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16 1989

CENTRAL BANK ACT, 1989

Chapter IX

Supervision of Moneybrokers

Interpretation (Chapter IX).

108. —In this Chapter—

authorisation” means an authorisation granted to a person by the Bank under this Chapter to carry on the business of moneybroking;

financial institution” has the same meaning that it has in Chapter VII ;

moneybroker” means a person carrying on a moneybroking business;

moneybroking business” means any business which consists of the business of arranging all or any of the following, that is to say:

(a) loans or borrowings of money,

(b) purchases or sales of foreign exchange,

(c) transactions of a type which for the time being stand prescribed by order under section 109 , and

(d) other transactions which are similar in effect to any of those to which paragraph (a), (b) or (c) relate,

between any two or more persons being a holder of a licence under section 9 of the Act of 1971, a building society, or a financial institution, and “moneybroking” shall be construed accordingly.

Orders (Chapter IX).

109. —(1) Where both the Minister and the Bank are of the opinion that it is necessary in the context of developments in the financial markets or the orderly and proper regulation of moneybroking business that certain types of transactions be prescribed for the purpose of the definition of “moneybroking business”, then the Minister may, at the request of the Bank, by order so prescribe.

(2) The Minister may, at the request of the Bank, by order revoke an order under subsection (1).

Authorisation to carry on moneybroking business.

110. —(1) A person shall not carry on moneybroking business at any time after this section has been in operation for 3 months unless the person has been granted an authorisation for the purposes of this section and the authorisation has not been revoked.

(2) Subject to the provisions of this section, the Bank may grant or refuse to grant to any person applying to it an authorisation to carry on moneybroking business.

(3) Notwithstanding subsection (2), a person shall not, at the same time, be the holder of a licence under section 9 of the Act of 1971 and a person to whom a subsisting authorisation under this section relates.

(4) The Bank shall not refuse an authorisation without the consent of the Minister and unless it is satisfied that the authorisation would not be in the interest of the orderly and proper regulation of moneybroking or banking, and the Minister shall not grant his consent to the refusal unless he is satisfied that the authorisation would not be in the interest of the orderly and proper regulation of moneybroking or banking.

(5) Whenever the Bank proposes to refuse an authorisation to a person—

(a) it shall notify the person in writing that it intends to seek the consent of the Minister to the refusal and of its reasons for the refusal and that the person may, within 21 days after the date of the giving of the notification, make representations in writing to the Minister in relation to the proposed refusal,

(b) the person may make such representations in writing to the Minister within the time aforesaid, and

(c) the Minister shall, before deciding to give or withhold his consent, consider any representations duly made to him under this subsection in relation to the proposed refusal.

(6) An application for an authorisation shall be in such form and contain such particulars as the Bank may from time to time determine.

(7) The authorisation of a person under this section shall not constitute a warranty as to the solvency of the person to carry on a moneybroking business and the Bank shall not be liable in respect of any losses incurred through the insolvency or default of the person.

Supervision, etc. of moneybrokers by Bank.

111. —Every person carrying on moneybroking business shall each comply with such supervisory and reporting requirements or conditions relating to his business which the Bank considers prudent to impose on him from time to time for the purposes and in the interest of the proper and orderly regulation of moneybroking.

Application of section 17 of Act of 1971.

112. —Without prejudice to the provisions of section 111 , the provisions of section 17 (which relates to books and records of holders of licences) of the Act of 1971 (as amended by this Part) shall apply as if every person authorised by the Bank to carry on moneybroking business were the holder of a licence for the purposes of the Central Bank Acts, 1942 to 1989.

Power of Court to prohibit failure to comply with requirement or condition under Chapter IX.

113. —(1) Where, on an application made in a summary manner by the Bank, the Court is of the opinion that there has occurred or is occurring a failure by a moneybroker to comply with a requirement or condition imposed by virtue of section 111 , the Court may, by order, prohibit the continuance of the failure by the moneybroker concerned.

(2) The Court when considering the matter may make such interim or interlocutory order as it considers appropriate.

(3) Where the Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings under this section may be heard otherwise than in public.

(4) In this section “the Court” means the High Court.

Revocation of authorisations.

114. —(1) The Bank may—

(a) revoke an authorisation if the person to whom it was granted so requests,

(b) with the consent of the Minister, revoke an authorisation if the person to whom it was granted—

(i) (I) has not commenced to carry on moneybroking business within 12 months of the date on which the authorisation was granted, or

(II) has ceased to carry on moneybroking business and has not carried it on during a period of more than 6 months immediately following the cesser,

(ii) is adjudicated bankrupt,

(iii) being a partnership, the partnership is dissolved by death or bankruptcy of any partner, or otherwise under the law of partnership,

(iv) being a company, is being wound up,

(v) has obtained the authorisation through false statements or any other irregular means,

(vi) becomes unable to meet his obligations to his creditors or suspends payments lawfully due by him or can no longer be relied upon to fulfil his obligations towards his creditors and in particular no longer provides security for the assets entrusted to him,

(vii) is convicted on indictment of an offence under any provision of the Central Bank Acts, 1942 to 1989, or an offence involving fraud, dishonesty or breach of trust,

(viii) has his head office in another state that is a member of the European Communities and the authority in that state that exercises in that state functions corresponding to those of the Bank under this Chapter has withdrawn authorisation from the institution of which the holder is a branch,

(c) with the consent of the Minister, revoke the authorisation if, since the grant of the authorisation, the circumstances relevant to the grant have changed and are such that, if an application for an authorisation were made in the changed circumstances, it would be refused.

(2) Whenever the Bank proposes to revoke an authorisation (other than in circumstances to which paragraph (a) or (b) (viii) of subsection (1) relate)—

(a) the person to whom it was granted shall be notified in writing that the Bank intends to seek the consent of the Minister to the revocation and of the reasons for the revocation and that the person may, within 21 days after the date of the giving of the notification, make representations in writing to the Minister in relation to the proposed revocation,

(b) the said person may make such representations in writing to the Minister within the time aforesaid, and

(c) the Minister shall, before deciding to give or withhold his consent, consider any representations duly made to him under this subsection in relation to the proposed revocation.

Publication of names of moneybrokers and notices of revocation of authorisations.

115. —(1) The Bank shall publish from time to time, but not less frequently than once a year, in such manner as it thinks fit the names of persons authorised to carry on moneybroking business.

(2) The Bank shall as soon as may be after the revocation of an authorisation publish a notice of the revocation in such manner as it thinks fit.

Offences and penalties (Chapter IX).

116. —A person who contravenes subsection (1) or (2) of section 110 or a moneybroker who fails by act or omission to comply with a requirement or condition imposed on him under section 111 shall be guilty of an offence and shall be liable—

(a) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

(b) on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both,

and, if the contravention or breach in respect of which he was convicted is continued after conviction, he shall be guilty of an offence on every day on which the contravention or breach continues after conviction in respect of the original contravention or breach and for each such offence he shall be liable on summary conviction to a fine not exceeding £100 or on conviction on indictment to a fine not exceeding £5,000.