Singapore legislation
Clause 43
Clause 43
Inspection in Singapore by foreign supervisory authority
(1)
In relation to a designated financial holding company any of the holding companies of which is incorporated outside Singapore, a foreign supervisory authority may, with the prior written approval of the Authority and under conditions of secrecy, conduct an inspection in Singapore of the books of any branch or office of that designated financial holding company, and any other company within its FHC group which is a financial institution, in accordance with this section if the following conditions are satisfied:
the inspection is required by the foreign supervisory authority for the sole purpose of carrying out its supervisory functions;
the foreign supervisory authority —
is prohibited by the laws applicable to the foreign supervisory authority from disclosing information obtained by it in the course of the inspection to any other person; and
has given to the Authority such written undertaking, as to the confidentiality of the information obtained, as the Authority may determine; and
the foreign 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 foreign supervisory authority to comply with conditions relating to —
the classes of information to which the foreign supervisory authority shall or shall not have access in the course of the inspection;
the conduct of the inspection;
the use or disclosure of any information obtained in the course of the inspection; and
such other matters as the Authority may determine.
(3)
Subject to compliance by a foreign supervisory authority with such conditions as the Authority may impose under subsection (2), a designated financial holding company, or any other company within its FHC group which is a financial institution under inspection —
shall afford the foreign supervisory authority access to such books of the branch or office of the designated financial holding company or company under inspection, as the case may be, and provide such information (including information relating to the internal control systems of the designated financial holding company or company, as the case may be) and facilities as may be required to conduct the inspection; and
shall not be required to afford the foreign supervisory authority access to its books 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 designated financial holding company or company under inspection, as the case may be.
(4)
A foreign supervisory authority may, with the prior written approval of the Authority, appoint any person to conduct the inspection under subsection (1) and in such event, this section (other than this subsection) shall apply to the person as if a reference to the foreign supervisory authority in this section includes a reference to the person.
(5)
A designated financial holding company, or any other company within its FHC group which is a financial institution which, without reasonable excuse, contravenes subsection (3)(a) 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.
(6)
In this section, “foreign supervisory authority” means the supervisory authority of a holding company of the designated financial holding company referred to in subsection (1), which is responsible, under the laws of the country or territory where the holding company is incorporated, for —
supervising the holding company; and
exercising consolidated supervision over the holding company and all its subsidiaries which are financial institutions, including the designated financial holding company.