Section 19K: On-site inspections

19K. On-site inspections (1) (a) A regulatory body may, at any time, cause to be carried out on the business premises of a member falling under its purview an inspection and an audit of its books and records to verify whether the member is complying or has complied with this Act or the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019, or any regulations made or guidelines issued under those Acts. (b) A regulatory body may, when exercising a power under subsection (1), request such assistance as may be necessary from FIU or any supervisory authorities. (2) For the purpose of subsection (1), the regulatory body may – (a) direct, orally or in writing – (i) the member; or (ii) any other person whom the regulatory body reasonably believes has in its possession or control a document or thing that may be relevant to the inspection, to produce the document or thing as specified in the direction; (b) examine, and make copies of or take extracts from, any document or thing that it deems necessary to be relevant to the inspection; (c) retain any document or thing it deems necessary; and (d) direct a person who is or apparently is an employee of the member to give information about any document or thing that it deems necessary to be relevant to the inspection. Acts 2019 173 (3) The member referred to in subsection (1), or where applicable, its employee, shall give the regulatory body full and free access to the records and other documents of the member as it deems necessary to be relevant for the inspection. (4) Any person who – (a) intentionally obstructs the regulatory body in the performance of any of its duties under this section; or (b) fails, without reasonable excuse, to comply with any direction of the regulatory body in the performance of its duties 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, information stored on a computer or other device or other thing that the person knows or ought reasonably to have known is 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. (6) In this section – “regulatory body” includes any person designated in writing by the regulatory body. Sub-Part D – Powers of Regulatory Body to Give Directions