Section 79E: Directions by Registrar

79E. Directions by Registrar (1) Where the Registrar has reasonable cause to believe that a credit union – (a) has failed or is failing to take such measures required under 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; or (b) is involved in money laundering activities and the financing of terrorism and proliferation activities, he may give to the credit union such written direction as he may, in the circumstances, determine. (2) Without prejudice to the generality of subsection (1), the Registrar may direct the credit union referred to in subsection (1) – (a) where it has failed or is failing to take any measures required under 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, to do a specified act, or refrain from doing a specified act; (b) to comply 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, as may be relevant to the circumstances; 246 Acts 2025 (c) to remove or take steps to remove any specified employee from office, or ensure that a specified employee does not take part in its management or conduct of its business, except as permitted; (d) to appoint a specified person to a specified office for a period specified in the direction; (e) to implement corrective measures and provide, at such intervals as may be specified in the direction, reports on the implementation of the corrective measures. (3) A direction under this section may specify the time by which, or period during which, it shall be complied with. (4) A credit union shall comply with the direction given under subsection (2) notwithstanding anything in its constitution or any contract or arrangement to which it is a party. (5) The Registrar shall not give a direction under this section before giving the credit union to whom it is to be addressed reasonable opportunity to make representations on the matter. (6) The Registrar may, at any time, by notice to a credit union, revoke a direction given under this section.