s 54 Disqualification or removal of director or executive officer
54.—(1) Despite the provisions of any other written law —(a) a bank in Singapore must not, without the prior written consent of the Authority, permit a person to act as its executive officer; and (b) a bank in Singapore which is incorporated in Singapore must not, without the prior written consent of the Authority, permit a person to act as its director, if the person — (c) has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after 18 April 2013, being an offence —(i) involving fraud or dishonesty; (ii) the conviction for which involved a finding that the person had acted fraudulently or dishonestly; or (iii) that is specified in the Third Schedule to the Registration of Criminals Act 1949; (d) is an undischarged bankrupt, whether in Singapore or elsewhere; (e) has had an enforcement order against the person in respect of a judgment debt returned unsatisfied in whole or in part;[Act 25 of 2021 wef 01/04/2022] (f) has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with the person’s creditors, being a compromise or scheme of arrangement that is still in operation; (g) has had a prohibition order made against the person that remains in force; or[Act 18 of 2022 wef 31/07/2024] (h) has been a director of, or directly concerned in the management of, a regulated financial institution, whether in Singapore or elsewhere —(i) which is being or has been wound up by a court; or (ii) the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country or territory, by the regulatory authority in that foreign country or territory.[10/2013] (2) Despite the provisions of any other written law, where the Authority is satisfied that —(a) a director of a bank in Singapore which is incorporated in Singapore; or (b) an executive officer of a bank in Singapore, is not a fit and proper person to be a director or an executive officer (as the case may be), the Authority may, by written notice to the bank, direct the bank to remove the director or executive officer from his or her office or employment within such period as may be specified by the Authority in the notice, and the bank must comply with the notice. [5/2016] (3) In assessing whether to direct a bank to remove a director or an executive officer from his or her office or employment under subsection (2), the Authority may consider any matter which it considers relevant, including (but not limited to) whether —(a) he or she has wilfully contravened or wilfully caused the bank to contravene any provision of this Act; (b) he or she has, without reasonable excuse, failed to secure the compliance of the bank with this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act; (c) he or she has failed to discharge any of the duties of his or her office or employment; or (d) his or her removal is necessary in the public interest or for the protection of the depositors of the bank. [5/2016] (4) Before directing a bank in Singapore to remove a person from his or her office or employment under subsection (2), the Authority must —(a) give the bank and the person written notice of its intention to do so; and (b) in the notice mentioned in paragraph (a), call upon the bank and the person to show cause, within such time as may be specified in the notice, why the person should not be removed.[10/2013] (5) If the bank and the person mentioned in subsection (4) —(a) fail to show cause within the time specified under subsection (4)(b) 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 person under subsection (2). [10/2013] (6) Any bank in Singapore which, or any director or executive officer of a bank in Singapore who, is aggrieved by a direction of the Authority under subsection (2) may, within 30 days after receiving the direction, appeal in writing to the Minister, whose decision is final.[10/2013] (7) Any bank in Singapore which contravenes subsection (1) or 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 $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.[10/2013] (8) No criminal or civil liability is incurred by a bank in Singapore, 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.[10/2013] (9) In this section, unless the context otherwise requires —“prohibition order” means —(a) a prohibition order made under section 68(1) of the Financial Advisers Act 2001 as in force immediately before the date of commencement of section 200(1)(b) and (2) to (7) of the Financial Services and Markets Act 2022; (b) a prohibition order made under section 68(1) of the Financial Advisers Act 2001 as in force immediately before the date of commencement of section 200(1)(b) and (2) to (7) of the Financial Services and Markets Act 2022, and as continued by section 217(2) of the Financial Services and Markets Act 2022; (c) an order made under section 74(1) of the Insurance Act 1966 as in force immediately before the date of commencement of section 204(1) to (4) of the Financial Services and Markets Act 2022; (d) an order made under section 74(1) of the Insurance Act 1966 as in force immediately before the date of commencement of section 204(1) to (4) of the Financial Services and Markets Act 2022, and as continued by section 218(2) of the Financial Services and Markets Act 2022; (e) a prohibition order made under section 101A(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022; (f) a prohibition order made under section 101A(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022, and as continued by section 220(3) of the Financial Services and Markets Act 2022; (g) a prohibition order made under section 123ZZC(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022; (h) a prohibition order made under section 123ZZC(1) of the Securities and Futures Act 2001 as in force immediately before the date of commencement of section 209(1)(a), (c) and (d), (4) to (14), (17) and (18) of the Financial Services and Markets Act 2022, and as continued by section 220(5) of the Financial Services and Markets Act 2022; or (i) a prohibition order made under section 7(1) of the Financial Services and Markets Act 2022;[Act 18 of 2022 wef 31/07/2024] “regulated financial institution” means a person who carries on a business, the conduct of which is regulated or authorised by the Authority or, if it is carried on in Singapore, would be regulated or authorised by the Authority; “regulatory authority”, in relation to a foreign country or territory, means an authority of the foreign country or territory exercising any function that corresponds to a regulatory function of the Authority under this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act.[10/2013]