Auditing
Open ↗58.—(1) Despite the provisions of the Companies Act 1967, every bank must —(a)
on an annual basis, appoint an auditor and obtain the approval of the Authority to such appointment; and
(b)
where, for any reason, the auditor ceases to act for the bank, as soon as practicable thereafter, appoint another auditor and obtain the approval of the Authority to such appointment.[5/2016]
(2) An auditor must not be approved by the Authority as an auditor for a bank unless the auditor is able to comply with such conditions in relation to the discharge of the auditor’s duties as the Authority may determine.[5/2016]
(3) The Authority may appoint an auditor —(a)
if the bank fails to appoint an auditor; or
(b)
if it considers it desirable that another auditor should act with the auditor appointed under subsection (1),
and may at any time fix the remuneration to be paid by the bank to that auditor.
(4) The duties of an auditor appointed under subsections (1) and (3) are —(a)
to carry out, for the year in respect of which the auditor is appointed, an audit of the accounts of the bank; and
(b)
to —(i)
in the case of a bank incorporated in Singapore, make a report in respect of its latest financial statements or, where the bank is a parent company for which consolidated financial statements are prepared, consolidated financial statements, in accordance with section 207 of the Companies Act 1967; or
(ii)
in the case of a bank incorporated outside Singapore, make a report on its latest annual balance sheet and profit and loss account together with any notes thereon showing the assets and liabilities and profit or loss arising out of the bank’s operations in Singapore which complies with section 207 of the Companies Act 1967.[35/2014]
(5) The Authority may, by written notice, impose all or any of the following duties on an auditor in addition to those provided under subsection (4):(a)
a duty to submit such additional information in relation to the auditor’s audit as the Authority considers necessary;
(b)
a duty to enlarge or extend the scope of the auditor’s audit of the business and affairs of the bank;
(c)
a duty to carry out any other examination or establish any procedure in any particular case;
(d)
a duty to submit a report on any of the matters mentioned in paragraphs (b) and (c).[5/2016]
(5A) An auditor to whom a notice is given under subsection (5) must comply with each direction specified in the notice.[5/2016]
(6) The bank must remunerate the auditor in respect of the discharge by the auditor of all or any of the additional duties mentioned in subsection (5).
(6A) Despite any other provision of this Act or the provisions of the Companies Act 1967, the Authority may, if it is not satisfied with the performance of any duty by an auditor of a bank, at any time —(a)
direct the bank to remove the auditor; and
(b)
direct the bank to appoint another auditor approved by the Authority, as soon as practicable after the removal,
and the bank must comply with the directions.
[5/2016]
(7) The auditor’s report made under subsection (4) must be attached to the balance sheet and the profit and loss account, the financial statements or the consolidated financial statements (as the case may be) and a copy thereof together with any report submitted under subsection (5) must be transmitted in writing to the Authority.
(8) If an auditor, in the course of the performance of the auditor’s duties as an auditor of a bank, is satisfied that —(a)
there has been a serious breach or non‑observance of the provisions of this Act or that otherwise a criminal offence involving fraud or dishonesty has been committed;
(b)
in the case of a bank incorporated in Singapore — losses have been incurred which reduce the capital funds of the bank by at least 50%;
(c)
serious irregularities have occurred, including irregularities that jeopardise the security of the creditors of the bank;
(d)
the auditor is unable to confirm that the claims of creditors of the bank are still covered by the assets; or
(e)
any development has occurred or is likely to occur which has materially and adversely affected, or is likely to materially and adversely affect, the financial soundness of the bank,
the auditor must immediately report the matter to the Authority.
[5/2016; 1/2020]
(9) In this section, “consolidated financial statements” and “financial statements” have the meanings given by section 209A of the Companies Act 1967.[35/2014]
(10) Where an auditor discloses in good faith to the Authority —(a)
any information mentioned in subsection (5)(a) or report mentioned in subsection (5)(d);
(b)
any of the matters mentioned in subsection (8); or
(c)
any information in support of that matter,
the disclosure is not to be treated as a breach of any restriction on the disclosure imposed by any law, contract or rules of professional conduct, and the auditor is not liable for any loss arising from the disclosure or any act or omission as a result of the disclosure.
