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Short Title, commencement and application of this Act \par 2. Interpretation \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid4928291 PART 2 \par LICENSING OF BANKING BUSINESS \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par 3. Licence needed to carry on banking business \par 4. Classes of }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 l}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 icence \par 5. Existing licences \par 6. Application for licence to carry on banking business. \par 7. Commission to issue or refuse licence within 3 months \par 8. Criteria for the issue of a licence \par 9. Criteria for issue of licence to foreign banks \par 10. Conditions of a licence including annual fees \par 11. Revocation or suspension of licence \par 12. Appeals against revocation \par 13. Surrender of licence \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid4928291 PART 3 \par SUPERVISION AND ENFORCEMENT \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid4928291 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 14. Banking supervision \par 15. Compliance inspection \par 16. Participation of a foreign supervisory authority \par 17. Enforcement action \par 18. Appointment of examiner \par 19. Directives \par 20. Insolvency of licensees \par 21. Court appointed manager \par 22. Cessation of court appointed Manager}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid4928291 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid4928291 PART 4 \par OBLIGATIONS AND RESTRICTIONS \par ON LICENSEES \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\i\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid5662784 Division 1 - Obligations on licensees \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par 23. Physical presence \par 24. Maintenance of minimum capital \par 25. Computation and form of minimum capital \par 26. Keeping of accounting records \par 27. Appointments \par 28. Commission may remove officers \par 29. Operations outside the Cook Islands \par 30. Business name \par 31. Notice of changes}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\i\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid5662784 Division 2 - Restrictions of licensees \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 32. Transfer of profits and dividends \par 33. Subsidiaries \par 34. Business acquisitions \par 35. Restriction on disposition of significant interest \par 36. Restrictions on advances exceeding 25 percent of capital \par 37. Restrictions on advances without security \par 38. Other restrictions on advances \par 39. Engaging in business \par 40. Restrictions involving restricted licensees \par \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid4928291 PART 5 \par AUDIT DISCLOSURE AND TAX \par EXEMPTIONS \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par 41. Appointment of approved auditor \par 42. Financial reports \par 43. Duty to disclose \par 44. Licensee to provide the Commission with report \par 45. Audit conducted in accordance with international standards \par 46. Disclosure of information by the Commission \par 47. Disclosure of protected and other information generally \par 48. Exemption from taxes and stamp duty}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid4928291 PART 6 \par MISCELLANEOUS \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 49. Offences \par 50. Court to have Jurisdiction \par 51. Bank Holidays \par 52. Protection of the term }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 bank}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 etc \par 53. Indemnity from liability \par 54. Court proceedings \par 55. Retention of documents \par 56. Regulations \par 57. Repeals \par \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 -----------------}{\fs24\lang2057\langfe5129\langnp2057\insrsid10173221 -------------------}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid10173221 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10173221 2003, No. 7 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12739743 {\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An Act to provide for the licensing, regulation and supervision of banking business and for related purposes. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }\pard \qr \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7 May 2003}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\b\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11877205 BE IT ENACTED}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 by the Parliament of the Cook Islands in Session assembled, and by the authority of the same, as follows:}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid4928291 PART I \par PRELIMINARY \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 1.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Short Title, commencement and application}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) This Act may be cited as the Banking Act 2003.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This Act}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 shall come into force on the 1}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 st day of June 2003. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This Act applies to any statutory corporation or body established to carry on banking business in the Cook Islands, including without limitation the entity known and trading as the Bank of the Cook Islands. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This Act has effect despite the Companies Act 1970-71 and the International Companies Act 1981-82 and if there is any conflict between the provisions of this Act and the provisions of the Companies Act 1970-71 or the I}{ \fs24\lang2057\langfe5129\langnp2057\insrsid5662784 nternational Companies Act 1981-}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 82, the provisions of this Act prevail. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Subject to section 40, nothing in this Act exempts a licensee from the provisions of the Development Investment Act 1995-96 or the Entry Residence and Departure Act 1971-72. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 2.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Interpretation}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 - }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1) In this Act unless the contrary intention appears -}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 accounting records}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 includes the working papers and other documents as are necessary to explain the methods and calculations by which financial statements are made up and includes data held electronically or in any other form of non paper based system; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 adviser}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a person appointed by the Commission under section 20(3)(b); \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 approved auditor}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means an auditor appointed under subsection 41(1); \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 banking business}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means - \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the business of receiving funds through the acceptance of money deposits payable on demand or after a fixed period or after notice, or any similar operation through the sale or placement of bonds, certificates, notes or other securities, and the use of su ch funds either in whole or in part for loans or investment for the account and the risk of the person doing such business; and}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any other activity prescribed by regulation as constituting customary banking practice that a bank engaged in activities described in paragraph (a) may additionally be authorised to do;} {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Commission}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the Financial Supervisory Commission established under the Financial Supervisory Commission Act 2003;}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 company}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a body corporate incorporated, formed or constituted under the laws of the Cook islands or any other country;}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 compliance inspection}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the activities referred to in section 15(1);}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Court}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the High Court of the Cook Islands;}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 court appointed manager}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a person appointed by the Court as a court appointed manager under section 21;}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 director}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means an individual who exercises management and policy making functions at the highest level of a company, and includes an individual who is a member of the board of directors, committee, council or other governing body of a company;}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 disqualified person}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a person referred to in subsection (4);}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 dollars}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 and }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 $} {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means dollars of the currency of the Cook Islands, unless otherwise stated or prescribed;}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 domestic banking business}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means banking business that is conducted:}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 with a person that is a resident of the Cook Islands, or is visiting the Cook Islands at the time of conducting banking business; or}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 with a person who is not a resident of the Cook Islands, provided such business is wholly conducted in the currency of the Cook Islands;}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 domestic banking licence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a licence of the cla}{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 ss provided for in paragraph 4(1}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 )(a);}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 domestic licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the holder of a domestic banking licence; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 eligible capital}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 of a company means the capital of that company that qualifies as eligible capital under international adequacy standards in accordance with the Basel Capital Accord; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 examiner}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a person appointed as an examiner under section 18(1); \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 financial institution}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has the same meaning as in the Financial Transactions Reporting Act 2003; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11877205 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 financial statements}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means profit and loss accounts, and balance sheets, and includes notes (other than directors}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 reports) attached to, or intended to be read with, any of the profit and loss accounts or balance sheets and also includes if applicable, a consolidated profit and loss account and balance sheet; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 foreign bank}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 means a company that is incorp orated or established, and licensed to carry on banking business, in a jurisdiction outside the Cook Islands; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid11367111 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 foreign licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 means a licensee that is incorporated or established in a jurisdiction outside the Cook Islands; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid11367111 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 foreign supervisory authority}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 means an authority or body outside the Cook Islands that exercises functions corresponding or similar to the functions exercised by the Commission; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid11367111 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 holding company}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 has the same meaning as in the Companies Act 1970-71; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid11367111 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 international banking business}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11367111 means banking business that is conducted with a person who }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is not a resident of the Cook Islands; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 international banking licence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a licence of the class provided for in paragraph 4(1)(b); \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 international company}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a company incorporated or registered under the International Companies Act 1981-82; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 international licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the holder of an international banking licence; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 law enforcement authority}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means an authority or body, within or outside the Cook Island s, dealing with the investigation of suspected criminal activity and includes the Financial Intelligence Unit established by the Financial Transactions Reporting Act 2003; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 licence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a licence issued under section 7; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a company licensed under this Act to carry on banking business; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 manager}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 of a licensee means: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an individual who occupies the position of chief executive (however described) of the licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any other individual who under the immediate authority of the chief executive or a director exercises management functions for the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10708412 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Minister}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the Minister of Finance, and includes any member of the Cabinet or Minister of the Cook Islands G overnment acting for him or in his place; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 officer}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 of a licensee includes a director, manager or company secretary; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 prescribed}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means prescribed by regulations made under this Act; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 prudential matters}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in relation to a licensee includes matters relati ng to the conduct by the licensee of its affairs, with integrity, prudence and professional skill, in such a way as to keep itself in a sound financial position and not to cause or promote instability in the financial system. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 prudential supervision}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the supervision of prudential matters and in}{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 cludes: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the collection and analysis of information in respect of prudential matters relating to licensees; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the encouragement and promotion of licensees to carry out sound practices in relation to prudential matters; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the evaluation of the effectiveness and carrying out of such practices; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 records}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 include - \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 accounting records; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 books, registers, documents and vouchers; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 securities and financial instruments; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any record of information or date, \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether stored in paper, on disk or tape, or in electronic or any other non-paper based form; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 regulations}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 mean regulations made under this Act; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 resident of the Cook Islands}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an individual who ordinarily resides in the Cook Islands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a company incorporated or registered u}{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 nder the Companies Act 1970-71; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c) a company, partner ship or other entity, wherever incorporated or established, with a place of business in the Cook Islands; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 but does not include:}{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a licensee; or}{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a trustee of a trust registered under the International Trusts Act 1984; or}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a company incorporated or registered under the International Companies Act 1981-82; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a partnership registered under the International Partnerships Act 1984; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (h)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 such other persons as may be prescribed; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 restricted banking licence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a licence of the class provided for in paragraph 4(1)(c); \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 restricted licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means the holder of a restricted banking licence; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 significant interest}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has the meaning given by subsection (2); \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 subsidiary}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has the same meaning as in the Companies Act 1970-71; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 trustee company}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a company licensed under the Trustee Companies Act 1981-82; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 voting stock}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 of a body corpor ate means any stock, share or other entitlement which carries with it the right for the holder, whether personally or through a nominee, to vote at any general meeting of the body corporate. