PART VII
POWERS OF CONTROL OVER BANKS, ETC.
[Act 5 of 2016 wef 30/11/2018]
Interpretation of this Part
40A.  In this Part —
“customer”, in relation to a bank, includes the Authority or any monetary authority or central bank of any other country or territory, but does not include any company which carries on banking business or such other financial institution as may be designated by the Authority by notice in writing;
“customer information”, in relation to a bank, means —
(a)any information relating to, or any particulars of, an account of a customer of the bank, whether the account is in respect of a loan, investment or any other type of transaction, but does not include any information that is not referable to any named customer or group of named customers; or
(b)deposit information;
“deposit information”, in relation to a bank, means any information relating to —
(a)any deposit of a customer of the bank;
(b)funds of a customer under management by the bank; or
(c)any safe deposit box maintained by, or any safe custody arrangements made by, a customer with the bank,
but does not include any information that is not referable to any named person or group of named persons;
“funds of a customer under management” means any funds or assets of a customer (whether of the bank or any financial institution) placed with that bank for the purpose of management or investment.
[23/2001; 1/2007]
Regulation of interest rates of banks
41.—(1)  The Authority may from time to time determine and announce the rates of interest payable to or by banks in Singapore, the rates of discount chargeable by banks in Singapore, or the rates of commission and other charges payable to banks in Singapore.
[23/2001]
(2)  Subsection (1) shall not apply to transactions between banks in Singapore.
Recommendations to banks concerning credits and investments
42.—(1)  The Authority may, in respect of loans and advances or investments of banks in Singapore, make recommendations to the banks in respect of the following:
(a)the purposes for which they may or may not be granted or made;
(b)the maximum maturities or, in the case of loans and advances, the type and minimum amount of security which shall be required and, in the case of letters of credit, the minimum or margin deposit; or
(c)the limits for any particular category of loans, advances or investments or for the total amount outstanding in respect of those loans, advances or investments.
[23/2001]
(2)  Any recommendation made under subsection (1) shall apply uniformly to all banks in Singapore engaging in the transactions covered by the recommendation.
[23/2001]
(3)  Where the Authority has made a recommendation under subsection (1) and the banks have accepted it without objections, or have failed to notify the Authority of their objections or have failed to forward their representations to the Authority within the time specified in subsection (4), the Authority may issue a direction in writing to each bank on any of the matters referred to in subsection (1) requiring that effect be given to the recommendation within a reasonable time, and the banks shall comply with that direction.
(4)  Where the Authority has made a recommendation and the banks have, or any bank has, notified the Authority within 14 days of the receipt of the recommendation that the banks object, or any bank objects, to the recommendation, the Authority shall call upon the banks or bank, as the case may be, to make representations in writing within one month of the notification concerning those objections.
(5)  Upon receipt of such representations, the Authority shall consider them and may —
(a)reject the representations; or
(b)amend or modify the recommendation in accordance with the representations, or otherwise,
and in either event, the Authority shall thereupon issue a direction in writing to the banks or bank, as the case may be, requiring that effect be given to the original recommendation or to the recommendation as subsequently amended or modified by the Authority within a reasonable time.
(6)  The banks or any bank, as the case may be, shall comply with the direction under subsection (5).
Inspection of banks and their local subsidiaries
43.—(1)  The Authority shall, from time to time, inspect under conditions of secrecy, the books of each bank in Singapore and of any branch, agency or office outside Singapore opened by a bank incorporated in Singapore.
[23/2001; 1/2007]
(2)  The Authority may, from time to time, inspect under conditions of secrecy, the books of each subsidiary incorporated in Singapore of a bank incorporated in Singapore, not being a subsidiary that is regulated or licensed by the Authority under any other Act.
[Act 5 of 2016 wef 30/11/2018]
(3)  To avoid doubt, this section, and sections 44A and 46 in relation to an inspection under this section, do not apply to any inspection by the Authority for a purpose mentioned in section 27C of the Monetary Authority of Singapore Act (Cap. 186).
[Act 31 of 2017 wef 05/06/2018]
[Act 5 of 2016 wef 30/11/2018]
Special investigation of banks
44.  The Authority may at any time make an investigation, under conditions of secrecy, of the books of any bank in Singapore, if it has reason to believe that any bank —
(a)is carrying on its business in a manner likely to be detrimental to the interests of its depositors and other creditors;
(b)has insufficient assets to cover its liabilities to the public; or
(c)is contravening the provisions of this Act.
[23/2001; 1/2007]
Provisions supplementary to sections 43 and 44
44A.—(1)  For the purposes of an inspection under section 43 or an investigation under section 44, the bank or subsidiary under inspection or investigation shall —
(a)produce its books to the Authority and afford the Authority access to them;
[Act 5 of 2016 wef 30/11/2018]
(b)provide such information or facilities as may be required by the Authority to conduct the inspection or investigation; and
[Act 5 of 2016 wef 30/11/2018]
(c)procure any person who is in possession of the books or information referred to in paragraph (a) or (b) to produce the books or provide the information to the Authority.
