4. Licensing of chit funds

No chit fund business may be transacted in Singapore except by a public company which is in possession of a valid licence granted under this Act by the Authority with the approval of the Minister authorising it to conduct chit fund business in accordance with the provisions of this Act.

Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction.