What is Monetary Authority of Singapore Bill?

Monetary Authority of Singapore Bill is Singapore Bill, cited as Bill 30 1970, currently marked in force and first recorded in 1970.

Is Monetary Authority of Singapore Bill still in force?

Yes — Monetary Authority of Singapore Bill is currently in force.

When did Monetary Authority of Singapore Bill take effect?

Monetary Authority of Singapore Bill was first recorded in 1970.

How many clauses does Monetary Authority of Singapore Bill have?

Monetary Authority of Singapore Bill contains 40 clauses.

Where can I read the official version of Monetary Authority of Singapore Bill?

The official text of Monetary Authority of Singapore Bill is published at sso.agc.gov.sg.

Monetary Authority of Singapore Bill (1970, No. 30)

Clause 1

Short title and commencement

This Act may be cited as the Monetary Authority of Singapore Act, 1970, and shall come into operation on such date as the President may, by notification in the Gazette, appoint.(2) The President may appoint different dates for the coming into operation of the different Parts or provisions of this Act.

(1)

This Act may be cited as the Monetary Authority of Singapore Act, 1970, and shall come into operation on such date as the President may, by notification in the Gazette, appoint.

(2)

The President may appoint different dates for the coming into operation of the different Parts or provisions of this Act.

Clause 2

Interpretation

In this Act, unless the context otherwise requires —“Authority” means the Monetary Authority of Singapore established under section 3 of this Act;“bank” means a bank licensed under the Banking Act, 1970 (Act of 1970);“board” means the board of directors of the Authority;“director” means a director appointed under subsection (1) of section 8 of this Act and the chairman of the board, the deputy chairman and the Accountant-General;“managing director” means a director appointed under subsection (1) of section 9 of this Act;“Minister” means the Minister charged with the responsibility for finance.

Definition

“Authority” means the Monetary Authority of Singapore established under section 3 of this Act;

Definition

“bank” means a bank licensed under the Banking Act, 1970 (Act of 1970);

Definition

“board” means the board of directors of the Authority;

Definition

“director” means a director appointed under subsection (1) of section 8 of this Act and the chairman of the board, the deputy chairman and the Accountant-General;

Definition

“managing director” means a director appointed under subsection (1) of section 9 of this Act;

Definition

“Minister” means the Minister charged with the responsibility for finance.

Clause 26

Statistics

(1)

The Authority may at any time for the purpose of carrying out its functions under this Act request such persons or classes of persons as it may decide to collect and furnish such statistical information as the Authority may specify and those persons or classes of persons shall comply with that request.

(2)

Statistical information received from the persons or classes of persons referred to in subsection (1) of this section shall be regarded as secret between them and the Authority.

(3)

Any person who fails to comply with a request of the Authority under subsection (1) of this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding five hundred dollars.

Clause 27

Authority’s financial year

The financial year of the Authority shall begin on the 1st day of April and end on the 31st day of March of each year, except that for the year 1970 the financial year shall begin on the date of the establishment of the Authority and shall end on the 31st day of March 1971.

Clause 28

Audit

The accounts of the Authority shall be audited by the Auditor-General.

Clause 29

Preparation and publication of annual accounts and annual report

(1)

The Authority shall within six months from the close of its financial year —

(a)

transmit to the President a copy of the annual accounts certified by the Auditor-General, and such accounts shall then be published in the Gazette; and

(b)

transmit to the President a report by the board on the working of the Authority throughout the year and such report shall be published by the Authority.

(2)

The Authority shall cause the annual accounts and the annual report to be presented as soon as may be to Parliament.

Clause 30

Borrowing from Authority by officers and employees

The Authority shall not lend money to an officer or employee of the Authority, except —

(a)

for the purchase, erection, alteration, renovation or enlargement of a house in which he resides or intends to reside;

(b)

to discharge a mortgage or encumbrance on such a house; or

(c)

for the purchase of a vehicle.