[Act 5 of 2016 wef 30/11/2018]
[Act 5 of 2016 wef 30/11/2018]
(2)  The books referred to in subsection (1) shall not be required to be produced at such times or at such places as would unduly interfere with the proper conduct of the normal daily business of that bank or subsidiary.
[23/2001; 1/2007]
[Act 5 of 2016 wef 30/11/2018]
(3)  The Authority may appoint an auditor, other than the auditor appointed by the bank or by the Authority under section 58, to exercise the powers of the Authority under section 43 or 44.
[23/2001]
(3A)  The remuneration and expenses of any auditor appointed under subsection (3) shall be paid by the bank.
[1/2007]
(3B)  The Authority may, in its discretion, waive the payment of all or any part of the remuneration and expenses referred to in subsection (3A).
[Act 5 of 2016 wef 30/11/2018]
(4)  Customer information that is obtained by the Authority from a bank incorporated outside Singapore or a foreign-owned bank incorporated in Singapore during an inspection under section 43 or an investigation under section 44 may be disclosed by the Authority to the parent supervisory authority of the bank where —
(a)the customer information does not consist of deposit information;
(b)the customer information is required by the parent supervisory authority for the sole purpose of carrying out its supervisory functions; and
(c)the parent supervisory authority —
(i)is prohibited by the laws applicable to the parent supervisory authority from disclosing the customer information obtained by it to any other person; or
(ii)has given to the Authority such written undertaking, as to the confidentiality of the information obtained, as the Authority may determine.
[23/2001; 1/2007]
(5)  Any bank or subsidiary which, without reasonable excuse, contravenes 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 thereof during which the offence continues after conviction.
[23/2001]
[Act 5 of 2016 wef 30/11/2018]
(5A)  Where the offence under subsection (5) is proved to have been committed with the consent of, or to be attributable to any negligence on the part of, an officer of the bank or subsidiary, that officer shall be guilty of an offence and shall be liable on conviction 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.
[Act 5 of 2016 wef 30/11/2018]
(6)  For the purposes of this section, a reference to a parent bank in the definition of “foreign-owned bank incorporated in Singapore” in section 2(1) is a reference to a bank incorporated outside Singapore of which the foreign-owned bank is a subsidiary.
[1/2007]
Inspection in Singapore by parent supervisory authority
45.—(1)  In relation to a bank incorporated outside Singapore or a foreign-owned bank incorporated in Singapore, a parent supervisory authority may, with the prior written approval of the Authority and under conditions of secrecy, conduct an inspection in Singapore of the books of any branch or office of that bank in Singapore in accordance with this section if the following conditions are satisfied:
(a)the inspection is required by the parent supervisory authority for the sole purpose of carrying out its supervisory functions;
(b)the parent supervisory authority —
(i)is prohibited by the laws applicable to the parent supervisory authority from disclosing information obtained by it in the course of the inspection to any other person; or
(ii)has given to the Authority such written undertaking, as to the confidentiality of the information obtained, as the Authority may determine; and
(c)the parent supervisory authority has given a written undertaking to the Authority to comply with the provisions of this Act and such conditions as the Authority may impose under subsection (2).
[23/2001; 1/2007]
(1A)  Without limiting the generality of subsection (1), and subject to subsection (2), the inspection may be conducted in respect of any activity of the bank besides banking business.
[Act 5 of 2016 wef 30/11/2018]
(2)  The Authority may at any time, whether before, on or after giving written approval for an inspection under this section, require the parent supervisory authority to comply with conditions relating to —
(a)the classes of information to which the parent supervisory authority shall or shall not have access in the course of the inspection;
(b)the conduct of the inspection;
(c)the use or disclosure of any information obtained in the course of the inspection; and
(d)such other matters as the Authority may determine.
[23/2001]
(3)  Subject to compliance by a parent supervisory authority with such conditions as the Authority may impose under subsection (2), a bank under inspection —
(a)shall afford the parent supervisory authority access to such books of the branch or office of the bank under inspection, and provide such information (including information relating to the bank’s internal control systems) and facilities as may be required to conduct the inspection; and
(b)shall not be required to afford the parent supervisory authority access to its books or to provide information or facilities at such times or at such places as would unduly interfere with the proper conduct of the normal daily business of the bank.
[23/2001; 1/2007]
(4)  A parent supervisory authority may, with the prior written approval of the Authority —
(a)in the case of a bank incorporated outside Singapore, request the auditors of its head office or appoint any person; or
(b)in the case of a foreign-owned bank incorporated in Singapore, request the auditors of its parent bank or appoint any person,
to conduct the inspection under subsection (1) and in such event, this section (other than this subsection) shall apply to the auditors or the person, as the case may be, as if a reference to the parent supervisory authority or any official of the parent supervisory authority in this section includes a reference to the auditors or the person.
[1/2007]
(5)  For the purposes of ensuring the confidentiality of any information obtained in the course of an inspection by a parent supervisory authority under this section, section 47(1) shall, with the necessary modifications, apply to any official of the parent supervisory authority as if the official is an officer of a bank.
[23/2001]
(6)  Any bank which refuses or neglects, without reasonable excuse, to afford access to any book or provide any information or facility as may be required by this section 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 thereof during which the offence continues after conviction.
