Section 79D: On-site inspection

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; (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.