BANKING ORDINANCE

BANKING ORDINANCE

CHAPTER 155.

BANKING.

To provide for the regulation aitd licensing of the business of
banking.

[30th January, 1948.]

1. This Ordinance may be cited as the Banking

Ordinance.

2. In this Ordinance--

'bank' nicans any person carrying on banking business or using the
words 'bank' or 'trust' or any derivative thereof as part of the
title under which business is carried on or using any name
iniplying that such person carries on the business of banking but
shall not include a registered co-operative society;

'banking business' means the business of a bank engaged in the
receipt of money on current or deposit account or in payment and
collection of cheques drawn by or paid in by a customer or in the
making or receipt of
remittances or in the purchase and sale of gold or silver coin or
bullion ;

'bank note' means any bill, draft or note issued by anv bank for the
payment of money to the bearer on demand or entitling or being
intended to entitle the holder without indorsement or without any
further indorsement than may exist thereon at the time of issue to
the payment of any sum of money on demand whether the same
be so expressed or not;

company means a company incorporated under the Companies
Ordinance, or a comnpany which has complied with Part XI
sections 317 to 326 thereof or company formed in pursuance of
some other Ordinance, Act of Parliament of the United Kingdom or
of letters patent of the United Kingdom, or a Chinese Native Bank

'licensed bank' means a bank licensed under section 4.

3. (1) No banking business shall be transacted the

Colony except by a company.


(2) Any person who acts in contravtion of

visions of subsection (i) shall be liable on conviction to
the penalty prescribed by section 14.





(3) Notwithstanding this section the Governor in Council may in
his discretion grant a special licence to any person who on the 30th
day of January, 1948, not being a company, carried on, conducted,
managed or directed banking business in the Colony, and such
banking business shall thereupon be deemed to be a licensed bank to
which all the provisions of this Ordinance relating to a licensed bank
shall apply : Provided that nothing in this subsection shall affect the
operation of section 331 Of the Conipanies Ordinance.

4. Notwithstanding anything in this or any other Ordinance
contained, no conipany shall carry on banking business in the Colony
without obtaining from the Governor in Council a licence so to do. the
Governor in Council may in his discretion, and without assigning any
reason therefor, refuse to grant such a licence.

(i) No person other than a company licensed to carry on
banking business in accordance with the provisions of section 4 shall
without the consent of the Governor in Council, use the word 'bank' or
'trust' or any derivative thereof in the name under which business is
being carried on or use any name implying that the business of banking
is carried on.

(2) Any person who acts in contravention of the provisions of this
section shall be liable oil conviction to the penalty prescribed by
section 14 and in addition to a fine of five hundred dollars for every
day, subsequent to the day of conviction of such offence, during
which such offence continues.

6. (1) The Governor may appoint an advisory committee consisting
of such persons aiid appointed on such terms as he may think fit to
advise him on matters relating to banking business and he may at any
time determine any appointment so made.

(2) The Governor may make rules providing for the

procedure to be followed at any meeting held bu the committee to be
constituted under this section.





7. (1) The Governor in Council may, after consultation with the
advisory committee and if he considers it to be in the public interest so
to do, order any licensed bank

(a)to produce to such person and within such period as may be
named in such order any books, accounts or documents of.
any such bank;

(h)to delete from the nanie under which it is carrying on
business, within such period as shall be named in such order,
the word 'bank' or 'trust' or any derivative thereof, or any
other word or words forming part of its name;

(c) to refrain from carrying on banking business;

(d)to return for cancellation by the Financial Secretary any
licence issued to such bank under section 4 Of this
Ordinance :

Provided that before any order is made under paragraphs (b), (c)
and (d) the Governor in Council shall give such licensed bank notice in
writing of his intention to make such an order and shall afford such
licensed bank an opportunity of submitting to him a written statement
of its case.

(2) Any licensed bank failing to comply with an order made under
this section shall be liable on conviction to the penalty prescribed by
section 14 and in addition shall be liable to a penalty of five hundred
dollars for every day during which the default continues.

(3) The Financial Secretary shall publish in the Gazette the name of
any licensed bank the licence of which has been cancelled.

8. (1) Every licensed batik shall pay an annual fee of five thousand
dollars. Such fee shall be payable as at the date of the grant of a licence
in accordance with the provisions of section 4 and thereafter upon
each anniversary of such date.

(2) Any licensed bank which falls to pay the annual fee required
under this section shall be liable on conviction to the penalty
prescribed by section 14 and in addition shall bc liable to a penalty of
five hundred dollars for each day during which such fee remains
unpaid, and every director, manager secretary or other office, of the
bank who knowingly and wilfully auth orizes or permits such
nonpayment shall be liable to a like penalty.





