REPUBLIC OF SINGAPORE
GOVERNMENT GAZETTE
ACTS SUPPLEMENT
Published by Authority

NO. 24]Friday, July 20 [2001

The following Act was passed by Parliament on 16th May 2001 and assented to by the President on 28th May 2001:—
Banking (Amendment) Act 2001

(No. 23 of 2001)


I assent.

S R NATHAN,
President.
28th May 2001.
Date of Commencement: 18th July 2001
An Act to amend the Banking Act (Chapter 19 of the 1999 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 Banking (Amendment) Act 2001 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.
Amendment of long title
2.  The long title to the Banking Act is amended by deleting the word “banking” and substituting the words “banks and related financial institutions, and matters related thereto”.
Amendment of section 2
3.  Section 2 of the Banking Act is amended —
(a)by inserting, immediately after the definition of “agreement” in subsection (1), the following definition:
“ “appointed day” means the date of commencement of the Banking (Amendment) Act 2001;”;
(b)by deleting the definition of “bank” in subsection (1) and substituting the following definitions:
“ “bank” means any company which holds a valid licence under section 7, 11 or 79;
“bank in Singapore” means —
(a)a bank incorporated in Singapore; or
(b)in the case of a bank incorporated outside Singapore, the branches and offices of the bank located within Singapore;
“bank incorporated outside Singapore” means a bank incorporated, formed or established outside Singapore;”;
(c)by inserting, immediately after the definition of “banking business” in subsection (1), the following definition:
“ “capital funds” means —
(a)in the case of a bank incorporated in Singapore, the aggregate of its issued and paid-up capital and its published reserves (excluding such reserves as the Authority may specify by notice in writing), deduction having been made for any loss appearing in the accounts of the bank; or
(b)in the case of a bank incorporated outside Singapore, such net head office funds and such other liabilities as the Authority may, by notice in writing, specify;”;
(d)by deleting the words “company incorporated outside Singapore which has complied with the provisions of any written law for the time being in force relating to companies” in the 5th to 8th lines of the definition of “company” in subsection (1) and substituting the words “body corporate or unincorporate, whether incorporated, formed or established outside Singapore”;
(e)by inserting, immediately after the definition of “company” in subsection (1), the following definition:
“ “corporation” has the same meaning as in section 4(1) of the Companies Act (Cap.50);”;
(f)by inserting, immediately after the definition of “director” in subsection (1), the following definitions:
“ “employee” includes an individual seconded or temporarily transferred from another employer;
“financial holding company” means a company belonging to a class of financial institutions approved as financial holding companies under section 28 of the Monetary Authority of Singapore Act (Cap. 186);”;
(g)by deleting the definition of “licence” in subsection (1) and substituting the following definition:
“ “licence” means a licence granted or held under section 7, 11 or 79;”;
(h)by deleting the definition of “published reserves” in subsection (1) and substituting the following definitions:
“ “published reserves”, in relation to a bank, means reserves which appear in the accounts of the bank which are duly audited or certified as correct by the auditor of the bank;
“qualifying subsidiary” means a company in relation to which more than 50% of its issued and paid-up capital is owned by a bank incorporated in Singapore and such bank meets the requirements under section 9(1) and (2);
“related corporation”, in relation to a corporation, means a corporation that is deemed to be related to the first-mentioned corporation by virtue of section 6 of the Companies Act (Cap. 50);”; and
(i)by deleting subsection (3).
Repeal and re-enactment of section 3
4.  Section 3 of the Banking Act is repealed and the following section substituted therefor:
Appointment of assistants
3.—(1)  The Authority may appoint any person to exercise any of its powers or perform any of its functions or duties under this Act, either generally or in any particular case, except the power to make subsidiary legislation.
(2)  Any person appointed by the Authority under subsection (1) shall be deemed to be a public servant within the meaning of the Penal Code (Cap. 224).”.
Amendment of section 4
5.  Section 4 of the Banking Act is amended by deleting subsection (2) and substituting the following subsection:
(2)  Any person who contravenes subsection (1) 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 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; or
(b)in any other case, 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.”.
New sections 4A, 4B and 4C
6.  The Banking Act is amended by inserting, immediately after section 4, the following sections:
Restriction on deposit-taking business and soliciting deposits
4A.—(1)  Subject to subsection (6), no person shall, in the course of carrying on (whether in Singapore or elsewhere) a deposit-taking business, accept in Singapore any deposit from any person in Singapore.
(2)  Subject to subsection (7), no person shall, whether in Singapore or elsewhere, offer or invite or issue any advertisement containing any offer or invitation to the public or any section of the public in Singapore —
(a)to make any deposit, whether in Singapore or elsewhere; or
(b)to enter or offer to enter into any agreement to make any deposit, whether in Singapore or elsewhere,
where such deposit is to be made with any person (not being a person specified in subsection (6)) in the course of the carrying on (whether in Singapore or elsewhere) of a deposit-taking business by that person.
(3)  For the purposes of subsection (2), in determining whether an offer, invitation or advertisement is made or issued to the public or any section of the public in Singapore, regard shall be had to such considerations as the Authority may prescribe.
(4)  Any person who contravenes subsection (1) or (2) 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 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; or
(b)in any other case, 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.
(5)  A person whose business it is to publish or to arrange for the publication of advertisements shall not be guilty of an offence under subsection (4) if he proves that —
(a)he received the advertisement for publication in the ordinary course of his business;
(b)the matters contained in the advertisement were not, wholly or in part, devised or selected by him or by any person under his direction or control; and
(c)he did not know and had no reason for believing that the publication of the advertisement would constitute an offence.
(6)  Without prejudice to section 76, subsection (1) shall not apply to —
(a)any bank in Singapore;
(b)any co-operative society registered under the Co-operative Societies Act (Cap. 62);
(c)any finance company licensed under the Finance Companies Act (Cap. 108);
(d)any merchant bank approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186);
(e)any person (other than a person referred to in paragraphs (a) to (d)) who is licensed, approved, authorised or otherwise empowered under any written law to accept deposits in Singapore in accordance with such law; and
(f)such other person or class of persons as the Authority may prescribe and subject to such conditions as may be prescribed by the Authority.
(7)  The Authority may, by regulations, exempt any person or class of persons from subsection (2), subject to such conditions as may be prescribed.
(8)  The Authority may, on the application of any person, exempt him from subsection (1) or (2) if the Authority considers it appropriate to do so in the circumstances of the case.
(9)  The fact that a deposit has been taken in contravention of this section shall not affect any civil liability in respect of the deposit or the money deposited.
Application of section 4A
4B.—(1)  For the purposes of section 4A, “advertisement” means the dissemination or conveyance of information, or invitation or solicitation by any means or in any form, including by means of —
(a)publication in a newspaper, magazine, journal or other periodical;
(b)display of posters or notices;
(c)circulars, handbills, brochures, pamphlets, books or other documents;
(d)letters addressed to individuals or bodies;
(e)photographs or cinematograph films; or
(f)sound broadcasting, television, the Internet or other media,
and an advertisement containing information which is intended or might reasonably be presumed to be intended to lead, directly or indirectly, to the making of a deposit shall be treated as an advertisement referred to in section 4A.
(2)  Notwithstanding subsection (1), an advertisement issued outside Singapore shall not be treated as an advertisement for the purposes of section 4A(2) if it is made available —
(a)in a newspaper, magazine, journal or other periodical published and circulating principally outside Singapore;
(b)in a sound or television broadcast transmitted principally for reception outside Singapore; or
(c)by any other means of broadcasting or communication principally for circulation or reception outside Singapore.
(3)  Subject to the provisions of this section, for the purposes of section 4A, “deposit” means a sum of money paid on terms —
(a)under which it will be repaid, with or without interest or a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and
(b)which are not referable to the provision of property or services or to the giving of security.
(4)  For the purposes of subsection (3)(b), money is paid on terms which are referable to the provision of property or services or the giving of security if, and only if —
(a)it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided;
(b)it is paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of a contract; or
(c)without prejudice to paragraph (b), it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.
(5)  For the purposes of subsection (3), “deposit” does not include —
(a)a sum paid by the Authority, any person referred to in section 4A(6)(a) to (d) or any insurer registered under the Insurance Act (Cap. 142);
(b)a sum paid by any moneylender licensed under the Moneylenders Act (Cap. 188);
(c)a sum paid by one company to another at a time when one is a subsidiary of the other or both are subsidiaries of another company, or the same individual controls more than half of the voting power or holds more than half of the issued share capital of both of them;
(d)a sum paid by a person who, at the time when it is paid, is a close relative of the person receiving it or who is, or is a close relative of, a director, controller or manager of that person; and
(e)a sum paid by such person or class of persons as may be prescribed.
(6)  Subject to the provisions of this section, for the purposes of section 4A, a business is a deposit-taking business if —
(a)in the course of the business, money received by way of deposit is lent to others; or
(b)any other activity of the business is financed, wholly or to any material extent, out of the capital of or the interest on money received by way of deposit.
(7)  Notwithstanding that paragraph (a) or (b) of subsection (6) applies to a business, it is not a deposit-taking business if the person carrying on the business —
(a)does not hold himself out as accepting deposits on a day to day basis; and
