Moneylenders Rules - Singapore Statutes Online

Moneylenders Act

(Chapter 188, Section 37)

Moneylenders Rules

R 1

G.N. No. S 320/1972

REVISED EDITION 2002

(31st January 2002)

[1st December 1972]

Citation

1. These Rules may be cited as the Moneylenders Rules.

Application for licence

2. An application for a moneylender’s licence shall be made to the Registrar in such form as may be approved by the Minister.

Particulars to be provided to Registrar

3.—(1) Before issuing a licence the Registrar may require the applicant to produce evidence that the applicant and any person responsible or proposed to be responsible for the management of his business as a moneylender is a fit and proper person to hold a licence.

(2) Without prejudice to the generality of paragraph (1), the Registrar may require the applicant to produce —

(a)	particulars of his banking account; and
(b)	particulars of all outstanding loans previously made by the applicant.

Form

4. A licence issued under section 5 of the Act shall be in such form as the Minister may direct.

Licence fee

5. There shall be charged on every licence issued under section 5 of the Act a fee of $1,200 per annum.

Change of address

6.—(1) Where a moneylender who holds a valid licence issued under section 5 of the Act desires, during the remainder of the period for which the licence is valid, to carry on business at a different address, he may apply in writing to the Registrar for a new licence, modified accordingly, to be issued to him in place of his existing licence.

(2) A new licence issued under this rule shall have effect from such date as may be stated therein by the Registrar until the end of the period for which the existing licence, in place of which the new licence is issued, is valid.

(3) The Registrar may, on receiving an application under paragraph (1), if he considers that the application complies with the requirements of the Act and these Rules, issue a new licence. The new licence shall come into effect on the date the existing licence is surrendered to the Registrar and the latter licence cancelled by the following endorsement thereon:

“Cancelled and substituted licence issued under rule 6(3) of the Moneylenders Rules, with effect from the .................... day of .......................... 20 .............. .

Registrar of Moneylenders.”.

(5) Every new licence issued under this rule shall be endorsed as follows:

“Substituted licence issued under rule 6(3) of the Moneylenders Rules.

Registrar of Moneylenders”.

(6) Where it is proved to the satisfaction of the Registrar that a licence issued under section 5 of the Act was lost or destroyed, he may issue a new licence in replacement of the lost or destroyed licence on payment of a fee of $50.

(7) The new licence shall have effect from such date as may be stated therein by the Registrar until the end of the period for which the original licence is valid.

(8) Every licence issued under paragraph (6) shall be endorsed as follows:

“Replacement licence issued under rule 6(6) of the Moneylenders Rules.

Registrar of Moneylenders.”

New licences

7.—(1) Where a moneylender who holds a valid licence issued under section 5 of the Act desires to change the name appearing on the licence, he may apply in writing to the Registrar for a new licence to be issued to him for the remainder of the period for which his licence is valid.

(2) Where a moneylender who holds a valid licence issued under section 5 of the Act desires to appoint an agent, he may apply in writing to the Registrar for a new licence, which when issued —

(a)	shall bear both the names of the principal and his agent; and
(b)	shall be valid for the remainder of the period for which his original licence would be valid.

(3) The Registrar may, on receiving an application under paragraph (1) or (2), if he considers that the application complies with the requirements of the Act and these Rules, issue a new licence.

(4) The new licence shall come into effect on the date the existing licence is surrendered to the Registrar and the latter licence cancelled by the following endorsement thereon:

“Cancelled and substituted licence issued under rule 7(3) of the Moneylenders Rules, with effect from the ....................... day of ...................... 20 .................... .

Registrar of Moneylenders.”.

(5) Every new licence issued under this rule shall be endorsed as follows:

“Substituted licence issued under rule 7(3) of the Moneylenders Rules.

Registrar of Moneylenders.”.