[5/2016]
(11) A bank which 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 of a day during which the offence continues after conviction.[5/2016]
(12) A bank which fails to comply with a direction under subsection (6A) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.[5/2016]
(13) Any auditor who fails to carry out any duty mentioned in subsection (4), or who fails to comply with subsection (5A) or (8), 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 of a day during which the offence continues after conviction.[5/2016]
(14) This section applies to or in relation to a merchant bank, a merchant bank incorporated in Singapore and a merchant bank incorporated outside Singapore as the section applies to or in relation to a bank, a bank incorporated in Singapore and a bank incorporated outside Singapore.[1/2020]
Clearing House settlements and control over Clearing House
Open ↗59. In order to facilitate the clearing of cheques and other credit instruments for banks, merchant banks and other financial institutions approved by the Authority, the Authority must, in conjunction with such banks, merchant banks and institutions, by regulations, establish a Clearing House.[1/2020]
Declaration of holidays
Open ↗60.—(1) The Authority may, at any time by notice published in the Gazette, declare any day or days as a bank holiday or holidays, and prohibit banks in Singapore or merchant banks in Singapore from conducting, during the bank holiday or holidays —(a)
such activities as may be specified in the notice; or
(b)
all activities other than such activities as may be specified in the notice.[5/2016; 1/2020]
(2) [Deleted by Act 5 of 2016]
(3) A bank holiday declared under subsection (1) is not necessarily a public holiday and nothing in this section affects any written law which may from time to time be in force in Singapore relating to public holidays.
(4) Any reference to a bank holiday in any written law which is in force in Singapore includes —(a)
any day declared to be a bank holiday under this section; and
(b)
any day which is a public holiday within the meaning of any written law which is in force in Singapore relating to public holidays.
(5) Any bank or merchant bank which contravenes any prohibition under a notice mentioned in 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 of a day during which the offence continues after conviction.[5/2016; 1/2020]
(6) In this section, “day” includes a part of a day.[5/2016]
Priority of specified liabilities
Open ↗61.—(1) Where a bank becomes unable to meet its obligations or becomes insolvent or suspends payment, the assets of that bank in Singapore are available to meet all liabilities in Singapore of the bank specified in section 62(1).
(2) The liabilities in Singapore of the bank specified in section 62(1) have priority over all unsecured liabilities of the bank other than the preferential debts specified in section 203(1) of the Insolvency, Restructuring and Dissolution Act 2018.[40/2018]
Priority of specified liabilities inter se
Open ↗62.—(1) Despite the provisions of any written law or rule of law relating to the winding up of companies, in the event of a winding up of a bank, the following liabilities in Singapore of the bank, among themselves, rank in the following order of priority:(a)
firstly, any premium contributions due and payable by the bank under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011;
(b)
secondly, liabilities incurred by the bank in respect of insured deposits, up to the amount of compensation paid or payable out of the DI Fund by the Agency under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 in respect of such insured deposits;
(c)
thirdly, deposit liabilities incurred by the bank with non‑bank customers other than those specified in paragraph (b), which are incurred —(i)
in Singapore dollars; or
(ii)
on terms under which the deposit liabilities may be discharged by the bank in Singapore dollars;
(d)
fourthly, deposit liabilities incurred by the bank with non‑bank customers other than liabilities mentioned in paragraphs (b) and (c);
(e)
fifthly, any sum claimed by the trustee of a resolution fund within the meaning of section 107 of the Financial Services and Markets Act 2022 from the bank under section 112, 113, 114 or 115 of that Act.[15/2011; 5/2016; 31/2017; 1/2020]
[Act 18 of 2022 wef 10/05/2024]
(2) The liabilities in each class specified in subsection (1) —(a)
rank in the order specified in subsection (1) but as between liabilities of the same class rank equally between themselves; and
(b)
be paid in full unless the assets of the bank are insufficient to meet them in which case they abate in equal proportions between themselves.
