Section 79D: On-site inspection
This section is inserted by 18 THE FINANCE ACT 2025, section 10.
consolidated text (as at 2018, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
79D. On-site inspection
(1) (a) The Registrar may, at any time, cause to be
carried out at the registered office or on the business premises
of a credit union an inspection and an audit of its books and
records to verify whether the credit union is complying or
has complied with this Act or the United Nations (Financial
Prohibitions, Arms Embargo and Travel Ban) Sanctions Act,
or any regulations made or guidelines issued under those
Acts.
(b) The Registrar may, in the exercise of his
powers under paragraph (a), request such assistance as may
be necessary from the FIU or any supervisory authorities.
(2) For the purpose of subsection (1), the Registrar
may –
(a) direct, orally or in writing –
(i) the credit union to produce such
document as he may specify; or
(ii) any other person whom the
Registrar reasonably believes
has in his possession or control
a document or thing that may
be relevant to the inspection, to
produce the document or thing
specified by him;
(b) examine, and make copies of or take
extracts from, any document or thing that
he considers relevant;
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(c) retain any document or thing he deems
necessary; and
(d) direct a person who is or apparently is
an employee of the credit union to give
information about any document or thing
that he deems necessary to be relevant to
the inspection.
(3) A credit union referred to in subsection (1) or,
where applicable, its employees shall give the Registrar
full and free access to the records and other documents of
the credit union as it deems necessary to be relevant for the
inspection.
(4) Any person who –
(a) intentionally obstructs the Registrar in
the exercise of his powers or performance
of his duties and functions under this
section; or
(b) fails, without reasonable excuse, to
comply with any direction of the Registrar
in the performance of his duties and
functions under this section,
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 person who destroys, falsifies, conceals or
disposes of, or causes or permits the destruction, falsification,
concealment or disposal of, any document or information
stored on a computer, device or other thing that the person
knows or ought reasonably to have known to be relevant
to an on-site inspection or investigation, shall commit
an offence and shall, on conviction, be liable to a fine not
exceeding 5 million rupees and to imprisonment for a term
not exceeding 10 years.
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