(3) The Financial Secretary shall publish annually in the
Gazette the name of every licensed bank which has paid the
annual fee prescribed in this section.

9. (1) Every licensed bank shall exhibit throughout the year in
a conspicuous position in every office and branch of such bank
in the Colony a copy of its last balance sheet.

(2) Every licensed bank after preparing a balance sheet shall
forthwith send a copy to the Financial Secretary.

(3) Aily licensed bank which fails to comply with the
requirements of this section shall be liable on conviction to the
penalty prescribed by section 14.

(4) The requirements of this section shall be in addition to
and not in derogation of the iequirements of the Companies
Ordinance or of other Ordinance, Act of Parliament of the
United Kingdom or letters patent of the United Kingdom

10. (1) No person-

(a)who has been a director of, or directly or indirectly
concerned in the management of, a bank which has
been wound up by a court; or

(b)who has been sentenced by a competent court to a
term of imprison ment for an offence involving
dishonestly aiid lias not received a full pardon for the
offence for which he was sentenced,

shall, without the express authorization of the Govertior, act or
continue to act as a director of, or be directly or indirectly
conceriied in the management of, any licensed bank

(2) Any person acting in. contravention of subsection (1)
shall be liable on conviction to the penalty prescribed by section 14.

11. Nothing, in this Ordinance contained shall be taken to
authorize the issue in the Colony of any bank notes by a licensed
bank other than note-issuing bank within the meaning of the
Bank Notes Issue Ordinance.





12. In the event of doubt is to whether a person is carrying on
banking business the matter shall be submitted to the Governor in
Council for his determination and the decision of the Governor in
Council shall bc final aiid conclusive for all purposes of this Ordinance.
[13A]

13. Whenever it appears to a magistrate, upon the

oath of any person, that there is reasonable cause to suspect
that a contravention of this Ordinance has been or is being
committed in any building or place, such magistrate may,
by warrant directed to any police officer of or above the
rank of sub-inspection empower him with such assistants as
may be necessary, by day or night-

(a)to enter, and, if necessary, to break into such building or
place ancl to search for and detain anv rnachinery, type,
appliances, paper, printing materials, writing materials, books,
documents, accounts, notices or writings which appear to
afford evidance of the commission of such contravention;
and

(b) to arrest any person found in such building or
place who may appear to be concerned with the
commission of such coil contravention [14]

14. Any licensed bank, bank or person who contravenes or
attempts to contravene, any of the provisions of this Ordinance shall
upon summary conviction be liable to a fine of five thousand dollars
and imprisonment for two years and shall upon conviction on
indictment be liable to a fine
of twenty thousand dollars aiid imprisonment for five
years. [15]
2 of 1948. 49 of 1948. 24 of 1950. Short title. Interpretation. (Cap. 32.) Banking business to be transacted only by a company. [s. 3 cont.] 24 of 1950, Schedule. (Cap. 32.) Banking business to be transacted only by a licensed company. 49 of 1948, s.2. 24 of 1950, Schedule. Restriction on use of title 'bank' or 'trust'. 24 of 1950, Schedule. Appointment and constitution of advisory committee. Special powers of Governor in Council. Annual fee payable by licensed banks. [s. 8 cont.] Exhibition of audited balance sheet by licensed banks. 49 of 1948, s. 3. (Cap. 32.) Individuals not eligible to take part in management of licensed banks. Issue of bank notes. 24 of 1950, Schedule. (Cap. 65.) Decision of Governor in Council in matters of doubt. 49 of 1948, s.4. 24 of 1950, Schedule. Power of entry, search, detention of documents and arrest. Penalty.

2 of 1948. 49 of 1948. 24 of 1950. Short title. Interpretation. (Cap. 32.) Banking business to be transacted only by a company. [s. 3 cont.] 24 of 1950, Schedule. (Cap. 32.) Banking business to be transacted only by a licensed company. 49 of 1948, s.2. 24 of 1950, Schedule. Restriction on use of title 'bank' or 'trust'. 24 of 1950, Schedule. Appointment and constitution of advisory committee. Special powers of Governor in Council. Annual fee payable by licensed banks. [s. 8 cont.] Exhibition of audited balance sheet by licensed banks. 49 of 1948, s. 3. (Cap. 32.) Individuals not eligible to take part in management of licensed banks. Issue of bank notes. 24 of 1950, Schedule. (Cap. 65.) Decision of Governor in Council in matters of doubt. 49 of 1948, s.4. 24 of 1950, Schedule. Power of entry, search, detention of documents and arrest. Penalty.

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