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Interpretation of this Part
168. In this Part, unless the context otherwise requires —“book” has the meaning given by section 17; “licensee” has the meaning given by section 136(1); “prescribed financial institution” has the meaning given by section 28B;[Act 19 of 2023 wef 01/04/2024] “relevant person” means a person mentioned in section 169(1)(a), (ba), (c), (e) or (f).[Act 19 of 2023 wef 01/04/2024]
Inspection by Authority
169.—(1) The Authority may from time to time inspect, under conditions of secrecy, the books of any of the following persons: (a) a financial institution, for the purpose of determining the extent of compliance by the financial institution with the directions issued under, and the regulations mentioned in, sections 15(1) and 16(1); (b) any subsidiary, branch, agency or office outside Singapore of a financial institution incorporated or established in Singapore, for the purpose of determining the extent of compliance by the financial institution with the directions issued under, and the regulations mentioned in, sections 15(1) and 16(1); (ba) a prescribed financial institution (A) —(i) where A requests risk information from another prescribed financial institution purportedly under section 28D, for the purpose of —(A) determining whether the request falls within section 28D(1); or (B) determining whether A has complied with section 28D(2) or (3); (ii) where a prescribed financial institution requests risk information from A under section 28D, for the purpose of determining whether A has complied with section 28D(6) or (7); (iii) where A discloses to another prescribed financial institution any risk information purportedly under section 28E, for the purpose of —(A) determining whether the disclosure falls within section 28E(1); or (B) determining whether A has complied with section 28E(2); (iv) where A publishes risk information purportedly under section 28F, for the purpose of —(A) determining whether all the conditions mentioned in section 28F(1) have been satisfied; or (B) determining whether A has complied with section 28F(2); (v) for the purpose of determining whether A has made any false or misleading disclosure, publication or correction in contravention of section 28J; or (vi) for the purpose of determining whether A has complied with section 28G(2), 28K(1) or 28N(2) or a requirement of a written notice issued under section 28H;[Act 19 of 2023 wef 01/04/2024] (c) a financial institution, for the purpose of determining the extent of compliance by the financial institution with the directions issued under, and the regulations mentioned in, section 29(1); (d) any subsidiary, branch, agency or office outside Singapore of a financial institution incorporated or established in Singapore, for the purpose of determining the extent of compliance by the financial institution with the directions issued under, and the regulations mentioned in, section 29(1); (e) a licensee, for a purpose other than the purpose mentioned in sub‑paragraph (a) or (c); (f) a person exempt under section 189, for a purpose other than the purpose mentioned in sub‑paragraph (a) or (c). (2) The Authority may appoint any person, including an auditor (not being an auditor of the relevant person), to carry out an inspection under this section. (3) If the inspection is carried out on the ground that the Authority has reason to believe that —(a) the financial institution has contravened or is contravening any direction issued under, or regulations mentioned in, section 15, 16 or 29; (b) the licensee has contravened or is contravening any provision of Part 9; or (c) the person exempt under section 189 has contravened or is contravening any provision of Part 9, and if the Authority so directs, then the financial institution, licensee or person exempt under section 189 (as the case may be) is liable to pay for the remuneration and expenses of any person appointed under subsection (2) for the inspection. (4) The Authority may recover from the relevant person the remuneration and expenses referred to in subsection (3) as a civil debt due to the Authority. (5) The Authority may waive the payment of all or any part of the remuneration and expenses referred to in subsection (3). (6) Where, in the course of an inspection under subsection (1), the Authority obtains any protected information as defined in section 17(1), and that information is not necessary for taking any action regarding —(a) non-compliance with any direction issued under, or regulations mentioned in, section 15 or 16; (aa) non-compliance with any provision in Part 4A;[Act 19 of 2023 wef 01/04/2024] (b) non-compliance with any direction issued under, or regulations mentioned in, section 29; or (c) non-compliance with any provision in Part 9, then the Authority must treat that information as secret. (7) Subsection (6) does not prevent the transmission under section 20, 22, 25 or 172 by the Authority of any information to any authority referred to in the applicable section.
Obligation of relevant person under inspection, etc.