(3) For the purposes of this section, “deposit liabilities”, in relation to a bank, means the liabilities of the bank in respect of —(a)
sums of money paid to the bank on terms —(i)
under which they will be repaid, with or without interest or at a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the persons making the payments and the bank; and
(ii)
which are not referable to the provision of property or services or to the giving of security; and
(b)
such other product as may be prescribed,
but does not include —
(c)
in the case of a bank incorporated in Singapore, liabilities of the bank arising from loans —(i)
granted by creditors whose claims are fully subordinated to the claims of all un-subordinated creditors; and
(ii)
the terms of which comply with the criteria for the treatment of the liabilities as capital in determining whether the bank complies with the capital adequacy requirements under section 10, whether or not the entire amount of such liabilities is treated as capital in the determination; and
(d)
liabilities of the bank in respect of such other product as may be prescribed.[5/2016; 1/2020]
(4) For the purposes of subsection (3)(a)(ii), money is paid on terms which are referable to the provision of property or services or to the giving of security if, and only if —(a)
it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided;
(b)
it is paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of the contract; or
(c)
it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.
(4A) To avoid doubt, any liability of a bank excluded from the definition of “deposit liabilities” in subsection (3) ranks pari passu with all other unsecured liabilities of the bank.[1/2020]
(5) In this section, “Agency”, “DI Fund” and “insured deposit” have the same respective meanings as in section 2(1) of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011.[15/2011]
Priorities for set-off in winding up of bank
Open ↗62A.—(1) Despite any written law or rule of law relating to the winding up of companies, in the event of the winding up of a bank in Singapore, a liquidator must first set‑off a depositor’s liabilities to the bank against any deposit of the depositor placed with the bank that is accepted —(a)
in Singapore dollars; or
(b)
on terms under which the deposit may be repaid by the bank in Singapore dollars.[1/2020]
(2) In this section, “deposit” means —(a)
a sum of money paid on terms —(i)
under which it will be repaid, with or without interest or a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and
(ii)
which are not referable to the provision of property or services or to the giving of security; and
(b)
any other prescribed product.[1/2020]
Priority of specified liabilities for merchant banks
Open ↗62B.—(1) Where a merchant bank becomes unable to meet its obligations, becomes insolvent or suspends payment, the assets of that merchant bank in Singapore are available to meet all liabilities in Singapore of the merchant bank specified in subsection (3).[1/2020]
(2) The liabilities in Singapore of the merchant bank specified in subsection (3) have priority over all unsecured liabilities of the merchant bank other than preferential debts specified in section 328(1) of the Companies Act 1967.[1/2020]
(3) Despite the provisions of any written law or rule of law relating to the winding up of companies, in the event of the winding up of a merchant bank, the following liabilities in Singapore of the merchant bank rank in the following order of priority:(a)
firstly, any deposit liabilities incurred by the merchant bank with non‑bank customers;
(b)
secondly, any sum claimed by the trustee of a resolution fund within the meaning of section 107 of the Financial Services and Markets Act 2022 from the merchant bank under section 112, 113, 114 or 115 of that Act.[1/2020]
[Act 18 of 2022 wef 10/05/2024]
(4) The liabilities in each paragraph specified in subsection (3) —(a)
rank in the order specified in that subsection, but as between all liabilities that fall within the same paragraph of that subsection, such liabilities rank equally between themselves; and
(b)
must be paid in full unless the assets of the merchant bank in Singapore are insufficient to meet them in which case the liabilities abate in equal proportions between themselves.[1/2020]
(5) For the purposes of this section, “deposit liabilities” has the meaning given in section 62(3) and (4) with each reference to a bank substituted with a merchant bank.[1/2020]
(6) To avoid doubt, any liability of a merchant bank excluded from the definition of “deposit liabilities” in section 62(3) and (4) as applied by subsection (5) ranks pari passu with all other unsecured liabilities of the merchant bank.[1/2020]
Redemption of securities held by bank or merchant bank under liquidation
Open ↗63.—(1) As soon as practicable after the making of an order for the winding up of a bank, the liquidator of the bank must —(a)
publish in the Gazette a notice requiring every debtor of the bank to redeem any property the debtor has deposited with the bank as security for any loan that the debtor has obtained from the bank; and
(b)
send by registered post the notice to every debtor whose security is held by the bank and whose name is mentioned in the statement of affairs made out under section 141 of the Insolvency, Restructuring and Dissolution Act 2018.[40/2018; 1/2020]
(2) The notice must specify the latest date up to which any security may be redeemed, which date must not be less than 3 months from the date of the notice.