Clause 31

Power to appoint attorney

The Authority may, by instrument under its common seal, appoint a person (whether in Singapore or in a place outside Singapore) to be its attorney, and the person so appointed may, subject to the instrument, do any act or execute any power or function which he is authorised by the instrument to do or execute.

Clause 32

Exemption from taxes, fees and levies

The Authority shall not be subject to any tax, fee or levy whatsoever.

Clause 33

Validity of acts and transactions of Authority

The validity of an act or transaction of the Authority shall not be called in question in any court on the ground that any provision of this Act has not been complied with.

Clause 34

Guarantee by Government

The Government shall be responsible for the payment of all moneys due by the Authority but nothing in this section authorises a creditor or other person claiming against the Authority to sue the Government in respect of his claim.

Clause 35

Fiat of Attorney-General

No prosecution in respect of any offence under this Act shall be instituted without the consent in writing of the Attorney-General.

Clause 36

Jurisdiction

Notwithstanding the provisions of any other written law, a District Court shall have jurisdiction to try all offences under this Act and to impose the full penalty prescribed therefor.

Clause 37

Power of Authority to make regulations

The Authority may, with the approval of the President, make regulations for the better carrying out of the objects and purposes of this Act.

Clause 38

Preliminary acts and expenses

Notwithstanding the provisions of section 1 of this Act, the Minister may at any time prior to the date of the coming into operation of Part II of this Act do all such acts and incur all such expenses as he may consider necessary in connection with the establishment of the Authority; and upon that date all such acts and expenses shall be deemed to have been done and incurred by the board.

Clause 39

Operation of Act not to affect the Currency Act, 1967

Nothing in this Act shall affect the operation of the Currency Act, 1967 (Act 5 of 1967).

Clause 3

Establishment of the Authority

(1)

There shall be established an Authority to be called “the Monetary Authority of Singapore” which shall be a body corporate and shall have perpetual succession and may sue and be sued in its own name.

(2)

The Authority shall have a common seal and such seal may, from time to time, be broken, changed, altered and made anew as to the Authority seems fit, and, until a seal is provided under this section, a stamp bearing the inscription “The Monetary Authority of Singapore” may be used as the common seal.

(3)

All deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the common seal of the Authority by the authority of the Authority in the presence of the managing director and of some other person duly authorised by the Authority to act in that behalf and shall be signed by the managing director and by such duly authorised person, and such signing shall be sufficient evidence that the common seal of the Authority has been duly and properly affixed and that the said seal is the lawful common seal of the Authority.

(4)

The Authority may by resolution or otherwise appoint an officer of the Authority or any other agent either generally or in a particular case to execute or sign on behalf of the Authority any agreement or other instrument not under seal in relation to any matter coming within the powers of the Authority.

Clause 4

Principal objects of the Authority

The principal objects of the Authority shall be —

(a)

to act as banker to, and financial agent of, the Government;

(b)

to promote, within the context of the general economic policy of the Government, monetary stability and credit and exchange conditions conducive to the growth of the economy;

(c)

to exercise the powers and to perform the duties and functions that are transferred to the Authority under section 21 of this Act.

Clause 5

Authorised capital

(1)

The authorised capital of the Authority shall be thirty million dollars.

(2)

On the establishment of the Authority such portion of the authorised capital as the Government may decide shall be subscribed and paid up by the Government.

(3)

The paid-up portion of the authorised capital may be increased from time to time by such amount as the Government may approve.

(4)

The payment of such increase in the authorised capital may be made by way of such transfers from the General Reserve Fund as the Government, in consultation with the board, may from time to time approve.

Clause 6

General Reserve Fund

(1)

There shall be a General Reserve Fund of the Authority.

(2)

At the end of each financial year, the net profit of the Authority for that year shall be determined after allowing for the expenses of operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff and pension funds and such other contingencies as are usually provided for by banks.

(3)

Subject to subsection (4) of this section, such part of the net profit of the Authority, as the board determines, shall be placed to the credit of the General Reserve Fund and the remainder shall be paid to the Government.

