Chit Funds Act 1971 · 2020 Revised Edition · Part 3 · Licensing of Chit Fund Companies
5. Use of words “chit” and “chit fund”
Feedback & supportNo person or body of persons, whether incorporated or not, other than a chit fund company licensed under this Act may, without the Authority’s written consent —
chit fund company
“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7. All branches and offices in Singapore of the company are deemed to be one chit fund company for the purposes of this Act;
use the word “chit” or the words “chit fund” or any of its or their derivatives in any language, or any other word indicating that it transacts chit fund business, in the name, description or title under which that person or body of persons is transacting business in Singapore; or
make or continue to make any representation to that effect in any bill head, letter paper, notice, advertisement or in any other manner whatsoever.
For the purposes of subsection (1), the words “HWEI”, “KUTU” and “TONTINE” or any other word in any other language having the same meaning or being to the like intent are deemed to be derivatives of the word “chit”.
Nothing in this section prohibits an association of chit fund companies formed for the protection of common interests from using the word “chit” or the words “chit fund” or any of its or their derivatives in any language as a part of its name or description of its activities.
chit fund
“chit fund” means a scheme or an arrangement based wholly on the terms and conditions set out in section 24 or the regulations made under this Act or any scheme or arrangement that is deemed to be a chit fund under section 19 but does not include any scheme or arrangement which only partakes of the nature of a chit fund within the meaning of section 20;
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000 or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, to a further fine not exceeding $100 for every day during which the offence continues after conviction.