Section 45: Powers of central bank following examination

45. Powers of central bank following examination (1) Where, in relation to any financial institution, the central bank is of the opinion that, as a result of an examination made under section 42 or a special examination made under section 43 or other information at its disposal, that— (a) any director, senior officer or employee of the financial institution is not a fit and proper person; B3 – 35 [Issue 6] Banking Act (b) the financial institution has, or any of its directors, senior officers or employees has, engaged in unsafe or unsound practices in conducting its business in a manner detrimental to the interests of its depositors, or the financial institution has, or has knowingly or negligently, permitted any of its directors, senior officers, employees or agents to violate the banking laws or any enactment relating to anti-money laundering or prevention of terrorism and the regulations made, guidelines, or instructions issued, by the central bank to which the financial institution is subject, or the central bank has reasonable cause to believe that such actions or violations are about to occur; (c) the financial institution has insufficient assets to cover its liabilities; (d) the amount paid as stated capital or the assigned capital, as the case may be, of the financial institution is impaired; or (e) the financial institution is otherwise in an unsafe or unsound condition, the central bank may— (i) impose or vary conditions attaching to the financial institution’s licence in accordance with section 10 or 16, as the case may be, invoking in cases of urgency the procedure specified in section 17; (ii) require the financial institution forthwith to take such steps as may appear to the central bank to be necessary to remedy the situation; and (iii) appoint a person to advise the financial institution in the proper conduct of its business and fix the remuneration to be paid by the financial institution to the person so appointed. (2) Where the central bank considers that an examination made under section 42 or a special examination made under section 43 or other information at its disposal shows that the financial institution concerned has, or any of its directors or senior officers or employees or agents has, engaged in unsafe or unsound practices in conducting the business of the financial institution in a manner detrimental to the interests of its depositors, or has knowingly or negligently permitted any of its directors, senior officers, employees or agents to violate the banking laws or any enactment relating to antimoney laundering or prevention of terrorism and the regulations made, guidelines, or instructions issued, by the central bank to which the financial institution is subject, or the central bank has reasonable cause to believe that such actions or violations are about to occur, the central bank may— (a) issue a cease and desist order that requires the financial institution and its directors, senior officers, employees or shareholders holding a significant interest, as the case may be, to cease and desist from the actions and violations specified in the order and may require affirmative action to correct the conditions resulting from any such actions or violations; [Issue 6] B3 – 36 Revised Laws of Mauritius (b) issue an order to the financial institution to suspend from office any director, senior officer or employee who has engaged in, or is otherwise responsible for, such actions or violations. (3) A suspension under ders holding a significant interest, as the case may be, to cease and desist from the actions and violations specified in the order and may require affirmative action to correct the conditions resulting from any such actions or violations; [Issue 6] B3 – 36 Revised Laws of Mauritius (b) issue an order to the financial institution to suspend from office any director, senior officer or employee who has engaged in, or is otherwise responsible for, such actions or violations. (3) A suspension under subsection (2) (b) shall be for an initial period of 30 days and may be extended for similar periods or made permanent by decision of the central bank, following completion of a hearing under subsections (6) and (7). (4) Any action proposed to be taken by the central bank or already taken under this section shall be notified in writing to the financial institution and to the director or senior officer, employee and shareholder holding a significant interest, as the case may be. (5) Any recipient of a notice under subsection (4) may, within 15 days of the date of the notice, make a request in writing to the central bank for a hearing. (6) Where a request is made under subsection (5), the central bank shall give an opportunity for the recipient to be heard and present arguments within 14 days of the date of the request and during that period of 14 days, any action taken by the central bank under subsection (4) shall not be suspended but shall remain in effect. (7) The decision of the central bank shall be rendered within 15 days of the completion of the date of the hearing under subsection (6).