(3) This section applies to or in relation to a merchant bank as it applies to or in relation to a bank.[1/2020]
Execution of instruments under seal
Open ↗64.—(1) Despite anything in the articles of association or regulations of any bank incorporated in Singapore with respect to the execution of instruments under its seal, but without affecting anything in those articles or regulations not inconsistent with this section, the seal of the bank must not be affixed to any instrument except in the presence of a director of the bank and of one other person being either a director or an officer of the bank duly authorised in that behalf.
(2) The director and that other person as mentioned in subsection (1) must sign every instrument to which the seal of the company is so affixed in their presence.
(3) This section applies to or in relation to a merchant bank incorporated in Singapore as it applies to or in relation to a bank incorporated in Singapore.[1/2020]
Power of Authority to secure compliance with Act
Open ↗65.—(1) A bank in Singapore, if called upon at any time by the Authority in writing to do so, must satisfy the Authority by the production of such evidence or information as the Authority may require, that the bank is not in contravention of any of the provisions of, or any regulation, notice or direction made or issued under, section 10, 10A, 10C, 23, 27, 29, 29A, 31, 32, 33, 35, 38, 39, 40, 42 or this section.[5/2016; 1/2020]
(2) Without affecting sections 10, 10A, 10C, 23, 27, 29, 29A, 31, 32, 33, 35, 38, 39, 40 and 42 or any other subsection of this section, the Authority may, for the purpose of securing compliance with any of those provisions, or any regulation, notice or direction made or issued under any of those sections (other than this section), on a consolidated basis, from time to time by written notice, require any bank to aggregate, in such manner as may be specified in the notice —(a)
its assets, liabilities, profits or losses, and any other information whether or not on its balance sheet; and
(b)
the assets, liabilities, profits or losses, and any other information whether or not on the balance sheets of —(i)
the bank’s related corporations; and
(ii)
the entities in which the bank holds, directly or indirectly, a major stake as defined in section 32(7).[5/2016; 1/2020]
(3) A notice under subsection (2) may vary a requirement of a notice issued under any of the sections mentioned in that subsection.[5/2016]
(4) The bank must comply with the notice under subsection (2) within such time as may be specified in the notice.[5/2016]
(5) Any bank which fails to comply with a requirement of the Authority under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.[5/2016]
(6) Any bank which contravenes subsection (4) shall be guilty of an offence and shall be liable on conviction to the same punishment as that provided for a contravention of the section of this Act, or of a notice or direction under the section of this Act, for the compliance with which the notice was given.[5/2016]
Power of Authority to secure compliance by merchant bank
Open ↗65A.—(1) A merchant bank in Singapore must, if notified in writing at any time by the Authority to do so, produce any evidence or information that the Authority may require, to satisfy the Authority that the merchant bank is not in contravention of any of the provisions of, or any regulation, notice or direction made or issued under —(a)
sections 10, 10A and 10C as applied by section 55ZB(1);
(b)
section 55ZC;
(c)
section 27 as applied by section 55ZD(2), read with the Fifth Schedule as applied by section 55ZL;
(d)
section 55ZE;
(e)
section 29A as applied by section 55ZF(1), read with the Fifth Schedule as applied by section 55ZL;
(f)
section 32 as applied by section 55ZF(2);
(g)
section 35 read with section 55ZF(3);
(h)
section 38 as applied by section 55ZG(1), read with the Fifth Schedule as applied by section 55ZL;
(i)
section 40 as applied by section 55ZG(2);
(j)
section 42 as applied by section 55ZJ(1); or
(k)
this section.[1/2020]
(2) Without affecting any of the provisions mentioned in subsection (1)(a) to (j), the Authority may, for the purpose of securing compliance with any of those provisions, or any regulation, notice or direction made under any of those provisions, on a consolidated basis, from time to time by written notice, require any merchant bank to aggregate, within the time and in the manner specified in the notice —(a)
the merchant bank’s assets, liabilities, profits or losses, and any other information whether or not on its balance sheet; and
(b)
the assets, liabilities, profits or losses, and any other information whether or not on the balance sheets of —(i)
any of the merchant bank’s related corporations; and
(ii)
any entity in which the merchant bank holds, directly or indirectly, a major stake within the meaning of section 55ZF(2)(a).[1/2020]
(3) A notice under subsection (2) may vary a requirement of a notice issued under any of the provisions mentioned in subsection (1)(a) to (j).[1/2020]
