s 55U Restrictions on merchant banks in Singapore accepting or soliciting deposit or raising money in Singapore dollars
55U.—(1) Despite section 4 and anything in this Part, a merchant bank in Singapore —(a) must not accept any deposit in Singapore dollars or otherwise borrow any money in Singapore dollars, except —(i) from any person or a person within a class of persons prescribed by the Authority and in accordance with any condition prescribed by the Authority; or (ii) from any other person approved by the Authority for the merchant bank in a particular case and in accordance with any condition imposed by the Authority on the merchant bank by written notice; (b) must not offer, invite or issue any advertisement containing any offer or invitation to any person or class of persons (other than a person or class of persons mentioned in paragraph (a)) —(i) to make any deposit in Singapore dollars with the merchant bank; or (ii) to enter or offer to enter into any agreement to make any deposit in Singapore dollars with the merchant bank; and (c) must not raise money in Singapore dollars by —(i) issuing promissory notes, commercial papers or certificate of deposits; (ii) accepting or endorsing bills of exchange; or (iii) any other method prescribed by the Authority.[1/2020] (2) The Authority may, at any time, impose conditions or additional conditions on, or vary or revoke any condition of, an approval under subsection (1)(a)(ii).[1/2020] (3) Any person that contravenes this section or fails to comply with any condition prescribed or imposed under this section commits 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] (4) The fact that a deposit has been taken in contravention of this section does not affect any civil liability in respect of the deposit or the money deposited.[1/2020] (5) For the purposes of this section, “advertisement” has the meaning given by section 4B(1), (2) and (3).[1/2020]