Money-changing and Remittance Businesses (Amendment) Act 1996

REPUBLIC OF SINGAPORE

GOVERNMENT GAZETTE

ACTS SUPPLEMENT

Published by Authority

NO. 16]

Friday, May 24

[1996

The following Act was passed by Parliament on 2nd May 1996 and assented to by the President on 17th May 1996:—

Money-changing and Remittance Businesses (Amendment) Act 1996

(No. 19 of 1996)

I assent.

ONG TENG CHEONG

President

17th May 1996.

Date of Commencement: 18th June 1996

An Act to amend the Money-changing and Remittance Businesses Act (Chapter 187 of the 1985 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

1. This Act may be cited as the Money-changing and Remittance Businesses (Amendment) Act 1996 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Amendment of section 2

2. Section 2 of the Money-changing and Remittance Businesses Act (referred to in this Act as the principal Act) is amended —

(a)

by inserting, immediately after the definition of “Authority” in subsection (1), the following definition:

“ “company” means any company incorporated under any written law for the time being in force relating to companies and includes any company incorporated outside Singapore;”; and

(b)

by deleting subsection (2) and substituting the following subsections:

“(2) For the purposes of this Act, a person shall be deemed to be carrying on —

(a)	money-changing business if he offers to buy or sell any foreign currency notes; and
(b)	remittance business if he offers to transmit money on behalf of any person to another person resident in another country.

(3) In this Act, a reference to a document or record shall include a reference to any or part of any —

(a)	document or record kept on any magnetic, optical, chemical or other medium;
(b)	map, plan, graph, picture or drawing; and
(c)	film (including a microfilm and microfiche), negative, disc, tape, sound track or any other device in which one or more visual images, sounds or other data are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced therefrom.”.

Repeal and re-enactment of sections 5 and 6

3. Sections 5 and 6 of the principal Act are repealed and the following sections substituted therefor:

“No person to carry on money-changing business without licence

5.—(1) No person shall carry on or advertise that he carries on money-changing business unless he is in possession of a valid money-changer’s licence.

(2) A person who contravenes subsection (1) 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 fine not exceeding $1,000 for every day during which the offence continues after conviction.

No person to carry on remittance business without licence

6.—(1) No person shall carry on or advertise that he carries on remittance business unless he is in possession of a valid remittance licence.

Amendment of section 7

4. Section 7 of the principal Act is amended —

(a)

by deleting subsection (1) and substituting the following subsection:

“(1) Any person who desires to obtain or renew a licence shall submit an application to the Authority in such form as the Authority may require and shall furnish the Authority with such other information as may be required by the Authority.”; and

(b)

by inserting, immediately after subsection (4), the following subsection:

“(5) Where a person submits an application for the renewal of his licence at any time prior to the expiry of his licence, he shall not incur any penalty under this Act for not being the holder of a licence during the period commencing from the date of expiry of his licence until the date his licence is renewed or his application is refused.”.

New sections 7A, 7B and 7C

5. The principal Act is amended by inserting, immediately after section 7, the following sections:

“Security deposit

7A.—(1) Every person who is granted a remittance licence shall deposit with the Authority a sum of $100,000 or such other sum as may be prescribed by regulations made under this Act to be held as security for the due performance of his obligations to those persons who will deposit or have deposited moneys with him for remittance purposes.

(2) The deposit referred to in subsection (1) shall be in cash or in such other form as the Authority may in any particular case allow.

(3) In the event that a licensee ceases to carry on remittance business, it shall be lawful for the Authority to deduct from the deposit such amount as may be required to pay any sums claimed by the customers of the licensee who had given moneys to the licensee for remittance purposes and if any deposit is insufficient to cover all sums claimed by the remitters, the Authority may pay part of the sums claimed by those customers.

(4) The Authority, upon being satisfied that there is no outstanding claims by the customers of the licensee, shall release the deposit or the balance thereof, as the case may be, to the licensee.

