Singapore legislation

Clause 14

Unlicensed moneylending

(1)

Any person who contravenes, or who assists in the contravention of, section 5(1) shall be guilty of an offence and shall be liable on conviction —

(a)

in the case where the offender is a body corporate, to a fine of not less than $40,000 and not more than $400,000; and

(b)

in any other case —

(i)

to a fine of not less than $20,000 and not more than $200,000 or to imprisonment for a term not exceeding 2 years or to both; and

(ii)

in the case of a second or subsequent offence, to a fine of not less than $20,000 and not more than $200,000 and shall also be punished with imprisonment for a term not exceeding 5 years.

(2)

Where any contract for a loan has been granted by an unlicensed moneylender, or any guarantee or security has been given for such a loan —

(a)

the contract for the loan, and the guarantee or security, as the case may be, shall be unenforceable; and

(b)

any money paid by or on behalf of the unlicensed moneylender under the contract for the loan shall not be recoverable in any court of law.

(3)

Subsections (1) and (2) shall not apply to a moneylender who —

(a)

is not ordinarily resident in Singapore;

(b)

is not a licensee; and

(c)

carries on the business of moneylending in Singapore through an agent who is a licensee or an exempt moneylender.

(4)

For the purposes of subsection (1), where the bank account or automated teller machine card of any person, or a telecommunication service subscribed in the name of or purchased by any person, is proved to the satisfaction of the court to have been used to facilitate the carrying on of the business of moneylending by an unlicensed moneylender, that person shall be presumed, until the contrary is proved, to have assisted in the contravention of section 5(1).

(5)

In this section, unless the context otherwise requires, “telecommunication service” has the same meaning as in the Telecommunications Act (Cap. 323).

Read in full context — Moneylenders Bill →