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A person has a significant interest in a company if - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person has a legal or equitable interest in that company or in a holding company of that company; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the interest, directly or indirectly \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 enables the person to control 10 percent or more of}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the voting stock of the company at a general meeting of}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the company; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 entitles the person to a share of 10 percent or more in dividends declared and paid by the company; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid8204602 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (iii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 entitles the person to a share of 10 percent or more in any distribution of the surplus assets of the company; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether or not the person holds the interest alone or with one or more other persons. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A person shall be deemed to be carrying on banking business if he - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 advertises for or solicits banking business; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 purports to be licensed or otherwise entitled to carry on banking business; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 takes or uses any name, title or description implying or likely to lead the public to believe that he is licensed or otherwise entitled to carry on banking business; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 makes any representation to be carrying on or licensed to carry on banking business on any letter-head, notice, or advertisement or in any other manner. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A person is a disqualified person if, at any time - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person has been convicted of an offence against or arising out of this Act; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person is or has been a director, or is or has been directly or indirectly concerned in the management of a licensee or a bank or other financial institution in the Cook Islands or any other country which has had its licence revoked or has been wo und up by a court in any jurisdiction; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person has been convicted by a court in any jurisdiction for an offence involving dishonesty; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 (d) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person is or becomes bankrupt; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 (e) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person has applied to take the benefit of a law for the relief of bankrupt or insolvent debtors; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 (f) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person has compounded with his or her creditors. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4194678 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid4928291 PART 2}{\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid4928291 \par }{\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid4928291 LICENSING OF BANKING BUSINESS \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid4194678 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 3.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid4194678 Licence needed to carry on banking business}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) No}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 person}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 shall}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 carry on banking business in or from the Cook Islands unless the person is licensed under this Act.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If the Commission has reason to believe that a person is contravening subsection (1), the Commission may cause an examination of the person}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s books, accounts and records to find out if there is a contravention.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a person refuses to make available books, accounts or records for examination by the Commission, the person is guilty of an offence.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A person who is holding funds that have been obtai ned in contravention of subsection (1) must repay the funds in accordance with any written direction given by the Commission.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4194678\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must not carry on banking business in contravention of}{\fs24\lang2057\langfe5129\langnp2057\insrsid7677180 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a term or condition of its licence; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a provision of this Act, the regulations, or any other enactment; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a directive issued by the Commission, whether generally or specifically to the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A person who contravenes any part of this section is guilty of an offence punishable on conviction - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if the person is an individual - by a fine not exceeding $50,000 or imprisonment for a term not exceeding 3 years, or both; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in any other case - by a fine not exceeding $250,000. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 4.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13055236 Classes of licence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licence granted under this Act shall be in one of the following three classes - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a domestic banking licence, which shall authorise the licensee to carry on domestic banking business in and from within the Cook Islands; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an international banking licence, which shall authorise the licensee to carry on international banking business in or from within the Cook Islands; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a restricted international banking licence, which shall authorise the licensee to carry on international banking business of a type and nature specified in the licence and approved by the Commission}{\fs24\lang2057\langfe5129\langnp2057\insrsid7677180 .}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A domestic banking licence and an international banking licence may be issued to the same person. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A restricted banking licence may only be issued to a foreign bank. \par \par 5.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13055236 Existing licences}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) On co mmencement of this Act every existing licensee is deemed to have been issued with a licence under this section to carry on banking busin}{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 ess under this Act as follows -}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in the case of an existing licensee under the Banking Act 1969, a domestic banking licence; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in the case of an existing licensee under the Offshore Banking Act 1981-82, an international banking licence. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Any annual fee paid in respect of existing licences for the period in which this Act commences shall be deemed to have been paid for, or on account of, the fee payable in respect of a licence issued under this section, for that period. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licence issue d under this section shall cease to have effect twelve months after the coming into force of this Act. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Notwithstanding the provisions of any other Act, an existing licensee ceases to be subject to the Banking Act 1969 and the Offshore Banking Act 1981-82, and any licence issued under those Acts to an existing licensee entity ceases to be in force, from the date of commencement of this Act. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In this section, an }{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 existing licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means a company that as at the date of commencement of this Act was licensed as a bank under the Banking Act 1969 or the Offshore Banking Act 1981-82. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 For the purposes of t his Act, and notwithstanding any other provision of this Act or any other enactment, the entity known and trading as the Bank of the Cook Islands shall be deemed to be an existing licensee under the Banking Act 1969. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 6.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13055236 Application for licence to carry on banking business }{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A person that wishes to conduct banking business in or from the Cook Islands must apply in writing to the Commission for a licence to carry on banking business. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 No person other than a body corporate or statutory corporation shall be eligible to apply for a licence under this Act. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 No person other than a foreign bank, or a wholly owned subsidiary of a foreign bank, shall be eligible to apply for a restricted banking licence. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An application under subsection (1) must be in such form as is specified by the Commission and be accompanied by - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a statement disclosing the ultimate and intermediate, if any, beneficial ownership of the applicant; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 such documents as are specified by the Commission; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13055236 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the prescribed application fee and the prescribed annual licence fee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13055236 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may in writing request that an applicant provide such additional information and documents as the Commission considers necessary to determine the application. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a request has been made under subsection (5), the applicant must provide such additional information and documents to the Commission within the time specified by the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If an application is refused, the Commission is to refund the annual fee to the applicant. However, the application fee is not refundable. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (8)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An applicant must not furnish any information or document that is false or misleading in any material particular in connection with an application. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (9)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If an applicant contravenes s ubsection (8), the applicant is guilty of an offence punishable on conviction by a fine not exceeding $100,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (10) Every application to the Commission for a restricted licence or an international licence under this section shall be made through a trustee company. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 7.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12860566 Commission to issue or refuse licence within 3 months}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must within 3 months }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 after receiving an application }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 for a licence and all other information and documents requested by the Commission under subsection 6(5) - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 issue a licence to the applicant subject to such terms and conditions as the Commission considers fit; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 refuse the application and inform the applicant of the refusal. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must advise an applicant in writing of the r}{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 easons for its refusal to issue }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a licence under this section. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 As soon as practicable after a licence has been issued, the Commission must publish a notice to this effect in the Gazette. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 8.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12860566 Criteria for the issue of a licence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) The Commission must not issue a licence unless it is satisfied that - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the ownership spread, reputation, financial capacity and financial history (if any) of the applicant are satisfactory; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 each director and manager of the applicant is a fit and proper person and has sufficient experience in banking to be involved with operations or management of a bank; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 each associate of the applicant is a fit and proper person to have an interest in a bank; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the risk management, accounting and internal control systems of the applicant are satisfactory; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the capital structure of the applicant is adequate and the amount of fully paid up capital of the applicant is at least $2,000,000; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the applicant if issued with a licence intends to carry on banking}{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 business and the kind of banking business that the applicant intends to carry on is acceptable; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the applicant upon the issue of the licence will comply with this Act, any other enactment and the regulations; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (h)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the relationship between the applicant and its associates will not prejudice the effective supervision of the banking business of the applicant; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if a foreign bank is an associate of the applicant - the applicant and the foreign bank will be effectively supervised on a consolidated basis; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (j)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 issuing the licence is not against the public interest and would not be detrimental to the reputation of the Cook Islands. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In subsection (1), a person is an }{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 associate}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if the person - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has a significant interest in the applicant; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is a subsidiary of the applicant; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is a holding company of the applicant. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a person has a significant interest in the applicant and a significant interest in another c ompany, that other company is an associate of the applicant for the purposes of subsection (1). \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 9.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12860566 Criteria for issue of licences to foreign banks}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) This}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 section}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 applies}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an application for a licence to carry on banking business made by a foreign bank or a wholly owned subsidiary of a foreign bank. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must not issue a licence to a foreign bank or its subsidiary unless satisfied }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid1848106\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid1848106 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid1848106 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid1848106 of the matters set out in subsection 8(1); and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566\charrsid1848106 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid1848106 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid1848106 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid1848106 the reputation of the foreign bank is satisfactory; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566\charrsid1848106 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the relevant law and regulatory requirements relating to the licensing and supervision of banking business in the foreign bank}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s home country is acceptable; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 there is sufficient evidence that the foreign bank is subject to comprehensive supervision and regulation on a consolidated basis by relevant authorities in the foreign bank}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s home country; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the foreign bank has pro}{\fs24\lang2057\langfe5129\langnp2057\insrsid2325797 vided written confirmation from}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 t he foreign supervisory authority in the foreign bank}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s home country (in this section called the }{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 home authority}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 ) that the home authority has no objection to the foreign bank carrying on banking business in the Cook Islands; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the foreign bank has p rovided a statement from the home authority that it is supervised on a basis consistent with the guidelines established by the Basel Committee on Banking Supervision, and the home authority is willing to cooperate in the supervision of the foreign bank; a nd \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 that the foreign bank has provided a written acknowledgment that the Commission may discuss its conduct and status with the home authority; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (h)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 with the capital, legal and operating structure and arrangements between the foreign bank and its subsidiary (if any); and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 that proper resources and arrangements are in place, having regard to the scale and nature of the proposed operations of the foreign bank in the Cook Islands, to ensure the foreign bank} {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s compliance with its legal obligations, and the Commission}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s supervisory functions under this Act; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (j)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 that the foreign bank will provide the Commission with any information that the Commission may require for it to carry out its prudential supervision functions under this Act; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12860566 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (k)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 that the foreign ban}{\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 k will keep the Commission inform}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 ed of any significant developments adversely affecting its financial soundness or reputation and the financial soundness or reputation of its holding company (if any). \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12860566 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10173221 10.}{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid2325797 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid2325797 Conditions of a licence including annual fees}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A licence issued under this Act must not be assigned or transferred and any purported assignment or transfer is null and void.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licence is subject to such terms and conditions as are determined by the}{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 vary or revoke a condition of a licence; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 impose further conditions on a licence. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Before taking action under subsection (3), the Com mission must, by 21 days notice in writing to the licensee concerned, inform it of the changes proposed and afford it an opportunity to make submissions in writing to the Commission about the changes. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The licensee must make its submission to the Commi ssion within 14 days after the date of receipt of the notice. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must take into account any submissions received in deciding whether or not to proceed with the changes. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licence issued under this Act remains in force until it is revoked by the Commission under section 11. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (8)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must pay to the Commission the prescribed annual licence fee on each anniversary of the licence being issued. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (9)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee that fails to pay the fee by the due date is liable to a prescribed surcharge payable to the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (10)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An annual licence fee and any surcharge are debts due to the Commission and are recoverable in a court of competent jurisdiction. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (11)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee fails to pay - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an annual licence fee by the due date; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a surcharge referred to in subsection (9) by the due date,}{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 and continues to transact banking }{\fs24\lang2057\langfe5129\langnp2057\insrsid2325797\charrsid12739743 businesses;}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 11.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid2325797 Revocation or Suspension of licence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1)}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may revoke or suspend the licence of a licensee if - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission is entitled to take enforcement action against the licence under section 17; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee has failed to commence carrying on banking business within 3 months after the issue of its licence; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee has ceased to carry on banking business for a period exceeding 3 months; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee has made a written request to the Commission for its licence to be revoked. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If the Commission intends to revoke or suspend a licence, under subsection (1}{\fs24\lang2057\langfe5129\langnp2057\insrsid349745\charrsid12739743 ) (}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a), (1}{ \fs24\lang2057\langfe5129\langnp2057\insrsid349745\charrsid12739743 ) (}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 b) or (1}{\fs24\lang2057\langfe5129\langnp2057\insrsid349745 )}{ \fs24\lang2057\langfe5129\langnp2057\insrsid349745\charrsid12739743 (}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 c), the Commission must give 21 days notice in writing to the licensee of its intention, and the grounds upon which it intends to revoke or suspend the licence. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The licensee may within 14 days after receiving the notice under subsection (2) submit in writing reasons why its licence should not be revoked or suspended. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may revoke or suspend a licence - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if the licensee does not make a submission under subsection (3); or (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 having taken into account the submission made by the licensee, the Commission is of the opinion that the licensee has failed to show good reason why its licence should not be revoked or suspended. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must give a licensee written notice of a revocation or}{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 suspension. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A revocation or suspension takes effect - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 on the date the notice referred to in subsection (5) is given to the licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13448273 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 such later date as is specified by the Commission in the notice. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13448273 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licence is revoked or suspended under this section, the licensee must }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 cease to carry on banking business on and from the date the revocation or suspension takes effect; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 forthwith return to the Commission the original licence and all copies of the licence in its custody or control. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (8)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Subject to subsection (9), the period of suspension of a licence under subsection (1) shall not exceed 30 days. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (9)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If it is satisfied th at is in the public interest to do so, the Commission may extend the period of suspension of a licence under this section for one or more further periods not exceeding 30 days each. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 12.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10224956 Appeals against revocation}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A person may appeal to the Court against a decision of the Commission to revoke or suspend a licence. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An appeal must be made to the Court within 21 days after the date the licence was revoked or suspended, or within such further time as the Court may allow. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Unless the Court otherwi se orders, an appeal does not operate to suspend the decision of the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In determining an appeal, the Court may confirm, vary, or revoke the decision of the Commission. \par \par 13.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10224956 Surrender of licence}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A licensee which has ceased to carry on the business in respect of which its licence was granted may apply to the Commission to surren}{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 der its licence if the licensee -}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 produces evidence that it has repaid all deposits held or administered by it; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is being wound up voluntarily and produces evidence that it is solvent and is able on demand to repay all its deposits held by it and all its other creditors, \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 and the Commission may thereupon approve the surrender of the license and publish a notice of the surrender in any publication deemed necessary. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In the case of an application under subsection (1}{ \fs24\lang2057\langfe5129\langnp2057\insrsid349745\charrsid12739743 ) (}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 b), the Commission may request the Attorney-General to apply to the court for an order that the licensee be wound up, either by the court or subject to the supervision of the court, and wh ere the court so orders the provisions of the Companies Act 1970-71 relating to the winding up of a company by or subject to the supervision of the court shall mutatis mutandis apply. \par }{\b\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10224956 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10224956 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid10224956\charrsid10224956 PART 3 \par }{\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10224956 SUPERVISION AND ENFORCEMENT \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par 14. }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10224956 Banking supervision}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) The functions of the Commission include - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to undertake in accordance with the provisions of this Act and the regulations the prudential supervision of the banking business of licensees with a view to maintaining stability and confidence in the financial system of the Cook Islands; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 (b) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to review banking business and implement internationally accepted standards for the prudential supervision of banking business; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 (c) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to recommend to the Minister such amendments to this Act and the regulations as the Commission considers necessary to enable it to supervise banking business in accordance with internationally accepted standards; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 (d) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to collect and analyse such information as may be required by the Commission in respect of prudential matters relating to licensees; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to encourage and promote licensees to carry out sound practices in relation to prudential matters; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10224956 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to evaluate the effectiveness and carrying out of those practices. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In carrying out the functions under subsection (1) i n relation to a licensee, the Commission must have regard to the following matters - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the capital adequacy of the licensee in relation to the size and nature of its banking business; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the asset concentration and risk exposure of the licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the separation of banking business of the licensee from the financial interests of any person having a significant interest in the licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the adequacy of the liquidity of the licensee in relation to its liabilities; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the quality of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s assets and the adequacy of its loss provision; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the internal controls, risk management and accounting systems of the licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the quality of the management of the licensee; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (h)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 such other matters as the Commission considers relevant. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10224956 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may formulate in writing guidelines and issue directives for the purpose of the prudential supervision of the banking business of - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 all licensees; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a specified class of licensees; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 one or more specified licensees or classes of licensees. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6426439 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may vary or revoke a directive or guideline.}{\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6426439 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 15.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Compliance inspection - (1) The Commission may, for the purposes of the prudential supervision of the banking business of licensees, do all or any of the following \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 inspect the premises and the business, within or outside the Cook Islands, including the systems and controls, of a licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 inspect the assets, including cash, belonging to or in the possession or control of a licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 examine and make copies of records belonging to or in the possession or control of a licensee, being records that in the opinion of the Commission relate to the carrying on of banking business by the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If, after a compliance in spection, the Commission is satisfied that a person is or has been an officer, employee, subsidiary or agent of a licensee or holds or has held a significant interest in a licensee, or otherwise may have relevant records or information concerning the lice nsee, the Commission may, by notice in writing, require the person - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to produce any records in the person}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s possession or control; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to provide any information within the person}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s knowledge or belief, concerning the banking business carried on or formerly carried on by the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A notice issued under subsection (2) must state the time period within which and the place where the records must be produced or the information provided. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A person who fails to comply with a notice issued under subsection (2) is guilty of an offence punishable on conviction by a fine not exceeding $50,000 or a term of imprisonment of not more than 2 years, or both. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 16.