(4)

Where at the end of a year the General Reserve Fund is —

(a)

less than half the paid-up capital of the Authority, the whole of the net profit shall be credited to the General Reserve Fund; and

(b)

not less than half the paid-up capital of the Authority but less than twice the paid-up capital of the Authority, not less than thirty per centum of the net profit shall be credited to the General Reserve Fund.

Clause 7

Board of directors

(1)

There shall be a board of directors of the Authority which shall be responsible for the policy and general administration of the affairs and business of the Authority.

(2)

The board shall, from time to time, inform the Government of the banking and credit policy of the Authority.

(3)

The board shall consist of —

(a)

the Minister responsible for finance who shall be the chairman;

(b)

the Permanent Secretary (Economic Development), Ministry of Finance who shall be the deputy chairman;

(c)

the Accountant-General; and

(d)

four other directors appointed in accordance with sections 8 and 9 of this Act.

Clause 8

Appointment of directors

(1)

The directors referred to in paragraph (d) of subsection (3) of section 7 of this Act shall be appointed by the President.

(2)

The directors so appointed —

(a)

shall not act as delegates on the board from any commercial, financial, agricultural, industrial or other interests with which they may be connected;

(b)

shall hold office for a term not exceeding three years and shall be eligible for re-appointment; and

(c)

may be paid by the Authority out of the funds of the Authority such remuneration and allowances as may be determined by the President.

(3)

The provisions of paragraphs (b) and (c) of subsection (2) of this section shall not apply to a director who is appointed managing director under section 9 of this Act.

Clause 9

Appointment of managing director

(1)

The President shall, with the approval of the Public Service Commission, appoint one of the directors appointed under section 8 of this Act to be the managing director.

(2)

The managing director shall be an employee of the Authority on such terms and conditions of service as the President may decide.

(3)

The managing director shall be entrusted with the day-to-day administration of the Authority, and may, subject to this Act, make decisions and exercise all powers and do all acts which may be exercised or done by the Authority.

(4)

The managing director shall be answerable to the board for his acts and decisions.

(5)

In the event of the absence or inability to act of the managing director, the Minister may appoint a director to discharge his duties during the period of such absence or inability.

Clause 10

Disqualification of directors

(1)

No person may be appointed as or remain a director of the Authority who is a director or salaried official of any bank licensed under the provisions of the Banking Act, 1970 (Act ....... of 1970).

(2)

The disqualification referred to in subsection (1) of this section shall not apply to the directors referred to in paragraphs (b) and (c) of subsection (3) of section 7 of this Act.

(3)

The President may terminate the appointment of any director appointed under subsection (1) of section 8 of this Act if he —

(a)

resigns his office;

(b)

becomes of unsound mind or incapable of carrying out his duties;

(c)

becomes bankrupt or suspends payment to or compounds with his creditors;

(d)

is convicted of an offence involving dishonesty or fraud or moral turpitude;

(e)

is guilty of serious misconduct in relation to his duties;

(f)

is absent, without leave, from three consecutive meetings of the Board; or

(g)

fails to comply with his obligations under section 13 of this Act.

Clause 11

Vacancies in the office of director

If any director appointed under subsection (1) of section 8 of this Act dies or resigns or otherwise vacates his office before the expiry of the term for which he has been appointed another person may be appointed by the President for the unexpired period of the term of office of the director in whose place he is appointed.

Clause 12

Meetings and decisions of the board

(1)

The chairman of the board shall summon meetings as often as may be required but not less frequently than once in three months.

(2)

At every meeting of the board a quorum shall consist of four directors, and decisions shall be adopted by a simple majority of the votes of the directors present and voting except that in the case of an equality of votes the chairman shall have a casting vote.

Clause 13

Director’s interest in contract to be made known

(1)

A director who is directly or indirectly interested in a contract made, or proposed to be made, by the Authority shall disclose the nature of his interest at the first meeting of the board at which he is present after the relevant facts have come to his knowledge.

