera; and
(b)
make such further orders as it may
consider necessary to ensure the confidentiality of the customer
information.
[23/2001]
(4)
Where an order has been made by a
court under subsection (3), any person who, contrary to such an
order, publishes any information that is likely to lead to the identification
of any party to the proceedings shall be guilty of an offence and
shall be liable on conviction to a fine not exceeding $125,000.
[23/2001]
(5)
Any person (including, where the person
is a body corporate, an officer of the body corporate) who receives
customer information referred to in Part II of the Third Schedule
shall not, at any time, disclose the customer information or any
part thereof to any other person, except as authorised under that
Schedule or if required to do so by an order of court.
[23/2001]
(6)
Any person who contravenes subsection
(1) or (5) shall be guilty of an offence and shall be liable on
conviction —(a)
in the case of an individual, to
a fine not exceeding $125,000 or to imprisonment for a
term not exceeding 3 years or to both; or
(b)
in any other case, to a fine not
exceeding $250,000.
[23/2001]
(7)
In this section and in the Third Schedule,
unless the context otherwise requires —(a)
where disclosure of customer information
is authorised under the Third Schedule to be made to any person
which is a body corporate, customer information may be disclosed
to such officers of the body corporate as may be necessary for the
purpose for which the disclosure is authorised under that Schedule;
and
(b)
the obligation of any officer or
other person who receives customer information referred to in Part
II of the Third Schedule shall continue after the termination or
cessation of his appointment, employment, engagement or other capacity
or office in which he had received customer information.
[23/2001]
(8)
For the avoidance of doubt, nothing
in this section shall be construed to prevent a bank from entering
into an express agreement with a customer of that bank for a higher
degree of confidentiality than that prescribed in this section and
in the Third Schedule.
[23/2001]
(9)
Where, in the course of an inspection
under section 43 or an investigation under section 44 or the carrying
out of the Authority’s function of supervising the financial condition
of any bank, the Authority incidentally obtains customer information
and such information is not necessary for the supervision or regulation
of the bank by the Authority, then, such information shall be treated
as secret by the Authority.
[23/2001]
(10)
This section and the Third Schedule
shall apply, with such modifications as may be prescribed by the
Authority, to a merchant bank approved as a financial institution
under section 28 of the Monetary Authority of Singapore Act (Cap.
186) as if the reference to a bank in this section were a reference
to such merchant bank.
[23/2001]
Information of insolvency,
etc.
48.
Any
bank which is or is likely to become insolvent, or which is or is
likely to become unable to meet its obligations, or which has suspended
or is about to suspend payments, shall immediately inform the Authority
of that fact.
Interpretation of sections
49 to 53
48A.
In
sections 49 to 53, unless the context otherwise requires —"business"
includes affairs and property;
"office-holder"
, in relation to a bank, means any
person acting in relation to the bank as its liquidator, provisional
liquidator, receiver, receiver and manager or an equivalent person;
"relevant
business"
means any business
of a bank —
(a)
which the Authority has assumed control
of under section 49; or
(b)
in relation to which a statutory
adviser or a statutory manager has been appointed under section
49;
"statutory
adviser"
means a statutory adviser
appointed under section 49;
"statutory
manager"
means a statutory manager
appointed under section 49.
Action by Authority if bank is unable to meet obligations,
etc., or is conducting business to detriment of depositors.
49.
—(1)
Where —(a)
a
bank informs the Authority that it is or is likely to become insolvent,
or that it is or is likely to become unable to meet its obligations,
or that it has suspended or is about to suspend payments;
(b)
a bank becomes unable to meet its
obligations, or is insolvent, or suspends payments;
(c)
the Authority is of the opinion that
the bank —(i)
is carrying on its business in a
manner likely to be detrimental to the interests of its depositors
or its creditors;
(ii)
is
or is likely to become insolvent, or that it is or is likely to
become unable to meet its obligations, or that it is about to suspend
payments;
(iii)
has contravened any of the provisions
of this Act; or
(iv)
has failed to comply with any condition
attached to its licence; or
(d)
the Authority considers it in the
public interest to do so,
the Authority may exercise any one
or more of the powers specified in subsection (2) as appears to
it to be necessary.
