§ 8 — Effect of prohibition orders

8.—(1) A person against whom a prohibition order is made must comply with the prohibition order.(2) Where a prohibition order is made against a person (A), a financial institution must not employ or enter into any arrangement with A, or use A’s service, whether directly or indirectly —(a)

to carry on any activity or business, or provide any service, the carrying on or provision (as the case may be) of which is regulated or authorised by the Authority; or

(b)

to perform any relevant function,

to the extent that the activity, business, service or relevant function is prohibited by the order.

(3) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 or to imprisonment for a term not exceeding 2 years or to both.

(4) A financial institution that contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.

(5) Where a financial institution is charged with an offence for contravening subsection (2) for indirectly employing or entering into an arrangement with A or indirectly using A’s service, to carry on any activity or business, or provide any service, the carrying on or provision of which is regulated or authorised by the Authority, or to perform any relevant function, that is prohibited by a prohibition order made against A, it is a defence for the financial institution to prove —(a)

that the financial institution took all reasonable steps to ensure compliance with subsection (2); and

(b)

after doing so, believed on reasonable grounds, that it is not and will not be indirectly employing or entering into an arrangement with, or indirectly using the services of, any person to carry on any activity or business, provide any service, or perform the relevant function, where the person is prohibited by a prohibition order made against the person from carrying on the activity or business, providing the service, or performing the relevant function.

(6) Any person against whom a prohibition order has been issued prohibiting the person from —(a)

carrying on any activity or business, or providing any service the carrying on, or provision (as the case may be) of which is regulated or authorised by the Authority; or

(b)

performing any relevant function,

must (by written notice) immediately inform all its representatives or appointees who, for or on behalf of the person, carry on the activity or business, provide the service or perform the relevant function, of the prohibition order and the period for which the prohibition order is to be in force.

(7) Any representative or appointee to whom notice of the prohibition order is given under subsection (6) must cease to carry on any activity or business, provide any service or perform any relevant function, for or on behalf of the person against whom the prohibition order was issued to the same extent that that person is prohibited from carrying on that activity or business, providing that service, or performing that relevant function under the prohibition order.

(8) A person who contravenes subsection (6) or (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction.

(9) A prohibition order does not operate so as to —(a)

avoid or affect any agreement, transaction or arrangement entered into by the person against whom the order is made, whether the agreement, transaction or arrangement was entered into before, on or after the issue of the prohibition order; or

(b)

affect any right, obligation or liability arising under any such agreement, transaction or arrangement.

—(1) A person against whom a prohibition order is made must comply with the prohibition order.

(2) Where a prohibition order is made against a person (A), a financial institution must not employ or enter into any arrangement with A, or use A’s service, whether directly or indirectly —(a)

to carry on any activity or business, or provide any service, the carrying on or provision (as the case may be) of which is regulated or authorised by the Authority; or

(b)

to perform any relevant function,

to the extent that the activity, business, service or relevant function is prohibited by the order.

(3) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 or to imprisonment for a term not exceeding 2 years or to both.

(4) A financial institution that contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.

(5) Where a financial institution is charged with an offence for contravening subsection (2) for indirectly employing or entering into an arrangement with A or indirectly using A’s service, to carry on any activity or business, or provide any service, the carrying on or provision of which is regulated or authorised by the Authority, or to perform any relevant function, that is prohibited by a prohibition order made against A, it is a defence for the financial institution to prove —(a)

that the financial institution took all reasonable steps to ensure compliance with subsection (2); and

(b)

after doing so, believed on reasonable grounds, that it is not and will not be indirectly employing or entering into an arrangement with, or indirectly using the services of, any person to carry on any activity or business, provide any service, or perform the relevant function, where the person is prohibited by a prohibition order made against the person from carrying on the activity or business, providing the service, or performing the relevant function.

(6) Any person against whom a prohibition order has been issued prohibiting the person from —(a)

carrying on any activity or business, or providing any service the carrying on, or provision (as the case may be) of which is regulated or authorised by the Authority; or

(b)

performing any relevant function,

must (by written notice) immediately inform all its representatives or appointees who, for or on behalf of the person, carry on the activity or business, provide the service or perform the relevant function, of the prohibition order and the period for which the prohibition order is to be in force.

(7) Any representative or appointee to whom notice of the prohibition order is given under subsection (6) must cease to carry on any activity or business, provide any service or perform any relevant function, for or on behalf of the person against whom the prohibition order was issued to the same extent that that person is prohibited from carrying on that activity or business, providing that service, or performing that relevant function under the prohibition order.

(8) A person who contravenes subsection (6) or (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction.

(9) A prohibition order does not operate so as to —(a)

avoid or affect any agreement, transaction or arrangement entered into by the person against whom the order is made, whether the agreement, transaction or arrangement was entered into before, on or after the issue of the prohibition order; or

(b)

affect any right, obligation or liability arising under any such agreement, transaction or arrangement.