[23/2001; 1/2007]
(6A)  To avoid doubt, this section, and section 46 in relation to an inspection under this section, do not apply to any inspection by a parent supervisory authority of the books of any branch or office of a bank in Singapore, if —
(a)the parent supervisory authority is an AML/CFT authority as defined in section 152 of the Monetary Authority of Singapore Act, and exercises consolidated supervision authority as defined in that section over that bank; and
(b)the inspection is solely for the purpose of such consolidated supervision.
[Act 31 of 2017 wef 05/06/2018]
(7)  In this section, “parent bank”, in relation to a foreign-owned bank incorporated in Singapore, means a bank incorporated outside Singapore of which the foreign-owned bank is a subsidiary.
[1/2007]
(8)  Where the offence under subsection (6) is proved to have been committed with the consent of, or to be attributable to any negligence on the part of, an officer of the bank, that officer shall be guilty of an offence and shall be liable on conviction 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.
[Act 5 of 2016 wef 30/11/2018]
Confidentiality of inspection and investigation reports
46.—(1)  Where a written report or any part thereof (referred to in this section as the report) has been produced in respect of any bank in Singapore or subsidiary incorporated in Singapore of a bank incorporated in Singapore —
(a)by the Authority upon an inspection under section 43 or an investigation under section 44; or
(b)by a parent supervisory authority upon an inspection under section 45,
the report shall not be disclosed by the bank or subsidiary, or any officer or auditor of the bank or subsidiary, to any other person except in the circumstances provided under subsection (2).
[23/2001]
[Act 5 of 2016 wef 30/11/2018]
(2)  Disclosure of the report referred to in subsection (1) may be made —
(a)by the bank in Singapore or subsidiary incorporated in Singapore of a bank incorporated in Singapore to any officer or auditor of that bank or subsidiary solely in connection with the performance of the duties of the officer or auditor, as the case may be, in that bank or subsidiary;
[Act 5 of 2016 wef 30/11/2018]
(b)by any officer or auditor of the bank in Singapore or subsidiary incorporated in Singapore of a bank incorporated in Singapore to any other officer or auditor of that bank or subsidiary, solely in connection with the performance of their duties in that bank or subsidiary;
[Act 5 of 2016 wef 30/11/2018]
(c)to the Authority if requested by the Authority, where the report has been produced by a parent supervisory authority; or
(d)to any other person as the Authority may approve in writing.
[23/2001]
(3)  In granting written approval for any disclosure under subsection (2)(d), the Authority may impose such conditions or restrictions as it thinks fit on the bank, the subsidiary, any officer or auditor of the bank or subsidiary, or the person to whom disclosure is approved, and the bank, subsidiary, officer, auditor or person (as the case may be) must comply with those conditions or restrictions.
[Act 5 of 2016 wef 30/11/2018]
(4)  The obligation on an officer or auditor referred to in subsections (1) and (3) shall continue after the termination or cessation of his employment or appointment at the bank or subsidiary.
[23/2001]
[Act 5 of 2016 wef 30/11/2018]
(5)  Any person who contravenes subsection (1) or fails to comply with any condition imposed by the Authority under subsection (3) shall be guilty of an offence and shall be liable on conviction —
(a)in the case of 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.
[23/2001]
(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 him in contravention of subsection (1) shall be guilty of an offence, unless he proves that —
(a)the disclosure was made contrary to his desire;
(b)where the disclosure was made in any written form, he has as soon as practicable surrendered or taken all reasonable steps to surrender the report and all copies thereof to the Authority; and
(c)where the disclosure was made in an electronic form, he has as soon as practicable taken all reasonable steps to ensure that all electronic copies of the report have been deleted and that the report and all copies thereof in other forms have been surrendered to the Authority.
[23/2001]
Application of section 45 to merchant banks
46A.—(1)  Sections 45 and 46 apply, with such modifications as may be prescribed, in relation to an inspection by a parent supervisory authority of —
(a)a merchant bank incorporated outside Singapore; or
(b)a foreign-owned merchant bank incorporated in Singapore,
of the books of any branch or office of that merchant bank, as they apply in relation to an inspection by a parent supervisory authority of a bank incorporated outside Singapore, or a foreign-owned bank incorporated in Singapore, of the books of any branch or office of the bank in Singapore.
(2)  In this section —
“foreign-owned merchant bank incorporated in Singapore” means a merchant bank incorporated in Singapore, the parent bank of which is incorporated, formed or established outside Singapore;
“merchant bank incorporated outside Singapore” means a merchant bank incorporated, formed or established outside Singapore;
“parent bank”, in relation to a foreign-owned merchant bank incorporated in Singapore or a merchant bank incorporated outside Singapore, means a financial institution incorporated, formed or established outside Singapore of which the merchant bank is a subsidiary;
“parent supervisory authority” means —
(a)in relation to a merchant bank incorporated outside Singapore, a supervisory authority which is responsible, under the laws of the country or territory where the merchant bank or its parent bank is incorporated, formed or established, for supervising the merchant bank or parent bank, as the case may be; or
(b)in relation to a foreign-owned merchant bank incorporated in Singapore, a supervisory authority which has consolidated supervision authority over the merchant bank.