(b)does not accept deposits on a day to day basis, whether or not involving the issue of debentures or securities.
(8)  For the purposes of subsection (6), all the activities which a person carries on by way of business shall be regarded as a single business carried on by him.
(9)  In this section —
“close relative”, in relation to a person, means the spouse or a parent, remoter lineal ancestor or step-parent or a son, daughter, remoter issue, step-son or step-daughter or a brother or sister, of the person;
“controller” means a 12% controller or 20% controller as defined in section 15B(3);
“debentures” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);
“securities” has the same meaning as in section 2(1) of the Securities Industry Act (Cap. 289).
Examination of persons suspected of contravening section 4A and access to premises
4C.—(1)  Whenever the Authority has reason to believe that a person has contravened or is contravening section 4A(1) or (2), the Authority shall at all times —
(a)have full and free access to the premises at which that person is suspected of having committed or of committing the contravention, or at which that person may have books, accounts and records; and
(b)have the power to examine, copy or take possession of the books, accounts and records of that person in order to ascertain whether or not that person has contravened or is contravening section 4A(1) or (2).
(2)  Any person who obstructs the Authority in the exercise of its powers under subsection (1) or fails without reasonable excuse to furnish such books, accounts or records in his possession as may be required by the Authority, shall be guilty of an offence and shall be liable on conviction —
(a)in the case of an individual, to a fine not exceeding $12,500 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $1,250 for every day or part thereof during which the offence continues after conviction; or
(b)in any other case, to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.”.
Amendment of section 5
7.  Section 5 of the Banking Act is amended by deleting subsection (3) and substituting the following subsection:
(3)  Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction —
(a)in the case of an individual, to a fine not exceeding $12,500 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $1,250 for every day or part thereof during which the offence continues after conviction; or
(b)in any other case, to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.”.
New section 5A
8.  The Banking Act is amended by inserting, immediately after section 5, the following section:
Use of bank name, etc.
5A.—(1)  No person shall, without the prior approval of the Authority, in the course of any profession, vocation, trade or business, use any name, logo or trade mark in a manner which indicates or represents that the person or his trade or business is related to or associated with a bank incorporated in Singapore or any of its subsidiaries which carries on a business referred to in section 30(1)(a), (b) or (c).
(2)  No bank incorporated in Singapore shall cause or knowingly permit any person (other than a related corporation of the bank which carries on any business referred to in section 30(1)(a), (b) or (c) or the financial holding company of the bank) to use its name, logo or trade mark in the course of the person’s profession, vocation, trade or business without the prior approval of the Authority.
(3)  Any person who contravenes this section 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 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; or
(b)in any other case, 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.
(4)  This section shall not apply, in relation to any bank incorporated in Singapore or any subsidiary of the bank referred to in subsection (1), to —
(a)any related corporation of the bank which carries on a business referred to in section 30(1)(a), (b) or (c) or the financial holding company of the bank;
(b)any officer or agent of the bank or of any of its subsidiaries which carries on a business referred to in section 30(1)(a), (b) or (c), in the conduct of any duty or function in or for the bank or the subsidiary, as the case may be;
(c)any person carrying on a business referred to in section 30(1)(a), (b) or (c) pursuant to any agreement or arrangement with the bank; and
(d)such other person or class of persons as may be prescribed.
(5)  Nothing in this section shall prevent a person who lawfully uses any name, logo or trade mark in the manner referred to in subsection (1) before the appointed day from continuing to use the name, logo or trade mark in such manner for a period of 3 years from the appointed day.”.
Amendment of section 7
9.  Section 7 of the Banking Act is amended —
(a)by deleting the words “on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both.” in the 4th, 5th and 6th lines of subsection (2) and substituting the following words:
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.”; and
(b)by inserting, immediately after the words “section 9” in subsection (3), the words “or 9A, as the case may be”.
Amendment of section 9
10.  Section 9 of the Banking Act is amended —
(a)by deleting sub-paragraph (i) of subsection (1)(c) and substituting the following sub-paragraph:
(i)its head office capital funds are not less than the equivalent of $200 million; and”;
(b)by deleting subsection (3) and substituting the following subsection:
(3)  A bank incorporated outside Singapore which holds a licence to carry on banking business in Singapore on 8th October 1993 shall be exempt from subsection (1)(c)(i).”; and
(c)by deleting subsection (7) and substituting the following subsections:
(7)  Any bank which fails to comply with any requirement under subsection (1) shall forthwith notify the Authority.
(8)  Where a bank fails to comply with any provision of this section, the Authority may, without prejudice to section 71, by notice in writing to the bank —
(a)restrict or suspend the operations of the bank; or
(b)give such directions to the bank as the Authority considers appropriate, and the bank shall comply with such directions.
(9)  In this section, “head office capital funds”, in relation to a bank incorporated outside Singapore, means the aggregate of its issued and paid-up capital (or its equivalent recognised by the Authority as applicable to the bank under the laws of the country or territory in which the bank is incorporated, formed or established) and its published reserves (excluding such reserves as the Authority may specify in writing), deduction having been made for any loss appearing in the accounts of the bank.”.
New section 9A
11.  The Banking Act is amended by inserting, immediately after section 9, the following section:
Capital requirements for qualifying subsidiaries
9A.—(1)  Notwithstanding section 9, a company incorporated in Singapore which is a qualifying subsidiary may be granted and hold a licence under section 7 or 11 if —
(a)it is and continues to be a qualifying subsidiary; and
(b)its issued and paid-up capital is not less than $100 million.
(2)  A bank which is a qualifying subsidiary shall not, during the currency of its licence, reduce its paid-up capital without the approval of the Authority.
(3)  A bank which is a qualifying subsidiary shall, during the currency of its licence, maintain capital funds of not less than $100 million unless the Authority approves otherwise.
(4)  The Authority may, in its discretion, on application by any bank, exempt that bank from subsection (1)(a) subject to such conditions as the Authority may impose, and in such event, the other provisions of this section shall continue to apply to that bank notwithstanding that it may no longer be a qualifying subsidiary.
(5)  Any bank which fails to comply with any requirement under subsection (1) shall forthwith notify the Authority.
(6)  Where a bank fails to comply with any provision of this section or any condition imposed by the Authority under this section, the Authority may, without prejudice to section 71, by notice in writing to the bank —
(a)restrict or suspend the operations of the bank; or
(b)give such directions to the bank as it considers appropriate and the bank shall comply with such directions.
(7)  A bank which is a qualifying subsidiary on the appointed day and holds a licence granted or held under section 7, 11 or 79 before the appointed day shall be exempt from subsection (1)(b) for the period commencing on the appointed day and ending on 17th July 2001.”.
Amendment of section 10
12.  Section 10 of the Banking Act is amended —
(a)by deleting subsection (1) and substituting the following subsection:
(1)  The Authority may, by notice in writing, require any bank in Singapore or class of banks in Singapore to maintain capital funds in Singapore of such amount (not being less than the minimum prescribed in section 9 or 9A, as the case may be) and in such manner as the Authority considers appropriate, having regard to the risks arising from the activities of the bank or class of banks, as the case may be, and such other factors as the Authority considers relevant.”;
(b)by inserting, immediately after subsection (2), the following subsection:
(2A)  The Authority may, if it considers appropriate in the particular circumstances of a bank incorporated in Singapore, having regard to the risks arising from the activities of the bank and such other factors as the Authority considers relevant, vary the capital adequacy ratio applicable to that bank.”;
(c)by inserting, immediately after the words “subsection (2)” in subsection (3), the words “or (2A)”; and
(d)by deleting the section heading and substituting the following section heading:
Risk-based capital requirements”.
Amendment of section 11
13.  Section 11 of the Banking Act is amended —
(a)by inserting, immediately after the word “capital” in subsection (1)(a), the words “(or its equivalent recognised by the Authority as applicable to the bank under the laws of the country or territory in which the bank is incorporated, formed or established)”; and
(b)by deleting subsection (2) and substituting the following subsection:
(2)  Notwithstanding subsection (1) and section 9, the Authority may, in its discretion, grant a licence to any such bank for such period or periods not exceeding 12 months at any one time as the Authority may think fit, subject to such conditions as it may impose.”.
Amendment of section 14
14.  Section 14 of the Banking Act is amended —
(a)by deleting subsection (1) and substituting the following subsection:
(1)  A bank incorporated in Singapore shall not be merged or consolidated with, or be taken over by, any other body corporate or unincorporate without the prior written approval of the Minister.”;
(b)by deleting the word “Authority” in subsection (2) and substituting the word “Minister”; and
(c)by inserting, immediately after subsection (2), the following subsection:
(3)  Without prejudice to the generality of subsection (1), for the purposes of this section, a bank shall be deemed to be merged with a body corporate or unincorporate if the bank or its shareholders enter into any agreement or arrangement under which all or substantially all of the business of the bank is to be managed, and under which the shareholders of the bank will be accorded rights, as if the bank has been merged with such body corporate or unincorporate, as the case may be.”.
Amendment of section 14A
15.  Section 14A of the Banking Act is amended —
(a)by deleting paragraph (a\) of subsection (5); and
(b)by deleting subsection (7).
