PART 4
POWERS, DUTIES AND FUNCTIONS OF AUTHORITY
Powers, duties and functions of Authority
23.—(1)  The Authority may, in addition to the functions referred to in section 4(2), exercise and discharge the following powers, duties and functions:
(a)accept deposits of money and pay interest on such deposits;
(b)issue demand drafts and other kinds of remittances made payable at its own office or the offices of agencies or correspondents;
(c)purchase, repurchase, accept on deposit and sell gold coin or bullion;
(d)purchase, repurchase, sell, discount and re‑discount Treasury bills of the Government;
(e)purchase, repurchase and sell securities of the Government or of any public authority which have been publicly offered for sale or form part of an issue which is being made to the public at the time of acquisition;
(ea)grant any loan, advance, overdraft or other credit facility to the Government on such terms and conditions as the Authority thinks fit;
(f)purchase, repurchase, sell, discount and re‑discount bills of exchange and promissory notes arising out of bona fide commercial transactions bearing 2 or more good signatures and maturing within 3 months (exclusive of days of grace) from the date of acquisition;
(g)grant loans, advances or other credit facilities for the purposes of money market operations, on such terms and conditions as the Authority thinks fit, to such financial institutions or class of financial institutions as the Authority may from time to time determine;
(ga)for the purposes of money market operations —
(i)issue securities in the name of the Authority in accordance with Part 5A;
(ii)purchase, repurchase, sell, redeem, discount and re‑discount such securities; and
(iii)do all things which the Authority may do under Part 5A in connection with such securities;
(h)invest in securities of the Government or of any public authority for any amount, and to mature at any time on behalf of staff and pension funds and other internal funds of the Authority;
(i)acquire, hold and sell shares of any corporation set up with the approval of, or under the authority of, the Government for the purpose of promoting the development of a money market or securities market in Singapore or for the financing of economic development in Singapore;
(j)purchase, repurchase and sell currency, and purchase, repurchase, sell, discount and re‑discount bills of exchange and Treasury bills drawn in or on places outside Singapore;
(k)borrow money, establish credits and give guarantees in any currency, inside and outside Singapore, on such terms and conditions as the Authority may think fit;
(l)maintain accounts with central banks outside Singapore and with other banks inside and outside Singapore;
(m)purchase, repurchase and sell securities of, or guaranteed by, such guarantor, governments or international financial institutions as may be approved by the board, or purchase, repurchase and sell such other securities, financial instruments and investments as may be approved by the board;
(n)act as correspondent, banker or agent for any central bank or other monetary authority and for any international bank or international monetary authority established under governmental auspices;
(o)open accounts for, and accept deposits from, the Government, public authorities, companies in which the Government or a public authority has a substantial interest, and companies which are deemed to be related to those companies by virtue of section 6 of the Companies Act 1967, banks and other credit institutions in Singapore;
(p)underwrite loans in which the Authority may invest;
(q)undertake the issue and management of securities issued by the Government or by any public authority;
(qa)form or participate in the formation of any company or in any joint venture as a shareholder or partner or in any other capacity, for purposes that are necessary or expedient for the purpose of discharging its functions or achieving its objects;
(r)do generally all such things as may be commonly done by bankers and are not inconsistent with the exercise of its powers or the discharge of its duties under this Act.
[24/2003; 31/2005; 13/2007; 9/2013]
(2)  For the purposes of subsection (1)(o) and section 30(d), the Government or a public authority has a substantial interest in a company if it, either by itself or together with any other public authority, has an interest or interests in one or more voting shares in the company and the vote or votes attached to that share, or the total votes attached to those shares either held by itself or together with any other public authority, is at least 20% of the total votes attached to all the voting shares in the company.
[21/2005]
(3)  In subsection (1), a reference to the purchase of any securities or Treasury bills includes subscribing for such securities or Treasury bills.
[13/2007]
(4)  Despite subsection (1), the Authority must not grant any loan, advance, overdraft or other credit facility to the Government, or underwrite any loan to the Government, unless the Authority is satisfied that such loan, advance, overdraft or credit facility is required by the Government to meet unexpected and temporary shortfall in the Government’s revenue relative to its expenditure.