[Act 5 of 2016 wef 30/11/2018]
Inspection outside Singapore of subsidiaries of banks incorporated in Singapore
46B.—(1)  The Authority may, in a country or territory outside Singapore, from time to time, inspect under conditions of secrecy, the books of a subsidiary of a bank incorporated in Singapore.
(2)  Without limiting the generality of subsection (1), the inspection may be conducted in respect of activities that correspond to activities that are regulated or licensed by the Authority under this Act or any other Act.
(3)  The Authority may appoint an auditor, other than the auditor appointed by the bank or by the Authority under section 58, to exercise the power of inspection.
(4)  If the inspection is carried out on the ground that the Authority has reason to believe that the subsidiary of the bank incorporated in Singapore is carrying on its business in a manner likely to be detrimental to the interest of the depositors and other creditors of the bank and if the Authority so directs, then the bank is liable to pay for the remuneration and expenses of the auditor appointed under subsection (3).
(5)  The Authority may, in its discretion, waive the payment of all or any part of the remuneration and expenses referred to in subsection (4).
[Act 5 of 2016 wef 30/11/2018]
Privacy of customer information
47.—(1)  Customer information shall not, in any way, be disclosed by a bank in Singapore or any of its officers to any other person except as expressly provided in this Act.
[23/2001]
(2)  A bank in Singapore or any of its officers may, for such purpose as may be specified in the first column of the Third Schedule, disclose customer information to such persons or class of persons as may be specified in the second column of that Schedule, and in compliance with such conditions as may be specified in the third column of that Schedule.
[23/2001]
(3)  Where customer information is likely to be disclosed in any proceedings referred to in item 3 or 4 of Part I of the Third Schedule, the court may, either of its own motion, or on the application of any party to the proceedings or the customer to which the customer information relates —
(a)direct that the proceedings be held in camera; and
(b)make such further orders as it may consider necessary to ensure the confidentiality of the customer information.
[23/2001]
(4)  Where an order has been made by a court under subsection (3), any person who, contrary to such an order, publishes any information that is likely to lead to the identification of any party to the proceedings shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000.
[23/2001]
(5)  Any person (including, where the person is a body corporate, an officer of the body corporate) who receives customer information referred to in Part II of the Third Schedule shall not, at any time, disclose the customer information or any part thereof to any other person, except as authorised under that Schedule or if required to do so by an order of court.
[23/2001]
(6)  Any person who contravenes subsection (1) or (5) shall be guilty of an offence and shall be liable on conviction —
(a)in the case of 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.
[23/2001]
(7)  In this section and in the Third Schedule, unless the context otherwise requires —
(a)where disclosure of customer information is authorised under the Third Schedule to be made to any person which is a body corporate, customer information may be disclosed to such officers of the body corporate as may be necessary for the purpose for which the disclosure is authorised under that Schedule; and
(b)the obligation of any officer or other person who receives customer information referred to in Part II of the Third Schedule shall continue after the termination or cessation of his appointment, employment, engagement or other capacity or office in which he had received customer information.
[23/2001]
(8)  For the avoidance of doubt, nothing in this section shall be construed to prevent a bank from entering into an express agreement with a customer of that bank for a higher degree of confidentiality than that prescribed in this section and in the Third Schedule.
[23/2001]
(9)  Where, in the course of an inspection under section 43 or an investigation under section 44 or the carrying out of the Authority’s function of supervising the financial condition of any bank, the Authority incidentally obtains customer information and such information is not necessary for the supervision or regulation of the bank by the Authority, then, such information shall be treated as secret by the Authority.
[23/2001]
(10)  This section and the Third Schedule shall apply, with such modifications as may be prescribed by the Authority, to a merchant bank as if the reference to a bank in this section were a reference to such merchant bank.
[23/2001]
[Act 5 of 2016 wef 30/11/2018]
[Act 5 of 2016 wef 30/11/2018]
Information of insolvency, etc.
48.—(1)  Any bank which is or is likely to become insolvent, or which is or is likely to become unable to meet its obligations, or which has suspended or is about to suspend payments, shall immediately inform the Authority of that fact.
[Act 10 of 2013 wef 18/04/2013]
(2)  Any bank which contravenes subsection (1) 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 thereof during which the offence continues after conviction.
[Act 10 of 2013 wef 18/04/2013]
[Act 5 of 2016 wef 30/11/2018]
Information of material adverse development, etc.
48AA.—(1)  When a bank in Singapore becomes aware of any development that has occurred or is likely to occur which the bank has reasonable grounds to believe has materially affected adversely, or is likely to materially affect adversely —
(a)the financial soundness or reputation of the bank;
(b)the ability of the bank to conduct any business referred to in section 30(1); or
(c)such other matters as the Authority may prescribe,
the bank must immediately inform the Authority of the development.
(2)  When a bank incorporated in Singapore becomes aware of any development that has occurred or is likely to occur which the bank has reasonable grounds to believe has materially affected adversely, or is likely to materially affect adversely —
(a)the financial soundness or reputation of any entity in the bank group of the bank or any entity or trust in the FHC group of the designated financial holding company of the bank (if applicable);
(b)the ability of any entity in the bank group of the bank or any entity or trust in the FHC group of the designated financial holding company of the bank (if applicable), to conduct its business; or
(c)such other matters as the Authority may prescribe,
the bank must immediately inform the Authority of the development.