Repeal and re-enactment of section 15 and new sections 15A to 15E
16.  Section 15 of the Banking Act is repealed and the following sections substituted therefor:
Application and interpretation of sections 15A to 18
15.—(1)  This section and sections 15A to 18 shall apply to, and in relation to, all individuals whether resident in Singapore or not and whether citizens of Singapore or not, and to all bodies corporate or unincorporate, whether incorporated or carrying on business in Singapore or not.
(2)  In sections 15A to 18, unless the context otherwise requires —
“arrangement” includes any formal or informal scheme, arrangement or understanding, and any trust whether express or implied;
“designated financial institution” means —
(a)a bank incorporated in Singapore; or
(b)a financial holding company;
“share” includes stock except where a distinction between stock and shares is expressed or implied;
“substantial shareholder” has the same meaning as in section 81 of the Companies Act (Cap. 50);
“voting share” has the same meaning as in section 4(1) of the Companies Act.
Control of substantial shareholdings in designated financial institutions
15A.—(1)  No person shall, on or after the appointed day, become a substantial shareholder of a designated financial institution without first obtaining the approval of the Minister.
(2)  Subject to section 15C(4), no person who, immediately before the appointed day, is a substantial shareholder of a designated financial institution shall continue to be such a shareholder unless he has, within 6 months after the appointed day or such longer period as the Minister may allow, applied to the Minister for approval to continue to be such a shareholder.
(3)  No person shall, on or after the appointed day, enter into any agreement or arrangement, whether oral or in writing and whether express or implied, to act together with any person with respect to the acquisition, holding or disposal of, or the exercise of rights in relation to, their interests in voting shares of an aggregate of 5% or more of the nominal amount of all voting shares in a designated financial institution, without first obtaining the approval of the Minister.
(4)  Subject to section 15C(4), no person who, at any time before the appointed day, has entered into any agreement or arrangement referred to in subsection (3) shall continue to be a party to such an agreement or arrangement unless he has, within 6 months after the appointed day or such longer period as the Minister may allow, applied to the Minister for approval to continue to be a party to such an agreement or arrangement.
(5)  For the purposes of this section, a person has an interest in any share if —
(a)he is deemed to have an interest in that share under section 7 of the Companies Act (Cap. 50); or
(b)he otherwise has a legal or equitable interest in that share except for such interest as is to be disregarded under section 7 of the Companies Act.
Control of shareholdings and voting power in designated financial institutions
15B.—(1)  No person shall, on or after the appointed day, become —
(a)a 12% controller;
(b)a 20% controller; or
(c)an indirect controller,
of a designated financial institution without first obtaining the approval of the Minister.
(2)  Subject to section 15C(4), no person who, immediately before the appointed day, is —
(a)a 12% controller;
(b)a 20% controller; or
(c)an indirect controller,
of a designated financial institution shall continue to be such a controller unless he has, within 6 months after the appointed day or such longer period as the Minister may allow, applied to the Minister for approval to continue to be such a controller.
(3)  In subsections (1)(a) and (b) and (2)(a) and (b) —
“12% controller” means a person, not being a 20% controller, who alone or together with his associates —
(a)holds not less than 12% of the shares in the designated financial institution; or
(b)is in a position to control voting power of not less than 12% in the designated financial institution;
“20% controller” means a person who, alone or together with his associates —
(a)holds not less than 20% of the shares in the designated financial institution; or
(b)is in a position to control voting power of not less than 20% in the designated financial institution.
(4)  For the purposes of subsection (3) —
(a)a person holds a share if —
(i)he is deemed to have an interest in that share under section 7(6) to (10) of the Companies Act (Cap. 50); or
(ii)he otherwise has a legal or equitable interest in that share except for such interest as is to be disregarded under section 7(6) to (10) of the Companies Act;
(b)a reference to the control of a percentage of the voting power in a designated financial institution is a reference to the control, whether direct or indirect, of that percentage of the total number of votes that might be cast in a general meeting of the designated financial institution; and
(c)a person, A, is an associate of another person, B, if —
(i)A is the spouse or a parent, remoter lineal ancestor or step-parent or a son, daughter, remoter issue, step-son or step-daughter or a brother or sister, of B;
(ii)A is a corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B, or where B is a corporation, of the directors of B;
(iii)B is a corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A, or where A is a corporation, of the directors of A;
(iv)A is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B;
(v)B is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A;
(vi)A is a related corporation of B;
(vii)A is a corporation in which B, alone or together with other associates of B as described in paragraphs (ii) to (vi), is in a position to control not less than 20% of the voting power in A;
(viii)B is a corporation in which A, alone or together with other associates of A as described in paragraphs (ii) to (vi), is in a position to control not less than 20% of the voting power in B; or
(ix)A is a person with whom B has an agreement or arrangement, whether oral or in writing and whether express or implied, to act together with respect to the acquisition, holding or disposal of shares or other interests in, or with respect to the exercise of their voting power in relation to, the designated financial institution.
(5)  In subsections (1)(c) and (2)(c), “indirect controller” means any person, whether acting alone or together with any other person, and whether with or without holding shares or controlling voting power in a designated financial institution —
(a)in accordance with whose directions, instructions or wishes the directors of the designated financial institution are accustomed or under an obligation, whether formal or informal, to act; or
(b)who is in a position to determine the policy of the designated financial institution,
but does not include any person —
(i)who is a director or other officer of the designated financial institution whose appointment has been approved by the Authority; or
(ii)in accordance with whose directions, instructions or wishes the directors of the designated financial institution are accustomed to act by reason only that they act on advice given by him in his professional capacity.
Approval of applications
15C.—(1)  The Minister may, in his discretion, approve an application made by any person under section 15A or 15B if the Minister is satisfied that —
(a)the person is a fit and proper person;
(b)having regard to the person’s likely influence, the designated financial institution will or will continue to conduct its business prudently and comply with the provisions of this Act and notices made thereunder; and
(c)it is in the national interest to do so.
(2)  Any approval under this section may be granted to any person subject to such conditions as the Minister may determine, including but not limited to any condition —
(a)restricting the person’s disposal or further acquisition of shares or voting power in the designated financial institution; or
(b)restricting the person’s exercise of voting power in the designated financial institution.
(3)  Any condition imposed under subsection (2) shall have effect notwithstanding any of the provisions of the Companies Act (Cap. 50) or anything contained in the memorandum or articles of association of the designated financial institution.
(4)  Where the Minister disapproves an application made by any person under section 15A(2) or (4) or 15B (2), the person shall, within such time as the Minister may specify, take such steps as are necessary —
(a)in the case of section 15A(2), to cease to be a substantial shareholder;
(b)in the case of section 15A(4), to cease to be a party to the agreement or arrangement; or
(c)in the case of section 15B(2), to cease to be —
(i)a 12% controller;
(ii)a 20% controller; or
(iii)an indirect controller,
as the case may be.
(5)  Notwithstanding the repeal of sections 15, 16 and 17 of the Banking Act in force immediately before the appointed day, the following approvals granted by the Authority before the appointed day shall continue and be deemed to be approvals granted by the Minister under this section, subject to such additional conditions as the Minister may at any time by notice in writing, impose:
(a)any approval or condition imposed in relation thereto under the repealed section 15(2) shall be deemed to be an approval granted or condition imposed under this section as if an application for approval had been made under section 15B(2)(b);
(b)any approval or condition imposed in relation thereto under the repealed section 16(1) shall be deemed to be an approval granted or condition imposed under this section as if an application for approval had been made under section 15B(2)(c); or
(c)any approval or condition imposed in relation thereto under the repealed section 17(1) shall be deemed to be an approval granted or condition imposed under this section as if an application for approval had been made under section 15A(2).
Power to exempt and make further transitional provisions
15D.  The Minister may, by order published in the Gazette —
(a)exempt —
(i)any person or class of persons; or
(ii)any class or description of shares or interests in shares,
from section 15A or 15B, subject to such terms and conditions as may be specified in the order; and
(b)make such further transitional provisions as he considers necessary or expedient for the purposes of section 15A, 15B or 15C.
Objection to existing control of designated financial institutions
15E.—(1)  The Minister may serve a written notice of objection on any person referred to in section 15A or 15B if the Minister is satisfied that —
(a)any condition of approval imposed on the person under section 15C(2) or (5) has not been complied with;
(b)the person ceases to be a fit and proper person;
(c)having regard to the person’s likely influence, the designated financial institution is no longer likely to conduct its business prudently or to comply with the provisions of this Act and notices made thereunder;
(d)it is no longer in the national interest to allow the person to continue to be a party to the agreement or arrangement described in section 15A(3) or (4), or to continue to be a substantial shareholder, a 12% controller, a 20% controller or an indirect controller, as the case may be;
(e)the person has furnished false or misleading information or documents in connection with an application under section 15A or 15B; or
(f)he would not have granted his approval under section 15C had he been aware, at that time, of circumstances relevant to the person’s application for such approval.