(2)

A disclosure under subsection (1) of this section shall be recorded in the minutes of the board and, after the disclosure, the director —

(a)

shall not take part in any deliberation or decision of the board with respect to that contract; and

(b)

shall be disregarded for the purpose of constituting a quorum of the board for any such deliberation or decision.

(3)

No act or proceeding of the board shall be questioned on the ground that a director has contravened the provisions of this section.

Clause 14

Preservation of secrecy

(1)

Except for the purpose of the performance of his duties or the exercise of his functions or when lawfully required to do so by any court or under the provisions of any written law, no director, officer or employee of the Authority shall disclose to any person any information relating to the affairs of the Authority or of any person which he has acquired in the performance of his duties or the exercise of his functions.

(2)

Any person who contravenes the provisions of subsection (1) of this section shall be guilty of an offence under this Act and shall be liable on conviction to imprisonment for a term not exceeding three years or to a fine not exceeding five thousand dollars or to both such imprisonment and fine.

Clause 15

Remuneration not to be related to profits

No salary, fee, wage or other remuneration or allowance paid by the Authority shall be computed by reference to the profits of the Authority.

Clause 16

Public servants

The directors, including the managing director, and the officers and employees of the Authority of every description shall be deemed to be public servants within the meaning of the Penal Code (Cap. 119).

Clause 17

List of posts and appointment of employees

(1)

The Authority may from time to time approve a list of posts which it thinks necessary for the purposes of this Act and may add to or amend that list. The first such list of posts shall contain posts for all the persons transferred to the service of the Authority under section 18 of this Act.

(2)

No person may be employed by the Authority unless he holds a post appearing in the list of posts for the time being in force.

(3)

Subject to the provisions of this section —

(a)

appointments and promotions to all posts shall be made by the Authority; and

(b)

the termination of appointment, dismissal and disciplinary control of the employees of the Authority shall be vested in the Authority.

(4)

In the discharge of its functions under subsection (3) of this section the Authority shall act on the advice of the Public Service Commission.

(5)

Notwithstanding the provisions of this section, the Authority may appoint persons temporarily for a period not exceeding two months to posts in the list of posts for the time being in force.

(6)

The Authority may, with the approval of the Public Service Commission, make rules, not inconsistent with the provisions of this Act or of any other written law, for the appointment, promotion, disciplinary control and terms and conditions of service of all persons employed by the Authority.

(7)

Without prejudice to the generality of subsection (6) of this section, the Authority shall prescribe the rates of remuneration payable to persons employed by the Authority, and no person so employed shall be paid otherwise than in accordance with such rates.

Clause 18

Transfer of employees

Upon the coming into operation of this Act, such persons, as the Minister may decide, who were employed by the Government immediately prior to the date of the coming into operation of this Act and were exercising any of the powers or were discharging any of the functions or duties vested in the Authority by this Act, shall be deemed to be transferred to the service of the Authority on terms not less favourable than those they enjoyed immediately prior to their transfer and such terms (which shall be determined by the Authority) shall take into account the salaries and conditions of service including any accrued rights to leave, enjoyed by them while in the employment of the Government.

Clause 19

Pension schemes, provident fund, etc

(1)

The Authority may, with the approval of the President, make rules for the establishment of a scheme or schemes for the payment of pensions, gratuities, provident fund or other superannuation benefits to such employees or classes of employees of the Authority as it may determine, or to their legal personal representatives or dependants, on the death or retirement of such employees from the service of the Authority or on their otherwise leaving the service of the Authority.

(2)

The Authority in making under subsection (1) of this section any pension, provident fund or other superannuation rules which affect any persons transferred to the service of the Authority under section 18 of this Act shall in such rules provide for the payment to such persons or their dependants of benefits not less in value than the amount of any pension, provident fund, gratuity or allowance for which such persons would have been eligible under the Pensions Ordinance, 1956 (Ord. 22 of 1956), had they continued in the service of the Government and any such pension, provident fund or superannuation rules relating to length of service of persons shall provide for the recognition as service under the Authority by persons so transferred of service by them under the Government.