(3)  A bank in Singapore must immediately inform the Authority when it is aware that it has contravened or is likely to contravene, any provision of any Act administered by the Authority or any requirement imposed on it by the Authority under any such Act.
(4)  Any bank which contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000.
(5)  In this section —
“accounting standards” means the accounting standards made or formulated by the Accounting Standards Council under Part III of the Accounting Standards Act (Cap. 2B);
“associate”, in relation to an entity (called in this definition the first entity), means —
(a)any entity in which the first entity controls the composition of the board of directors or such corresponding officers as may be prescribed;
(b)any entity in which the first entity controls more than half of the voting power or such measure corresponding to voting power as may be prescribed;
(c)any entity in which the first entity holds more than half of the total number of issued shares or such corresponding interest as may be prescribed;
(d)a subsidiary of any other entity which is an associate by reason of paragraph (a), (b) or (c);
(e)any entity (called in this paragraph the second entity) in which —
(i)the first entity; or
(ii)any entity which is an associate by reason of paragraph (a), (b), (c) or (d),
has, or the entities in sub-paragraphs (i) and (ii) together have, an interest in shares entitling the beneficial owners of those interests the right to cast (whether by proxy or in person) not less than 20% but not more than 50% of the total votes able to be cast at a general meeting of the second entity, or such corresponding interest as may be prescribed; or
(f)any entity (not being one which is an associate by reason of paragraph (a), (b), (c), (d) or (e)) the policies of which —
(i)the first entity; or
(ii)any entity which is an associate by reason of paragraph (a), (b), (c), (d) or (e),
or the entities in sub-paragraphs (i) and (ii) together are able to control or influence materially;
“bank group”, in relation to a bank, means a group of entities comprising the bank and —
(a)any of its associates; and
(b)any other entity treated as part of the bank’s group of companies according to the accounting standards applicable to the bank;
“designated financial holding company” has the meaning given to it in section 2(1) of the Financial Holding Companies Act 2013 (Act 13 of 2013);
“entity” means any body corporate or unincorporate, whether incorporated, formed or established in or outside Singapore;
“FHC group”, in relation to a designated financial holding company, means a group of entities and trusts comprising the financial holding company and —
(a)any of its associates; and
(b)any other entity or trust treated as part of the financial holding company’s group of companies according to the accounting standards applicable to the financial holding company;
“subsidiary” means an entity prescribed as a subsidiary for the purposes of this section.
[Act 5 of 2016 wef 30/11/2018]
Interpretation of sections 49 to 53
48A.  In sections 49 to 53, unless the context otherwise requires —
“business” includes affairs and property;
“office-holder”, in relation to a bank, means any person acting in relation to the bank as its liquidator, provisional liquidator, receiver, receiver and manager or an equivalent person;
“relevant business” means any business of a bank —
(a)which the Authority has assumed control of under section 49; or
(b)in relation to which a statutory adviser or a statutory manager has been appointed under section 49;
“statutory adviser” means a statutory adviser appointed under section 49;
“statutory manager” means a statutory manager appointed under section 49.
[1/2007]
Action by Authority if bank is unable to meet obligations, etc., or is conducting business to detriment of depositors
49.—(1)  Where —
(a)a bank informs the Authority that it is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it has suspended or is about to suspend payments;
(b)a bank becomes unable to meet its obligations, or is insolvent, or suspends payments;
(c)the Authority is of the opinion that the bank —
(i)is carrying on its business in a manner likely to be detrimental to the interests of its depositors or its creditors;
(ii)is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it is about to suspend payments;
(iii)has contravened any of the provisions of this Act; or
(iv)has failed to comply with any condition attached to its licence; or
(d)the Authority considers it in the public interest to do so,
the Authority may exercise any one or more of the powers specified in subsection (2) as appears to it to be necessary.
[1/2007]
(2)  Subject to subsection (1), the Authority may —
(a)require the bank concerned immediately to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary;
(b)subject to subsection (3), appoint one or more persons as statutory adviser, on such terms and conditions as the Authority may specify, to advise the bank on the proper management of such of the business of the bank as the Authority may determine; or
(c)subject to subsection (3), assume control of and manage such of the business of the bank as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms and conditions as the Authority may specify.
[1/2007]
(3)  In the case of a bank incorporated outside Singapore, any appointment of a statutory adviser or statutory manager or any assumption of control by the Authority of any business of the bank under subsection (2) shall only be in relation to —
(a)the business or affairs of the bank carried on, or managed in or from, Singapore; or
(b)the property of the bank located in Singapore, or reflected in the books of the bank in Singapore in relation to its operations in Singapore.
[1/2007]
(4)  Where the Authority appoints 2 or more persons as statutory manager of a bank, it shall specify in the terms and conditions of the appointment which of the duties, functions and powers of the statutory manager —
(a)may be discharged or exercised by such persons jointly and severally;
(b)shall be discharged or exercised by such persons jointly; and
(c)shall be discharged or exercised by a specified person of such persons.
