§ 27 — Power to stop payment of money held by financial institution

27.—(1) Where the Registrar has given written notice to a registered platform work association under section 26(2), the Minister may, if he or she is satisfied that it is likely that the funds of the registered platform work association may be misused, by written notice direct any financial institution not to pay or cause to be paid any money out of or honour any cheque drawn on the account of the registered platform work association for a specified period not exceeding 3 months, except with the Registrar’s written authorisation.(2) Where an investigation is being conducted by a public authority regarding the improper use or misapplication of the funds of a registered platform work association, the Minister may by written notice direct any financial institution not to pay or cause to be paid any money out of or honour any cheque drawn on the account of the registered platform work association for a specified period not exceeding 3 months, except with the Registrar’s written authorisation.

(3) A financial institution which complies with the Minister’s written notice under subsection (1) or (2) is relieved of any liability to any other person in respect of the payment prohibited by the notice.

(4) A financial institution which fails to comply with the Minister’s written notice under subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $3,000 or to imprisonment for a term not exceeding 3 years or to both.

(5) Without affecting sections 88 and 89, where a financial institution commits an offence under subsection (4), a person —(a)

who is —(i)

an accountant, a sub‑accountant or any other similar officer of the financial institution; or

(ii)

a person purporting to act in any such capacity; and

(b)

who —(i)

consented or connived, or conspired with others, to effect the commission of the offence;

(ii)

is in any other way, whether by act or omission, knowingly concerned in, or is party to, the commission of the offence by the financial institution; or

(iii)

knew or ought reasonably to have known that the offence by the financial institution would be or is being committed, and failed to take all reasonable steps to prevent or stop the commission of that offence,

shall be guilty of that same offence as is the financial institution, and shall be liable on conviction to be punished accordingly.

(6) A person mentioned in subsection (5) may rely on a defence that would be available to the financial institution if it were charged with an offence under subsection (4) and, in doing so, the person bears the same burden of proof that the financial institution would bear.

(7) In this section —“financial institution” means a bank, a finance company or any co‑operative society carrying on the business of managing and investing funds;

“public authority” means the Registrar, an authorised officer, the Commissioner of Police, the Commissioner of Inland Revenue or the Director of the Corrupt Practices Investigation Bureau.

—(1) Where the Registrar has given written notice to a registered platform work association under section 26(2), the Minister may, if he or she is satisfied that it is likely that the funds of the registered platform work association may be misused, by written notice direct any financial institution not to pay or cause to be paid any money out of or honour any cheque drawn on the account of the registered platform work association for a specified period not exceeding 3 months, except with the Registrar’s written authorisation.

(2) Where an investigation is being conducted by a public authority regarding the improper use or misapplication of the funds of a registered platform work association, the Minister may by written notice direct any financial institution not to pay or cause to be paid any money out of or honour any cheque drawn on the account of the registered platform work association for a specified period not exceeding 3 months, except with the Registrar’s written authorisation.

(3) A financial institution which complies with the Minister’s written notice under subsection (1) or (2) is relieved of any liability to any other person in respect of the payment prohibited by the notice.

(4) A financial institution which fails to comply with the Minister’s written notice under subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $3,000 or to imprisonment for a term not exceeding 3 years or to both.

(5) Without affecting sections 88 and 89, where a financial institution commits an offence under subsection (4), a person —(a)

who is —(i)

an accountant, a sub‑accountant or any other similar officer of the financial institution; or

(ii)

a person purporting to act in any such capacity; and

(b)

who —(i)

consented or connived, or conspired with others, to effect the commission of the offence;

(ii)

is in any other way, whether by act or omission, knowingly concerned in, or is party to, the commission of the offence by the financial institution; or

(iii)

knew or ought reasonably to have known that the offence by the financial institution would be or is being committed, and failed to take all reasonable steps to prevent or stop the commission of that offence,

shall be guilty of that same offence as is the financial institution, and shall be liable on conviction to be punished accordingly.

(6) A person mentioned in subsection (5) may rely on a defence that would be available to the financial institution if it were charged with an offence under subsection (4) and, in doing so, the person bears the same burden of proof that the financial institution would bear.

(7) In this section —“financial institution” means a bank, a finance company or any co‑operative society carrying on the business of managing and investing funds;

“public authority” means the Registrar, an authorised officer, the Commissioner of Police, the Commissioner of Inland Revenue or the Director of the Corrupt Practices Investigation Bureau.