Clause 17

Despite the provisions of the Companies Act (Cap. 50), a licensee must —

on an annual basis, appoint an auditor who is a public accountant under the Accountants Act (Cap. 2); and

if for any reason its auditor ceases to be its auditor, appoint another auditor who is a public accountant under the Accountants Act, as soon as practicable after such cessation.(2) The licensee must notify the Registrar in writing of an appointment under subsection (1) as soon as practicable after the appointment.(3) The Registrar may appoint an auditor —

if the licensee fails to comply with subsection (1); or

if the Registrar considers it desirable that another auditor should act with the auditor appointed by the licensee under subsection (1),and may at any time fix the remuneration to be paid by the licensee to the auditor the Registrar appoints.(4) The duties of an auditor appointed under subsection (1) or (3) are —

to carry out, for the year in respect of which the auditor is appointed, an audit of the licensee’s accounts; and

to make a report on the licensee’s financial statements or consolidated financial statements in accordance with section 207 of the Companies Act.(5) The Registrar may, by notice in writing to an auditor appointed under subsection (1) or (3), impose all or any of the following duties on the auditor in addition to those provided for under subsection (4), and the auditor must carry out the duties so imposed:

a duty to submit such additional information in relation to the audit as the Registrar considers necessary;

a duty to enlarge or extend the scope of the audit of the licensee’s business and affairs;

a duty to carry out any other examination, or establish any procedure, in relation to the audit in any particular case;

a duty to make a report on any of the matters mentioned in paragraphs (b) and (c).(6) The licensee must remunerate the auditor in respect of —

such remuneration the Registrar has fixed under subsection (3); and

the discharge of all or any of the additional duties of the auditor imposed under subsection (5).(7) Despite any other provision of this Act or the provisions of the Companies Act, the Registrar may, if the Registrar is not satisfied with the performance of any duty by the auditor of the licensee, at any time direct the licensee —

to remove the auditor; and

to appoint another auditor who is a public accountant under the Accountants Act.(8) The licensee must submit, or cause to be submitted, the following documents to the Registrar within such time as the Registrar may specify by notice in writing:

a copy of the auditor’s report made under subsection (4)(b), attached to the licensee’s financial statements or consolidated financial statements;

a copy of any report made under subsection (5)(d).(9) If an auditor, in the course of performing the auditor’s duties, is satisfied that —

there has been a serious breach or non-observance of the provisions of this Act;

a criminal offence involving fraud or dishonesty has been committed; or

serious irregularities have occurred, including irregularities that compromise the confidentiality, security or integrity of any data obtained, used or disclosed by the licensee,the auditor must immediately report the matter to the Registrar.(10) Where an auditor or employee of the auditor discloses in good faith to the Registrar —

the auditor’s or the employee’s knowledge or suspicion of any of the matters in subsection (9); or

any information or other matter on which that knowledge or suspicion is based,the disclosure is not a breach of any restriction upon the disclosure imposed by any law, contract or rules of professional conduct, and the auditor or employee is not liable for any loss arising out of the disclosure or any act or omission in consequence of the disclosure.(11) Any licensee who contravenes subsection (1) or (8) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $30,000 or to imprisonment for a term not exceeding 12 months or to both.(12) Any auditor who contravenes subsection (5) or (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $30,000 or to imprisonment for a term not exceeding 12 months or to both.(13) In this section —“consolidated financial statements” and “financial statements” have the same meanings as in section 209A of the Companies Act;“data” and “integrity” have the same meanings as in section 30B.Powers of auditor appointed by Registrar24B.—

An auditor appointed by the Registrar under section 24A(3) may, for the purpose of carrying out an examination or audit —

examine, on oath or affirmation, any officer or employee of the licensee, or any other auditor of the licensee appointed under section 24A or under the Companies Act (Cap. 50);

require any officer or employee of the licensee, or any other auditor of the licensee appointed under section 24A or under the Companies Act, to produce any book held by or on behalf of the licensee relating to the licensee’s business of moneylending;

make copies of or take extracts from, or retain possession of, any book mentioned in paragraph (b) for such period as may be necessary to enable it to be inspected;

employ such persons as the auditor considers necessary to assist the auditor in carrying out the examination or audit; and

authorise in writing any person employed by the auditor to do, in relation to the examination or audit, any act or thing that the auditor could do as an auditor under this subsection, other than the examination of a person on oath or affirmation.(2) Any individual who, without reasonable excuse —

fails to answer any question put to that individual; or

fails to comply with any request made to that individual,by an auditor appointed under section 24A(3) or a person authorised under subsection (1)(e) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.(3) In this section, “officer”, in relation to a licensee, means any director, member of the committee of management, chief executive, manager, secretary or other similar officer of the licensee and includes any person purporting to act in any such capacity.Restriction on right to communicate certain matters relating to audit of licensee’s accounts24C.—

Except as may be necessary for the carrying into effect of the provisions of this Act, or for the purpose of an investigation into any offence under any written law, or so far as may be required for the purposes of any legal proceedings (whether civil or criminal) —

an auditor appointed under section 24A; or

any employee of such auditor,must not disclose any information that comes to the auditor’s or employee’s knowledge in the course of performing the auditor’s or employee’s duties, to any person other than the Registrar, and in the case of an employee of such auditor, the auditor.(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.Offence to destroy, conceal, etc., records to prevent, delay, etc., audit of licensee’s accounts24D.—

Any individual who, with intent to prevent, delay or obstruct the carrying out of any examination or audit under section 24A or 24B —

destroys, conceals or alters any book relating to the business of a licensee; or

sends, or conspires with any other person to send, out of Singapore, any book or asset of any description belonging to, or in the possession or under the control of the licensee,shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $30,000 or to imprisonment for a term not exceeding 12 months or to both.(2) If, in any proceedings for an offence under subsection (1), it is proved that the individual charged with the offence —

destroyed, concealed or altered any book mentioned in subsection (1)(a); or

sent, or conspired to send, out of Singapore, any book or asset mentioned in subsection (1)(b),the onus of proving that, in so doing, the individual did not act with intent to prevent, delay or obstruct the carrying out of an examination or audit under section 24A or 24B lies on that individual.”.