Section 97: Offences and penalties

97. Offences and penalties (1) Any person who transacts banking business, Islamic banking business, private banking business, deposit taking business, business of cash dealer, without a licence, or, if applicable, the written authorisation from the central bank, shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (2) Any person who fails to comply with the requirements of the central bank under section 43 (2) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees and to imprisonment for a term not exceeding 2 years. [Issue 9] B3 – 64 Revised Laws of Mauritius (3) Any person who, without any valid reason, hinders or obstructs the central bank in the exercise of its powers of special examination under section 43 shall commit an offence and shall, on conviction, be liable to a fine not exceeding 100,000 rupees for each day on which the offence occurs or continues and to imprisonment for a term not exceeding 2 years. (4) Any person who knowingly furnishes any document or information which is false or misleading in a material way or particular in relation to an application for a banking licence under section 5 or to an application for a licence under section 14 shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (5) Any financial institution which fails to— (a) display its licence in accordance with section 9 or 15; or (b) comply with section 57 (7) or (8), shall commit an offence, and shall, on conviction, be liable to a fine which shall not be less than 10,000 rupees and not more than 50,000 rupees for each day on which the offence occurs or continues. (6) Any financial institution which opens or keeps open a new place of business, closes or keeps closed an existing place of business or changes its location without the approval of the central bank shall commit an offence. (7) Any person who, without being licensed, or without written authorisation by the central bank, under this Act— (a) uses the word “bank”, “foreign exchange dealer”, “money changer”, “deposit taking” or any of their derivatives in any language in the description or title under which that person is carrying on his activities in Mauritius; (b) uses, as part of the name, description or title under which he carries on his activities, any word or term likely to indicate the nature of his activities to be those of a bank or any other financial institution; (c) makes any representation or uses any word or term in any billhead, letter, notice, advertisement or in any manner whatsoever indicating that he is carrying on the activities of a bank or any other financial institution, shall commit an offence. (8) Any director or senior officer who commits an offence under subsection (5), (6) or (7) shall, on conviction, be liable to a fine which shall be not less than 25,000 rupees for each day on which the offence occurs or continues. (9) (a) Any bank or non-bank deposit taking institution which contravenes section 23 (2) shall commit an offence and shall, on conviction, be liable to a fine not less than 10,000 rupees and not more than 50,000 rupees for each day on which the offence occurs or continues. B3 – 65 [Issue 9] Banking Act (b) On a conviction pursuant to paragraph (a), the Court shall, in addition to the fine, order the bank shall be not less than 25,000 rupees for each day on which the offence occurs or continues. (9) (a) Any bank or non-bank deposit taking institution which contravenes section 23 (2) shall commit an offence and shall, on conviction, be liable to a fine not less than 10,000 rupees and not more than 50,000 rupees for each day on which the offence occurs or continues. B3 – 65 [Issue 9] Banking Act (b) On a conviction pursuant to paragraph (a), the Court shall, in addition to the fine, order the bank or non-bank deposit taking institution to pay to the central bank a charge at a rate of interest which shall not be more than 3 times the legal rate of interest, calculated on— (i) the amount by which the minimum holding of liquid assets have been proved in Court to be deficient; and (ii) the period over which the minimum holding of liquid assets has been proved in Court to be deficient. (c) The charge ordered to be paid under paragraph (b) may be recovered by the central bank by deduction of any balance of, or money owing to, the bank or non-bank deposit taking institution concerned, or as if it were a civil debt. (d) Paragraphs (b) and (c) shall apply notwithstanding anything to the contrary in any other enactment. (10) Any person who fails to comply with section 31 shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (11) Any financial institution which fails to comply with section 34 (5), (6) or 35 shall commit an offence and shall, on conviction, be liable to a fine which shall be not less than 10,000 rupees and not more than 50,000 rupees for each day on which the offence occurs or continues. (12) Any person who does not take the necessary corrective action mandated under section 38 shall commit an offence and shall, on conviction, be liable to a fine which shall not be less than 10,000 rupees and not more than 50,000 rupees for each day the offence occurs or continues. (13) Any financial institution or its affiliate which fails to produce any book or other document or information required under section 44 shall commit an offence and shall, on conviction, be liable to a fine which shall be not less than 10,000 rupees and not more than 50,000 rupees for each day on which the offence occurs or continues. (14) Any financial institution or its affiliate which gives information or produces any book or other document required under section 44, which is false in any material particular, shall commit an offence and shall, on conviction, be liable to a fine which shall be not less than one million rupees and not more than 5 million rupees. (15) (a) Where any financial institution does not take the measures specified by the central bank pursuant to section 45 (1) (ii), it shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees in respect of each day on which the offence occurs or continues and the director, chief executive officer, manager, officer, employee or shareholder holding a significant interest responsible shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. [Issue 9] B3 – 66 Revised Laws of Mauritius (b) Where a financial institution or any of its directors, senior officers, employees or shareholders holding a significant interest, fails to— (i) cease or desist from actions and violations speci ecutive officer, manager, officer, employee or shareholder holding a significant interest responsible shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. [Issue 9] B3 – 66 Revised Laws of Mauritius (b) Where a financial institution or any of its directors, senior officers, employees or shareholders holding a significant interest, fails to— (i) cease or desist from actions and violations specified in a cease and desist order issued by the central bank under paragraph (a) of section 45 (2); (ii) take such affirmative action, as is specified in the order, to correct the conditions resulting from any such actions or violations, the financial institution or any of its directors, senior officers, employees or shareholders, as the case may be, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 5 million rupees. (c) Where a financial institution fails to comply with an order issued under section 45 (2) (b), it shall commit an offence and shall, on conviction, be liable to a fine not exceeding 5 million rupees. (16) Any person who contravenes section 47 shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (17) Any director or senior officer who fails to comply with section 48 shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (18) Any bank which fails to comply with the requirements of section 50 (2), 51 (3), 51 (4), 52 (2), 52 (6) (a) or 53 shall commit an offence and shall, on conviction, be liable to a fine not less than 10,000 rupees and not more than 50,000 rupees for each day on which the offence occurs or continues. (19) Any financial institution which contravenes section 55 shall commit an offence and shall, on conviction, be liable to a fine which shall be not less than one million rupees and not more than 5 million rupees. (20) Any person who contravenes section 64 shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (21) Any person who, being a director, chief executive officer, manager, officer, employee or agent of a financial institution— (a) makes, with intent to deceive, any false or misleading statement or entry or omits any statement or entry in any book, account, report or statement of the financial institution; (b) obstructs an inspection or examination, by an officer of the central bank or such other duly qualified person as it may authorise, of the affairs of the financial institution or the proper performance by an auditor of his duties under this Act; (c) fails to take all reasonable steps to ensure compliance by the financial institution with this Act; or B3 – 67 [Issue 9] Banking Act (d) is privy to any offence committed under this subsection and fails to report it to a senior officer or, in the case of a director, to the Board of the central bank, shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (22) Any person who contravenes this Act shall commit an offence and shall— (a) in the case of the offences referred to in the preceding subsections, on conviction, be liable to ) is privy to any offence committed under this subsection and fails to report it to a senior officer or, in the case of a director, to the Board of the central bank, shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (22) Any person who contravenes this Act shall commit an offence and shall— (a) in the case of the offences referred to in the preceding subsections, on conviction, be liable to the penalties specified in those subsections; (b) in any other case, on conviction, be liable to a fine not exceeding 500,000 rupees and to imprisonment for a term not exceeding 2 years. [S. 97 amended by s. 2 (i) of Act 15 of 2006 w.e.f. 7 August 2006; s. 4 (g) of Act 38 of 2011 w.e.f. 15 December 2011; s. 3 (q) of Act 27 of 2013 w.e.f. 21 December 2013; s. 3 (s) of Act 18 of 2016 w.e.f. 7 September 2016.]