FINANCIAL INSTITUTIONS ACT, 2004

PART VII - OFFENCES AND PENALTIES

63. (1) A person who –

(a) conducts banking business without a valid banking licence commits an offence punishable on conviction with a fine of R200,000 and where the offence is continued after the conviction with a further fine of R10,000 for every day or part of a day on which the offence is continued;

(b) fails to repay funds obtained by doing banking business without a valid banking licence as required under section 3(1) commits an offence punishable on conviction with the fine or fines specified in paragraph (a);

(c) conducts foreign exchange business without a valid licence under this Act commits an offence punishable on conviction with the fine or fines specified in paragraph (a);

(d) knowingly or recklessly furnishes any information which is materially false or misleading in connection with an application for a licence commits an offence punishable on conviction with a fine of R200,000;

(e) refuses to make available for examination its books, accounts or records under section 21 commits an offence punishable on conviction with a fine or fines specified in paragraph (a);

(f) fails, refuses or unreasonably delays to comply with any requirement of the Central Bank or of an authorised person made under section 42 commits an offence punishable on conviction with imprisonment for a term of 6 months or a fine of R20,000;

(g) in complying with a requirement under section 42, wilfully furnishes any information or produces any book, record or other document known to be false, or recklessly furnishes any information or produces any book, record or other document which is false in a material particular commits an offence punishable on conviction with imprisonment for a term of 6 months or a fine of R20,000;

(h) contravenes or fails to comply with section 43 commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine of R20,000;

(i) being an administrator, contravenes section 44(1) or (4) commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine of R20,000;

(j) contravenes confidentiality requirements set out in section 49 commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine of R20,000;

(k) contravenes the provisions set out in Schedule 2, Part I, paragraph 1 commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine of R200,000;

(l) contravenes the provisions set out in Schedule 5, paragraph 6(1) commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine of R200,000.

(2) Any financial institution which –

(a) contravenes a direction given under section 14(1) commits an offence punishable on conviction with a fine of R200,000;

(b) contravenes section 38 commits an offence punishable on conviction with a fine of R200,000;

(c) fails to pay the charge within the time determined by the Central Bank pursuant to section 25 commits an offence punishable on conviction with a fine of R20,000;

(d) fails, refuses or unreasonably delays to submit a statement or report to the Central Bank pursuant to section 25 or section 40 commits an offence punishable on conviction with a fine of R200,000;

(e) wilfully submits a statement or report pursuant to section 25 or section 40 known to be false, or recklessly makes a statement or gives information which is false in a material particular commits an offence punishable on conviction with a fine of R200,000;

(f) receives any deposit in contravention of section 48 commits an offence punishable on conviction with a fine of R20,000;

(g) wilfully fails to notify the owner or publish a notice pursuant to section 60 commits an offence punishable on conviction with a fine of R20,000;

(h) wilfully fails to submit a report to the Central Bank pursuant to section 61 commits an offence punishable on conviction with a fine of R20,000;

(i) in the case of a local financial institution, contravenes the provisions set out in Schedule 2, Part I, paragraph 5 commits an offence punishable on conviction with a fine of R200,000;

(j) in the case of a foreign financial institution, contravenes the provisions set out in Schedule 5, paragraph 1, commits an offence punishable on conviction with a fine of R200,000.

(3) Any administrator, officer, employee or agent of a financial institution who —

(a) with intent to deceive —

(i) makes or causes to be made any false or misleading statement or entry;

(ii) omits or causes to be omitted any statement or entry that should be made; or

(iii) alters, abstracts, conceals or destroys any statement or entry,

in any book, record, account, document, report or statement of the institution commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine R20,000;

(b) obstructs or endeavors to obstruct –

(i) the proper performance by any auditor of duties in accordance with this Act; or

(ii) an inspection of the institution by any officer of, or other person appointed by, the Central Bank commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine R20,000;

(c) contravenes the provisions of section 45 commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine R20,000;

(d) knows, or in the proper performance of his or her duties should have known, that the financial institution is apparently insolvent and receives or authorises the acceptance of any deposit in contravention of section 48 commits an offence punishable on conviction with imprisonment for a term of 1 year or a fine R20,000.