Section 269A: Risk-based approach and powers of Registrar

269A. Risk-based approach and powers of Registrar (1) Every company limited by guarantee shall implement programmes against terrorism financing, which are commensurate with the terrorism financing risks to which it is exposed and the size and nature of its business. (2) For the purpose of ensuring that a company limited by guarantee complies with the relevant enactments relating to the prevention of terrorism financing and this Act, the Registrar may – (a) conduct, at any time and in such manner as it may determine, a risk-based inspection of that company limited by guarantee; and (b) take such measures as may be necessary to identify, assess and understand the terrorism financing risks and periodically review such risk assessment. (3) For the purpose of subsection (2), the Registrar shall collect and maintain such statistics and information as may be required in such form and manner, and for such period, as he may determine. (4) The Registrar shall have such powers as may be necessary to enable him to effectively discharge his functions under the relevant enactments relating to the prevention of terrorism financing and this Act and may, in particular – (a) issue guidelines; (b) give directives to any company limited by guarantee to ensure compliance with the relevant enactments relating to the prevention of terrorism financing, this Act and any guidelines issued under this Act; (c) require any company limited by guarantee to furnish, in such form and manner as he may determine, such information or statistical data relating to its business at such intervals and within such time as the Registrar may determine; (d) require a company limited by guarantee to submit a report on corrective measures it is taking to ensure compliance with the relevant enactments relating to the prevention of terrorism financing, this Act and any guidelines or directives issued under this Act, at such intervals as the Registrar may determine; (e) where the Registrar has reasonable cause to believe that a company limited by guarantee no longer satisfies the requirements of the relevant enactments relating to the prevention of terrorism financing and this Act, or any of its present or past officer or member has or is about to engage in unsafe and unsound practices and knowingly or negligently permit the violation of the relevant enactments relating to the prevention of terrorism financing and this Act, apply any or all of the following administrative sanctions against the company limited by guarantee, its present or past officer, or its member, as the case may be – (i) issue a private warning; (ii) impose such administrative penalty as may be prescribed; (iii) issue a cease and desist order that requires the company limited by guarantee, its officer or its member 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; (iv) ban a person from being a member of the board of a company limited by guarantee for a period not exceeding 5 years; and (v) remove the company limited by guarantee from the register of companies as provided under section 308. (5) Any person who fails to comply with a guideline, a directive or an order issued under subsection (4)(a), (b), (c) or (e)(iii) 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. (6) In this s member of the board of a company limited by guarantee for a period not exceeding 5 years; and (v) remove the company limited by guarantee from the register of companies as provided under section 308. (5) Any person who fails to comply with a guideline, a directive or an order issued under subsection (4)(a), (b), (c) or (e)(iii) 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. (6) In this section – “inspection” includes – (a) an on-site or off-site regular examination; (b) a special examination; (c) an off-site monitoring; and (d) an audit of the books and records of a company limited by guarantee. (g) in section 329, in subsection (1), by inserting, after the words “91(1), (2), (3)”, the words “, (3A)”.