[1/2007]
(5)  Where the Authority has exercised any power under subsection (2), it may, at any time and without prejudice to its power under section 20(1)(b), do one or more of the following:
(a)vary or revoke any requirement of, any appointment made by or any action taken by the Authority in the exercise of such power, on such terms and conditions as it may specify;
(b)exercise any of the powers under subsection (2);
(c)add to, vary or revoke any term or condition specified by the Authority under this section.
[1/2007]
(6)  No action, suit or other legal proceedings shall lie against —
(a)a statutory manager; or
(b)a statutory adviser,
for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —
(i)the exercise or purported exercise of any power under this Act;
(ii)the performance or purported performance of any function or duty under this Act; or
(iii)the compliance or purported compliance with this Act.
[1/2007]
(7)  A bank which fails to comply with any requirement imposed under subsection (2)(a) 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.
[Act 5 of 2016 wef 30/11/2018]
Effect of assumption of control under section 49
50.—(1)  Upon assuming control of the relevant business of a bank, the Authority or statutory manager, as the case may be, shall take custody or control of the relevant business.
[1/2007]
(2)  During the period when the Authority or statutory manager is in control of the relevant business of a bank, the Authority or statutory manager shall manage the relevant business of the bank in the name of and on behalf of the bank and shall be deemed to be an agent of the bank.
[1/2007]
(3)  In managing the relevant business of a bank, the Authority or statutory manager —
(a)shall take into consideration the interests of the depositors of the bank; and
(b)shall have all the duties, powers and functions of the members of the board of directors of the bank (collectively and individually) under this Act, the Companies Act (Cap. 50) and the constitution of the bank, including powers of delegation, in relation to the relevant business of the bank; but nothing in this paragraph shall require the Authority or statutory manager to call any meeting of the bank under the Companies Act or the constitution of the bank.
[1/2007]
(4)  Notwithstanding any written law or rule of law, upon the assumption of control of the relevant business of a bank by the Authority or statutory manager —
(a)where the bank is incorporated in Singapore, any appointment of a person as chief executive or director of the bank; or
(b)where the bank is incorporated outside Singapore, any appointment of a person as chief executive of the bank, in so far as the appointment relates to the relevant business of the bank,
which was in force immediately before the assumption of control, shall be deemed to be revoked unless the Authority gives its approval, by notice in writing to the person and the bank, for the person to remain in the appointment.
[1/2007]
(5)  Notwithstanding any written law or rule of law, during the period when the Authority or statutory manager is in control of the relevant business of a bank, no person shall be appointed —
(a)where the bank is incorporated in Singapore, as chief executive or director of the bank; or
(b)where the bank is incorporated outside Singapore, as chief executive of the bank, in so far as the appointment relates to the relevant business of the bank,
except with the approval of the Authority.
[1/2007]
(6)  Where the Authority has given its approval under subsection (4) or (5) to a person to remain in the appointment of, or to be appointed as, chief executive or director of a bank, the Authority may at any time, by notice in writing to the person, revoke its approval and such appointment shall be deemed to be revoked on the date specified in the notice.
[1/2007]
(7)  Notwithstanding any written law or rule of law, if any person whose appointment as chief executive or director of a bank is revoked under subsection (4) or (6) acts or purports to act after the revocation —
(a)where the bank is incorporated in Singapore, as chief executive or director of the bank; or
(b)where the bank is incorporated outside Singapore, as chief executive of the bank in relation to the relevant business of the bank,
during the period when the Authority or statutory manager is in control of the relevant business of the bank —
(i)the act or purported act of the person shall be invalid and of no effect; and
(ii)the person shall be guilty of an offence.
[1/2007]
(8)  Notwithstanding any written law or rule of law, if any person who is appointed as chief executive or director of a bank in contravention of subsection (5) acts or purports to act —
(a)where the bank is incorporated in Singapore, as chief executive or director of the bank; or
(b)where the bank is incorporated outside Singapore, as chief executive of the bank in relation to the relevant business of the bank,
during the period when the Authority or statutory manager is in control of the relevant business of the bank —
(i)the act or purported act of the person shall be invalid and of no effect; and
(ii)the person shall be guilty of an offence.
[1/2007]
(9)  During the period when the Authority or statutory manager is in control of the relevant business of a bank —
(a)if there is any conflict or inconsistency between —
(i)a direction or decision given by the Authority or statutory manager (including a direction or decision to a person or body of persons referred to in sub-paragraph (ii)); and
(ii)a direction or decision given by any chief executive, director, member, executive officer, employee, agent or office holder, or the board of directors, of the bank, or any trustee for the bank,
the direction or decision referred to in sub-paragraph (i) shall, to the extent of the conflict or inconsistency, prevail over the direction or decision referred to in sub-paragraph (ii); and
(b)no person shall exercise any voting or other right attached to any share in the bank in any manner that may defeat or interfere with any duty, function or power of the Authority or statutory manager, and any such act or purported act shall be invalid and of no effect.
[1/2007]
(10)  Any person who is guilty of an offence under subsection (7) or (8) shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part thereof during which the offence continues after conviction.