(3)

Nothing in the rules to be made under subsection (1) of this section shall adversely affect any conditions that would have been applicable to persons transferred to the service of the Authority from their service with the Government as regards any pension, gratuity or allowance under the Pensions Ordinance, 1956.

(4)

Where any person in the service of the Authority whose case does not come within the scope and effect of any pension or other schemes established under this section retires or dies in the service of the Authority or is discharged from such service, the Authority may grant to him or to such other person or persons wholly or partly dependent on him, as the Authority may think fit, such allowance or gratuity as the Authority may determine.

Clause 20

No entitlement in respect of abolition or re-organisation of office

Notwithstanding the provisions of the Pensions Ordinance, 1956 (Ord. 22 of 1956), no person who is transferred to the service of the Authority under section 18 of this Act shall be entitled to claim any benefits under this Act on the ground that he has been retired from the service of the Government on account of abolition or re-organisation of office.

Clause 21

Transfer of functions, powers, duties, assets and liabilities, etc., to the Authority

(1)

Upon the coming into operation of this Act, there shall be transferred to the Authority —

(a)

all the functions, duties and powers of the Minister for Finance, the Commissioner of Banking and the Accountant-General under the Banking Act, 1970 (Act of 1970);

(b)

all the functions, duties and powers of the Minister for Finance, the Commissioner for Finance Companies and the Accountant-General under the Finance Companies Act, 1967 (Act 43 of 1967); and

(c)

the functions, duties and powers of the Minister for Finance and the Controller of Foreign Exchange under the Exchange Control Ordinance, 1953 (M. Ord. 57 of 1953).

(2)

After the coming into operation of this Act, there shall be transferred to the Authority such other functions, duties and powers as are conferred by or in pursuance of any written law upon the Minister relating to banking, investment or financial affairs as the President may, from time to time, by notification in the Gazette, specify.

(3)

Upon or after the coming into operation of this Act, such movable property, assets, rights, interests and privileges as well as such debts, liabilities and obligations connected therewith or appertaining thereto which are related to finance and are vested in or conferred upon the Minister pursuant to any written law, as the President may by notification in the Gazette specify, shall be deemed to have been transferred to and vested in the Authority without further assurance.

(4)

Where in any written law or any document whatsoever there is a reference to the Minister for Finance, the Commissioner of Banking, the Commissioner for Finance Companies, the Accountant-General or the Controller of Foreign Exchange in connection with or related to the performance of any of the functions, duties and powers that are transferred to the Authority under subsection (1) or (2) of this section the written law or document shall have effect as if the Authority had originally been referred to in the written law or document instead of the Minister for Finance, the Commissioner of Banking, the Commissioner for Finance Companies, the Accountant-General or the Controller of Foreign Exchange, as the case may be.

(5)

The Minister shall have power to do all acts or things that he considers necessary or expedient to give effect to the provisions of subsections (1), (2) and (3) of this section.

(6)

If any question arises as to whether —

(a)

any of the functions, duties and powers; or

(b)

any movable property, assets, rights, interests, privileges, debts, liabilities and obligations,have been transferred to or vested in the Authority under subsections (1), (2) and (3) of this section, a certificate under the hand of the President shall be conclusive evidence of such transfer or vesting.