(2)  Before the service of a written notice of objection, the Minister shall, unless he decides that it is not practicable or desirable to do so, cause to be given to the person concerned notice in writing of his intention to serve the written notice of objection, specifying a date by which the person may make written representations with regard to the proposed written notice of objection.
(3)  Upon receipt of any written representations, the Minister shall consider them for the purpose of determining whether to issue a written notice of objection.
(4)  The Minister shall, in any written notice of objection, specify a reasonable period within which the person to be served the written notice of objection shall —
(a)take such steps as are necessary to ensure that he ceases to be a party to the agreement or arrangement described in section 15A(3) or (4), or ceases to be a substantial shareholder, a 12% controller, a 20% controller or an indirect controller as defined in section 15B(3) and (5), as the case may be; or
(b)comply with such direction or directions as the Minister may make under section 16.
(5)  Any person served with a notice of objection under this section shall comply with the notice.”.
Repeal and re-enactment of sections 16, 17 and 18
17.  Sections 16, 17 and 18 of the Banking Act are repealed and the following sections substituted therefor:
Power to make directions
16.—(1)  Without prejudice to section 17, if the Minister is satisfied that any person has contravened section 15A, 15B, 15C (4) or 15E (5) or has failed to comply with any condition imposed under section 15C(2) or (5), or if the Minister has served a written notice under section 15E, the Minister may, by notice in writing —
(a)direct the transfer or disposal of all or any of the shares in the designated financial institution held by the person or any of his associates (referred to in this section as the specified shares) within such time or subject to such conditions as the Minister considers appropriate;
(b)restrict the transfer or disposal of the specified shares; or
(c)make such other direction as the Minister considers appropriate.
(2)  Any person to whom a notice is given under subsection (1) shall comply with such direction or directions as may be specified in the notice.
(3)  In the case of any direction made under subsection (1)(a) or (b), until a transfer or disposal is effected in accordance with the direction or until the restriction on the transfer or disposal is removed, as the case may be, notwithstanding any of the provisions of the Companies Act (Cap. 50) or anything contained in the memorandum or articles of association of the designated financial institution —
(a)no voting rights shall be exercisable in respect of the specified shares unless the Minister expressly permits such rights to be exercised;
(b)no shares of the designated financial institution shall be issued or offered (whether by way of rights, bonus or otherwise) in respect of the specified shares unless the Minister expressly permits such issue or offer; and
(c)except in a liquidation of the designated financial institution, no payment shall be made by the designated financial institution of any amount (whether by way of dividends or otherwise) in respect of the specified shares unless the Minister expressly authorises such payment.
(4)  In this section, “associate” has the same meaning as in section 15B(4)(c).
Offences, penalties and defences
17.—(1)  Any person who contravenes section 15A, 15B (1)(a) or (2)(a) or 15C (4)(a), (b) or (c)(i) 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 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; or
(b)in any other case, 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.
(2)  Any person who contravenes section 15B(1)(b) or (c), (2)(b) or (c), 15C (4)(c)(ii) or (iii), 15E (5) or 16 (2), or who fails to comply with any condition imposed under section 15C(2) 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 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; or
(b)in any other case, 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.
(3)  Where a person is charged with an offence in respect of a contravention of section 15A or 15B, it shall be a defence for the person to prove that —
(a)he was not aware that he had contravened that section; and
(b)he has, within 14 days of becoming aware that he had contravened that section, notified the Minister of the contravention and, within such time as determined by the Minister, taken such actions in relation to his shareholding or control of the voting power in the designated financial institution as the Minister may direct.
(4)  Where a person is charged with an offence in respect of a contravention of section 15B(1), it shall also be a defence for the person to prove that, even though he was aware of the contravention —
(a)the contravention occurred as a result of an increase in the shareholding as described in section 15B(4)(a) of, or in the voting power controlled by, any of his associates described in section 15B(4)(c) (i);
(b)he has no agreement or arrangement, whether oral or in writing and whether express or implied, with that associate with respect to the acquisition, holding or disposal of shares or other interests in, or under which they act together in exercising their voting power in relation to, the designated financial institution; and
(c)he has, within 14 days of the date of the contravention, notified the Minister of the contravention and, within such time as may be determined by the Minister, taken such action in relation to his shareholding or control of the voting power in the designated financial institution as the Minister may direct.
(5)  Except as provided in subsections (3) and (4), it shall not be a defence for a person charged with an offence in respect of a contravention of section 15A or 15B to prove that he did not intend to or did not knowingly contravene section 15A or 15B, as the case may be.
Power of Authority to obtain information
18.—(1)  The Authority may, by notice in writing, direct any designated financial institution to obtain from any of its shareholders and to transmit to the Authority information —
(a)as to whether that shareholder holds any share in the designated financial institution as beneficial owner or as trustee; and
(b)if he holds the share as trustee, to indicate as far as he can, the person for whom he holds the share (either by name or by other particulars sufficient to enable that person to be identified) and the nature of his interest,
and the designated financial institution shall comply with that direction within such time as may be specified in the notice.
(2)  The Authority may, by notice in writing, require any shareholder of a designated financial institution, or any person who appears from information provided to the Authority under subsection (1) or this subsection to have an interest in any share in a designated financial institution, to inform the Authority —
(a)whether he holds that interest as beneficial owner or as trustee, and if he holds the interest as trustee, to indicate so far as he can, the person for whom he holds the interest (either by name or by other particulars sufficient to enable that person to be identified) and the nature of his interest; or
(b)whether any share or any voting right attached to the share is the subject of an agreement or arrangement described in section 15A(3) or (4) or 15B (4)(c)(ix), and if so, to give particulars of the agreement or arrangement and the parties to it,
and the person shall comply with that notice within such time as may be specified therein.
(3)  Any person who —
(a)fails to comply with a notice under this section; or
(b)in purported compliance of the notice, knowingly or recklessly makes a statement which is false in a material particular,
shall be guilty of an offence.
(4)  Any person convicted of an offence under this section 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 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; or
(b)in any other case, 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.”.
Amendment of section 22
18.  Section 22 of the Banking Act is amended —
(a)by deleting the words “licensed bank” in the 1st line of subsection (1) and substituting the words “bank in Singapore”;
(b)by inserting, immediately after “50%” in subsection (1)(b)(ii), the words “or more”;
(c)by deleting the words “licensed bank whose head office is situated outside Singapore” in subsection (2) and substituting the words “bank incorporated outside Singapore”; and
(d)by inserting, immediately after subsection (3), the following subsection:
(4)  In this section, any reference to “paid-up capital” in relation to a bank incorporated outside Singapore shall include its equivalent recognised by the Authority as applicable to the bank under the laws of the country or territory in which the bank is incorporated, formed or established.”.
Repeal of section 24
19.  Section 24 of the Banking Act is repealed.
Amendment of section 25
20.  Section 25 of the Banking Act is amended —
(a)by deleting the words “6 months” in the 1st line of subsection (2) and substituting the words “5 months”; and
(b)by deleting subsections (4) to (8).
Amendment of section 26
21.  Section 26 of the Banking Act is amended —
(a)by deleting subsection (1) and substituting the following subsection:
(1)  Every bank shall furnish to the Authority such information (including returns) at such time and in such manner as the Authority may reasonably require for the proper discharge of its functions.”;
(b)by inserting, immediately after subsection (2), the following subsections:
(2A)  Every bank shall send to the Authority —
(a)not later than 3 months after the close of its financial year or within such longer period as the Authority may on application of the bank approve —
(i)a copy of its latest audited annual balance-sheet and profit and loss account together with any notes thereon;
(ii)a copy of the report of the auditors of the bank;
(iii)a copy of the report of the directors of the bank;
(iv)a duly audited balance-sheet showing its assets used in, and liabilities arising out of, its operation in, Singapore as at the date to which its balance-sheet was made up; and
(v)a duly audited profit and loss account which gives a true and fair view of the profit or loss arising out of the bank’s operation in Singapore for its last preceding financial year;
(b)in the case of a bank incorporated in Singapore, within such period as the Authority may require, its interim profit and loss account for every half-year or such other intervals as may be determined by the Authority; and
(c)within such period and in such manner as the Authority may require, such further or additional information as the Authority may consider necessary either by way of explanation, amplification or otherwise with regard to any of the balance-sheets and profit and loss accounts sent under paragraph (a) or (b).
(2B)  In the case of a bank incorporated outside Singapore, the statements referred to in subsection (2A)(a)(i), (ii) and (iii) may be made in a manner that complies with the law for the time being applicable in the place of its incorporation, formation or establishment.
(2C)  The Authority may, in its discretion, regard the balance-sheet and profit and loss account as having been duly audited for the purpose of subsection (2A)(a)(iv) and (v) if the balance-sheet and profit and loss account are accompanied by a report by an approved company auditor which complies, insofar as it is practicable, with section 207 of the Companies Act (Cap. 50).”; and
