PART II
LICENSING OF MONEYLENDERS
No moneylending except under licence, etc.
5.—(1)  No person shall carry on or hold himself out in any way as carrying on the business of moneylending in Singapore, whether as principal or as agent, unless —
(a)he is authorised to do so by a licence;
(b)he is an excluded moneylender; or
(c)he is an exempt moneylender.
(2)  The Minister may prescribe different classes or descriptions of licences for the purposes of this Act.
(3)  An application for the issue of a licence shall be —
(a)made in such form and manner as may be determined by the Registrar; and
(b)accompanied by the payment of a non-refundable application fee of a prescribed amount, which shall be paid in such manner as may be specified by the Registrar.
(4)  The Registrar may issue a licence with or without conditions, or he may refuse to issue a licence.
(5)  Without prejudice to section 7, the Registrar shall not issue a licence —
(a)where any information or statement furnished by the applicant that is material to his application for the issue of a licence under this section is incomplete, false or misleading;
(b)where the applicant does not satisfy the requirements of the class or description of the licence applied for; or
(c)where the applicant does not place with the Accountant-General as security for the proper conduct of his business of moneylending in Singapore, in such form as the Registrar may determine, a deposit of $20,000 for each place of business in respect of which he is to be licensed.
(6)  Every licence shall come into operation on the date specified therein, and shall be valid for a period of 12 months or such other prescribed period as may be specified in the licence.
(7)  The Registrar may at any time, by notice in writing to the licensee, vary or revoke any of the existing conditions of the licence or impose new conditions.
(8)  Where a licence is issued to a firm, every partner of the firm actively conducting the business of moneylending of that firm in Singapore shall be subject to this Act as if he holds the licence.
Renewal of licences
6.—(1)  An application for the renewal of a licence shall be made not later than one month before the expiry of the licence, in such form and manner as may be determined by the Registrar.
(2)  For the purpose of subsection (1), every licensee must notify the Registrar at least one month before the expiry of his licence if he does not wish to renew his licence.
(3)  The Registrar may renew a licence with or without conditions, or he may refuse to renew a licence.
(4)  Without prejudice to section 7, the Registrar shall not renew a licence —
(a)where any information or statement furnished by the licensee that is material to his application for the renewal of his licence under this section is incomplete, false or misleading;
(b)where the licensee ceases to satisfy the requirements of the class or description of the licence to be renewed; or
(c)where the licensee does not place or maintain with the Accountant-General as security for the proper conduct of his business of moneylending in Singapore, in such form as the Registrar may determine, a deposit of $20,000 for each place of business in respect of which his licence is to be renewed.
(5)  Upon the renewal of a licence, the licence shall continue to be valid for a further period of 12 months or such other prescribed period as may be specified in the licence from the date immediately following that on which, but for its renewal, the licence would have expired.
Other grounds for refusing to issue or renew licence, etc.
7.—(1)  For the purposes of sections 5 and 6, the Registrar may refuse to issue or renew a licence on any of the following grounds:
(a)if —
(i)the applicant is not —
(A)an individual who is ordinarily resident in Singapore; or
(B)a company, firm or limited liability partnership; or
(ii)any person who is or will be responsible for the management of the applicant’s business of moneylending is not ordinarily resident in Singapore;
(b)if the applicant, any director or partner of the applicant, or any person who is or will be responsible for the management of the applicant’s business of moneylending is below 21 years of age;
(c)if the Registrar is not satisfied that the applicant has any place of business in respect of which the licence is to be issued or renewed that is suitable for a business of moneylending, or the Registrar is of the view that it is not in the public interest for a business of moneylending to be conducted in such a place;
(d)if the applicant, any director, partner or substantial shareholder of the applicant, or any person who is or will be responsible for the management of the applicant’s business of moneylending —
(i)has been convicted of any offence involving dishonesty or moral turpitude;
(ii)has been convicted of any offence under sections 43 to 48 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap. 65A), the Terrorism (Suppression of Financing) Act (Cap. 325) or any regulation made under the United Nations Act (Cap. 339);
(iii)is contravening or has contravened any provision of this Act;
(iv)has been convicted of any offence under this Act; or
(v)is carrying on or has carried on any business of moneylending, in Singapore or elsewhere, in such a manner as renders him unfit to hold a licence;
(e)if the Registrar is not satisfied as to the qualification or experience of the applicant, or any person who is or will be responsible for the management of the applicant’s business of moneylending;
(f)if the Registrar is not satisfied as to the good character of the applicant, any director, partner or substantial shareholder of the applicant, or any person who is or will be responsible for the management of the applicant’s business of moneylending;
(g)if the Registrar is not satisfied that the applicant, any director, partner or substantial shareholder of the applicant, or any person who is or will be responsible for the management of the applicant’s business of moneylending is a fit and proper person to carry on or manage a business of moneylending.
