Clause 34

When a bank in Singapore becomes aware of any development that has occurred or is likely to occur which the bank has reasonable grounds to believe has materially affected adversely, or is likely to materially affect adversely —

the financial soundness or reputation of the bank;

the ability of the bank to conduct any business referred to in section 30(1); or

such other matters as the Authority may prescribe,the bank must immediately inform the Authority of the development.(2) When a bank incorporated in Singapore becomes aware of any development that has occurred or is likely to occur which the bank has reasonable grounds to believe has materially affected adversely, or is likely to materially affect adversely —

the financial soundness or reputation of any entity in the bank group of the bank or any entity or trust in the FHC group of the designated financial holding company of the bank (if applicable);

the ability of any entity in the bank group of the bank or any entity or trust in the FHC group of the designated financial holding company of the bank (if applicable), to conduct its business; or

such other matters as the Authority may prescribe,the bank must immediately inform the Authority of the development.(3) A bank in Singapore must immediately inform the Authority when it is aware that it has contravened or is likely to contravene, any provision of any Act administered by the Authority or any requirement imposed on it by the Authority under any such Act.(4) Any bank which contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000.(5) In this section —“accounting standards” means the accounting standards made or formulated by the Accounting Standards Council under Part III of the Accounting Standards Act (Cap. 2B);“associate”, in relation to an entity (called in this definition the first entity), means —

any entity in which the first entity controls the composition of the board of directors or such corresponding officers as may be prescribed;

any entity in which the first entity controls more than half of the voting power or such measure corresponding to voting power as may be prescribed;

any entity in which the first entity holds more than half of the total number of issued shares or such corresponding interest as may be prescribed;

a subsidiary of any other entity which is an associate by reason of paragraph (a), (b) or (c);

any entity (called in this paragraph the second entity) in which —

the first entity; or

any entity which is an associate by reason of paragraph (a), (b), (c) or (d),has, or the entities in sub‑paragraphs (i) and (ii) together have, an interest in shares entitling the beneficial owners of those interests the right to cast (whether by proxy or in person) not less than 20% but not more than 50% of the total votes able to be cast at a general meeting of the second entity, or such corresponding interest as may be prescribed; or

any entity (not being one which is an associate by reason of paragraph (a), (b), (c), (d) or (e)) the policies of which —

the first entity; or

any entity which is an associate by reason of paragraph (a), (b), (c), (d) or (e),or the entities in sub‑paragraphs (i) and (ii) together are able to control or influence materially;“bank group”, in relation to a bank, means a group of entities comprising the bank and —

any of its associates; and

any other entity treated as part of the bank’s group of companies according to the accounting standards applicable to the bank;“designated financial holding company” has the meaning given to it in section 2(1) of the Financial Holding Companies Act 2013 (Act 13 of 2013);“entity” means any body corporate or unincorporate, whether incorporated, formed or established in or outside Singapore;“FHC group”, in relation to a designated financial holding company, means a group of entities and trusts comprising the financial holding company and —

any of its associates; and

any other entity or trust treated as part of the financial holding company’s group of companies according to the accounting standards applicable to the financial holding company;“subsidiary” means an entity prescribed as a subsidiary for the purposes of this section.”.