(4) Any merchant bank that fails to comply with a requirement of the Authority under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.[1/2020]
(5) Any merchant bank that fails to comply with a requirement of the Authority under subsection (2) shall be guilty of an offence and shall be liable on conviction to the same punishment as that provided for a contravention of the section of this Act, or of a notice or direction under the section of this Act, for the compliance with which the notice was given.[1/2020]
Offences by directors or executive officers and false or misleading information
Open ↗66.—(1) Subject to subsection (5), any director or executive officer of a bank in Singapore or merchant bank in Singapore who fails to take all reasonable steps to secure compliance by the bank or merchant bank (as the case may be) with any provision of this Act or any other written law applicable to banks in Singapore or merchant banks in Singapore (as the case may be) shall, if such failure is not already an offence under any other provision of this Act, 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.[1/2020]
(2) Any person who —(a)
provides any information or document to the Minister or the Authority under or for the purposes of any provision of this Act which is false or misleading in a material particular; and
(b)
does not use reasonable care to ensure that the information or document is not false or misleading in any material particular,
shall, if the provision of such information or document which is false or misleading in a material particular is not already an offence under any other provision of this Act, be guilty of an offence and shall be liable on conviction —
(c)
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
(d)
in any other case, to a fine not exceeding $250,000.[5/2016]
(3) In any proceedings against a person under subsection (1) or (2), it is a defence for the person to prove that —(a)
the person had reasonable grounds for believing that a competent and reliable person was charged with the duty of securing compliance with the provision of this Act or any other written law applicable to banks in Singapore or merchant banks in Singapore (as the case may be), or with the duty of ensuring that the information or document is not false or misleading in any material particular, as the case may be; and
(b)
the person was in a position to discharge that duty.[1/2020]
(4) A person shall not be sentenced to imprisonment for any offence under subsection (1) or (2) unless, in the opinion of the court, the person committed the offence wilfully.
(5) Despite subsection (1), no director or executive officer shall be guilty of an offence under that subsection where the non‑compliance by the bank or merchant bank with any provision of this Act or any other written law applicable to banks or merchant banks (as the case may be) results only in the imposition of a financial penalty on the bank or merchant bank, as the case may be.[1/2020]
Offences by directors, employees and agents
Open ↗67.—(1) Any director, executive officer, trustee, auditor, employee or agent of any bank in Singapore who —(a)
wilfully makes or causes to be made a false entry in any book of record or in any report, slip, document or statement of the business, affairs, transactions, conditions, assets or accounts of that bank;
(b)
wilfully omits to make an entry in any book of record or in any report, slip, document or statement of the business, affairs, transactions, conditions, assets or accounts of that bank, or wilfully causes any such entry to be omitted; or
(c)
wilfully alters, abstracts, conceals or destroys an entry in any book of record or in any report, slip, document or statement of the business, affairs, transactions, conditions, assets or accounts of that bank, or wilfully causes any such entry to be altered, abstracted, concealed or destroyed,
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.
[1/2020]
(2) Subsection (1) applies to any director, executive officer, trustee, auditor, employee or agent of a merchant bank in Singapore as the subsection applies to any director, executive officer, trustee, auditor, employee or agent of a bank in Singapore.[1/2020]
Composition of offences
Open ↗69.—(1) The Authority may compound any offence under this Act that is prescribed as a compoundable offence by collecting from a person reasonably suspected of having committed the offence a sum of money not exceeding one half of the amount of the maximum fine that is prescribed for the offence.
(1A) The Authority may compound any offence under this Act (including an offence under a provision which has been repealed) which —(a)
was compoundable under this section at the time the offence was committed; but
(b)
has ceased to be so compoundable,
by collecting from a person reasonably suspected of having committed the offence a sum of money not exceeding one half of the amount of the maximum fine prescribed for that offence at the time it was committed.