(2)  For the purposes of sections 5 and 6 and without prejudice to subsection (1), where an application is made by any person for the issue or renewal of a licence to carry on the business of moneylending as an agent for a principal, the licence shall not be issued or renewed where —
(a)any of the grounds for the refusal of a licence under subsection (1) applies to the agent, any director, partner or substantial shareholder of the agent, or any person who is or will be responsible for the management of the agent’s business of moneylending;
(b)the Registrar is not satisfied as to the good character of the principal, any director, partner or substantial shareholder of the principal, or any person who is or will be responsible for the management of the principal’s business of moneylending;
(c)the Registrar is not satisfied that the principal, any director, partner or substantial shareholder of the principal, or any person who is or will be responsible for the management of the principal’s business of moneylending is a fit and proper person to carry on or manage a business of moneylending; or
(d)the principal, or any present or former agent of the principal, has been disqualified by an order of a court from carrying on a business of moneylending or holding a licence to carry on such business.
(3)  Any person who is aggrieved by the refusal of the Registrar to issue or renew a licence may, within 14 days of being so informed, appeal in writing to the Minister whose decision shall be final.
Licence fee
8.—(1)  Every licensee shall pay such licence fee as may be prescribed for the issue or renewal of the licence by the Registrar.
(2)  The Minister may prescribe different licence fees in respect of different classes or descriptions of licences.
(3)  Where a licensee has more than one place of business, the licensee shall pay such additional licence fee as may be prescribed for each additional place of business according to the class or description of licence which the licensee holds.
(4)  The licence fees shall be paid in such manner as may be specified by the Registrar.
(5)  Subject to subsection (6), there shall be no refund of any licence fee paid to the Registrar in the event that a licence is revoked or suspended or when the licensee ceases to carry on the business of moneylending at any time before the expiry of the licence.
(6)  The Registrar may, where he considers it appropriate, refund or remit the whole or part of any licence fee paid or payable under this Act.
Revocation or suspension of licence
9.—(1)  The Registrar may revoke a licence, or suspend it for such period as he considers appropriate, if he is satisfied —
(a)that the licensee —
(i)has ceased to carry on the business of moneylending, or is wound up or otherwise dissolved;
(ii)had, in connection with an application for the issue or renewal of the licence —
(A)knowingly or recklessly furnished any information or statement to the Registrar which was false or misleading in a material particular;
(B)wilfully omitted to state any matter without which the application was misleading in a material particular; or
(C)produced to the Registrar any book, record or other document which he knew or had reason to believe contained information which was false or misleading in a material particular;
(iii)has contravened any condition of his licence;
(iv)is conducting or has conducted his business of moneylending in an improper or unsatisfactory manner; or
(v)has carried on a business of moneylending at any place which the Registrar has not approved under section 10, or has contravened any condition of approval for a place of business imposed under that section; or
(b)that there exists a ground on which the Registrar may refuse to issue or renew a licence under section 7, whether in relation to the licensee or his principal.
(2)  The Registrar shall, before revoking or suspending any licence under subsection (1), give the licensee notice in writing of his intention to do so, specifying a date, not less than 21 days after the date of the notice, upon which the revocation or suspension shall take effect unless the licensee shows cause to the Registrar as to why the licence should not be revoked or suspended.
(3)  Where, after the licensee has shown cause under subsection (2), the Registrar decides to revoke or suspend a licence, he shall notify the licensee of his decision in writing and specify a date, not less than 14 days after the date of the notice, upon which the revocation or suspension shall take effect.
(4)  The licensee may, within 14 days after the date of the notice under subsection (3), appeal in writing against the revocation or suspension to the Minister whose decision shall be final.
(5)  If the licensee appeals to the Minister under subsection (4), the decision appealed against shall not take effect unless it is confirmed by the Minister, or the appeal is for any reason dismissed by the Minister or is withdrawn.
