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31 Dec 2021

Formal Consolidation | 2020 RevEd

Power to approve financial institutions and control their operations

28.—(1) The Authority may require any financial institution or class or classes of financial institutions whose operations are considered by the Authority to affect —

(a)	monetary stability and credit and exchange conditions in Singapore;
(b)	the development of Singapore as a financial centre; or
(c)	the financial situation of Singapore generally,

to be approved by the Authority for the purpose of carrying on business in Singapore.

(2) On a written application for approval under subsection (1), the Authority may —

(a)	grant approval;
(b)	refuse to grant approval and is not obliged to give reasons for its refusal; or
(c)	grant approval subject to such conditions as it sees fit to impose.

(3) Without limiting section 27, the Authority may, if it thinks it necessary or expedient in the public interest, give directions either of a general or special nature, to approved financial institutions or any class or classes of approved financial institutions in relation to —

(a)	the range of activities that they may engage in or the range of services that they may provide;
(b)	the terms and conditions under which they may carry on a particular activity or provide a particular service; and
(c)	all matters in which it appears to the Authority that the activities that they engage in or the services that they provide affect or are likely to affect monetary or economic policy or credit conditions or the development of Singapore as a financial centre,

and the financial institutions concerned must comply with such directions.

(4) The Authority may, from time to time, issue guidelines to and impose conditions of operation on such financial institutions as it thinks fit and may amend or revise those guidelines and conditions.

(5) The Authority may withdraw approval of a financial institution if it appears to the Authority that —

(a)	any information required to be provided in connection with an application for approval was false or misleading in a material particular;
(b)	the financial institution has failed to comply with any direction or guideline issued or condition attached to an approval or conditions of operation imposed under this section;
(c)	the financial institution has conducted its affairs so as to threaten the interests of its depositors or customers; or
(d)	it is in the public interest to do so.

(6) Any financial institution, which is aggrieved by a decision of the Authority to withdraw approval, may appeal against the decision to the Minister whose decision is final.

(7) A financial institution, required under subsection (1) to obtain the Authority’s approval, that carries on its business without first obtaining that approval shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine of $3,000 for every day during which the offence continues after conviction.

(8) An approved financial institution that fails to comply with any direction given under subsection (3) or any condition subject to which an approval is granted under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day during which the offence continues after conviction.

Informal Consolidation | Amended Act 18 of 2022

28. [Repealed by Act 18 of 2022 wef 28/04/2023]

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