(2)
Subject to subsection (1), the Authority
may —(a)
require the bank concerned immediately
to take any action or to do or not to do any act or thing whatsoever
in relation to its business as the Authority may consider necessary;
(b)
subject
to subsection (3), appoint one or more persons as statutory adviser, on
such terms and conditions as the Authority may specify, to advise
the bank on the proper management of such of the business of the
bank as the Authority may determine; or
(c)
subject
to subsection (3), assume control of and manage such of the business
of the bank as the Authority may determine, or appoint one or more persons
as statutory manager to do so on such terms and conditions as the Authority
may specify.
(3)
In
the case of a bank incorporated outside Singapore, any appointment
of a statutory adviser or statutory manager or any assumption of
control by the Authority of any business of the bank under subsection
(2) shall only be in relation to —(a)
the business or affairs of the bank
carried on, or managed in or from, Singapore; or
(b)
the property of the bank located
in Singapore, or reflected in the books of the bank in Singapore
in relation to its operations in Singapore.
(4)
Where
the Authority appoints 2 or more persons as statutory manager of
a bank, it shall specify in the terms and conditions of the appointment
which of the duties, functions and powers of the statutory manager —(a)
may be discharged or exercised by
such persons jointly and severally;
(b)
shall be discharged or exercised
by such persons jointly; and
(c)
shall be discharged or exercised
by a specified person of such persons.
(5)
Where
the Authority has exercised any power under subsection (2), it may,
at any time and without prejudice to its power under section 20
(1) (b), do one or more of the following:(a)
vary or revoke any requirement of,
any appointment made by or any action taken by the Authority in
the exercise of such power, on such terms and conditions as it may
specify;
(b)
exercise any of the powers under
subsection (2);
(c)
add to, vary or revoke any term or
condition specified by the Authority under this section.
(6)
No
action, suit or other legal proceedings shall lie against —(a)
a statutory manager; or
(b)
a statutory adviser,
for anything done (including any statement
made) or omitted to be done with reasonable care and in good faith
in the course of or in connection with —(i)
the exercise or purported exercise
of any power under this Act;
(ii)
the performance or purported performance
of anyfunction or duty under this Act; or
(iii)
the compliance or purported compliance
with this Act.
Effect of assumption
of control under section 49
50.
—(1)
Upon
assuming control of the relevant business of a bank, the Authority or
statutory manager, as the case may be, shall take custody or control
of the relevant business.
(2)
During the period
when the Authority or statutory manager is in control of the relevant
business of a bank, the Authority or statutory manager shall manage
the relevant business of the bank in the name of and on behalf of
the bank and shall be deemed to be an agent of the bank.
(3)
In managing the
relevant business of a bank, the Authority or statutory manager —(a)
shall take into consideration the
interests of the depositors of the bank; and
(b)
shall have all the duties, powers
and functions of the members of the board of directors of the bank
(collectively and individually) under this Act, the Companies Act
(Cap. 50) and the constitution of the bank, including powers
of delegation, in relation to the relevant business of the bank;
but nothing in this paragraph shall require the Authority or statutory
manager to call any meeting of the bank under the Companies Act
(Cap. 50) or the constitution of the bank.
(4)
Notwithstanding
any written law or rule of law, upon the assumption of control of
the relevant business of a bank by the Authority or statutory manager —(a)
where the bank is incorporated in
Singapore, any appointment of a person as chief executive or director
of the bank; or
(b)
where the bank is incorporated outside
Singapore, any appointment of a person as chief executive of the
bank, in so far as the appointment relates to the relevant business
of the bank,
which was in force immediately before
the assumption of control, shall be deemed to be revoked unless
the Authority gives its approval, by notice in writing to the person
and the bank, for the person to remain in the appointment.
(5)
Notwithstanding
any written law or rule of law, during the period when the Authority
or statutory manager is in control of the relevant business of a
bank, no person shall be appointed —(a)
where the bank is incorporated in
Singapore, as chief executive or director of the bank; or
(b)
where the bank is incorporated outside
Singapore, as chief executive of the bank, in so far as the appointment
relates to the relevant business of the bank,
except with the approval of the Authority.