(5) Any deposit furnished by a licensee under this section shall not be liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatsoever, and if the licensee is adjudicated a bankrupt or, being a company, is declared insolvent or is wound up by an order of court, the deposit shall be deemed not to form part of the property of the licensee.

Licensee not to open branch without Authority’s approval

7B.—(1) No licensee shall open a new place of business or branch in Singapore without the written approval of the Authority which may, in its discretion, grant its approval with or without imposing any conditions as it thinks fit.

(2) Any licensee who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction.

(3) An additional fee shall be payable by a licensee for each of his branches.

Display of licence

7C.—(1) Every licensee shall display or exhibit his licence or a certified true copy thereof in a conspicuous place at every premises where he carries on money-changing or remittance business.

(2) Any licensee who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000.”.

Repeal and re-enactment of sections 8 and 9, and new section 9A

6. Sections 8 and 9 of the principal Act are repealed and the following sections substituted therefor:

“Licence fees

8.—(1) Every licensee shall pay such licence fee as the Authority may, by notification in the Gazette, prescribe.

(2) The Authority may prescribe different licence fees in respect of different classes or categories of licensees.

(3) The licence fees shall be paid in such manner as may be specified by the Authority.

Period for which licence is in force

9.—(1) A licence shall be in force for such period as the Authority may determine and may be renewed at the discretion of the Authority upon its expiry.

(2) A licence which has been renewed by the Authority shall continue to be in force for such period as the Authority may determine.

(3) There shall be no refund of any licence fee paid to the Authority in the event that a licence is cancelled or revoked or when the licensee ceases to carry on business at any time prior to the expiry of the licence.

False statements

9A. A person who, in connection with an application for a licence or for the renewal of a licence, wilfully makes a statement which is false or misleading in a material particular, knowing it to be false or misleading, or wilfully omits to state any matter or thing without which the application is misleading in a material respect, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding one year or to both.”.

Amendment of section 10

7. Section 10 of the principal Act is amended —

(a)

by deleting paragraph (a ) of subsection (1) and substituting the following paragraph:

“(a)	has ceased to carry on money-changing or remittance business, as the case may be;”;

(b)

by deleting the word “or” at the end of paragraph (e) of subsection (1);

(c)

by deleting the full-stop at the end of paragraph (f ) of subsection (1) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph:

“(g)	is adjudicated a bankrupt or, if the licensee is a company, proposes to make, or has made, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved.”; and

(d)

by deleting subsections (2) to (6) and substituting the following subsections:

“(2) The Authority shall not make an order under subsection (1) without first giving the licensee an opportunity of being heard.

(3) An order of revocation shall not take effect until the expiration of 30 days after the date on which the Authority has served the order on the licensee or, where the licensee has made an appeal pursuant to subsection (4), until the order of revocation, is confirmed by or the appeal is dismissed by the Minister or the appeal is withdrawn.

(4) A licensee who is aggrieved by an order of revocation of the Authority may appeal to the Minister and no appeal shall be made to the Minister after the expiry of 30 days of the service of the order of revocation on the licensee.

(5) In any appeal under this section, the decision of the Minister shall be final and shall be given effect to by the Authority.”.

New sections 11A and 11B

8. The principal Act is amended by inserting, immediately after section 11, the following sections:

“Records

11A.—(1) Every licensee shall keep complete records of all their transactions in such books, accounts, records and registers as the Authority may specify from time to time and shall produce such books, accounts, records and registers to the Authority as and when he is so directed in writing by the Authority.

(2) Every licensee shall retain such books, accounts, records and registers for a period of at least 6 years after the day on which the transaction takes place.

(3) Any licensee who contravenes or fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.

Information to be furnished by licensees

11B.—(1) Every licensee shall furnish to the Authority at such time and in such manner as the Authority may prescribe, returns and information as the Authority may reasonably require for the proper discharge of its functions.

(2) Any licensee who fails to furnish any returns or information required under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction.”.