(c)by deleting subsection (5) and substituting the following subsection:
(5)  Any information received from a bank under this section shall be treated as secret by the Authority.”.
Repeal and re-enactment of sections 30 to 35
22.  Sections 30 to 35 of the Banking Act are repealed and the following sections substituted therefor:
Non-financial businesses
30.—(1)  No bank in Singapore shall carry on, or enter into any partnership, joint venture or other arrangement with any person to carry on, whether in Singapore or elsewhere, any business except for the following:
(a)banking business;
(b)any business the conduct of which is regulated or authorised by the Authority under any other written law;
(c)any business which is incidental to the business which the bank may carry on under paragraph (a) or (b);
(d)any business or class of business as the Authority may prescribe, subject to such conditions as may be prescribed; or
(e)any other business as the Authority may approve for the purposes of this section, subject to such conditions as the Authority may impose.
(2)  Nothing in this section shall —
(a)prevent a bank from holding any equity investment in a company in accordance with section 31; or
(b)be construed as exempting a bank from any requirement which, apart from this section, the bank is required to comply with under any written law for the conduct of any business.
(3)  Any bank which contravenes this section or fails to comply with any condition imposed or prescribed under this section 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.
Limit on equity investments
31.—(1)  No bank in Singapore shall acquire or hold any equity investment in a single company, the value of which exceeds in the aggregate 2% of the capital funds of the bank or such other percentage as the Authority may prescribe.
(2)  This section shall not apply to —
(a)any interest held by way of security for the purposes of a transaction entered into in the ordinary course of the business of the bank in Singapore;
(b)any shareholding or interest acquired or held by a bank in Singapore in the course of satisfaction of debts due to it which is disposed of at the earliest suitable opportunity; or
(c)any major stake approved under section 32.
(3)  The Authority may, by regulations —
(a)exempt any bank from subsection (1) in respect of any investment;
(b)provide for the manner of valuation of investments for the purposes of compliance with this section; and
(c)exclude the operation of this section in respect of any investment or class of investments which may be held by any bank, subject to such conditions as may be prescribed.
(4)  Any bank which contravenes this section or fails to comply with any condition imposed or prescribed under 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.
(5)  In this section, “equity investment” means any beneficial interest in the share capital of a company.
(6)  The Authority may, by order published in the Gazette, modify the definition of “equity investment” in subsection (5).
Investments in companies undertaking non-financial businesses
32.—(1)  No bank in Singapore shall acquire or hold a major stake in any company without the prior approval of the Authority.
(2)  The Authority shall not ordinarily grant its approval under subsection (1) if the company carries on, whether as its principal business or otherwise, any prohibited business.
(3)  Notwithstanding subsection (2), the Authority may, in the circumstances of a particular case, grant its approval for a bank in Singapore to acquire or hold a major stake in a company which carries on any prohibited business, subject to such conditions as it may impose.
(4)  This section shall not apply to —
(a)any interest held by way of security for the purposes of a transaction entered into in the ordinary course of the business of the bank in Singapore; and
(b)any shareholding or interest acquired or held by a bank in Singapore in the course of satisfaction of debts due to it which is disposed of at the earliest suitable opportunity.
(5)  The Authority may, by regulations —
(a)exclude the operation of this section in respect of any company or class of companies, subject to such conditions as may be prescribed; and
(b)provide for the manner of computation of major stakes.
(6)  Any bank which contravenes this section or fails to comply with any condition imposed or prescribed under this section 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.
(7)  In this section —
“major stake” means —
(a)any beneficial interest exceeding 10% in the share capital of a company;
(b)control over more than 10% of the voting power in a company; or
(c)any interest in a company, where the directors of the company are accustomed or under an obligation, whether formal or informal, to act in accordance with the bank’s directions, instructions or wishes, or where the bank is in a position to determine the policy of the company;
“prohibited business” means any business other than the businesses referred to in section 30(1)(a) to (d).
(8)  This section shall not affect any acquisition or holding of a major stake which was approved by the Authority prior to the appointed day.
Immovable property
33.—(1)  No bank in Singapore shall hold or acquire interests in or rights over immovable property, wherever situated, the value of which exceeds in the aggregate 20% of the capital funds of the bank or such other percentage as the Authority may prescribe.
(2)  For the purposes of determining the aggregate value of the interest in or right over immovable property referred to in subsection (1), there shall be excluded such portion of the value as may be attributable to the following:
(a)any interest in or right over immovable property or any part thereof used for the purpose of conducting the business of the bank in Singapore or housing or providing amenities for its officers;
(b)any interest in or right over immovable property held by way of security for the purposes of a transaction entered into in the ordinary course of the business of the bank in Singapore;
(c)any interest in or right over immovable property held by way of enforcement of such security referred to in paragraph (b), provided that it is disposed of at the earliest suitable opportunity; and
(d)such other interest in or right over immovable property as the Authority may prescribe.
(3)  The Authority may make regulations to provide for the manner of valuation or apportionment of immovable property for the purposes of this section.
(4)  Any bank which 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 of $10,000 for every day or part thereof during which the offence continues after conviction.
Grace period for sections 30 to 33
34.—(1)  Notwithstanding sections 30 to 33, where any business was carried on, or any property or investment was held, by a bank in Singapore immediately before the appointed day with the approval of the Authority (where required) or which did not require the approval of the Authority, the bank may continue to carry on such business or hold such property or investment, as the case may be, for a period of 3 years from the appointed day.
(2)  The Authority may, on application by a bank in Singapore, extend the period referred to in subsection (1) for such further period as the Authority considers appropriate.
(3)  The Authority may, in granting an application for extension under subsection (2) —
(a)levy a charge of an amount not exceeding $10,000 for every day of the period of extension; or
(b)impose such conditions as it considers appropriate.
(4)  The Authority may, on application by a bank in Singapore, waive any requirement in section 30, 31, 32 or 33, on such conditions as the Authority may impose, where in the opinion of the Authority, the waiver is reasonably necessary for the bank to divest the business, property or investment referred to in subsection (1) by the end of the period referred to in that subsection or the further period referred to in subsection (2).
Exposure to immovable property sector
35.—(1)  The Authority may make such regulations as may be necessary or expedient for the purposes of limiting, in relation to a bank in Singapore, exposure to risks associated, directly or indirectly, with such immovable property as may be prescribed.
(2)  Without prejudice to the generality of subsection (1), the regulations may —
(a)prescribe a limit (referred to in this section as the property sector exposure limit) —
(i)on the credit facilities that may be granted or issued by a bank in Singapore to such person or class of persons as may be prescribed; or
(ii)on the notes, bonds, debentures, derivatives or other financial instruments that may be held by a bank in Singapore;
(b)provide for the manner of computation for the purpose of determining whether the property sector exposure limit has been complied with;
(c)provide for the Authority to vary the property sector exposure limit in the circumstances of any particular case;
(d)provide for such transitional and consequential provisions as may be necessary or expedient; and
(e)provide that a contravention of the regulations shall be an offence punishable, on conviction, with a fine not exceeding $100,000 and, in the case of a continuing offence, with a further fine of $10,000 for every day or part thereof during which the offence continues after conviction.”.
Amendment of section 36
23.  Section 36 of the Banking Act is amended —
(a)by inserting, immediately after the word “bank” in the 1st line of subsection (1), the words “in Singapore”;
(b)by deleting the words “33 or 34” in subsection (1) and substituting the words “32, 33, 35 or this section”;
(c)by deleting subsection (2) and substituting the following subsection:
(2)  Without prejudice to sections 10, 23, 29, 31, 32, 33, 35 and 42, the Authority may, for the purpose of securing compliance with those sections on a consolidated basis, from time to time by notice in writing, require any bank to aggregate, in such manner as may be specified in the notice, its assets, liabilities, profits or losses, as the case may be, with the assets, liabilities, profits or losses of all or any of —
(a)the bank’s related corporations; and
(b)companies in which the bank has a major stake as defined in section 32(7).”; and
(d)by deleting “33, 34” in the section heading and substituting “32, 33, 35”.
Amendment of section 38
24.  Section 38 of the Banking Act is amended —
(a)by deleting subsection (1) and substituting the following subsection:
(1)  The Authority may, from time to time, by notice in writing to any bank in Singapore or class of banks in Singapore, impose requirements in relation to the minimum amount or amounts of liquid assets to be held by the bank or class of banks, having regard to the risks arising from the activities of the bank or class of banks, as the case may be, and such other factors as the Authority considers relevant.”;
(b)by deleting the word “prescribed” in the 1st line of subsection (2) and substituting the word “required”;
(c)by deleting the word “uniform” in subsection (3);
(d)by inserting, immediately after the word “bank” in subsection (6), the words “in Singapore”;
(e)by inserting at the end of subsection (9)(b), the word “and”;
(f)by deleting paragraphs (c), (d) and (e) of subsection (9); and
(g)by re-lettering paragraph (f\) of subsection (9) as paragraph (c) of that subsection.
New section 40A
25.  The Banking Act is amended by inserting, immediately before section 41, the following section:
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;