(6)
Where the Authority
has given its approval under subsection (4) or (5) to a person to
remain in the appointment of, or to be appointed as, chief executive
or director of a bank, the Authority may at any time, by notice
in writing to the person, revoke its approval and such appointment
shall be deemed to be revoked on the date specified in the notice.
(7)
Notwithstanding
any written law or rule of law, if any person whose appointment
as chief executive or director of a bank is revoked under subsection
(4) or (6) acts or purports to act after the revocation —(a)
where the bank is incorporated in
Singapore, as chief executive or director of the bank; or
(b)
where the bank is incorporated outside
Singapore, as chief executive of the bank in relation to the relevant
business of the bank,
during the period when the Authority
or statutory manager is in control of the relevant business of the
bank —(i)
the act or purported act of the person
shall be invalid and of no effect; and
(ii)
the person shall be guilty of an
offence.
(8)
Notwithstanding
any written law or rule of law, if any person who is appointed as
chief executive or director of a bank in contravention of subsection
(5) acts or purports to act —(a)
where the bank is incorporated in
Singapore, as chief executive or director of the bank; or
(b)
where the bank is incorporated outside
Singapore, as chief executive of the bank in relation to the relevant
business of the bank,
during the period when the Authority
or statutory manager is in control of the relevant business of the
bank —(i)
the act or purported act of the person
shall be invalid and of no effect; and
(ii)
the person shall be guilty of an
offence.
(9)
During the period
when the Authority or statutory manager is in control of the relevant
business of a bank —(a)
if there is any conflict or inconsistency
between —(i)
a direction or decision given by
the Authority or statutory manager (including a direction or decision
to a person or body of persons referred to in sub-paragraph (ii));
and
(ii)
a direction or decision given by
any chief executive, director, member, executive officer, employee,
agent or office holder, or the board of directors, of the bank,
or any trustee for the bank,
the direction or decision referred
to in sub-paragraph (i) shall, to the extent of the conflict or
inconsistency, prevail over the direction or decision referred to
in sub-paragraph (ii); and
(b)
no person shall exercise any voting
or other right attached to any share in the bankin
any manner that may defeat or interfere with any duty, function or
power of the Authority or statutory manager, and any such act or
purported act shall be invalid and of no effect.
(10)
Any person who
is guilty of an offence under subsection (7) or (8) shall be liable
on conviction to a fine not exceeding $125,000 or to imprisonment
for a term not exceeding 3 years or to both and, in the case of
a continuing offence, to a further fine not exceeding $12,500
for every day or part thereof during which the offence continues
after conviction.
(11)
In this section, “constitution
of the bank” means the memorandum of association and articles
of association of the bank or other instrument under which the bank
is incorporated.
Duration of control
51.
—(1)
The
Authority shall cease to be in control of the relevant business
of a bank when the Authority is satisfied that the reasons for its
assumption of control of the relevant business have ceased to exist
or that it is no longer necessary for the protection of the depositors
of the bank.
(2)
A statutory manager
shall be deemed to have assumed control of the relevant business
of a bank on the date of his appointment as a statutory manager.
(3)
The appointment
of a statutory manager in relation to the relevant business of a
bank may be revoked by the Authority at any time —(a)
if the Authority is satisfied that
the reasons for the appointment have ceased to exist or that it
is no longer necessary for the protection of the depositors of the
bank; or
(b)
on any other ground,
and upon such revocation, the statutory
manager shall cease to be in control of the relevant business of
the bank.
(4)
The Authority
shall publish in the Gazette the date, and such
other particulars as it thinks fit, of —(a)
its assumption of control of the
relevant business of a bank;
(b)
the cessation of its control of the
relevant business of a bank;
(c)
the appointment of a statutory manager
in relation to the relevant business of a bank; and
(d)
the revocation of a statutory manager’s
appointment in relation to the relevant business of a bank.
Responsibilities of
officers, member, etc., of bank
52.