[10/2013]
(2) On payment of the sum of money mentioned in subsection (1) or (1A), no further proceedings are to be taken against that person in respect of the offence.[10/2013]
(3) The Authority may make regulations to prescribe the offences which may be compounded.
(4) All sums collected by the Authority under subsection (1) or (1A) must be paid into the Consolidated Fund.[10/2013]
Publication of information on banks and merchant banks
Open ↗70.—(1) The Authority is to publish and maintain on its website at all times, a list of banks and a list of merchant banks licensed under this Act.[5/2016; 1/2020]
(2) If any licence is issued, revoked or surrendered, or the name of any bank or merchant bank is changed, the Authority is to publish notice of this in the Gazette.[5/2016; 1/2020]
General penalty
Open ↗71. Any bank or merchant bank which contravenes any of the provisions of this Act for which no penalty is expressly provided 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 of a day during which the offence continues after conviction.[1/2020]
Offences triable in District Court
Open ↗72. Despite the provisions of any other written law, offences under this Act may be tried in a District Court, which has the power to impose the maximum penalty prescribed for any offence under this Act.
Consent of Public Prosecutor
Open ↗73. No prosecution in respect of any offence under this Act may be instituted except with the consent of the Public Prosecutor.[15/2010]
Recovery of fees, expenses, etc.
Open ↗74.—(1) There is recoverable as a civil debt due to the Authority from the bank concerned —(a)
the amount of any fees payable under sections 8 and 13; and
(b)
any remuneration and expenses payable by the bank to —(i)
an auditor appointed under sections 44A(3) and 46B(3);
(ii)
a statutory adviser appointed under section 49(2);
(iii)
a statutory manager appointed under section 49(2);
(iv)
the Authority or any person employed or authorised by the Authority under section 3 in relation to the Authority assuming control of any business of the bank under section 49; and
(v)
any person appointed to perform any independent assessment under Part 7A.[10/2013; 5/2016]
(1A) The Authority may recover as a civil debt due to the Authority from a merchant bank —(a)
the amount of any fees payable by the merchant bank under sections 8 and 13 as applied by section 55ZB(1); and
(b)
any remuneration and expenses payable by the merchant bank to —(i)
an auditor appointed under sections 44A(3) and 46B(3) as applied by section 55ZJ(1);
(ii)
a statutory adviser appointed under section 49(2)(b) as applied by section 55ZJ(1);
(iii)
a statutory manager appointed under section 49(2)(c) as applied by section 55ZJ(1);
(iv)
the Authority or any person employed or authorised by the Authority under section 3 in relation to the Authority assuming control of any business of the merchant bank under section 49 as applied by section 55ZJ(1); and
(v)
any person appointed to perform any independent assessment under section 55B(4) as applied by section 55ZK(1).[1/2020]
(1B) The Authority may recover on behalf of the Government —(a)
any financial penalty imposed under section 38(7) or 39(7) on a bank; or
(b)
any financial penalty imposed under section 38(7) as applied by section 55ZG(1) on a merchant bank,
as though the financial penalty were a civil debt due to the Authority.
[1/2020]
(2) Any remuneration and expenses payable by a licensee defined in section 56 to an auditor appointed under section 57F(5) is recoverable as a civil debt due to the Authority from the licensee.
(3) Despite any provision in the Limitation Act 1959, an action to recover any financial penalty recoverable by virtue of this section must not be brought after the end of 3 years from the date on which the cause of action accrued.
Power to refund, reduce, etc., financial penalty
Open ↗74A. The Authority may, of its own motion, review any financial penalty imposed on a bank under section 38(7) or 39(7) or on a merchant bank under section 38(7) as applied by section 55ZG(1), and decide —(a)
not to impose the financial penalty;
(b)
to reduce the financial penalty payable; or
(c)
where any financial penalty has been paid, to refund the whole or part of the amount paid.[1/2020]
Operation of this Act not to affect Companies Act 1967
Open ↗75.—(1) Nothing in this Act affects the operation of the Companies Act 1967, and any bank or merchant bank that is liable to be incorporated under that Act continues to be so liable as if this Act had not been passed.[1/2020]
(2) In case of conflict between the Companies Act 1967 and this Act, the provisions of this Act prevail unless otherwise provided in this Act.