Clause 22

Powers, duties and functions of the Authority

The Authority may, in addition to the powers, duties and functions transferred to it by virtue of section 21 of this Act, exercise and discharge the following powers, duties and functions, that is to say, it may: —

(a)

accept deposits of money;

(b)

issue demand drafts and other kinds of remittances made payable at its own office or the offices of agencies or correspondents;

(c)

purchase, accept on deposit and sell gold coin or bullion;

(d)

purchase, sell, discount and rediscount Treasury bills of the Government;

(e)

purchase and sell securities of the Government or of any public authority which have been publicly offered for sale or form part of an issue which is being made to the public at the time of acquisition;

(f)

invest in securities of the Government or of any public authority for any amount, and to mature at any time on behalf of staff and pension funds and other internal funds of the Authority;

(g)

acquire, hold and sell shares of any corporation set up with the approval of, or under the authority of, the Government for the purpose of promoting the development of a money market or securities market in Singapore or for the financing of economic development in Singapore;

(h)

purchase and sell currency, and purchase, sell, discount and rediscount bills of exchange and Treasury bills drawn in or on places outside Singapore;

(i)

borrow money, establish credits and give guarantees in any currency, inside and outside Singapore, on such terms and conditions as it may deem fit;

(j)

maintain accounts with central banks outside Singapore and with other banks inside and outside Singapore;

(k)

purchase and sell securities of, or guaranteed by, such guarantor, governments or international financial institutions as may be approved by the board, or purchase and sell securities and investments authorised by the President on the recommendation of the board;

(l)

act as correspondent, banker or agent for any central bank or other monetary authority and for any international bank or international monetary authority established under governmental auspices;

(m)

open accounts for, and accept deposits from, the Government, public authorities, banks and other credit institutions in Singapore;

(n)

underwrite loans in which it may invest;

(o)

undertake the issue and management of loans publicly issued by the Government or by any public authority; and

(p)

do generally all such things as may be commonly done by bankers and are not inconsistent with the exercise of its powers or the discharge of its duties under this Act.

Clause 23

Investment of funds

The funds of the Authority may be invested in all or any of the following: —

(a)

gold coin or bullion;

(b)

notes, coin, bank balances and money at call in such country or countries as may be approved by the board;

(c)

Treasury bills of such government or governments as may be approved by the board;

(d)

securities of, or guaranteed by, such government or governments or international financial institutions as may be approved by the board;

(e)

such securities and investments as may be authorised by the President on the recommendation of the board.

Clause 24

Authority as a banker to, and financial agent of, the Government and manager of its external assets

(1)

The Authority shall act as a banker to, and a financial agent of, the Government.

(2)

Whenever the Authority receives and disburses Government moneys it shall keep account thereof and may be paid an agency fee for its services.

(3)

The Authority may act generally as agent for the Government on such terms and conditions as may be agreed between the Authority and the Government, where the Authority can do so appropriately and consistently with the provisions of this Act and with its duties and functions as a monetary authority.

(4)

The Authority shall, subject to the provisions of the Financial Procedure Act, 1966 (Act 13 of 1966), and any other written law, manage the external assets of the Government.

Clause 25

Agents

In the exercise of its powers and the performance of its functions under this Act the Authority may —

(a)

establish agencies at such places outside Singapore as it thinks fit;

(b)

arrange with and authorise a person to act as agent of the Authority outside Singapore;

(c)

act as agent of a bank carrying on business inside or outside Singapore; and

(d)

act as agent of any public authority either generally or for a particular purpose inside or outside Singapore.

Clause 40

Transitional provisions

(1)

Any fund, scheme, contract, document, licence, permission or resolution constituted, prepared, made, granted or approved under the Exchange Control Ordinance, 1953 (M. Ord. 57 of 1953), the Finance Companies Act, 1967 (Act 43 of 1967), the Banking Act, 1970 (Act ...... of 1970), or any other written law relating to such functions, powers and duties as are transferred to the Authority under this Act, shall, except where otherwise expressly provided in this Act or in any other written law, continue and be deemed to have been constituted, prepared, made, granted or approved, as the case may be, under this Act.

(2)

Any legal proceeding or cause of action pending or existing immediately prior to the date of the coming into operation of this Act by or against the Government in respect of any functions or assets which under and by virtue of this Act are transferred to, or vested in, the Authority, may be continued and enforced by or against the Authority as it might have been by or against the Government, as the case may be, had this Act not come into operation.

Monetary Authority of Singapore Bill

About this bill

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