—(1)
During
the period when the Authority or statutory manager is in control of
the relevant business of a bank —(a)
the High Court may, on an application
of the Authority or statutory manager, direct any person who has
ceased to be or who is still a chief executive, director, member,
executive officer, employee, agent, banker, auditor or office-holder
of, or trustee for, the bank to pay, deliver, convey, surrender
or transfer to the Authority or statutory manager, within such period
as the High Court may specify, any property or book of the bank
which is comprised in, forms part of or relates to the relevant
business of the bank, and which is in his possession or control;
and
(b)
any person who has ceased to be or
who is still a chief executive, director, member, executive officer,
employee, agent, banker, auditor or office-holder of, or trustee
for, the bank shall give to the Authority or statutory manager such
information as the Authority or statutory manager may require for
the discharge of its or his duties or functions, or the exercise
of its or his powers, in relation to the bank, within such timeand in such manner as may be specified by
the Authority or statutory manager.
(2)
Any personwho —(a)
without reasonable excuse, fails
to comply with subsection (1) (b); or
(b)
in purported compliance with subsection
(1) (b), knowingly or recklessly furnishes any
information or document that is false or misleading in a material
particular,
shall be guilty of an offence and shall
be liable on conviction to a fine not exceeding $125,000
or to imprisonment for a term not exceeding 3 years or to both and,
in the case of a continuing offence, to a further fine not exceeding $12,500
for every day or part thereof during which the offence continues
after conviction.
Remuneration and expenses
of Authority and others in certain cases
53.
The
Authority may at any time fix the remuneration and expenses to be
paid by a bank —(a)
to a statutory
adviser or statutory manager appointed in relation to the bank, whether
or not the appointment has been revoked; and
(b)
where the Authority has assumed control
of the relevant business of the bank, to the Authority and any person
employed or authorised by the Authority under section 3 in relation
to its assumption of control of the relevant business, whether or
not the Authority has ceased to be in control of the relevant business.
Moratorium
54.
—(1)
The
Authority may, if it considers it to be in the interests of the
depositors of a bank, make an order prohibiting that bank from carrying
on banking business or from doing or performing any act or function
connected with banking business or any aspect thereof that may be
specified in the order.
(2)
The
High Court may, on the application of the Authority, if it considers
it to be in the interests of the depositors of a bank, make one
or more of the following orders:(a)
that no resolution shall be passed,
and no order shall be made, for the winding up of the bank;
(b)
that no proceedings shall be commenced
or continued by or against the bank in respect of any business of
the bank;
(c)
that no execution, distress or other
legal process shall be commenced, levied or continued against any
property of the bank;
(d)
that no steps shall be taken to enforce
any security over any property of the bank or to repossess from
the bank any goods under any hire-purchase agreement, chattels leasing
agreement or retention of title agreement;
(e)
that no steps shall be taken by any
person, other than a person specified in the order, to sell, transfer,
assign or otherwise dispose of any property of the bank.
(2A)
Any
sale, transfer, assignment or other disposition of any property
of the bank in contravention of any order made under subsection
(2) (e) shall be void.
(3)
Any order made under subsection (2)
shall be valid for a period not exceeding 6 months.
(4)
So long as an order under subsection
(1) remains in force, the licence granted to that bank under this
Act shall be suspended.
General provisions
as to winding up
54A.
—(1)
On
an application of the Authority, the Court may, in addition to the grounds
specified in section 254 (1) of the Companies Act (Cap. 50), order
under that Act the winding up of a company incorporated in Singapore
which is carrying on or has carried on banking business in Singapore
if the Authority has exercised any power under section 49 (2) in
relation to the company.
(2)
On an application
of the Authority, the Court may, in addition to the grounds specified
in section 351 (1) of the Companies Act, order under that Act the
winding up of an unregistered company which is carrying on or has
carried on banking business in Singapore if —(a)
the Authority has exercised any power
under section 49 (2) in relation to the company;
(b)
the company has held a licence under
this Act or under any written law repealed by this Act, and that
licence has been revoked or has expired and has not been renewed;
or
(c)
the company is carrying on or has
carried on banking business in Singapore in contravention of any
provision of this Act.
(3)
Notwithstanding
sections 254 (2) and 351 (2) of the Companies Act (Cap. 50), on
an application of the Authority for the winding up, on the ground
specified in section 254 (1) (e) or 351 (1)
(c) (ii) of the Companies Act, of a company
which is carrying on or has carried on banking business in Singapore,
any statement of account lodged by the company with the Authority,
at any time during the period beginning with the close of the last
financial year of the company and ending with the making of the
application for the winding up, which shows that the company is
insolvent shall be evidence that the company is unable to pay its
debts unless the Court, in its discretion, calls for further evidence
on this issue.