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid856343 Participation of a foreign supervisory authority}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) Subject to subsection (2), the Commission may, upon the request of a foreign supervisory authority, permit that authority to take part in a compliance inspection undertaken by the Commission under section 15. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commis sion must not permit a foreign supervisory authority to take part in a compliance inspection unless it is satisfied that - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a) the compliance inspection is necessary for the effective consolidated supervision of the licensee; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the foreign supervisory authority is subject to adequate legal restrictions on further disclosure of information obtained during the compliance inspection; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the foreign supervisory authority will not, without the written permission of the Commission - \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i) disclose information obtained during the compliance inspection to any person other than an officer or employee of the authority engaged in prudential supervision; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii) take any action on information obtained during the compliance inspection. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 17.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid856343 Enforcement action}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) The Commission may take enforcement action against a licensee, if - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in the opinion of the Commission, the licensee: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 (i}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 )}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has contravened this Act or the regulations; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 carries on banking business in a manner detrimental to }{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 t}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 he public interest or to the interest of}{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 any depositors or creditors; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (iii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is or is likely to become insolvent; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (iv)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has failed to comply with a directive given to it by the Commission within the time specified; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (v)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is in breach of any term or condition of its licence; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (vi)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has furnished the Commission with any false, inaccurate or misleading information; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee - \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is compulsorily wound up; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has passed a resoluti}{\fs24\lang2057\langfe5129\langnp2057\insrsid856343 on for voluntary winding up; or \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (iii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is dissolved; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee, or an officer or shareholder of the licensee is convicted of any offence involving dishonesty by any court in the Cook Islands or in a jurisdiction outside the Cook Islands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a receiver and/or manager has been appointed, in respect of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s banking business; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 possession has been taken of any of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s property by or on behalf of the holder of a debenture secured by a registered charge; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in the opinion of the Commission, a person - \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 who has a share or interest in the licensee, either equitable or legal; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid856343 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid856343 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 who is an officer of the licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 and is not a fit and proper person to have an interest in or to be concerned with the management of the licensee; or \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in the opinion of the Commission, the licensee or a subsidiary or holding company of the licensee has refused or failed to co-operate with the Commission on a compliance inspection conducted by the Commission. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If the Commission is of the opinion that an enforcement action must be taken against a licensee, such action may consist of all or any of the following: \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 revocation or suspension of the licence of the licensee under section 11; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 appointment of an examiner to carry on an investigation under section 18; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 appointment of a qualified person to audit the licensee on the conduct of its banking business; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 appointment of court appointed manager under section 21. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 18.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid6056875 Appointment of examiner}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may by notice in writing appoint an examiner to investigate and report to the Commission on a licensee if - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission intends to take enforcement action under section 17; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a written request for an investigation is made to the Commission by: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 (i) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 shareholders holding not less than one third of the total number of issued shares in the licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid6056875 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 (ii) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 depositors holding not less than one tenth of the gross amount of the deposit liabilities of the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a request for an investigation is made under paragraph (1}{\fs24\lang2057\langfe5129\langnp2057\insrsid11363297\charrsid12739743 ) (}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 b), th}{ \fs24\lang2057\langfe5129\langnp2057\insrsid6056875 e}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Commission may refuse to appoint an examiner until the shareholders or depositors, hav}{ \fs24\lang2057\langfe5129\langnp2057\insrsid6056875 e}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 provided security for the costs of the investigation to the satisfaction of the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An investigation referred to in subsection (1) may be made in respect of }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid6056875 \par \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the nature, management, conduct or state of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s banking business or any aspect of it; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the ownership and control of the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An examiner appointed under subsection (1) may exercise any of the powers conferred upon the Commission under this Part. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 As soon as practicable after the conclusion of an inv estigation under this section, the examiner must submit a full report of the investigation to the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may direct that the costs and expenses of and incidental to the investigation are paid by the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 19.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5317471 Directives}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) If the Commission is of the opinion that a licensee - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is following unsound or unsafe practices in the conduct of its banking business that are: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 likely to jeopardise its obligations to its depositors or other creditors; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 likely to adversely affect the operation or stability of the financial system in the Cook Islands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 has contravened or failed to comply with the terms and conditions of its licence or any of the provisions of this Act;}{\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission may issue a directive to the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The directive may require the licensee - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to cease the practice, contravention or non-compliance; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5317471 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to take such action (including action to replace or strengthen management) as may be specified in the directive to correct the conditions resulting from the practice, contrav}{ \fs24\lang2057\langfe5129\langnp2057\insrsid5317471 ention or non-}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 compliance. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If any act is required or permitted to be done unde r this Act and no form is prescribed or procedure laid down in this Act or the regulations, the Commission may, in response to an application made to it or on its own motion, }{\fs24\lang2057\langfe5129\langnp2057\insrsid1076392 issue written directives as to}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the manner in which the act should be done, and an act done in accordance with a directive is valid. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5317471 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 20.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12548066 Insolvency of Licensees}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) If a licensee considers that it - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is insolvent; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is likely to become insolvent; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is likely to be unable to meet its obligations; the licensee must immediately notify the Commission in writing. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must take action under subsection (3) if - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a licensee notifies the Commission under subsection (1); or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission is satisfied that, or an auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s report under section 42 or 43 or an inspection or examination under section 15}{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 or 18 shows that, the licensee: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is carrying on its banking business in a manner that is detrimental to the interests of its depositors, its creditors or the public; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is likely to be unable to meet its obligations when they fall due. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par (3) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 When subsection (2) applies, the Commission must do one or more of the}{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 following - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 direct the licensee to take whatever action in relation to its business as the Commission may specify; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 appoint a suitably qualified person to advise the licensee on the proper conduct of its business and report to the Commission as and when required by the Commission; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 apply to the Court under section 21; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 revoke or suspend the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s licence; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 present a petition to the Court pursuant to the provisions of the Companies Act 1970-71 for the winding up of the licensee if sufficient grounds exist under that legislation. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If an adviser is appointed under paragraph (3)(b), the licensee - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 must allow the adviser access to its books, accounts, records and other documents; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 must give such information and provide such facilities as are necessary to enable the adviser to carry out his or her duties. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The adviser is to be p aid such remuneration by the licensee as the Commission directs. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The provisions of the Companies Act 1970-71 relating to the winding up of companies shall apply mutatis mutandis to licensees as if those licensees were incorporated as}{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 companies under the Companies Act 1970-71. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a liquidator has been appointed under this section for a foreign licensee, the liquidator}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s powers apply in relation to the foreign licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s operations in the Cook Islands and to its property, rights, assets and liabilities relating to its banking business in the Cook Islands wherever situate. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 21.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12548066 Court Appointed Manager}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) The Commission may apply to the Court for an order that the Commission, or a person nominated by it, be appointed as a court appointed manager of a licensee and each of its subsidiaries (if any). \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Court must not make an order unless satisfied that - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an appointment is necessary to protect the stability of the financial system in the Cook Islands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an appointment is necessary to protect the interests of depositors or creditors of the licensee concerned; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 it is in the public interest to make an appointment. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If an order is made, from the date specified in the order: \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the management of the banking business of the licensee and each subsidiary vests in. the court appointed manager to the exclusion of any managers, directors or officers of the licensee; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 no person shall, except with the consent of the court appointed manager transfer, dispose or otherwise deal with property belonging to the licensee or in its custody or control. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An order referred to in section (1) may - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 include any order in relation to the licensee that the Court would be able to make in relation to a company that is in liquidation under the Companies Act 1970-71, including a moratorium on actions or enforcement action against the licensee on such terms as the Court considers appropriate; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 provide that any subsidiary of the licensee be subject to control and management under this section in like manner to the licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 fix and provide for the remuneration of the court appointed manager; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid4065470 22}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 req uire such persons as it considers necessary to appear before the Court for the purposes of giving information or producing records concerning the licensee or the banking business carried on by the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A court appointed manager shall have such po wers and authority as the Court specifies, including the following - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the powers to carry on or cease to carry on, or sell the business of the licensee and in so doing, to have all the powers, rights and a uthorities of the licensee and its members in general meeting as are necessary to do so, including the power to petition the Court to wind up the licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12548066 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 such of the powers of a liquidat}{\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 or under the Companies Act 1970-}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 71 as are specified by the Court. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12548066 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee or subsidiary that becomes subject to management and control under this section is already in liquidation or receivership - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid9378354 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the liquidation or receivership shall cease; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid9378354 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person appointed as liquidator or receiver shal l be discharged, provided that if the control and management of the licensee or subsidiary under this section is terminated, the Court may order that the liquidation or receivership shall be revised, upon such terms as the Court may specify. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An order made under section (1) mus}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9378354 t make provision for reports to}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 be submitted by the court appointed manager to the Court and to the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (8)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In exercising powers under this sect}{ \fs24\lang2057\langfe5129\langnp2057\insrsid6583743 ion, a court appointed manager }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 must have regard to - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid9378354 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the need to avoid significant damage to the financial system in the Cook Islands; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid9378354 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the preservation of the position of depositors and the maintenance of the ranking of claims of creditors. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (9)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A court appointed manager must comply with any written directions of the Commission relating to the exercise of powers under this section unless such directions conflict with any order of the Court. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (10)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A court appointed manager may apply to the Court to seek directions in relation to the exerci}{\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 se of powers under this section. \par \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (11)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An application to the Court under subsection (1) is to be made by notice of}{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 motion}{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 .}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9378354 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (12)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a court appointed manager has been appointed under this section for a foreign licensee, the court appointed manager}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s powers apply in relation to the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s operations in the Cook Islands and to its property, rights, assets and liabilities relating to its banking business in the Cook Islands wherever situate. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 22.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid6911846 Cessation of court appointed manager}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) Subject to subsection (2), a licensee and its subsidiaries continue to be subject to the control and management of a court appointed manager until such time as all deposits with the licensee have been repaid or the Commission is satisfied that suitable provision has been made for their repayment . \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Court, on the application of the Commission or of its own motion, may terminate the appointment of a court appointed manager if the Court is satisfie d that it is no longer necessary for the protection of the depositors or creditors of a licensee that the court appointed manager remain in control of the licensee and each of its subsidiaries. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6911846 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid6911846\charrsid6911846 PART 4 \par }{\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid6911846 OBLIGATIONS AND RESTRICTIONS ON LICENSEES \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6911846 {\b\i\fs24\lang2057\langfe5129\langnp2057\insrsid6911846\charrsid6911846 Division 1 }{\b\i\fs24\lang2057\langfe5129\langnp2057\insrsid156595 -}{ \b\i\fs24\lang2057\langfe5129\langnp2057\insrsid6911846\charrsid6911846 Obligations on licensees \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 23.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid6911846 Physical presence}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1) Subject to subsection (6), a licensee must occupy premises in the Cook Islands, approved by the Commis}{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 sion, within 30 days, or such. l}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 onger period as the Commission allows, after being issued with a licence under section 7. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must not give its approval under subsection (1) to any premises unless it is satisfied that - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6911846 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 (a) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the premises are located at a fixed address in the Cook Islands}{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 ; }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 and}{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10173221 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6911846 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 (b) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee will carry on banking business under its licence from those premises; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6911846 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 (c) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee will maintain at those premises operating records including financial statements relating to the banking business conducted under its licence; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6911846 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 (d) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the employee or employees of the licensee will operate from those premises; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6911846 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 (e) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 those premises adequately symbolize the physical presence of the licensee in the Cook Islands. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must within 30 days, or such lon ger period as the Commission allows, after being issued with a licence under section 7, appoint such employees, and have in place such facilities, as the Commission considers appropriate having regard to the nature and scale of the banking business to be carried on by the licensee under its licence. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 At least one employee of a licensee must have a day to day knowledge of the banking business conducted by the licensee under its licence and sufficient authority within the licensee to participate in the management of that day to day banking business. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must not change the address of its premises in the Cook Islands unless it has obtained the approval of the Commission in writing for the change. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This section shall not apply to a restricted licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes subsection (1) or (3), the licensee is guilty of an offence, punishable on conviction by a fine not exceeding $50,000. \par \par 24.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid6911846 Maintenance of minimum capital}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A license e must maintain at all times eligible capital - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6911846 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in such minimum proportion in relation to its assets, liabilities or risk exposures; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6911846 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 subject to subsection (2), in such amount; as the Commission determines in writing. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must main tain at all times paid up capital of not less than}{\fs24\lang2057\langfe5129\langnp2057\insrsid10173221 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 $2,000,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6911846 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes subsection (1) or (2), the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If the eligible capital of a licensee i s reduced below its minimum capital requirement, the licensee must, within 7 days after becoming aware of the reduction, advise the Commission in writing of the reduction. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 25.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13117660 Computation and form of minimum capital}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1)}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must determine in writing the computation and form of eligible capital required}{ \fs24\lang2057\langfe5129\langnp2057\insrsid13117660 to be maintained under section}{\fs24\lang2057\langfe5129\langnp2057\insrsid855639 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 24 by a licensee after consultation with the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Without limiting subsection (1), the Commission may in making a determination have regard to the following - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the scale and nature of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s financial liabilities, including its deposits; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the nature of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s assets and the degree of risk associated with them; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the nature of the banking business carried on by the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must comply with a determination made by the Commission within one month, or such longer period as the Commission allows, after the determination is made. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may in writing vary or revoke a d etermination. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5) The Commission may under subsection (1) determine different requirements for the computation and form of capital for different classes of licensees. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 26.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13117660 Keeping of accounting records}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must keep and maintain accounting re cords that are necessary to disclose with reasonable accuracy the financial position of the licensee at intervals not exceeding three months or such other interval as the Commission may require in writing. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee that contravenes subsection (1) is guilty of an offence punishable on conviction by a fine not exceeding $250,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 27.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13117660 Appointments}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Except in the case of a foreign bank, or an existing licensee while a licence issued under section 5 remains in effect, a licensee must have at least two directors who are individuals one of whom must be a resident of the Cook Islands. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must not appoint in relation to the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s banking business conducted under its licence a disqualified person as an officer. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A restricted licensee must appoint a trustee company as its agent in the Cook Islands for the purpose of service of any proceedings, demands or other notices as may be required under this Act or any other enactment, or in any court proceedings. \par \par (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A disqualified person must not - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 accept an appointment as an officer; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if the person is already an officer, continue as an officer. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee that contravenes subsection (1) or (2) is guilty of an offence punishable on conviction by a fine not exceeding $100,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An individual who contravenes subsection (5) is guilty of an offence punishable on conviction by a fine not exceeding $50,000 or imprisonment for a term not exceeding 2 years, or both. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 28.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13117660 The Commission may remove officers}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may direct in writing a licensee to remove a person who is an officer of the licensee if the Commission is satisfied that the person - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is a disqualified person; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 does not meet one or more of the criteria for fitness and propriety set out in the prudential guidelines. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Before directing the licensee to remove a person, the Commission must give written notice to the person and the licensee giving each of them a reasonable opportunity to make submissions on the matter. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A direction takes effect on the day specified in it, which must be at least 7 days after it is made. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If the Commission directs a licensee to remove a person, the Commission must give a copy of the direction to the person and the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee fails to comply with a direction under this section, the licensee is guilty of an offence punishable on a conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 29.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid13117660\charrsid13117660 Op}{ \fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid13117660 erations outside the Cook Islands}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee, other than a foreign bank, must not create a subsidiary or operate a branch, agency or office in any place outside of the Cook Islands unless it obtains the prior written approval of the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission must not give it s approval under subsection (1) unless it is }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 satisfied that}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the authority responsible for banking supervision in the jurisdiction in which the branch, agency or office will be located consents to the establishment of the branch, agency or office; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the branch, agency or office will be subject to adequate banking supervision; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13117660 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission will have access to the information and documents}{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 it considers necessary to supervise the}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 banking business of the licensee in accordance with this Act. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may give an approval on such terms and conditions as}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 it considers appropriate. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes subsection (1) or fails to comply with a term or condition of an approval, the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid13117660 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 30.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10543 Business name}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must not without the prior written approval of the Commission carry on business in or from the Cook Islands under a name, description or title that is different to the name, description or title under which it is licensed. \par \par (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If the Commission is of the opinion that a licensee is carrying on business under a name, description or title that - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is identical to the name title or description of any other person or so closely resembles the name title or description that it is likely to mislead or deceive; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is likely to suggest falsely the patronage of or a connection with some person of authority within or outside the Cook Islands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is likely to suggest falsely that the licensee has special status in relation to or derived from the Government of any country or has the official backing of any Government, or acts on behalf of, any Government; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission may, by notice in writing, direct the licensee to change or cease using the name, title or description within such time specified in the notice. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee that contravenes subsection (1) or fails to comply with a directive under subsection (2) is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 31.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid10543 Notice o}{ \fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10543 f Changes}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee makes an alteration - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to its memorandum or articles of association; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b) to any other instrument providing for its incorporation establishment; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee must immediately give to the Commission full particulars, in writing, of such alteration, verified by a statutory declaration made by a director of the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10543 {\b\i\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10543 Division 2 - Restrictions on Licencees \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 32.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10543 Transfer of dividends and profits}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must not declare or pay any dividend, or make any other transfer from its profits or reserves, if to do so would contravene the requirements of section 24. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 33.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10543 Subsidiaries}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A licensee must not - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 create a subsidiary; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 conduct banking business through a subsidiary; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 permit a subsidiary to carry on business in any way; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in the Cook Islands unless it has obtained the prior written approval of the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee may apply for its licence to extend to a wholly owned subsidiary of the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An application under subsection (2) must be made in writing to the Commission accompanied by evidence that the subsidiary is wholly owned by the licensee and providing a description of the type of banking business being, or to be, carried out by the subsidiary. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may extend a licence to include any subsidiary referred to in subsection (2), subject to any terms and condition it thinks fit. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par 3}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 4.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10543 Business Acquisitions}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A licensee must consult with, and obtain the written approval of, the Commission before entering into any agreement for - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the purchase or acquisition of the business of another licensee; or }{\fs24\lang2057\langfe5129\langnp2057\insrsid10382959 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10382959 {\fs24\lang2057\langfe5129\langnp2057\insrsid10382959 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the purchase or acquisition of the business of a financial institution in the Cook Islands. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The grounds on which the Commission may withhold its approval under subsection (1) include restraint of trade, monopoly of business and adverse effect on the soundness of the financial system in the Cook Islands. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 35.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10543 Restriction on disposition of significant interest}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A person owning or holding a significant interest in a licensee must not sell, transfer, charge or otherwise dispose of the person}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s interest or any part of the person}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s interest, unless the person has obtained the prior written approval of the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must not, unless it has obtained the prior written approval of the \par Commission - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 cause, permit or acquiesce in a sale, transfer, charge or other disposition referred to in subsection (1); or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 issue or allot any shares or cause, permit or acquiesce in any other reorganisation of its share capital that results in: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a person acquiring a significa}{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 nt interest in the licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a person who already owns or holds a significant interest in the licensee, increasing or decreasing the size of the person}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s interest. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may give an approval under subsection (1) or (2) on such terms and conditions as it considers appropriate. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par (}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a person contravenes subsections (1) or (2), the person is guilty of an offence punishable on conviction - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10543 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if an individual by a fine not exceeding $50,000 or imprisonment for a term not exceeding 2 years; or both; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if a body corporate by a fine not exceeding $100,000. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid10543 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 36.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10382959 Restrictions on advances exceeding 25 percent of capital}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A licensee and each subsidiary must not - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid10382959 make any advance or credit}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 facility to: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any person or body (whether corporate or unincorporated); or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any group of bodies that is under the control of a particular person; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 give any financial guarantee or incur any other liability on behalf of that person, body or group; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if to do so would result in the total value of the advances, credit facilities, financial guarantees and other liabilities made or given to that person, body or group exceeding 25 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 percent of the value of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s eligible capital. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 For the purpo ses of subsection (1), a group of bodies is under the control of a particular person if that person - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 holds, or has the power to vote for, at least 51 percent of the voting shares or stock of each of the bodies in the group; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 exercises practical control over the policies of each of the bodies in the group. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Subsection (1) does not apply to the following - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 transactions between banks or between branches of a bank; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the purchase of telegraphic transfers; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any advance or credit facility made to, or guaranteed by, the government; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the purchase of bills of exchange or documents of title to goods if the holder of those bills or documents is entitled to: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 payment on those bills or documents outside the Cook Islands for exports from the Cook Islands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 advances made against those bills or documents; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid6514555 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6514555 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any advance or credit facility that is fully secured by cash or a deposit redeemable in cash if. \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (i)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 there is a written agreement that is legally binding in all relevant jurisdictions between the licensee and the person lodging the cash or deposit as collateral; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (ii) the written agreement establishes the direct and unconditional right of the licensee to the cash or deposit. }{\fs24\lang2057\langfe5129\langnp2057\insrsid10382959 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10382959 {\fs24\lang2057\langfe5129\langnp2057\insrsid10382959 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 For the purposes of parag raph (3)(e), a common law or bankers}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 right of set off is insufficient on its own to satisfy that paragraph. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 For the purposes of paragraph (3)(e), the currency in which the collateral is lodged may differ from that of the exposure against which it is held. However, it must be valued at current market exchange rates with a margin approved by the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission may approve in writing an exposure for a licensee under subsection (1) that exceeds the 25 percent limit in that subsection, if the licensee agrees to reduce the exposure to within that limit within a period of time specified by the Commission. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (7)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes subsection (1), the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (8)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This section shall not apply to a foreign bank. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 3}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid1900582 7.}{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid10382959 }{ \fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10382959 Restrictions on advances without security}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A licensee and each subsidiary must not - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 make, or permit to be outstanding, unsecured advances or unsecured credit facilities which in total exceed $200,000 or one percent of the value of the licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s eligible capital (whichever is the higher); or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 give any financial guarantees exceeding that amount without security; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 incur any other liability related to the business of banking exceeding that amount without security; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 to, or on behalf of, all or any of the following - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a director of the licensee or a subsidiary whether the unsecur ed advances or credit facilities, or guarantees or other liabilities, are obtained by or on account of the director jointly or severally; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any partnership, body corporate or other body in which the licensee or subsidiary, or any one or more of its directors, is a partner, director, manager, officer or agent; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any partnership, body corporate or other body of which any }{\fs24\lang2057\langfe5129\super\langnp2057\insrsid9708613\charrsid12739743 g}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 one or more of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s or subsidiary}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s directors is a guarantor. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes subsection (1), the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In this section - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 director}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 includes a spouse, father, mother, son or daughter of a director; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 unsecured advances}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 or }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 unsecured credit facilities}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 means: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 advances or credit facil}{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 ities made without security; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if an advance or credit facility has been made with non-marketed securities - any part of that advance or credit facility which at any time exceeds four fifths of the licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s valuation; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if an advance or credit facility has been made with any other security - any part of that advance or credit facility which at any time exceeds four fifths of the market value of the assets constituting that security.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10382959 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This section shall not apply to a foreign bank. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 38.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5646579 Other restrictions on advances}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee and each subsidiary must not make any advance or credit facility against the security of its own shares. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee a nd each subsidiary must not grant to any of its directors or shareholders any advance, credit facility or guarantee unless granted on substantially the same terms, including interest rates and security, as those prevailing at the time for comparable trans actions by the licensee or subsidiary with members of the public. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee and each subsidiary must not make, or permit to be outstanding, to any of its officers or employees unsecured advances or unsecured credit facilities, the total amount of whic h .for that officer or employee exceeds his or her salary for one year. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes any part of this section, the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This section shall not apply to a foreign bank. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In this section, references to a director or a shareholder includes a spouse, father, mother, son or daughter of a director or shareholder respectively. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 39.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5646579 Engaging in business}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must no t for its own account acquire or hold share capital in a commercial, agricultural, industrial or other undertaking if to do so would result in the combined value of all of those shares exceeding 25 percent, or such higher percentage as the Commission appr oves in writing, of the value of the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s eligible capital. (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Subsection (1) does not apply to - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the acquisition and disposal of shares by a licensee as a trustee, mortgagee or nominee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the acquisition and disposal of shares by a licensee upon the order and for the account of a customer; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any shareholding that a licensee acquires in the course of the satisfaction of debts due to it, however, any such shareholding must be disposed o f within such reasonable period as is determined by the Commission after consultation with the licensee taking; into account relevant commercial factors; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any part of the share capital of any company held or acquired by a licensee under an underwrit ing or sub-underwriting contract for a period not exceeding 6 months or such other period as the Commission may approve in writing in any particular case; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any shareholding held by a licensee in a subsidiary for the execution of nominee, executor or trustee functions or any other functions incidental to banking business; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a foreign bank; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the acquisition and disposal of shares in a financial institution. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 For the purposes of subsections (1) and (2), a shareholding acquired or held by a licensee includes share capital acquired or held by a subsidiary of the licensee for the subsidiary}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s own account, whether or not the subsidiary is licensed under this Act. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes subsection (1), the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 40.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5646579 Restrictions involving restricted licensees}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Every document required or permitted to be lodged with or filed with the Commission by or in relation to a restricted licensee under the provisions of this Act shall be lodged with the Commission through a trustee company. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Banking business undertaken in the Cook Islands by a restricted licensee shall only be conducted through a trustee company. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A restricted licensee carrying on business through a tru}{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 stee company under this }{\fs24\lang2057\langfe5129\langnp2057\insrsid1779562 section}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 shall be deemed not to be carrying on business in the Cook Islands for the purposes of the Development Investment Act 1995-96. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid5646579 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5646579 PART 5}{\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid5646579\charrsid5646579 \par }{\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5646579 AUDIT, DISCLOSURE AND TAX EXEMPTIONS \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 41.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5646579 Appointment of approved auditor}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must appoint one or more persons (whether as individuals or as members from time to time of any firm or firms) to be the auditor of the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An appointment of an auditor by a licensee is subject to the prior written approval of the Commission, which must not be given unless - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission is satisfied that the auditor is qualified to act as an auditor; and is sufficiently experienced in auditing banking business; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the auditor has no financial interest in the licensee, other than a a depositor; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the auditor is not a shareholder, director, officer, agent or employee of the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee fails to appoint an approved auditor or at any time fails to fill a vacancy for an auditor with an approved auditor, the Commission may appoint an auditor and fix the remuneration to be paid by the licensee to that auditor. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must give notice in writing to the Commission if the licensee proposes to terminate the appointment of an approved auditor. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a person appointed as an auditor to a licensee - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 subsequently acquires a financial interest in the licensee, other than as a depositor; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5646579 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 (b}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 )}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 becomes a shareholder, director, officer, agent or employee of the licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the person ceases by virtue of this section to be the auditor of the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par (6}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 )}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a licensee contravenes subsection (1), the licensee is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid5646579 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 42.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid5646579 Financial Reports}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A licensee must cause to be prepared an auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s report on the financial statements of the licensee and its subsidiaries (if any) for each financial period of the licensee. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The auditor must state in the report - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether the auditor has obtained all information and explanations which to the best of the auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s knowledge were necessary for the purposes of the audit; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether in the auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s opinion proper books of account have been kept by the licensee and its subsidiaries; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether in the auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s opinion the balance sheet and the profit and loss account of the licensee and its subsidiaries are in agreement with the books of account and returns of the licensee and the subsidiaries; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether in the auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s opinion the balance sheet of the licensee and its subsidiaries gives a true and fair view of the state of affairs of the licensee and the subsidiaries for the period covered by the report; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether in the auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s opinion the profit and loss account of the licensee and its subsidiaries gives a true and fair view of the profit or loss of the licensee and the subsidiaries for the period covered by the report; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid10819490 in any case in which}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the auditor has called for an explanation or information from officers or agents of the licensee or a subsidiary - whether in the auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s opinion the explanation or information is satisfactory. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid14702851 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The following documents must b e presented at the annual general meeting of the shareholders of a licensee - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid3565407 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s financial statements; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid3565407 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s auditor}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s report; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid3565407 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3565407 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s directors}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 report. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid3565407 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The licensee must provide to the Commission copies of its financial statements and its auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s report within four months after the close of the licensee}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s financial year or within such further time as the Commission approves in writing. \par \par 43.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid3565407 Duty to Disclose}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) The approved auditor of a licensee must report as soon as practicable to the Commission information relating to the affairs of the licensee obtained in the course of an audit if the a}{\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 uditor is of the opinion that -}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12071060 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee is insolvent or is likely to become insolvent or is likely to be unable to meet its obligations or is in serious financial difficulties; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12071060 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a criminal offence involving fraud or dishonesty may have been committed; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12071060 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 serious irregularities have occurred, including irregularities that may place at risk the interest of depositors and creditors; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12071060 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 losses incurred that substantially reduce the capital of the licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12071060 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee is unable to confirm that the claims of creditors are adequately covered by the licensee}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s assets; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12071060 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee has failed to comply with a directive or guideline }{\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 issued by the Commission under P}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 art 3. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid12071060 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If an auditor contravenes subsection (1), the auditor is guilty of an offence punishable on conviction by a fine not exceeding $50,000. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8652776 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 No civil, criminal or disciplinary proceedings lie against an auditor arising from the disclosure in good faith of information to the Commission pursuant to this section. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8652776 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The auditor must, before disclosing any information to the Commission under subsection (1), take reasonable steps to inform the licensee concerned that the auditor intends to disclose the information. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8652776 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The auditor of a licensee must, if requested to do so by the Commission, discuss the audit of the licens ee directly with the Commission and provide such additional information regarding the audit as the Commission may require. However, the auditor must take reasonable steps to inform the licensee concerned that the auditor intends to discuss the audit with the Commission and to disclose information to it. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8652776 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 44.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8652776 Licensee to provide Commission with report}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 After consultation with a licensee including about costs, the Commission may, by notice in writing, require the licensee to provide the Commission with, a report, prepared by its auditor or a person nominated by the Commission on all or any of the following - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2708686 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an opinion on asset quality; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2708686 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 adequacy of provisions for losses; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2708686 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 adequacy of the accounting and control system; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2708686 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 such other matters as the Commission determines. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 No civil, criminal or disciplinary proceedings lie against an auditor arising from the disclosure in good faith of information to the Commission pursuant to this section. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 45}{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10819490 .}{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid10819490 }{ \fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10819490 Audit exemption for foreign banks }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - A foreign bank is ex}{\fs24\lang2057\langfe5129\langnp2057\insrsid16711834 empt from sections 42 and 44 if}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - \par \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2708686 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the licensee obtains a report on the annual financial statements of the licensee made by a duly qualified auditor in accordance with the laws of the country in which the licensee is incorporated; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2708686 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a copy of that report, the audited financial statements of the licensee and the report of the directors of the licensee is provided to the Commission as soon as practicable; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2708686 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission is satisfied that the audit has been carried out in accordance with international auditing standards. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid2708686 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 46.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10819490 Disclosure of information by the Commission}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 Subject to subsections (2) and (3), each of the following - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 the Commission; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 an employe}{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 e or officer of the Commission; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 an examiner; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 any other person acting under the authority of the Commission; must not disclose any information relating to a protected person if the information has been acquired in the discharge of duties or in the performance of functions or in the e xercise of powers under this Act. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 Subsection (1) does not apply to a disclosure if - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743\charrsid16711834 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16711834 the disclosure is required or authorised by the Court; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made for the purpose of discharging any duty, performing any function or exercising any power under this or any other Act; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made with the express or implied consent of the protected person; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made as required by or under a warrant; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the information disclosed is or has been available to the public from another source; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the information disclosed is in a form of a summary or in statistics expressed in a manner that does not enable identification of the protected person to whom the information relates; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 subject to subsection (3), the disclosure is made to a foreign law enforcement authority or a foreign supervisory authority; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (h)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is otherwise required or authorised by or under any law. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Commission or any other person referred to in subsection (1) must not disclose information concerning the affairs of a protected person to a foreign law enforcement authority or a foreign supervisory authority under paragraph (2)(g) unless the Commission is satisfied - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a) that the foreign supervisory authority or the foreign law enforcement authority is subject to adequate legal restrictions on further disclosure; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 that the information disclosed is reasonably required by the foreign authority for the purpose of its regulatory or law enforcement functions. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If information concerning the affairs of a protected person is disclosed to a person in accordance with any paragraph of subsection (2), that person may disclose that information, subject to any applicable restrictions on further disclosure contained in any law, for the purpose of discharging any duty, performing any function or exercising any power under this or any other Act. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a person contravenes any of the provisions of this section, the person is guilty of an offence punishable on conviction - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if an individual by a fine not exceeding $50,000; or imprisonment for a term not exceeding 2 years, or both; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if a body corporate to a fine not exceeding $250,000.}{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par (5) }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In this section, }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 protected person}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means - \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a person who has applied f}{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 or a licence under this Act; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a depositor or other customer of a licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 47.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid10819490 Disclosure of protected and other information generally}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Subject to subsection (2), a person must not disclose protected information or any other information relating to - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the banking business of a licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a depositor or other customer of the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Subsection (1) do}{ \fs24\lang2057\langfe5129\langnp2057\insrsid8988408 es not apply to a disclosure if -}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is required or authorised by the Court; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made for the purpose of discharging any duty, performing any function or exercising any power under this or any other Act; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made as part of a suspicious transaction report under the Financial Transactions Reporting Act 2003; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made with the express or implied consent of the licensee or person concerned; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (e)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made as required by or under a warrant; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (f)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the information disclosed is or has been available to the public from another source; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (g)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is otherwise required or authorised by or under any}{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 law of the Cook Islands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (h)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the disclosure is made to the Commission or a law enforcement agency in the Cook Islands and the person making the disclosure believes on reasonable grounds that the disclosure is reasonably}{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 necessary for the investigation or prosecution of a criminal offence. }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If information is disclosed to a person in accordance with any paragraph of subsection (2), that person may disclose that information, subject to any applicable restrictions on further disclosure contained in any law, for the purpose of discharging any duty, performing any function or exercising any power under this or any other Act. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a person contravenes a provision of this section, the person is guilty of an offence punishable on conviction - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if an individual by a fine not exceeding $50,000 or imprisonment for a term not exceeding 2 years, or both; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8988408 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if a body corporate by a fine not exceeding $250,000. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Subsection (1) does not apply to the Commission or any other person referred to in subsection 46(1). \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (6)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 In this section, }{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 protected information}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 means: \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 whether or not a person has an account with a licensee; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the name in which an account of a depositor or other customer of a licensee stands; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the balance and history of any such account; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the amount or other details of any individual transaction undertaken by any licensee for a depositor or other customer of the licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8988408 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 48.