Service of documents, etc.
Open ↗75A.—(1) Any notice, order or document required or authorised by this Act to be served on any person may be served —(a)
by delivering it to the person or to an adult member or employee of the person’s family or household at the person’s last known place of residence;
(b)
by leaving it at the person’s usual or last known place of residence or business in an envelope addressed to the person;
(c)
by sending it by registered post addressed to the person at the person’s usual or last known place of residence or business; or
(d)
in the case of a company, a partnership or body of persons —(i)
by delivering it to the secretary or other similar officer of the company, partnership or body of persons at its registered office or principal place of business; or
(ii)
by sending it by registered post addressed to the company, partnership or body of persons at its registered office or principal place of business.
(2) Any notice, order or document sent by registered post to any person in accordance with subsection (1) is deemed to be duly served on the person at the time when the notice, order or document, as the case may be, would in the ordinary course of post be delivered.
(3) When proving service of the notice, order or document mentioned in subsection (2), it is sufficient to prove that the envelope containing the notice, order or document (as the case may be) was properly addressed, stamped and posted by registered post.
Electronic service
Open ↗75B.—(1) The Authority may provide an electronic service for the service of any document that is required or authorised by this Act to be served on any person.
(2) For the purposes of the electronic service, the Authority may assign to any person —(a)
an authentication code; and
(b)
an account with the electronic service.
(3) Despite section 75A, where any person has given the person’s consent for any document to be served on the person through the electronic service, the Authority may serve the document on that person by transmitting an electronic record of the document to that person’s account with the electronic service.
(4) Where a person has given the person’s consent for a document to be served on the person through the electronic service, the document is deemed to have been served at the time when an electronic record of the document enters the person’s account with the electronic service.
(5) Despite any other written law, in any proceedings under this Act —(a)
an electronic record of any document that was served through the electronic service; or
(b)
any copy or print-out of that electronic record,
is admissible as evidence of the facts stated or contained therein if that electronic record, copy or print‑out —
(c)
is certified by the Authority to contain all or any information served through the electronic service in accordance with this section; and
(d)
is duly authenticated in the manner specified in subsection (7) or is otherwise authenticated in the manner provided in the Evidence Act 1893 for the authentication of computer output.
(6) To avoid doubt —(a)
an electronic record of any document that was served through the electronic service; or
(b)
any copy or print-out of that electronic record,
is not inadmissible in evidence merely because the document was served without the delivery of any equivalent document or counterpart in paper form.
(7) For the purposes of this section, a certificate —(a)
giving the particulars of —(i)
any person whose authentication code was used to serve the document; and
(ii)
any person or device involved in the production or transmission of the electronic record of the document, or the copy or print‑out thereof;
(b)
identifying the nature of the electronic record or copy or print‑out thereof; and
(c)
purporting to be signed by the Authority or by a person occupying a responsible position in relation to the operation of the electronic service at the relevant time,
is sufficient evidence that the electronic record, copy or print‑out has been duly authenticated, unless the court, in its discretion, calls for further evidence on this issue.
(8) Where the electronic record of any document, or a copy or print‑out of that electronic record, is admissible under subsection (5), it is presumed, until the contrary is proved, that the electronic record, copy or print‑out accurately reproduces the contents of that document.
(9) The Authority may make regulations which are necessary or expedient for carrying out the purposes of this section, including regulations prescribing the procedure for the use of the electronic service, including the procedure in circumstances where there is a breakdown or interruption of the electronic service.
(10) In this section —“account with the electronic service”, in relation to any person, means a computer account within the electronic service which is assigned by the Authority to that person for the storage and retrieval of electronic records relating to that person;
“authentication code”, in relation to any person, means an identification or identifying code, a password or any other authentication method or procedure which is assigned to that person for the purposes of identifying and authenticating the access to and use of the electronic service by that person;
“document” includes notice and order;
“electronic record” has the meaning given by section 2 of the Electronic Transactions Act 2010.
