Singapore legislation
Section 55U
Section 55U
Restrictions on merchant banks in Singapore accepting or soliciting deposit or raising money in Singapore dollars
(1)
Despite section 4 and anything in this Part, a merchant bank in Singapore —
must not accept any deposit in Singapore dollars or otherwise borrow any money in Singapore dollars, except —
from any person or a person within a class of persons prescribed by the Authority and in accordance with any condition prescribed by the Authority; or
from any other person approved by the Authority for the merchant bank in a particular case and in accordance with any condition imposed by the Authority on the merchant bank by written notice;
must not offer, invite or issue any advertisement containing any offer or invitation to any person or class of persons (other than a person or class of persons mentioned in paragraph (a)) —
to make any deposit in Singapore dollars with the merchant bank; or
to enter or offer to enter into any agreement to make any deposit in Singapore dollars with the merchant bank; and
must not raise money in Singapore dollars by —
issuing promissory notes, commercial papers or certificate of deposits;
accepting or endorsing bills of exchange; or
any other method prescribed by the Authority.
(2)
The Authority may, at any time, impose conditions or additional conditions on, or vary or revoke any condition of, an approval under subsection (1)(a)(ii).
(3)
Any person that contravenes this section or fails to comply with any condition prescribed or imposed under this section commits 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 of a day during which the offence continues after conviction.
(4)
The fact that a deposit has been taken in contravention of this section does not affect any civil liability in respect of the deposit or the money deposited.
(5)
For the purposes of this section, “advertisement” has the meaning given by section 4B(1), (2) and (3).