· 12 -
Clause 48
In the proposed Eighth Schedule, a new paragraph 20 is added to the grounds for revocation of authorisation, i.e. where the institution engages in business practices which would be likely to prejudice the interests of Hong Kong as an international financial centre. Illegal activities such as money laundering, which it might be argued do not directly harm the interests of depositors or potential depositors, would fall into the category of such practices.
Mr Chairman, I beg to move.
End/Wednesday, June 28, 1995
Banking (A) Bill 1995: committee stage (new clauses)
Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, at the committee stage (new clauses) of the Banking (Amendment) Bill 1995 in the Legislative Council today (Thu day):
Mr Chairman,
I move that new clauses 16A, 23A and 40A as set out in the paper circulated to Members be read the second time.
New clause 16A addresses a drafting point. It seeks to replace the word "shareholders" and the word "members" in section 59A(1)(a) in order to be consistent with other provisions in the Ordinance.
New clause 23A provides for a new definition of the term "relative", for use in section 83 which imposes restrictions on unsecured advances to directors, controllers and certain employees of institutions and their relatives. It seeks to narrow the new coverage of the definition of "relative" to take account of practical difficulties which authorised institutions have encountered in applying it.
To enable the Monetary Authority to react quickly to address any problem that may arise from the proposed revision of the definition, the Financial Secretary will be empowered to amend the definition by notice in the Gazette, should it be found
necessary.