Exemption
Open ↗76. Nothing in this Act is to be construed so as to prevent any of the following persons from carrying on any activity or business (other than an activity or a business mentioned in Part 8) for which the person is registered or licensed under the following respective Act corresponding to that person:(a)
any business of pawnbroking carried on by a person licensed under the Pawnbrokers Act 2015;
(b)
any finance company licensed under the Finance Companies Act 1967.[23/2008; 2/2015]
Authority’s powers of exemption
Open ↗76A.—(1) The Authority may, by regulations, exempt any person or class of persons from all or any of the provisions of this Act, subject to such conditions as may be prescribed.
(2) The Authority may, on the application of any person, by written notice, exempt the person from all or any of the provisions of this Act or any direction issued or requirement imposed by the Authority under this Act if the Authority considers it appropriate to do so in the circumstances of the case.
(3) An exemption under subsection (2) —(a)
may be granted subject to such conditions as the Authority may specify by written notice; and
(b)
need not be published in the Gazette.
(4) The Authority may at any time —(a)
revoke any exemption granted; or
(b)
add to, vary or revoke any condition imposed,
under this section.
Amendment of Schedules
Open ↗77A.—(1) The Minister may by order in the Gazette, amend, add to or vary the Fourth or Fifth Schedule.
(2) The Minister may, in any order under subsection (1), make such incidental, consequential or supplementary provisions as may be necessary or expedient.
(3) Any order made under subsection (1) must be presented to Parliament as soon as possible after publication in the Gazette.
Regulations
Open ↗78.—(1) The Authority may, from time to time, make such regulations as may be necessary or expedient for carrying out the purposes and provisions of this Act and for prescribing anything that may be required or authorised to be prescribed by this Act.
(2) Without limiting subsection (1), regulations may be made for or with respect to the operations or activities of any person issuing a credit card or charge card including the minimum qualifying criteria for the issue of a credit card or charge card, the standards to be maintained in the conduct of the credit card or charge card business and the duties to be undertaken when soliciting or issuing a credit card or charge card.
(3) Without affecting subsection (1), regulations may be made for or with respect to —(a)
the corporate governance, and the appointment and removal of principal officers, of banks in Singapore or merchant banks in Singapore, their related corporations or other entities in which the banks or merchant banks acquire or hold (directly or indirectly) a major stake as defined in section 32(7) or section 55ZF(2)(a), as the case may be;
(b)
the prohibition or restriction on mutual holding of shares or other interests between the banks and their related corporations or other entities mentioned in paragraph (a), or between the merchant banks and their related corporations or other entities mentioned in paragraph (a); and
(c)
the risk management —(i)
of banks, whether or not relating to banking business; and
(ii)
of merchant banks, whether or not relating to a permitted business.[1/2020]
(4) Regulations made under this section may relate to all, or any class, category or description of persons, banks or merchant banks, and may make different provisions for different classes, categories or descriptions of persons, banks or merchant banks or to a particular person, bank or merchant bank or of general or specifically limited application.[1/2020]
(5) Except as otherwise expressly provided in this Act, regulations made under this section may provide that any contravention of any of those regulations is an offence punishable —(a)
in the case of an individual, with a fine not exceeding $50,000 or with imprisonment for a term not exceeding 2 years or with both and, in the case of a continuing offence, with a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction; or
(b)
in any other case, with a fine not exceeding $100,000 and, in the case of a continuing offence, with a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.[5/2016]
(6) Regulations made under subsection (3)(c) may provide that a contravention of any of those regulations shall be an offence punishable —(a)
in the case of an individual, with a fine not exceeding $125,000 or with imprisonment for a term not exceeding 3 years or with both and, in the case of a continuing offence, with a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or
(b)
in any other case, with a fine not exceeding $250,000 and, in the case of a continuing offence, with a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.[5/2016]
Transitional licensing provisions
Open ↗79. Despite sections 4 and 9, any bank specified in the First Schedule which on 1 January 1970 was carrying on banking business in Singapore is, as from 1 January 1971, granted a licence under this Act, which may be made subject to such conditions (if any) as are contained in any licence under which the bank was carrying on banking business in Singapore immediately before that date.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