170.—(1) For the purposes of an inspection under section 169(1), a relevant person must —(a) give the Authority access to such of the books of the relevant person as the Authority may reasonably require to conduct the inspection; (b) procure any other person who is in possession of such of the books of the relevant person as the Authority may reasonably require to conduct the inspection, to give the Authority access to the books; (c) provide such information (including information relating to the internal control systems of the relevant person) and facilities as the Authority may reasonably require to conduct the inspection; and (d) procure any other person who is in possession of such information (including information relating to the internal control systems of the relevant person) and facilities as the Authority may reasonably require to conduct the inspection, to provide the information and facilities to the Authority. (2) Subsection (1) has effect despite any obligation of confidentiality or other restrictions on the disclosure of information imposed on the relevant person or any of its officers, or on any person referred to in subsection (1)(b) or (d), by any prescribed written law as defined in section 17(1) or any requirement imposed under any such written law, any rule of law, any contract or any rule of professional conduct. (3) A relevant person that, without reasonable excuse, refuses or neglects to comply with 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. (4) No civil or criminal liability is incurred by a relevant person or any of its officers, or by any person referred to in subsection (1)(b) or (d), in respect of any obligation or restriction referred to in subsection (2), for doing or omitting to do any act, if the act is done or omitted to be done with reasonable care and in good faith and for the purpose of complying with subsection (1). (5) A relevant person, or any of its officers, or any person referred to in subsection (1)(b) or (d), that, with reasonable care and in good faith, does or omits to do any act for the purpose of complying with subsection (1) is not to be treated as being in breach of any obligation or restriction referred to in subsection (2). (6) For the purposes of an inspection under section 169(1), the Authority may —(a) make copies of, or take possession of, any such books; (b) use, or permit the use of, any such books for the purposes of any proceedings under this Act; and (c) subject to subsection (8), retain possession of any such books for so long as is necessary —(i) for the purposes of exercising a power conferred by this section; (ii) for a decision to be made on whether or not proceedings should be commenced under this Act in relation to such books; or (iii) for such proceedings to be commenced and carried on. (7) A person is not entitled, as against the Authority, to claim a lien on any of the books, but such a lien is not otherwise prejudiced. (8) While the books are in the possession of the Authority, the Authority —(a) must permit another person to inspect at all reasonable times such (if any) of the books as the other person would be entitled to inspect if they were not in the possession of the Authority; and (b) may permit another person to inspect any of the books. (9) The Authority may require a person that produced any book to the Authority to explain, to the best of the person’s knowledge and belief, any matter about the compilation of the book or to which the book relates. (10) A person that, without reasonable excuse, fails to comply with a requirement of the Authority under subsection (9) shall be guilty of an offence and shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to 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, 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.
Confidentiality of inspection reports
171.—(1) Except as provided in subsection (2), where a written report has been produced in respect of a relevant person by the Authority following an inspection under section 169(1), the report must not be disclosed to any other person by —(a) the relevant person; or (b) any officer or auditor of the relevant person. (2) Disclosure of the report may be made —(a) by the relevant person to any officer or auditor of that relevant person solely in connection with the performance of the duties of the officer or auditor (as the case may be) in that relevant person; (b) by any officer or auditor of the relevant person to any other officer or auditor of that relevant person, solely in connection with the performance of their respective duties in that relevant person; or (c) to such other person as the Authority may approve in writing. (3) In granting approval for any disclosure under subsection (2)(c), the Authority may impose such conditions or restrictions as the Authority thinks fit on the relevant person, any officer or auditor of that relevant person or the person to whom disclosure is approved, and that relevant person, officer, auditor or person (as the case may be) must comply with those conditions or restrictions. (4) The obligations of an officer or auditor under subsections (1) and (3) continue after the termination or cessation of the employment or appointment of the officer or auditor by the relevant person. (5) A person who contravenes subsection (1), or fails to comply with any condition or restriction imposed by the Authority under subsection (3), shall be guilty of an offence and shall be liable on conviction —(a) in any case where the person is 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. (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 the person in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction —(a) in any case where the person is 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. (7) Where a person is charged with an offence under subsection (6), it is a defence for the person to prove that —(a) the disclosure was made contrary to the person’s desire; (b) where the disclosure was made in any written or printed form — the person had as soon as practicable after receiving the report surrendered, or taken all reasonable steps to surrender, the report and all copies of the report to the Authority; and (c) where the disclosure was made in an electronic form — the person had, as soon as practicable after receiving the report, taken all reasonable steps to ensure the deletion of all electronic copies of the report and the surrender of the report and all copies of the report in other forms to the Authority.
Authority may transmit information from inspection to corresponding authority
172.—(1) The Authority or any person authorised by the Authority may, on the Authority’s own motion, and subject to the satisfaction of such conditions as the Authority may determine, transmit any information obtained by the Authority from an inspection under section 169(1) to a corresponding authority as defined in section 17(1) of a foreign country that exercises consolidated supervision authority (whether or not for compliance with any AML/CFT requirement as defined in section 17(1)) over the relevant person to which the inspection relates. (2) Subsection (1) applies despite the provisions of any prescribed written law as defined in section 17(1) or any requirement imposed under any such written law, any rule of law, any contract or any rule of professional conduct, and does not affect section 25 or any other written law or rule of law authorising the Authority, or a person authorised by the Authority, to disclose information in the Authority’s or the person’s possession to another person.
Self-incrimination
173.—(1) A person is not excused from disclosing information to the Authority pursuant to a requirement made of the person under this Part on the grounds that the disclosure of the information might tend to incriminate the person. (2) Where a person claims, before making a statement disclosing information that the person is required to disclose by such requirement, that the statement might tend to incriminate the person, that statement is not admissible in evidence against the person in criminal proceedings other than proceedings for an offence under section 176(4).
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