[1/2007]
(11)  In this section, “constitution of the bank” means the memorandum of association and articles of association of the bank or other instrument under which the bank is incorporated.
[1/2007]
Duration of control
51.—(1)  The Authority shall cease to be in control of the relevant business of a bank when the Authority is satisfied that the reasons for its assumption of control of the relevant business have ceased to exist or that it is no longer necessary for the protection of the depositors of the bank.
[1/2007]
(2)  A statutory manager shall be deemed to have assumed control of the relevant business of a bank on the date of his appointment as a statutory manager.
[1/2007]
(3)  The appointment of a statutory manager in relation to the relevant business of a bank may be revoked by the Authority at any time —
(a)if the Authority is satisfied that the reasons for the appointment have ceased to exist or that it is no longer necessary for the protection of the depositors of the bank; or
(b)on any other ground,
and upon such revocation, the statutory manager shall cease to be in control of the relevant business of the bank.
[1/2007]
(4)  The Authority shall publish in the Gazette the date, and such other particulars as it thinks fit, of —
(a)its assumption of control of the relevant business of a bank;
(b)the cessation of its control of the relevant business of a bank;
(c)the appointment of a statutory manager in relation to the relevant business of a bank; and
(d)the revocation of a statutory manager’s appointment in relation to the relevant business of a bank.
[1/2007]
Responsibilities of officers, member, etc., of bank
52.—(1)  During the period when the Authority or statutory manager is in control of the relevant business of a bank —
(a)the High Court may, on an application of the Authority or statutory manager, direct any person who has ceased to be or who is still a chief executive, director, member, executive officer, employee, agent, banker, auditor or office-holder of, or trustee for, the bank to pay, deliver, convey, surrender or transfer to the Authority or statutory manager, within such period as the High Court may specify, any property or book of the bank which is comprised in, forms part of or relates to the relevant business of the bank, and which is in his possession or control; and
(b)any person who has ceased to be or who is still a chief executive, director, member, executive officer, employee, agent, banker, auditor or office-holder of, or trustee for, the bank shall give to the Authority or statutory manager such information as the Authority or statutory manager may require for the discharge of its or his duties or functions, or the exercise of its or his powers, in relation to the bank, within such time and in such manner as may be specified by the Authority or statutory manager.
[1/2007]
(2)  Any person who —
(a)without reasonable excuse, fails to comply with subsection (1)(b); or
(b)in purported compliance with subsection (1)(b), knowingly or recklessly furnishes any information or document that is false or misleading in a material particular,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part thereof during which the offence continues after conviction.
[1/2007]
Remuneration and expenses of Authority and others in certain cases
53.  The Authority may at any time fix the remuneration and expenses to be paid by a bank —
(a)to a statutory adviser or statutory manager appointed in relation to the bank, whether or not the appointment has been revoked; and
(b)where the Authority has assumed control of the relevant business of the bank, to the Authority and any person employed or authorised by the Authority under section 3 in relation to its assumption of control of the relevant business, whether or not the Authority has ceased to be in control of the relevant business.
[1/2007]
Appointment of chief executive officer and other persons
53A.—(1)  A bank incorporated in Singapore must obtain the prior approval of the Authority for the appointment of any of the following:
(a)all directors;
(b)the chairman of the board of directors;
(c)the chief executive officer and the deputy chief executive officer;
(d)a person holding such appointment in the bank as may be prescribed.
(2)  A bank incorporated outside Singapore must obtain the prior approval of the Authority for the appointment of the following persons for its bank in Singapore:
(a)the chief executive officer and the deputy chief executive officer;
(b)a person holding such appointment in the bank as may be prescribed.
(3)  Without prejudice to any other matter that the Authority may consider relevant, the Authority, in determining whether to grant its approval under subsection (1) or (2), must have regard to whether the person is a fit and proper person to hold the office or appointment in accordance with the Guidelines on Fit and Proper Criteria.
(4)  The Authority may —
(a)grant its approval under subsection (1) or (2), with or without conditions; and
(b)at any time vary or revoke any existing condition or impose conditions or additional conditions.
(5)  Without limiting the generality of section 78, the Authority may prescribe —
(a)the duties of a person appointed under subsection (1) or (2); and
(b)the maximum term for which a person appointed under subsection (1) or (2) may hold such office or appointment.
(6)  A bank incorporated in Singapore must immediately inform the Authority after the bank becomes aware that a person who holds an office or appointment referred to in subsection (1) is, in accordance with the Guidelines on Fit and Proper Criteria, no longer a fit and proper person to hold that office or appointment.
(7)  A bank incorporated outside Singapore must immediately inform the Authority after the bank becomes aware that a person who holds an office or appointment referred to in subsection (2) is, in accordance with the Guidelines on Fit and Proper Criteria, no longer a fit and proper person to hold that office or appointment.
(8)  Any bank which contravenes subsection (1) or (2), or fails to comply with any condition imposed by the Authority under subsection (4) 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.
(9)  Any bank which contravenes subsection (6) or (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000.