(6) Any licensed moneylender who desires to discontinue his business during the remainder of the period for which his licence is valid, shall surrender his licence to the Registrar who shall cancel it and endorse thereon as follows:

“Licence cancelled under rule 7(6) of the Moneylenders Rules, with effect from the ............................ day of .......................... 20 ....................... .

Registrar of Moneylenders.”.

Books of account

8.—(1) The books of account to be kept by a moneylender shall include —

(a)	an index of borrowers;
(b)	a cash account book;
(c)	a loan account book; and
(d)	a daily cash book.

(2) All records entered into such books of account shall be in the English Language.

(3) For the purposes of section 19(2) of the Act, every moneylender shall keep, or cause to be kept, each record entered into such books of accounts for a period of not less than 5 years from —

(a)	the date the loan, to which the record relates, is fully repaid; or
(b)	the date the contract for the loan, to which the record relates, is otherwise terminated,

whether such loan is made or fully repaid, or such contract is terminated, before, on or after 1st March 2007, as the case may be.

[S 63/2007 wef 01/03/2007]

Index

9.—(1) The index shall be arranged alphabetically and shall contain the names of all borrowers written in full.

(2) In the case of Chinese the Seh and in the case of all other Asians the father’s name shall be included.

(3) The name of each borrower shall be entered in the index once only.

Cash account book

10.—(1) The cash account book shall be divided vertically in the centre and each side shall be sub-divided into at least 4 columns.

(2) The left-hand side of the cash account book shall contain entries in the appropriate column in respect of each sum received of —

(a)	the date;
(b)	the name of the person from whom the amount was received;
(c)	the page of the relevant loan account book; and
(d)	the amount.

(3) The right-hand side of the cash account book shall similarly show the date, the name of the payee, the page of the relevant loan account book and the amount of each payment.

(4) All receipts and payments shall be entered in the order in which they occur.

(5) The cash account shall be balanced daily, but where there are fewer than 3 entries in any one day the account need not be balanced till the end of the next day on which further entries are made.

(6) Every sum received and paid shall be entered in the cash account book at the time of receipt or payment.

(7) Where a daily cash book is kept in addition to the cash account book it shall suffice to enter receipts and payments in the daily cash book at the time and to enter in the cash account book not later than the end of the day.

Loan account book

11.—(1) A separate account of each loan shall be kept in the loan account book and the pages of the loan account book shall be uniformly ruled with suitable spaces and columns for the particulars required to be entered in such book by this rule.

(2) Whenever a loan is made the following particulars shall be written at the head of a new account:

(a)	the date of the loan;
(b)	the name of the borrower;
(c)	the relevant page of the index;
(d)	the serial number of the loan;
(e)	the page of the relevant entry in the cash account book; and
(f)	if the loan is or includes the renewal of a previous loan, a reference to the account of the previous loan.

(3) The loans made by a moneylender shall be numbered consecutively commencing from “1” at the beginning of the year.

(4) The number of a loan shall be its serial number followed by the word “of” or an oblique stroke followed by the year in figures.

(5) Every loan account shall show such of the following particulars as are applicable:

(a)	the principal;
(b)	the reference number and date of the crossed account payee cheque issued in respect of the loan;
(c)	the rate of interest;
(d)	the sum agreed for interest;
(e)	the date when repayment will fall due; and
(f)	the date when the first instalment will fall due.

(6) The dates and amounts of all repayments or sums paid to account shall be entered as they occur with reference to the relevant page of the cash account book.

(7) Every such payment shall be appropriated to principal or to interest or partly to principal and partly to interest.

(8) When a loan is fully repaid or settled an entry to that effect shall be made and the account shall be closed and ruled off.

(9) When a loan is renewed an entry shall be made to that effect and a reference made to the account of the new loan, to which the balances are transferred.

(10) The old account shall be closed and ruled off.

(11) If a page is filled before the account is completed the repayments shall be totalled and the totals carried to a new page.

(12) The number of the new page shall be entered at the foot of the filled page and the number of the filled page shall be entered at the head of the new page, together with the totals of the repayments carried forward.