“parent bank”, in relation to a bank, means a financial institution which is able to exercise a significant influence over the direction and management of the bank or which has a controlling interest in the bank;
“parent supervisory authority”, in relation to a bank incorporated outside Singapore, means the supervisory authority which is responsible, under the laws of the country or territory where the bank or its parent bank is incorporated, formed or established, for supervising the bank or its parent bank, as the case may be.”.
Amendment of section 43
26.  Section 43 of the Banking Act is amended —
(a)by inserting, immediately after the word “bank” in the 3rd line, the words “in Singapore”; and
(b)by renumbering the section as subsection (1) of that section, and by inserting immediately thereafter the following subsection:
(2)  Without prejudice to the generality of subsection (1), such inspection may be conducted in respect of activities of the bank that are regulated or licensed by the Authority under any other Act.”.
Amendment of section 44
27.  Section 44 of the Banking Act is amended —
(a)by inserting, immediately after the word “bank” where it first appears in the 3rd line of subsection (1), the words “in Singapore”; and
(b)by deleting subsection (2).
New section 44A
28.  The Banking Act is amended by inserting, immediately after section 44, the following section:
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 under inspection or investigation shall —
(a)produce its books, accounts and documents to the Authority and afford the Authority access thereto; and
(b)provide such information or facilities as may be required by the Authority to conduct the inspection or investigation.
(2)  The books, accounts and documents 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.
(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.
(4)  Customer information that is obtained by the Authority from a bank incorporated outside 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.
(5)  Any bank 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.”.
Repeal and re-enactment of sections 45 and 46
29.  Sections 45 and 46 of the Banking Act are repealed and the following sections substituted therefor:
Inspection in Singapore by parent supervisory authority
45.—(1)  In relation to a bank incorporated outside 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, accounts and transactions 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).
(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.
(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, accounts and documents 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, accounts and documents 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.
(4)  A parent supervisory authority may, with the prior written approval of the Authority, appoint another body to conduct the inspection under subsection (1), and in such event the provisions of this section shall apply to the appointed body as they apply to the parent supervisory authority.
(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.
(6)  Any bank which refuses or neglects, without reasonable excuse, to afford access to any book, account or document 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.
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 —
(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 any officer or auditor of the bank, to any other person except in the circumstances provided under subsection (2).
(2)  Disclosure of the report referred to in subsection (1) may be made —
(a)by the bank in Singapore to any officer or auditor of that bank solely in connection with the performance of the duties of the officer or auditor, as the case may be, in that bank;
(b)by any officer or auditor of the bank in Singapore to any other officer or auditor of that bank, solely in connection with the performance of their duties in that bank;
(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.
(3)  In granting written approval for any disclosure under subsection (2)(d), the Authority may impose such conditions as it considers appropriate.
(4)  The obligation on an officer or auditor referred to in subsection (1) shall continue after the termination or cessation of his employment or appointment at the bank.
(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.
(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.”.
Repeal of section 46A
30.  Section 46A of the Banking Act is repealed.
Repeal and re-enactment of section 47
31.  Section 47 of the Banking Act is repealed and the following section substituted therefor:
Banking secrecy
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.
(2)  A bank in Singapore or any of its officers may, for such purpose as may be specified in the first column of the Sixth 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.
(3)  Where customer information is likely to be disclosed in any proceedings referred to in item 3 or 4 of Part I of the Sixth 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.
(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.
(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 Sixth 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.
(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.
(7)  In this section and in the Sixth Schedule, unless the context otherwise requires —
(a)where disclosure of customer information is authorised under the Sixth 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 Sixth 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.
(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 Sixth Schedule.
(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.
(10)  This section and the Sixth Schedule shall apply, with such modifications as may be prescribed by the Authority, to a merchant bank approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186) as if the reference to a bank in this section were a reference to such merchant bank.”.
Amendment of section 54A
32.  Section 54A of the Banking Act is amended —
(a)by inserting, immediately after the word “banks” in the 3rd line of subsection (1), the words “in Singapore”;
(b)by deleting the words “chief dealers” in subsection (2)(h) and substituting the words “other principal officers”;
(c)by inserting, immediately after the word “bank” in subsection (3), the words “in Singapore”; and
(d)by inserting, immediately after subsection (3), the following subsection:
(4)  For the avoidance of doubt, any notice in writing issued under this Act shall be deemed not to be subsidiary legislation.”.
Repeal of sections 56 and 57
33.  Sections 56 and 57 of the Banking Act are repealed.
Amendment of section 62
34.  Section 62(3) of the Banking Act is amended by deleting paragraph (b) and substituting the following paragraph:
(b)which are not referable to the provision of property or services or to the giving of security,
but shall not include, in the case of a bank incorporated in Singapore, liabilities of the bank arising from loans —
(i)granted by creditors whose claims are fully subordinated to the claims of all un-subordinated creditors; and
(ii)the terms of which comply with the criteria for the treatment of the liabilities as capital in the computation of the bank’s capital adequacy ratio under section 10, whether or not the entire amount of such liabilities are treated in the computation as capital.”.
Amendment of section 71
35.  Section 71 of the Banking Act is amended by deleting “$50,000” and substituting the words “$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”.
New section 74A
36.  The Banking Act is amended by inserting, immediately after section 74, the following section:
Power to refund, reduce, etc., penalty interest charge
74A.  The Authority may, of its own motion, review any penalty interest charge imposed under section 38(7), 39 (7), 40 (3) or 77A (2A) and decide —
(a)not to impose the penalty interest charge;
(b)to reduce the penalty interest charge payable; or
(c)where any penalty interest charge has been paid, to refund the whole or part of the amount paid.”.
New section 75A
37.  The Banking Act is amended by inserting, immediately after section 75, the following section:
Service of documents, etc.
75A.—(1)  Any notice, order or document required or authorised by this Act to be served on any person may be served —
(a)by delivering it to the person or to some adult member or employee of his family or household at his last known place of residence;
(b)by leaving it at his usual or last known place of residence or business in an envelope addressed to the person;
(c)by sending it by registered post addressed to the person at his usual or last known place of residence or business; or
(d)in the case of a company, a partnership or body of persons —
(i)by delivering it to the secretary or other like officer of the company, partnership or body of persons at its registered office or principal place of business; or
(ii)by sending it by registered post addressed to the company, partnership or body of persons at its registered office or principal place of business.
(2)  Any notice, order or document sent by registered post to any person in accordance with subsection (1) shall be deemed to be duly served on the person at the time when the notice, order or document, as the case may be, would in the ordinary course of post be delivered.
(3)  When proving service of the notice, order or document referred to in subsection (2), it shall be sufficient to prove that the envelope containing the notice, order or document, as the case may be, was properly addressed, stamped and posted by registered post.”.
Amendment of section 76
38.  Section 76 of the Banking Act is amended by deleting the words “Unless otherwise expressly provided, this Act shall not apply to —” in the 1st and 2nd lines and substituting the words “Nothing in this Act shall be construed so as to prevent any of the following persons from carrying on any activity or business for which he is registered or licensed under the following respective Act corresponding to that person:”.
Amendment of section 78
39.  Section 78 of the Banking Act is amended —
(a)by inserting, immediately after subsection (2), the following subsection:
(2A)  Without prejudice to the generality of subsection (1), regulations may be made for or with respect to —
(a)the corporate governance and appointment of principal officers of banks in Singapore, their related corporations or other companies in which banks acquire or hold a major stake as described in section 32(7); and
(b)the prohibition or restriction on mutual shareholdings held between the banks, related corporations or other companies referred to in paragraph (a).”; and
(b)by deleting subsection (4) and substituting the following subsection:
(4)  Except as otherwise expressly provided in this Act, regulations made under this section may provide that any contravention thereof shall be an offence punishable —
(a)in the case of an individual, with a fine not exceeding $12,500 or with imprisonment for a term not exceeding 12 months or with both and, in the case of a continuing offence, with a further fine not exceeding $1,250 for every day or part thereof during which the offence continues after conviction; or
(b)in any other case, with a fine not exceeding $25,000 and, in the case of a continuing offence, with a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.”.
New Sixth Schedule
40.  The Banking Act is amended by inserting, immediately after the Fifth Schedule, the following Schedule:
SIXTH SCHEDULE
Section 47
Part I
Further Disclosure Not Prohibited
First column
 