(4)
Notwithstanding
any written law or rule of law —(a)
no person shall be appointed as a
liquidator under the Companies Act of a company, which is carrying
on or has carried on banking business in Singapore, without the
prior written approval of the Authority; and
(b)
in the case of a foreign company
which is carrying on or has carried on banking business in Singapore,
a liquidator appointed for its liquidation or dissolution at its
place of incorporation or origin shall not have the powers and functions
of a liquidator for Singapore unless the liquidator has been approved
by the Authority, and the exercise of any power or function by the
liquidator in contravention of this paragraph shall be invalid and
of no effect.
(5)
For the avoidance
of doubt, subsection (4) (a) shall not affect
the operation of section 263 (a), (d),
(da) or (e) of the Companies
Act.
(6)
Any approval of
the Authority under subsection (4) (b) shall
be subject to such conditions as the Authority may determine and
the Authority may add to, vary or revoke any such condition.
(7)
Notwithstanding
any written law or rule of law, where a company which is carrying
on or has carried on banking business in Singapore is being wound
up, the Authority shall, subject to such modifications as may be
necessary, have the same powers and rights as a creditor of the
company under the Companies Act including the right to appear and
be heard before the Court in any proceedings in the winding up.
(8)
Without prejudice
to subsection (7) and notwithstanding any written law or rule of
law, where a company which is carrying on or has carried on banking
business in Singapore is being wound up, its liquidator (whether
appointed under the Companies Act (Cap. 50) or, in the case of a
foreign company, appointed at its place of incorporation or origin)
shall give the Authority such information as the Authority may from
time to time require about the affairs of the company or the winding
up.
(9)
Any liquidator
who —(a)
without reasonable excuse, fails
to comply with subsection (8); or
(b)
in purported compliance with subsection
(8), knowingly or recklessly furnishes any information or document
that is false or misleading in a material particular,
shall be guilty of an offence and shall
be liable on conviction to a fine not exceeding $125,000
or to imprisonment for a term not exceeding 3 years or to both and,
in the case of a continuing offence, to a further fine not exceeding $12,500
for every day or part thereof during which the offence continues
after conviction.
(10)
In this section —"Court"
means the High Court or a Judge thereof;
"liquidator"
includes a provisional liquidator;
"unregistered
company"
has the same meaning
as in section 350 of the Companies Act.
Disqualification and
removal of directors
54B.
—(1)
Notwithstanding
any other written law, any person who —(a)
has, whether in Singapore or elsewhere,
entered into a compromise or scheme of arrangement with his creditors,
being a compromise or scheme of arrangement that is still in operation;
(b)
has had execution against him in
respect of a judgment debt returned unsatisfied in whole or in part;
(c)
is an undischarged bankrupt, whether
in Singapore or elsewhere;
(d)
has been convicted, whether in Singapore
or elsewhere, of an offence involving fraud or dishonesty or the
conviction for which involved a finding that he acted fraudulently
or dishonestly;
(e)
has had a prohibition order under
section 59 of the Financial Advisers Act (Cap. 110), section 35V
of the Insurance Act (Cap. 142) or section 95 of the Securities
and Futures Act (Cap. 289) made against him that remains in force;
or
(f)
has been a director of, or directly
concerned in the management of, a bank licensed under this Act or
under any written law repealed by this Act —(i)
which is being or has been wound
up by a court; or
(ii)
the licence of which has been revoked,
shall not, without the consent in writing
of the Authority, act or continue to act as a director of any bank
incorporated in Singapore.
(2)
Notwithstanding
any other written law, where the Authority is satisfied that a director
of a bank incorporated in Singapore —(a)
has wilfully contravened or wilfully
caused the bank to contravene any provision of this Act;
(b)
has, without reasonable excuse, failed
to securethecompliance
of the bank with any provision of this Act; or
(c)
has failed to discharge any of the
duties of his office,
the Authority may, if it thinks it
necessary in the public interest or for the protection of depositors
of the bank, by notice in writing to the bank, direct the bank to
remove the director from office or employment within such period
as may be specified by the Authority in the notice, and the bank
shall comply with the notice.