(13) The original principal shall be entered in the appropriate space of the new page, but the other particulars referred to in paragraph (5) need not be entered

Memoranda of loans

12.—(1) Every moneylender shall keep for each year a file in which he shall place in consecutive order the original memoranda of all loans made by him in that year.

(2) Whenever the moneylender removes a memorandum from the file he shall replace it with a sheet of paper recording the date of the removal and a brief note of the manner in which it was disposed of.

(3) For the purposes of section 19(2) of the Act, every moneylender shall keep, or cause to be kept, each memorandum of loan referred to in paragraph (1) for a period of not less than 5 years from —

(a)	the date the loan is fully repaid; or
(b)	the date the contract for the loan is otherwise terminated,

whether such loan is made or fully repaid, or such contract is terminated, before, on or after 1st March 2007, as the case may be.

[S 63/2007 wef 01/03/2007]

Monthly statement to Registrar

13.—(1) Every moneylender shall submit monthly to the Registrar a statement of every moneylending transaction made during the month in such form as the Registrar may require.

(2) The statement under paragraph (1) must reach the Registrar not later than the end of the second week of the following month.

(3) Any moneylender who fails to submit such a statement or wilfully withholds information or gives false information in such a return shall be guilty of an offence under these Rules and shall be liable on conviction to a fine not exceeding $500.

Maximum rate of interest

14. The maximum rate of interest chargeable by a moneylender for a secured loan shall be 12% per annum and in the case of an unsecured loan shall be 18% per annum.

Form incorporating transaction terms

15.—(1) Every moneylender shall before he lends out any money obtain from the Registrar a form of memorandum incorporating the terms of the moneylending transaction on payment of a fee to be determined by the Registrar.

(2) The form of memorandum shall be in the form in the Schedule and shall be completed and handed to the borrower before the loan is given.

Exemption

16. Every exemption granted by the Minister under section 36(1) of the Act shall be in such form as may be approved by the Minister.

Charge for exemption

17.—(1) The following fees shall be charged for exemptions granted under section 36(1) of the Act and any extensions thereof granted under section 36(2) of the Act:

(a)

for any exemption granted under section 36(1) of the Act —

(i)	an annual fee of $3,000 for the duration of the exemption where the person exempted carries on the business of moneylending solely to natural persons who are members of the public; [S 482/2007 wef 14/09/2007]
(ii)	an annual fee of $1,000 for the duration of the exemption where the person exempted carries on the business of moneylending solely to persons other than those specified in sub-paragraph (i); or [S 482/2007 wef 14/09/2007]
(iii)	an annual fee of $4,000 for the duration of the exemption where the person exempted carries on the business of moneylending to persons referred to in sub-paragraphs (i) and (ii); and

(b)

for any extension granted under section 36(2) of the Act of such an exemption —

(i)	an annual fee of $3,000 for the duration of the extension where the person exempted carries on the business of moneylending solely to natural persons who are members of the public; [S 482/2007 wef 14/09/2007]
(ii)	an annual fee of $1,000 for the duration of the extension where the person exempted carries on the business of moneylending solely to persons other than those specified in sub-paragraph (i); or [S 482/2007 wef 14/09/2007]
(iii)	an annual fee of $4,000 for the duration of the extension where the person exempted carries on the business of moneylending to persons referred to in sub-paragraphs (i) and (ii).

[S 52/2007 wef 01/02/2007]

(2) There shall be charged for every late renewal for exemption granted under section 36 (2)of the Act a fee of $650.

Search fees

18. There shall be charged a fee of $25 for every application to the Registrar for manual search for any information.

Fees for administering oaths

19. There shall be charged by the Registrar a fee of $7 for taking or re-taking an affidavit or affirmation or attestation upon honour in lieu of an affidavit or a declaration or an acknowledgment, for each person making the affidavit, affirmation or attestation.

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