[Act 5 of 2016 wef 30/11/2018]
Disqualification or removal of director or executive officer
54.—(1)  Notwithstanding the provisions of any other written law —
(a)a bank in Singapore shall 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 shall not, without the prior written consent of the Authority, permit a person to act as its director,
if the person —
(i)has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after the date of commencement of section 2(e) of the Financial Institutions (Miscellaneous Amendments) Act 2013, being an offence —
(A)involving fraud or dishonesty;
(B)the conviction for which involved a finding that he had acted fraudulently or dishonestly; or
(C)that is specified in the Third Schedule to the Registration of Criminals Act (Cap. 268);
(ii)is an undischarged bankrupt, whether in Singapore or elsewhere;
(iii)has had execution against him in respect of a judgment debt returned unsatisfied in whole or in part;
(iv)has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation;
(v)has had a prohibition order under section 59 of the Financial Advisers Act (Cap. 110), section 35V of the Insurance Act (Cap. 142) or section 101A or 123ZZC of the Securities and Futures Act (Cap. 289) made against him that remains in force; or
[Act 4 of 2017 wef 08/10/2018]
(vi)has been a director of, or directly concerned in the management of, a regulated financial institution, whether in Singapore or elsewhere —
(A)which is being or has been wound up by a court; or
(B)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.
(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 notice in writing to the bank, direct the bank to remove the director or executive officer from his office or employment within such period as may be specified by the Authority in the notice, and the bank must comply with the notice.
[Act 5 of 2016 wef 30/11/2018]
(3)  In assessing whether to direct a bank to remove a director or an executive officer from his office or employment under subsection (2), the Authority may consider any matter which it considers relevant, including (but not limited to) whether —
(a)he has wilfully contravened or wilfully caused the bank to contravene any provision of this Act;
(b)he has, without reasonable excuse, failed to secure the compliance of the bank with this Act, the Monetary Authority of Singapore Act (Cap. 186) or any of the written laws set out in the Schedule to that Act;
(c)he has failed to discharge any of the duties of his office or employment; or
(d)his removal is necessary in the public interest or for the protection of the depositors of the bank.
[Act 5 of 2016 wef 30/11/2018]
(4)  Before directing a bank in Singapore to remove a person from his office or employment under subsection (2), the Authority shall —
(a)give the bank and the person notice in writing of its intention to do so; and
(b)in the notice referred to 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.
(5)  If the bank and the person referred to 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).
(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 shall be final.
(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 thereof during which the offence continues after conviction.
(8)  No criminal or civil liability shall be 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.
(9)  In this section, unless the context otherwise requires —
“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 or any of the written laws set out in the Schedule to that Act.
[Act 10 of 2013 wef 18/04/2013]
54A.  [Repealed by Act 10 of 2013 wef 18/04/2013]
54B.  [Repealed by Act 10 of 2013 wef 18/04/2013]
Notices to banks
55.—(1)  The Authority may, if it appears to the Authority to be necessary or expedient in the public interest, or in the interest of depositors or the financial system in Singapore, by notice in writing to a bank in Singapore or a class of banks in Singapore give directions or impose requirements on or relating to the operations or activities of, or the standards to be maintained by, the bank or banks.
[1/2007]
(2)  Without prejudice to the generality of subsection (1), any notice under that subsection may be given in respect of —
(a)the revaluation of the assets of banks;
(b)the maintenance of credit files of borrowers and the grading of loans;
(c)the prohibition or control of the sale of commemorative coins or medals;
(d)the deposit of specified securities with authorised depositaries;
(e)the issue of Singapore dollar negotiable certificates of deposit;
(f)prior notification to the Authority of changes in interest rates and minimum lending rates of banks;
(g)restrictions on the granting of Singapore dollar credit facilities in whatever form or by whatever means to residents of Singapore where such facilities are to be used outside Singapore, or to non-residents;
(h)[Deleted by Act 5 of 2016 wef 30/11/2018]
(i)the maintenance of a register of dealers of a bank;
(j)the terms and conditions for the operation of a bank’s current and other accounts with the Authority;
(k)the manner in which a bank conducts its dealings with its customers, the procedures for the reporting of transactions between a bank and its employees, and conflicts of interest involving a bank and its employees or involving a bank and its customers;
(l)the maximum aggregate permissible percentage holdings by any class, category or description of persons of interests in shares of a bank incorporated in Singapore;
(m)the limits for the total amount of foreign exchange transactions which a bank incorporated in Singapore may undertake and for this purpose the limits may be applied uniformly to all such banks or separate limits may be determined for any particular bank incorporated in Singapore or for 2 or more of such banks;
(n)the opening of new places of business and representative offices and the change of location of any place of business or representative office;
[Act 5 of 2016 wef 30/11/2018]
(o)the installation of automated teller machines by a bank;
(p)the provision for and the writing-off of bad debts;
(q)any audit of a Singapore branch of a bank by an internal auditor from its head office which is outside Singapore;
(r)the forms, returns and submissions of statistics for the purposes of this Act.
[28/93; 23/2001; 1/2007]
(3)  A bank in Singapore shall comply with any direction given to the bank or any requirement imposed on the bank by any notice issued under this Act.
[1/2007]
(4)  It shall not be necessary to publish any notice in writing issued under this Act in the Gazette.
[Act 10 of 2013 wef 18/04/2013]