(6)  Any decision of the Registrar to revoke or suspend a licence made under this section shall not affect any moneylending transaction entered into before the date the decision is made.
Approval of places of business
10.—(1)  An applicant for the issue of a licence or a licensee who intends to commence the business of moneylending at any new place or places of business shall, before commencing the business of moneylending at such place or places, apply in writing to the Registrar to approve such place or places of business for moneylending.
(2)  The Registrar may approve any place of business for moneylending with or without conditions, or he may refuse to grant his approval.
(3)  The Registrar shall not approve any place of business for moneylending —
(a)unless the applicant is a licensee or his application for a licence is approved;
(b)where any information or statement furnished by the applicant that is material to his application for approval under this section is incomplete, false or misleading;
(c)where the applicant, being a licensee, does not place with the Accountant-General as security for the proper conduct of his business of moneylending in Singapore, in such form as the Registrar may determine, a deposit of $20,000 for each additional place of business; or
(d)where the Registrar is not satisfied that the place of business is suitable for a business of moneylending, or the Registrar is of the view that it is not in the public interest for a business of moneylending to be conducted in such a place.
(4)  The Registrar may at any time, by notice in writing to the licensee, vary or revoke any of the existing conditions of his approval of a place of business for moneylending or impose new conditions.
(5)  Where the approval of the Registrar under this section is granted to a firm, the approval shall be deemed to be granted to every partner of the firm actively conducting the business of moneylending of that firm in Singapore.
(6)  The Registrar may revoke his approval under this section, or suspend his approval for such period as he considers appropriate, if he is satisfied —
(a)that the licensee has contravened any condition of approval imposed under this section; or
(b)that there exists a ground on which the Registrar may refuse to approve the place of business for moneylending under subsection (3).
(7)  The Registrar shall, before revoking or suspending his approval under subsection (6), give the licensee notice in writing of his intention to do so, specifying a date, not less than 21 days after the date of the notice, upon which the revocation or suspension shall take effect unless the licensee shows cause to the Registrar as to why the approval should not be revoked or suspended.
(8)  If, after the licensee has shown cause under subsection (7), the Registrar decides to proceed to revoke or suspend his approval, he shall notify the licensee of his decision in writing and specify a date, not less than 14 days after the date of the notice, upon which the revocation or suspension shall take effect.
(9)  The licensee may, within 14 days after the date of the notice under subsection (8), appeal in writing against the revocation or suspension to the Minister whose decision shall be final.
(10)  If the licensee appeals to the Minister under subsection (9), the decision appealed against shall not take effect unless it is confirmed by the Minister, or the appeal is for any reason dismissed by the Minister or is withdrawn.
(11)  Any decision of the Registrar to revoke or suspend his approval under this section shall not affect any moneylending transaction entered into before the date the decision is made.
(12)  The approval of any place of business for moneylending —
(a)shall be suspended for the duration of any suspension of the relevant licence; and
(b)shall terminate as at the date of the expiry or revocation of the relevant licence.
(13)  Any licensee who —
(a)commences the business of moneylending at a place of business without the approval of the Registrar; or
(b)continues to carry on the business of moneylending in a place of business in respect of which the approval of the Registrar has been revoked or is suspended,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.
(14)  Any licensee who contravenes any condition of approval imposed under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.
Forfeiture of security deposit
11.—(1)  The Registrar may, without prejudice to the exercise of any other power under this Act, forfeit the whole or such part of any security deposit placed with the Accountant-General under section 5(5)(c), 6(4)(c) or 10(3)(c) as the Registrar thinks fit if he is satisfied that there exists a ground for the revocation or suspension of the licence under section 9(1).
(2)  The Registrar shall, before forfeiting the security deposit or such part thereof under subsection (1), give the licensee notice in writing of his intention to do so specifying a date, not less than 14 days after the date of the notice, upon which the forfeiture shall be made unless the licensee shows cause to the Registrar as to why the security deposit or such part thereof should not be forfeited.
(3)  Where, after the licensee has shown cause under subsection (2), the Registrar decides to forfeit the security deposit or any part thereof, he shall notify the licensee of his decision in writing and specify a date, not less than 14 days after the date of the notice, upon which the security deposit or such part thereof shall be forfeited.
(4)  The licensee may, within 14 days after the date of the notice under subsection (3), appeal in writing against the forfeiture of his security deposit or such part thereof to the Minister whose decision shall be final.