(3)
Without prejudice
to any other matter that the Authority may consider relevant, the
Authority shall, in determining whether a director of a bank has
failed to discharge the duties of his office for the purposes of
subsection (2) (c), have regard to such criteria
as may be prescribed.
(4)
Before directing
a bank to remove its director under subsection (2), the Authority
shall —(a)
give the bank and the director notice
in writing of its intention to do so; and
(b)
in the notice referred to in paragraph
(a), call upon the bank and the director to
show cause, within such time as may be specified by the Authority
in the notice, why the director should not be removed.
(5)
If the bank and
the director referred to in subsection (4) —(a)
fail to show cause within the time
specified in a notice issued under subsection (4) or within such
extended period of time as the Authority may allow; or
(b)
fail to show sufficient cause,
the Authority may direct the bank to
remove the director under subsection (2).
(6)
Any bank which,
or any director of a bank who, is aggrieved by a direction of the
Authority under subsection (2) may, within 30 days of the direction,
appeal in writing to the Minister whose decision shall be final.
(7)
Any person who
contravenes subsection (1) shall be guilty of an offence and shall
be liable on conviction to a fine not exceeding $125,000
or to imprisonment for a term not exceeding 3 years or to both and,
in the case of a continuing offence, to a further fine not exceeding $12,500
for every day or part thereof during which the offence continues
after conviction.
(8)
Any bank which
fails to comply with a notice issued under subsection (2) 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.
(9)
No criminal or
civil liability shall be incurred by a bank, or any person acting on
behalf of the bank, in respect of anything done or omitted to be
done with reasonable care and in good faith in the discharge or
purported discharge of the obligations of the bank under this section.
Notices to banks
55.
—(1)
The
Authority may, if it appears to the Authority to be necessary or
expedient in the public interest, or in the interest of depositors
or the financial system in Singapore, by notice in writing to a
bank in Singapore or a class of banks in Singapore give directions
or impose requirements on or relating to the operations or activities of,
or the standards to be maintained by, the bank or banks.
(2)
Without prejudice to the generality
of subsection (1), any notice under that subsection may be given
in respect of —(a)
the revaluation of the assets of
banks;
(b)
the maintenance of credit files of
borrowers and the grading of loans;
(c)
the prohibition or control of the
sale of commemorative coins or medals;
(d)
the deposit of specified securities
with authorised depositaries;
(e)
the issue of Singapore dollar negotiable
certificates of deposit;
(f)
prior notification to the Authority
of changes in interest rates and minimum lending rates of banks;
(g)
restrictions on the granting of Singapore
dollar credit facilities in whatever form or by whatever means to
residents of Singapore where such facilities are to be used outside
Singapore, or to non-residents;
(h)
the
appointment or removal of chief executives, deputy chief executives and
other principal officers of a bank incorporated outside Singapore;
(i)
the maintenance of a register of
dealers of a bank;
(j)
the terms and conditions for the
operation of a bank’s current and other accounts with the
Authority;
(k)
the manner in which a bank conducts
its dealings with its customers, the procedures for the reporting
of transactions between a bank and its employees, and conflicts
of interest involving a bank and its employees or involving a bank
and its customers;
(l)
the maximum aggregate permissible
percentage holdings by any class, category or description of persons
of interests in shares of a bank incorporated in Singapore;
(m)
the limits for the total amount of
foreign exchange transactions which a bank incorporated in Singapore
may undertake and for this purpose the limits may be applied uniformly
to all such banks or separate limits may be determined for any particular
bank incorporated in Singapore or for 2 or more of such banks;
(n)
the opening of new branches of a
bank and the change of location of any place of business of a bank;
(o)
the installation of automated teller
machines by a bank;
(p)
the provision for and the writing-off
of bad debts;
(q)
any audit of a Singapore branch of
a bank by an internal auditor from its head office which is outside
Singapore;
(r)
the forms, returns and submissions
of statistics for the purposes of this Act.
[28/93;23/2001]
(3)
A
bank in Singapore shall comply with any direction given to the bank
or any requirement imposed on the bank by any notice issued under
this Act.
(4)
For the avoidance of doubt, any notice
in writing issued under this Act shall be deemed not to be subsidiary
legislation.
[54A
[23/2001]