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8988408 Exemption from taxes and stamp duty}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) Despite anything contained in any other Act, where a licensee is incorporated or registered under the Inte}{\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 rnational Companies Act 1981-82-}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 no income tax, duty or any other direct or indirect tax or impost is payable in the Cook Islands upon the income, profits, gains, interest, earnings or dividends earned or paid in respe ct of the international banking business of an international licensee or a restricted licensee; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 no estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable in the Cook Islands with respect to any shares, debt obliga tions or other securities in connection with the international banking business of an international licensee or a restricted licensee; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 no duty, levy, tax or other charge is payable in the Cook Islands in respect any bill of exchange, promissory note o r any other document, instrument or certificate executed by, or for or in connection with the international banking business of an international licensee or a restricted licensee. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The banking business of a licensee is zero rated for the purposes of the Value Added Tax Act 1997. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16583413 {\b\fs24\ul\lang2057\langfe5129\langnp2057\insrsid16583413\charrsid16583413 PART 6 \par MISCELLANEOUS \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 49.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid16583413 Offences}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A person who with intention to deceive makes any representation to any person described in paragraphs (3}{\fs24\lang2057\langfe5129\langnp2057\insrsid11552661\charrsid12739743 ) ( }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a), (b) or (c) that the person knows to be false or does not believe to be true is guilty of an offence punishable on conviction - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if an individual by a fine not exceeding $50,000 or imprisonment for a term not exceeding 2 years or both; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if a body corporate to a fine not exceeding $250,000. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An officer or employee, or a former officer or employee, of a licensee or a person who holds information on behalf of the licensee who knowingly - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 makes a false or misleading entry in any book, or record; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 makes or provides any false or misleading statement, report, return,}{\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 document or information; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 omits an entry or alters or conceals an entry in any book or record so as to mislead; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid16583413 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 conceals or destroys within six years of its creation any information, book, voucher, record, report, return, minutes or document relating to the accounts, transactions, affairs, or a business of the licensee so as to mislead; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9309946 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is guilty of an offence punishable on conviction by a fine not exceeding $50,000 or imprisonment for a term not exceeding 2 years or both. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9309946 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 An officer or employee, or a former officer or employee, of a licensee or a person who holds information on behalf of a licensee who obstructs or endeavours to obstruct: \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9309946 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an approved auditor in the proper performance of the auditor}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 s duties; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9309946 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the Commission or an examiner in an examination of the licensee, or any branch, agency, office or subsidiary of the licensee; or}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9309946\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 an examiner or court appointed manager in the proper performance of his or her duties;}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9309946\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 is guilty of an offence punishable on conviction by a fine not exceeding $50,000 or imprisonment for a term not exceeding 2 years or both.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9309946\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Any person who -}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9309946\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 fails to comply with the requirements of this Act or any of the regulations, notices or directives issued under this Act; or}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9309946\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16583413 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 aids or abets, or counsels or procures, any person to commit an offence under this Act;}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9309946\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 for which a penalty is not expressly provided is guilty of an offence punishable on conviction by a fine not exceeding $25,000.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 50.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8398412 Court to have jurisdiction}{ \fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (1) The Court has jurisdiction in any proceedings arising under this Act.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Attorney General is empowered to institute proceed ings to prevent and restrain any breach of the provisions of this Act and to prosecute offences committed under this Act.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The Court may, at any time during the course of any proceedings arising under this Act and before giving judgement, make such temporary restraining order or prohibition as it considers just in the circumstances.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This section does not limit the powers of the Court.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 51.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8398412 Bank Holidays}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) If the Commission considers it necessary or expedient in the public interest, it may by order declare any day a non-business day for licensees.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Without limiting subsection (1), the Commission may in the event of cyclone, earthquake or other natural disaster declare in such manner as it considers appropriate any day a non-business day for licensees. The declaration may relate to any part of or to the whole of the Cook Islands.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Any day declared to be a non-busi ness day is taken to be a bank holiday, but is not to be regarded as a public holiday.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee is not obliged on a day declare}{ \fs24\lang2057\langfe5129\langnp2057\insrsid8398412 d by the Commission to be a non-}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 business day to make a payment or to do any other act that the licensee would not be required to make or do on a public holiday.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The obligation to make the payment or to do the act is taken to be an obligation to make the payment or to do the act on the next day that is not a Saturday, Sunday, a bank holiday or public holiday. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 52.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8398412 Protection of the term }{ \fs24\ul\lang2057\langfe5129\langnp2057\insrsid156595 '}{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8398412 bank}{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8398412 etc}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) A person (other than a licensee) must not use in the name, description or title under which the person is carrying on business in the Cook Islands - \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8398412 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the term }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 bank}{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 or a derivative of the word }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 bank}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 in any language; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8398412 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8398412 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 any other word that indicates that the person is conducting banking business;}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8398412 {\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 unless the Commission has given its prior written approval to the use. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a person contravenes subsection (1), the person is guilty of an offence punishable on conviction -}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8398412 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if an individual by a fine not exceeding $50,000; or imprisonment for a term not exceeding 2 years, or both;}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8398412 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 if a body corporate by a fine not exceeding $250,000.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This section does not apply to an association of licensees, or their employees, formed for the protection of their common interests.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 The prior approval in writing of the Commission must be obtained for the incorporation or registration of a company in the Cook Islands which has as part of its name or description the words }{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 banking}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 , }{ \fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 savings and loan}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 "}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 or their equivalents in any language.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (5)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If approval for such incorporation or registration is granted by the Commission for the purpose of submitting an application for a licence under section 6, such approval does not in any way imply that a licence will be issued. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 53.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8398412 Indemnity from liability}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 -}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 No action lies against the Commission, an employee or officer of the Commission, an examiner or any other person acting under the authority of the Commission in respect of any act done in good faith in the discharging of any duty, the performanc e of any function or the exercise of any power under this Act.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 54.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid8398412 Court proceedings}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) Civil proceedings under this Act to which a licensee is a party or which relate to a licensee are to be heard in camera, unless the Court otherwise orders.}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 Any documents produced or evidence given in civil proceedings under this Act must not be disclosed to a person if that person is not a party to those proceedings unless the Court otherwise orders.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 If a notice of legal proceedings under this Act is served on a licensee, a copy of the notice must be served on the Commission.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid8398412\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (4)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 This section does not apply to criminal proceedings under this Act or any other enactment. \par \par 55.}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid11670576 Retention of documents}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 - (1) This section applies to any cheque, bank draft, bill of exchange or promissory note received by a licensee before, on or after commencement of this Act.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid11670576\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (2)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee must retain -}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid11670576\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11670576 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 all cheques and bank drafts drawn on the licensee and that are in its possession; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid11670576 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11670576 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 all bills of exchange and promissory notes made payable at the licensee and that are in its possession; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid11670576 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 until the expiration of 6 years from: \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid11670576 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11670576 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (c)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the date of the cheque, bank draft, bill of exchange or promissory note if it is payable on demand; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid11670576 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11670576 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (d)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the due date of the bank draft, bill of exchange or promissory note in any other case.}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid11670576\charrsid12739743 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (3)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 A licensee is taken to comply with subsection (2) if - }{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid11670576\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11670576 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (a)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 a copy of a cheque, bank draft, bill of exchange or promissory note is made by the licensee on microfilm, microfiche, tape, disc, or in electronic or photographic storage media; and}{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid11670576\charrsid12739743 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11670576 {\fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 (b)}{\fs24\lang2057\langfe5129\langnp2057\insrsid12739743 }{ \fs24\lang2057\langfe5129\langnp2057\insrsid9708613\charrsid12739743 the copy is retained by the licensee for the same period that applies to the original under subsection (2).}{\fs24\lang2057\langfe5129\langnp2057\insrsid9708613 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid11670576 \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid14114607 (4) A cheque, bank draft, bill of exchange or promissory note must not be destroyed within 6 years after a demand for the delivery of it has been made to the licensee by the person entitled to it. \par }{\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 \par (5) Despite any other Act or law, if the original of a cheque, bank draft, bill of exchange or promissory note is not avai lable, a copy of it made in accordance with this section is taken to be admissible as evidence in any legal proceedings to the same extent as the original would have been admissible. \par \par 56. }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7090149\charrsid7090149 Regulations}{\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 - The Queen}{\fs24\lang2057\langfe5129\langnp2057\insrsid156595 '}{ \fs24\lang2057\langfe5129\langnp2057\insrsid7090149 s Representative by Order in Executive Counci l may, on the advice of the Commission, make regulations prescribing all matters required or permitted by this Act to be prescribed or provided, or is necessary or convenient to be prescribed for the carrying out or giving effect to this Act and its due a dministration, and may in particular, but without limitation, make regulations prescribing- \par \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6052693 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 (a) offences and penalties, not exceeding $5000 for non-compliance of the Act or the regulations; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6052693 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 (b) fixing and determining fees and charges to be paid under this Act; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6052693 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 (c) forms and procedures required for the purpose of this Act. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 \par 57. }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7090149\charrsid7090149 Repeals}{\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 - The Banking Act 1969 and the Offshore Banking Act 1981-82 are hereby repealed. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7090149 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7090149 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 -------------------------------------------}{\fs24\lang2057\langfe5129\langnp2057\insrsid7090149\charrsid12739743 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12739743 {\fs24\lang2057\langfe5129\langnp2057\insrsid14114607 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7090149 {\fs24\lang2057\langfe5129\langnp2057\insrsid7090149 This Act is administered by the Financial Supervisory Commission \par }}