Second column
 
Third column
 
 
 
 
 
Purpose for which customer information may be disclosed
 
Persons to whom information may be disclosed
 
Conditions
 
 
 
 
 
1. Disclosure is permitted in writing by the customer or, if he is deceased, his appointed personal representative.
 
Any person as permitted by the customer or, if he is deceased, his appointed personal representative.
 
 
 
 
 
 
 
2. Disclosure is solely in connection with an application for a grant of probate or letters of administration in respect of a deceased customer’s estate.
 
Any person whom the bank in good faith believes is entitled to the grant of probate or letters of administration.
 
 
 
 
 
 
 
3. Disclosure is solely in connection with —
 
All persons to whom the disclosure is necessary for the purpose specified in the first column.
 
Note: Court may order the proceedings to be held in camera [see section 47(3) and (4)].
(a) where the customer is an individual, the bankruptcy of the customer; or
 
 
 
 
(b) where the customer is a body corporate, the winding up of the customer.
 
 
 
 
 
 
 
 
 
4. Disclosure is solely with a view to the institution of, or solely in connection with, the conduct of proceedings —
 
All persons to whom the disclosure is necessary for the purpose specified in the first column.
 
Note: Court may order the proceedings to be held in camera [see section 47(3) and (4)].
(a) between the bank and the customer or his surety relating to the banking transaction of the customer;
 
 
 
 
(b) between the bank and 2 or more parties making adverse claims to money in an account of the customer where the bank seeks relief by way of interpleader; or
 
 
 
 
(c) between the bank and one or more parties in respect of property, whether movable or immovable, in or over which some right or interest has been conferred or alleged to have been conferred on the bank by the customer or his surety.
 
 
 
 
 
 
 
 
 
5. Disclosure is necessary for —
 
Any police officer or public officer duly authorised under the specified written law to carry out the investigation or prosecution or to receive the complaint or report, or any court.
 
 
(a) compliance with an order or request made under any specified written law to furnish information, for the purposes of an investigation or prosecution, of an offence alleged or suspected to have been committed under any written law; or
 
 
 
 
(b) the making of a complaint or report under any specified written law for an offence alleged or suspected to have been committed under any written law.
 
 
 
 
 
 
 
 
 
6. Disclosure is necessary for compliance with a garnishee order served on the bank attaching moneys in the account of the customer.
 
All persons to whom the disclosure is required to be made under the garnishee order.
 
 
 
 
 
 
 
7. Disclosure is necessary for compliance with an order of the Supreme Court or a Judge thereof pursuant to the powers conferred under Part IV of the Evidence Act (Cap. 97).
 
All persons to whom the disclosure is required to be made under the court order.
 
 
 
 
 
 
 
8. Where the bank is a bank incorporated outside Singapore, the disclosure is strictly necessary for compliance with a request made by its parent supervisory authority solely in connection with the supervision of the bank.
 
The parent supervisory authority of the bank incorporated outside Singapore.
 
(a) No deposit information shall be disclosed to the parent supervisory authority.
 
 
 
 
(b) The parent supervisory authority is prohibited by the laws applicable to it from disclosing the customer information obtained by it to any person unless compelled to do so by the laws or courts of the country or territory where it is established.
 
 
 
 
 
9. Disclosure is in compliance with the provisions of this Act, or any notice or directive issued by the Authority to banks.
 
The Authority or any person authorised or appointed by the Authority.
 
 
Part II
Further Disclosure Prohibited
First column
 
Second column
 
Third column
 
 
 
 
 
Purpose for which customer information may be disclosed
 
Persons to whom information may be disclosed
 
Conditions
 
 
 
 
 
1. Disclosure is solely in connection with the performance of duties as an officer, or a professional adviser of the bank.
 
Any —
(a) officer of the bank in Singapore;
 
 
 
 
(b) officer designated in writing by the head office of the bank; or
 
 
 
 
(c) auditor, lawyer, consultant or other professional adviser appointed or engaged by the bank under a contract for service.
 
 
 
 
 
 
 
2. Disclosure is solely in connection with the conduct of internal audit of the bank or the performance of risk management.
 
In the case of —
 
 
 
 
(a) a bank incorporated outside Singapore —
 
 
 
 
(i) the head office or parent bank of the bank;
 
 
 
 
(ii) any branch of the bank outside Singapore designated in writing by the head office of the bank; or
 
 
 
 
(iii) any related corporation of the bank designated in writing by the head office of the bank; or
 
 
 
 
(b) a bank incorporated in Singapore —
 
 
 
 
(i) the parent bank; or
 
 
 
 
(ii) any related corporation of the bank designated in writing by the head office of the bank.
 