[13/2007]
(5)  Despite subsection (1), the Authority must not directly subscribe for any securities issued by the Government or any public authority.
[13/2007]
(6)  Subsection (5) does not apply to the following:
(a)any subscription for reserves management Government securities issued by the Government under the Government Securities (Debt Market and Investment) Act 1992 that is —
(i)made solely in connection with the transfer of foreign reserve assets from the Authority to the Government, where such assets are in excess of the amount the Authority considers necessary for the conduct of monetary policy; or
(ii)made by way of a reinvestment of the principal sum payable, upon redemption, on any reserves management Government securities held by the Authority;
(b)any subscription for debt securities (including Treasury bills but not reserves management Government securities) issued by the Government that is made in connection with the conduct of monetary policy or the development of the bond market in Singapore;
(c)any subscription for debt securities issued by any public authority that is made in connection with the development of the bond market in Singapore,
but only insofar as that subscription does not compromise the object of the Authority referred to in section 4(1)(a).
[Act 5 of 2022 wef 21/02/2022]
(7)  Nothing in this section is to be construed as authorising the Authority to —
(a)grant any loan, advance, overdraft or other credit facility to any public authority; or
(b)underwrite any loan to any public authority.
[13/2007]
(7A)  For the purposes of Part 4B, the Authority may (in addition to its other powers) —
(a)grant a loan to a trustee of a resolution fund within the meaning of Division 5B of that Part; and
(b)do all such things as are necessary or expedient to be done for the orderly resolution of a financial institution.
[31/2017]
(8)  The Authority may, in addition to the powers, duties and functions set out in this Part, exercise all powers and perform all functions and duties conferred or imposed on the Authority under this Act, the written laws set out in the Schedule, and any other written law.
[13/2007]
(9)  The Minister may, from time to time, by order in the Gazette, amend the Schedule.
[13/2007]
(10)  Despite section 77 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, the Authority may, for the purposes of performing the Authority’s functions and duties under this Act, the written laws set out in the Schedule and any other written law, require a relevant Suspicious Transaction Reporting Officer to disclose to the Authority any information or matter which he or she has obtained in the performance of his or her duties or the exercise of his or her functions under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.
[9/2013]
(11)  In this section —
“foreign reserve asset” means any moneys in a currency other than Singapore dollars or a financial asset not denominated in the currency of Singapore;
[Act 5 of 2022 wef 21/02/2022]
“relevant Suspicious Transaction Reporting Officer” means a Suspicious Transaction Reporting Officer who is an officer or employee of the Authority;
“Suspicious Transaction Reporting Officer” has the meaning given by section 2(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.
[9/2013]
Investment of funds
24.  The funds of the Authority may be invested in all or any of the following:
(a)gold coin or bullion;
(b)notes, coins, money at call and deposits in such country or countries as may be approved by the board;
(c)Treasury bills of such government or governments as may be approved by the board;
(d)securities of, or guaranteed by, such government or governments or international financial institutions as may be approved by the board;
(e)such other securities, financial instruments and investments as may be approved by the board.
[13/2007]
Authority as a banker to, and financial agent of, Government and manager of its external assets
25.—(1)  The Authority is to act as a banker to, and a financial agent of, the Government.
(2)  Whenever the Authority receives and disburses Government moneys, the Authority must keep account thereof and may be paid an agency fee for its services.
(3)  The Authority may act generally as agent for the Government on such terms and conditions as may be agreed between the Authority and the Government where the Authority can do so appropriately and consistently with the provisions of this Act and with its duties and functions as a monetary authority.
(4)  The Authority is to, subject to the Financial Procedure Act 1966 and any other written law, manage the external assets of the Government.
Special loans to banks, financial institutions, etc.
26.  The Authority may, if it thinks such action is necessary to safeguard —
(a)the stability of the financial system; or
(b)public confidence in the financial system,
make any loan or advance to any bank carrying on business under the Banking Act 1970 or to such financial institutions or class of financial institutions or such other persons as the Authority may from time to time determine, on such terms and conditions as the Authority thinks fit.