(5)  If the licensee appeals to the Minister under subsection (4), the Registrar shall not forfeit the security deposit or such part thereof unless his decision to do so is confirmed by the Minister, or the appeal is for any reason dismissed by the Minister or is withdrawn.
(6)  Where the licensee lawfully continues to carry on the business of moneylending under this Act after his security deposit or any part thereof has been forfeited, he shall restore his security deposit to the full amount as required under this Act by placing with the Accountant-General an appropriate amount in such form and within such time as the Registrar may require.
Approval and notification of change of profile
12.—(1)  Every licensee shall obtain the approval of the Registrar —
(a)before changing his business name;
(b)before the admission of any person who will be responsible for the management of the licensee’s business of moneylending;
(c)before any person becomes a director or partner of the licensee; or
(d)as soon as practicable after —
(i)any person becomes a substantial shareholder of the licensee; or
(ii)any substantial shareholder of the licensee increases or reduces his substantial shareholding in the licensee.
(2)  Every licensee shall notify the Registrar, in writing, when any person ceases to be a director, partner or substantial shareholder of the licensee, or ceases to be responsible for the management of the business of moneylending of the licensee, not later than 14 days after the cessation.
(3)  Every licensee shall notify the Registrar, in writing, of the making of a bankruptcy order against the licensee, or any director, partner or substantial shareholder of the licensee, not later than 14 days after the bankruptcy order is made.
(4)  No person shall become a substantial shareholder of a licensee without first obtaining the approval of the Registrar.
(5)  Where any person becomes a substantial shareholder of a licensee in contravention of subsection (4), that person shall take such steps as are necessary to cease to be a substantial shareholder of the licensee within such time as the Registrar may require.
(6)  Any person who, without reasonable excuse, contravenes subsection (1), (2), (3), (4) or (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
Publication of lists
13.  The Registrar may, from time to time, cause to be published in such manner as he may determine —
(a)a list of all licensees and such of their particulars as the Registrar may determine; and
(b)a list of such persons granted an exemption by the Minister under section 35, and such of their particulars and the conditions of their exemption, as the Registrar may determine.
Unlicensed moneylending
14.—(1)  Any person who contravenes, or who assists in the contravention of, section 5(1) shall be guilty of an offence and shall be liable on conviction —
(a)in the case where the offender is a body corporate, to a fine of not less than $40,000 and not more than $400,000; and
(b)in any other case —
(i)to a fine of not less than $20,000 and not more than $200,000 or to imprisonment for a term not exceeding 2 years or to both; and
(ii)in the case of a second or subsequent offence, to a fine of not less than $20,000 and not more than $200,000 and shall also be punished with imprisonment for a term not exceeding 5 years.
(2)  Where any contract for a loan has been granted by an unlicensed moneylender, or any guarantee or security has been given for such a loan —
(a)the contract for the loan, and the guarantee or security, as the case may be, shall be unenforceable; and
(b)any money paid by or on behalf of the unlicensed moneylender under the contract for the loan shall not be recoverable in any court of law.
(3)  Subsections (1) and (2) shall not apply to a moneylender who —
(a)is not ordinarily resident in Singapore;
(b)is not a licensee; and
(c)carries on the business of moneylending in Singapore through an agent who is a licensee or an exempt moneylender.
(4)  For the purposes of subsection (1), where the bank account or automated teller machine card of any person, or a telecommunication service subscribed in the name of or purchased by any person, is proved to the satisfaction of the court to have been used to facilitate the carrying on of the business of moneylending by an unlicensed moneylender, that person shall be presumed, until the contrary is proved, to have assisted in the contravention of section 5(1).
(5)  In this section, unless the context otherwise requires, “telecommunication service” has the same meaning as in the Telecommunications Act (Cap. 323).
Other offences under this Part
15.—(1)  Any person who, in connection with an application for the issue or renewal of a licence or for the approval of any place of business for moneylending —
(a)knowingly or recklessly furnishes any information or statement to the Registrar which is false or misleading in a material particular;
(b)wilfully omits to state any matter without which the application is misleading in a material particular; or
(c)produces to the Registrar any book, record or other document which he knows or has reason to believe contains information which 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 $40,000 or to imprisonment for a term not exceeding 12 months or to both.
(2)  Any licensee who —
(a)contravenes any condition of his licence; or
(b)carries on the business of moneylending under any name other than his business name,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.