 
 
 
 
 
 
3. Disclosure is solely in connection with the performance of operational functions of the bank where such operational functions have been out-sourced.
 
Any person including the head office of the bank or any branch thereof outside Singapore which is engaged by the bank to perform the out-sourced functions.
 
If any out-sourced function is to be performed outside Singapore, the disclosure shall be subject to such conditions as may be specified in a notice issued by the Authority or otherwise imposed by the Authority.
 
 
 
 
 
4. Disclosure is solely in connection with —
 
Any person participating or otherwise involved in the merger, acquisition or issue, or proposed merger, acquisition or issue, including any of his lawyers or other professional advisers (whether or not the merger or acquisition is subsequently entered into or completed).
 
 
(a) the merger or proposed merger of the bank or its financial holding company with another company; or
 
 
 
 
(b) any acquisition or issue, or proposed acquisition or issue, of any part of the share capital of the bank or its financial holding company,
 
 
 
 
whether or not the merger or acquisition is subsequently entered into or completed.
 
 
 
 
 
 
 
 
 
5. Disclosure is solely in connection with the restructure, transfer or sale, or proposed restructure, transfer or sale, of credit facilities (whether or not the restructure, transfer or sale is subsequently entered into or completed).
 
Any transferee, purchaser or any other person participating or otherwise involved in the restructure, transfer or sale, or proposed restructure, transfer or sale, including any of his lawyers or other professional advisers (whether or not the restructure, transfer or sale is subsequently entered into or completed).
 
No customer information, other than information relating to the relevant credit facilities, shall be disclosed.
 
 
 
 
 
6. In the case of a customer who has been issued with a credit or charge card by a bank in Singapore, disclosure is strictly necessary for notification of the suspension or cancellation of the card by the bank by reason of the customer’s default in payment to the bank.
 
Any financial institution in Singapore which issues credit or charge cards.
 
No customer information, other than information relating to the following, may be disclosed:
 
 
 
 
(a) the customer’s name and identity;
 
 
 
 
(b) the amount of the debt outstanding on the customer’s credit or charge card;
 
 
 
 
(c) the date of suspension or cancellation of the customer’s credit or charge card, as the case may be.
 
 
 
 
 
7. Disclosure is strictly necessary —
 
Any —
 
 
(a) for the collation, synthesis or processing of customer information by the credit bureau for the purposes of the assessment of the credit-worthiness of the customers of banks; or
 
(a) credit bureau of which the bank is a member;
 
(a) No deposit information shall be disclosed.
(b) for the assessment, by other members of the credit bureau specified in the second column, of the credit-worthiness of the customers of banks.
 
(b) other member of the credit bureau that is —
 
(b) The disclosure by any credit bureau to any person referred to in paragraph (b) of the second column shall be subject to such conditions as may be specified in a notice issued by the Authority or otherwise imposed by the Authority.
 
 
(i) a bank or merchant bank; or
 
 
 
 
(ii) a person, or a person belonging to a class of persons, recognised by the Authority, by notification published in the Gazette, as authorised to receive the information,
 
 
 
 
where that member receives such information from the credit bureau.
 
 
 
 
 
 
 
8. Disclosure is strictly necessary for the assessment of the credit-worthiness of the customer in connection with or relating to a bona fide commercial transaction or a prospective commercial transaction.
 
Any other bank or merchant bank in Singapore.
 
No customer information, other than information of a general nature and not related to the details of the customer’s account with the bank, shall be disclosed.
 
 
 
 
 
9. Disclosure is solely in connection with the promotion, to customers of the bank in Singapore, of financial products and services made available in Singapore by any financial institution specified in the second column.
 
Any financial institution in Singapore which is licensed or otherwise regulated by the Authority
 
No customer information, other than the customer’s name, identity, address, and contact number shall be disclosed.
Part III
Interpretation
In this Schedule, unless the context otherwise requires —
“appointed personal representative”, in relation to a deceased person, means a person appointed as executor or administrator of the estate of the deceased person;
“credit bureau” means a credit bureau recognised as such by the Authority by notification in the Gazette for the purposes of this Schedule;
“lawyer” means an advocate and solicitor of the Supreme Court of Singapore, or any person who is duly authorised or registered to practise law in a country or territory other than Singapore by a foreign authority having the function conferred by law of authorising or registering persons to practise law in that country or territory;
“merchant bank” means a merchant bank approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186);
“public officer” includes any officer of a statutory board;
“specified written law” means the Companies Act (Cap. 50), the Criminal Procedure Code (Cap. 68), the Goods and Services Tax Act (Cap. 117A), the Income Tax Act (Cap. 134), the Internal Security Act (Cap. 143), the Kidnapping Act (Cap. 151) and the Prevention of Corruption Act (Cap. 241);
“surety”, in relation to a customer of a bank, includes any person who has given the bank security for the liability of the customer by way of a mortgage or a charge.”.
Miscellaneous amendments
41.  The Banking Act is amended —
(a)by deleting “$20,000” and “$2,000” in the following provisions and substituting in each case “$100,000” and “$10,000”, respectively:
Sections 7(7) (3rd and 4th lines), 22(3) (3rd and 4th lines), 26(7) (4th and 5th lines) and 52(2) (3rd and 4th lines);”.
(b)by deleting the words “whose head office is situated” in the following provisions and substituting in each case the word “incorporated”:
Sections 9(1)(c) (1st line) and 37(1) (1st line);”.
(c)by deleting “11 (1)” in the 2nd line of section 11A and substituting “11”;
(d)by deleting “$5,000” and “$1,000” in the following provisions and substituting in each case “$25,000” and “$2,500”, respectively:
Sections 12(3) (3rd and 4th lines), 19(3) (3rd and 4th lines) and 25(9) (3rd and 4th lines);”.
(e)by deleting sub-paragraph (iii) of section 20(1)(a) and substituting the following sub-paragraph:
(iii)if it is a bank incorporated outside Singapore, has had its licence or authority to operate withdrawn by the supervisory authority which is responsible, under the laws of the country or territory where the bank is incorporated, formed or established, for supervising the bank;”;
(f)by inserting, immediately after the word “bank” wherever it appears in the following provisions, the words “in Singapore”:
Sections 23, 27(1) (1st line), 28(1) (1st line) and (4) (1st line), 29(1) (1st line), (3) and (4) (1st line), 39(5) (4th line) and (6) (2nd line), 60(2) (1st line), 65 (last line), 66(1) (2nd line) and 67 (2nd line);”.
(g)by deleting paragraph (c) of section 27(1) and substituting the following paragraph:
(c)any related corporation of the bank;”;
(h)by deleting the word “company” in the 3rd line of section 27(1)(e) and substituting the word “bank”;
(i)by deleting “$50,000” in the following provisions and substituting in each case “$125,000”:
Sections 28(7), 66(1) (penultimate line) and 67 (penultimate line);”.
(j)by deleting the words “the Stock Exchange of Singapore” in the 6th line of section 29(1)(d)(iii) and substituting the words “any stock exchange in Singapore approved under the Securities Industry Act (Cap. 289)”;
(k)by deleting sub-paragraph (iv) of section 29(1)(d) and substituting the following sub-paragraph:
(iv)to any corporation, other than a bank, that is a related corporation of the bank;”;
(l)by inserting, immediately after the word “banks” wherever it appears in the following provisions, the words “in Singapore”:
Sections 39(1) and (2), 40(1) (1st line), 41(1), 42(1) (where it first appears) and (2);”.
(m)by deleting the words “to (f)” in section 40(2)(a) and substituting the words “to (c)”;
(n)by deleting the section heading to section 55 and substituting the following section heading:
Prohibition against opening of numbered accounts”;
(o)by deleting “$50,000” in the following provisions and substituting in each case “$250,000”:
Sections 55(3) and 77A(7); and”.
(p)by deleting the words “section 44(2)” in the following provisions and substituting in each case the words “section 44A(3)”:
Sections 68(e) and 74(c) (last line).”.
Saving and transitional provisions
42.—(1)  Any notice, order or direction issued or made under the Banking Act before the appointed day shall be deemed to be a notice, order or direction issued or made under the Banking Act as amended by this Act.
(2)  The Minister may, by order published in the Gazette, make such other transitional or savings provisions which appear to him to be necessary or expedient.