[24/2003]
27.  [Repealed by Act 18 of 2022 wef 28/04/2023]
27A.  [Repealed by Act 18 of 2022 wef 28/04/2023]
27B.  [Repealed by Act 18 of 2022 wef 28/04/2023]
27C.  [Repealed by Act 18 of 2022 wef 28/04/2023]
27D.  [Repealed by Act 18 of 2022 wef 28/04/2023]
27E.  [Repealed by Act 18 of 2022 wef 28/04/2023]
27F.  [Repealed by Act 18 of 2022 wef 28/04/2023]
28.  [Repealed by Act 18 of 2022 wef 28/04/2023]
28A.  [Repealed by Act 18 of 2022 wef 28/04/2023]
28B.  [Repealed by Act 18 of 2022 wef 28/04/2023]
29.  [Repealed by Act 18 of 2022 wef 28/04/2023]
Real-time gross settlement system
29A.—(1)  The Authority may establish and operate one or more real-time gross settlement systems for the transfer of funds, settlement of payment obligations and the transfer and settlement of book-entry securities and instruments between or among participants approved by the Authority.
[39/2002]
(2)  A settlement system may be linked to another system in Singapore or elsewhere for the clearing or settlement of payment obligations, securities or instruments and whether or not such system is operated on a real-time gross settlement basis.
[39/2002]
(3)  The Authority may enter into agreements with participants of a settlement system and issue to the participants in writing rules for the operation of the settlement system and such rules are not deemed to be subsidiary legislation.
[39/2002]
(4)  Without limiting subsection (3), such rules may provide —
(a)for the appointment of the Authority as a certification authority for the purpose of issuing certificates for participants;
(b)for the conduct of participants;
(c)for the authentication of transactions carried out electronically;
(d)for the Authority, if it considers it necessary in the interests of the system, to stop or suspend the operation of the system or to stop or suspend the privileges or rights of any participant or class of participants;
(e)for the appointment of auditors or inspectors for the auditing or inspection of the operating systems of participants in respect of the settlement system; and
(f)for the payment of fees to the Authority.
[39/2002]
(4A)  The Authority may recover from the relevant participant the amount of any fees payable to the Authority under any rules made under subsection (4) as a civil debt due to the Authority.
[Act 18 of 2022 wef 28/04/2023]
(5)  The Authority, any officer or employee of the Authority, or any person acting under the direction of the Authority, shall not be liable for any loss or damage suffered by any person or participant arising from, directly or indirectly, the use of a settlement system by any participant unless such loss or damage results from a reckless act or omission or any intentional misconduct of any officer or employee of the Authority or any person acting under the direction of the Authority.
[39/2002]
(6)  The Payment and Settlement Systems (Finality and Netting) Act 2002 has effect in relation to a settlement system established and operated by the Authority under this section if the settlement system is designated under section 3 of that Act.
[39/2002]
(7)  A settlement system established and operated by the Authority under section 59A of the Banking Act 1970 before 9 December 2002 continues and is deemed to have been established and operated by the Authority under this section.
[39/2002]
(8)  In this section —
“book-entry securities and instruments” means any securities and instruments that are transferable by a book-entry on a register or otherwise, and are —
(a)issued by the Government under any written law; or
(b)approved by the Authority for clearing, settlement or transfer through or under a settlement system;
“certificate” has the meaning given in the Third Schedule to the Electronic Transactions Act 2010;
“certification authority” has the meaning given in the Third Schedule to the Electronic Transactions Act 2010;
“participant” means a person approved by the Authority to be a participant of a settlement system, and includes the Authority where it participates in the settlement system;
“real-time gross settlement system” means a system which can effect final settlement of funds, payment obligations and book-entry securities and instruments on a continuous basis during such operating hours of a processing day as the Authority may determine and on a transaction‑by‑transaction basis;
“settlement system” means any real-time gross settlement system established under subsection (1).
[39/2002; 2/2012]
Agents
30.  In the exercise of its powers and the performance of its functions under this Act, the Authority may —
(a)establish agencies at such places outside Singapore as it thinks fit;
(b)arrange with and authorise a person to act as agent of the Authority outside Singapore;
(c)act as agent of a bank carrying on business inside or outside Singapore; and
(d)act as agent of any public authority or any company in which the Government or a public authority has a substantial interest or any company which is deemed to be related to that company by virtue of section 6 of the Companies Act 1967 either generally or for a particular purpose inside or outside Singapore.