14
15
Banking business restricted to
licensed banks.
Restriction on business of taking deposits.
PART III
BANKING BUSINESS AND BUSINESS OF TAKING DEPOSITS TO BE CARRIED ON BY AUTHORIZED ÎNSTITUTIONS ONLY
11. (1) Except as may be otherwise provided in this Ordinance, no banking business shall be transacted in Hong Kong except by a company which holds a valid banking licence granted by the Governor in Council authorizing it to transact banking business in Hong Kong.
(2) Any person who and every director and every manager of a company which contravenes this section commits an offence and is liable--
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 5 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
12. (1) No business of taking deposits shall be carried on except by a company which is-
(a) a registered deposit-taking company; or
(b) a licensed deposit-taking company.
(2) A registered deposit-taking company shall not take any short-term deposit from any person except a bank incorporated outside Hong Kong which is not licensed under this Ordinance.
(3) A registered deposit-taking company shall not, without the written per- mission of the Commissioner, repay any deposit within a period of less than 3 months from the date on which the deposit was taken by the company:
Provided that this subsection shall not apply to a bank incorporated outside Hong Kong which is not licensed under this Ordinance.
(4) No deposit-taking company shall receive money on savings account.
(5) Subject to section 14, a licensed deposit-taking company may take or hold short-term deposits.
(6) Any person who contravenes subsection (1), and every director and every manager of a deposit-taking company which contravenes subsection (2), (3) or (4), commits an offence and is liable-
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 5 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(7) Any person who enters into a contract or arrangement, or uses any device or scheme, which has the effect of, or is designed to have the effect of, avoiding subsection (1), (2), (3) or (4) commits an offence and is liable-
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 5 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(8) For the purposes of any proceedings for an offence under subsection (6), if it is proved that a person took deposits on at least 5 occasions within any period of 30 days, that person shall, until the contrary is proved, be deemed to have been carrying on a business of taking deposits.
:
13. (1) The Financial Secretary may, by notice in the Gazette, exempt any Power to grant person or class of persons from section 12.
(2) An exemption under subsection (1) shall be subject to such conditions as are specified in the notice.
(3) The Financial Secretary may at any time by notice in the Gazette—
(a) revoke an exemption under subsection (1); or
(b) revoke, vary, or add to, any condition subject to which such exemption is
granted.
14. (1) Subject to subsection (2)—
exemptions.
Deposit-taking company not to take deposits less
(a) a registered deposit-taking company shall not take any deposit from a
depositor of a sum less than the amount specified in item I of the First than specified Schedule; and
(b) a licensed deposit-taking company shall not take any deposit from a depositor of a sum less than the amount specified in item 2 of the First Schedule.
(2) A deposit-taking company may take a deposit from a depositor of a sum less than the specified sum applying at the date of that deposit if
(a) the depositor is a bank incorporated outside Hong Kong which is not
licensed under this Ordinance;
(b) the depositor is a bona fide employee of the company; or
(c) the amount standing to the credit of the depositor with the company at the time any such deposit is taken is not less than the specified sum applying at the date of that deposit.
(3) Except where a depositor withdraws the whole amount standing to his credit with a deposit-taking company, the company shall not at the time of the withdrawal of any sum permit the amount of the balance standing to the credit of the depositor, other than a depositor who is a bank incorporated outside Hong Kong which is not licensed under this Ordinance or a bona fide employee of the company, to be less than the specified sum.
(4) Notwithstanding subsection (3), where a depositor has an amount standing to his credit with a deposit-taking company at a time when the specified sum is amended by being increased, the company may permit the amount of the balance to be reduced by withdrawals to any amount that is not less than the specified sum as it was before being so amended.
(5) Every director and every manager of a deposit-taking company which contravenes subsection (1) or (3) commits an offence and is liable--
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 2 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(6) Any person who holds himself out, whether as a broker or agent of a deposit-taking company or otherwise, as being prepared to take from any person, other than a person who is a bank incorporated outside Hong Kong which is not licensed under this Ordinance or a bona fide employee of the company, any sum less than the specified sum for the purpose of depositing that sum, or that sum and other sums, with the company commits an offence and is liable-
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 2 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
sum.
First Schedule.