Amendment of section 12

9. Section 12 of the principal Act is amended —

(a)	by deleting the words “or document” in the sixth line of subsection (1) and substituting the words “, document or record”;
(b)	by deleting the words “or document” in the second line of subsection (2) (c ) and substituting the words “, document or record”; and
(c)	by deleting “$2,000” in the last line of subsection (2) and substituting the words “$5,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction”.

New section 12A

10. The principal Act is amended by inserting, immediately after section 12, the following section:

“Power to issue directives

12A. After an inspection or investigation made under section 12, the Authority may require a licensee to take any action or to do or not to do any act or thing whatsoever in relation to his business as the Authority may consider necessary.”.

New sections 17A and 17B

11. The principal Act is amended by inserting, immediately after section 17, the following sections:

“Customers’ funds to be kept separately

17A.—(1) Every licensee who carries on remittance business shall maintain a current or deposit account in the name of the licensee at a bank with the words “customers’ account” added to the title of the account.

(2) A licensee carrying on remittance business shall pay into the account referred to in subsection (1) all moneys that are received from his customers for remittance purposes, not later than the next bank business day following the day on which the moneys were received by him.

(3) No money shall be withdrawn from a customers’ account except —

(a)	money that has been paid into the account by the licensee for the purposes of opening or maintaining the account;
(b)	money properly required for a payment to or on behalf of a customer; and
(c)	money properly required for payment of the licensee’s fees or charges for rendering services to a customer and the customer has been notified that any money held for him will be applied towards or in satisfaction of such fees and charges.

(4) No money other than money which a licensee has paid into a customers’ account for the purposes of opening the account and money required by subsection (2) to be paid into a customers’ account of a licensee shall be paid into such an account and it shall be the duty of a licensee into whose customers’ account any money has been paid in contravention of this subsection to withdraw the money wrongly paid into the account without delay upon discovery of the mistake.

(5) The moneys in a customers’ account maintained by a licensee at a bank shall not be liable to be attached, sequestered or levied upon for or in respect of any debt of the licensee or any claim whatsoever against the licensee, and if the licensee is adjudicated a bankrupt or, being a company, is declared insolvent or is wound up by an order of court, the moneys in the customers’ account shall be deemed not to form part of the property of the licensee.

(6) A licensee who contravenes or fails to comply with any of the provisions of this section 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.

Auditors

17B.—(1) Every licensee shall at his own expense appoint annually an auditor to carry out an audit of the transactions in his money-changing or remittance business, as the case may be.

(2) The Authority may require an auditor appointed under subsection (1) —

(a)	to submit to the Authority such information as the Authority may require in relation to the audit carried out by him;
(b)	to enlarge or extend the scope of his audit of the business and affairs of the licensee and to submit a report of his audit to the Authority;
(c)	to carry out any examination or establish any procedure in any particular case; or
(d)	to submit a report to the Authority on any matters referred to in paragraphs (b ) and (c ),

and the licensee shall be responsible for the remuneration of the auditor for these services.

(3) The Authority may, if it considers the auditor appointed by the licensee does not carry out his duties to the satisfaction of the Authority, require the licensee to appoint another auditor.”.

New section 18A

12. The principal Act is amended by inserting, immediately after section 18, the following section:

“Composition of offences

18A.—(1) The Authority may, in its discretion, compound any offence under this Act or any regulations made thereunder by collecting from a person reasonably suspected of having committed the offence a sum not exceeding $1,000.

(2) On payment of such sum of money, no further proceedings shall be taken against that person in respect of the offence.

(3) All sums collected under this section shall be paid to the Authority.”.

Amendment of section 19

13. Section 19 of the principal Act is amended by deleting subsection (1) and substituting the following subsection:

“(1) This Act shall not apply to —

(a)	any company which has a valid licence granted under the Banking Act [Cap. 19] authorising it to conduct banking business in Singapore;
(b)	any merchant bank which is an approved financial institution for the purposes of section 28 of the Monetary Authority of Singapore Act [Cap. 186]; and
(c)	any company which has a valid licence granted under the Finance Companies Act [Cap. 108] and has obtained the approval of the Authority to deal in foreign currency. ”.

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