Clause 7

Every licensee which carries on remittance business shall maintain with the Authority security of the value of $100,000, or such other amount as may be prescribed, in respect of its place of business, for the due performance of its obligations to those persons who will deposit or have deposited moneys with the licensee for remittance purposes.(2) Where a licensee carries on remittance business at more than one place of business, the licensee shall maintain with the Authority such amount of additional security as may be prescribed in respect of each additional place of business.(3) The security referred to in subsection (1) or (2) shall be —

in the form of a cash deposit;

in the form of a bank guarantee specified by the Authority; or

in such other form as the Authority may, in any particular case, allow.(4) All moneys deposited by a licensee which carries on remittance business under this section shall be treated as a single security and may be applied by the Authority, in respect of that licensee, for the purposes of subsection (5).(5) Where a licensee which carries on remittance business has surrendered its licence or its licence has lapsed or expired or has been revoked, it shall be lawful for the Authority to enforce the security referred to in subsection (1) or (2) to the extent required to pay any sums outstanding and claimed by the customers of the licensee who had given money to the licensee for remittance purposes; and if the security is insufficient to cover all sums claimed by such customers, the Authority may pay part of the sums claimed by such customers.(6) For the avoidance of doubt, where the security referred to in subsection (1) or (2) is provided in the form of a bank guarantee, it shall be lawful for the Authority to call on the bank guarantee for the purposes of subsection (5) notwithstanding that a closure certificate required under section 14A has not been submitted to the Authority.(7) Where a licensee which carries on remittance business has surrendered its licence or its licence has lapsed or expired or has been revoked, the Authority shall, upon being satisfied that there is no outstanding claim by any customer of the licensee and upon receiving the closure certificate required under section 14A, release the security or the remainder thereof, as the case may be, to the licensee.(8) Any security furnished by a licensee which carries on remittance business under this section shall not be liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatsoever, and if the holder is declared insolvent or is wound up by an order of the court, the security shall be deemed not to form part of the property of the licensee.Place of business of licensee9.—

No licensee shall operate a money-changing business or remittance business, as the case may be, unless he or it has a permanent place of business.(2) No licensee shall carry on money-changing business or remittance business at any additional place of business other than the licensee’s permanent place of business referred to in subsection (1) except with the approval of the Authority.(3) A licensee which intends to commence money-changing business or remittance business at any additional place of business shall, prior to commencing such business at the additional place of business, apply in writing to the Authority for approval, and the Authority may approve the additional place of business subject to such conditions as it thinks fit.(4) The Authority shall not grant its approval under subsection (3) unless the licensee has furnished the Authority with the additional security required under section 8(2) and the additional licence fee required under section 11(2A).(5) The Authority may revoke its approval granted under subsection (3) if the licensee breaches any of the conditions imposed on the licensee under that subsection.(6) Every licensee shall notify the Authority of any change in the address of any of the licensee’s place of business within 7 days of such change.(7) Any licensee who contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine of $5,000 for every day or part thereof during which the offence continues after conviction.(8) Where a licensee fails to notify the Authority within the time period specified in subsection (6) of any change in the address of the licensee’s place of business, the Authority may impose a late notification fee not exceeding $50 for every day or part thereof that the notification is late, subject to a maximum of $1,500.Approval of partners or directors9A.—

No holder of a money-changer’s licence shall —

where the holder is a partnership (including a limited liability partnership), appoint a person as a partner; or

where the holder is a company, appoint a person as its director,unless the holder has obtained the approval of the Authority.(2) No holder of a remittance licence shall appoint a person as its director unless it has obtained the approval of the Authority.(3) Where a licensee has obtained the approval of the Authority to appoint a person as its director under subsection (1)(b) or (2), the person may be re-appointed without break as director of the licensee immediately upon the expiry of his earlier term without the approval of the Authority.(4) Without prejudice to any other matter that the Authority may consider relevant, the Authority may, in determining whether to grant its approval under subsection (1) or (2), have regard to such criteria as may be prescribed or specified in written directions.(5) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.Approval of substantial shareholdings9B.—

Where a licensee is a company, no person shall become a substantial shareholder of the licensee unless he has obtained the approval of the Authority.(2) Without prejudice to any other matter that the Authority may consider relevant, the Authority may, in determining whether to grant its approval under subsection (1), have regard to such criteria as may be prescribed or specified in written directions.(3) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.”.