Section 23
of International Banking Order, 2000
Section 23
(1)
If the Authority is satisfied that a licensee –
(a)
has ceased to carry on international banking business;
(b)
has gone into liquidation, is wound up or in the process of being wound up or is otherwise dissolved;
(c)
has made an arrangement or composition with its creditors;
(d)
is unable or appears likely to become unable to meet its obligations as they fall due;
(e)
is carrying on business in a manner detrimental to the public interest, the interests of its depositors or other creditors its customers or persons conducting transactions with it;
(f)
has failed to comply with any condition of its licence;
(g)
has failed to pay any fee due under this Order or has otherwise contravened any provision of this Order; or
(h)
has surrendered, had revoked or had suspended a banking licence in any other jurisdiction in circumstances which affect, or are likely to affect, the licensee’s compliance with the criteria specified in section 5, the Authority may take any one or more of the courses of action specified in subsection (2).
(2)
The courses of action referred to in subsection (1) are –
(a)
the revocation of the licence;
Incorporating amendments until S 1/2016
(Cleancopy) NANI/Bb_as of 08.05.2019
NOTE: Amendment on P1S1 and P45S2 [24.04.2019]; P3S1, P1S2, P10S2, P11S2, P16S2-P18S2P28S2, P31S2, P34S2, P35S2, P39S2,
29
BLUV as at 14th January 2016
(b)
the imposition of varied or additional conditions on the licence;
(c)
the substitution of any director or officer of the licensee;
(d)
the appointment, at the expense of the licensee, of a person to advise the licensee on the proper conduct of its affairs and to report to the Authority thereon within three months of his appointment;
(e)
the appointment, at the expense of the licensee, of a person to assume control of the licensee’s affairs, being a person who shall have, mutatis mutandis, all the powers of a person appointed as a receiver or manager of a company pursuant to the Insolvency Order, 2016 and the
International Business Companies Order, 2000 (S 56/2000); [S 1/2016]
(f)
where the licensee is incorporated under the laws of jurisdiction other than Brunei Darussalam, at the expense of the licensee to take such advice and steps in such jurisdiction as may be appropriate having regard to the needs specified in subsections 5(1)(a) and 5(1)(b), including the investigation of winding-up liquidation or analagous procedures or proceedings; and
(g)
to require the licensee to take such other action as the Authority considers necessary.
(3)
Before taking any of the courses of action specified in subsection (2), the
Authority shall give the licensee an opportunity to make representations why the course of action in question should not be taken; and, whether or not such representations are made, if the Authority does take a course of action under subsection (2), the licensee may appeal to the
High Court against the taking of the action.
(4)
A person appointed under paragraph (d) or paragraph (e) of subsection (2) (in the following provisions of this section referred to an “appointee”) shall from time to time and in any case within three months of his appointment or, as the case may be, the extension of his appointment under subsection (5), prepare and furnish a report to the Authority on the affairs of the licensee and may make recommendations therein.
Incorporating amendments until S 1/2016
(Cleancopy) NANI/Bb_as of 08.05.2019
NOTE: Amendment on P1S1 and P45S2 [24.04.2019]; P3S1, P1S2, P10S2, P11S2, P16S2-P18S2P28S2, P31S2, P34S2, P35S2, P39S2,
30
BLUV as at 14th January 2016
(5)
On receipt of a report under subsection (4), the Authority may –
(a)
revoke the appointment of the appointee;
(b)
extend the period of the appointee’s appointment;
(c)
subject to any condition which the Authority may impose, allow the licensee to reorganise its affairs in a manner approved by the Authority;
(d)
revoke the licence and request the Attorney General to apply to the High
Court for an order that the licensee be wound up in accordance with the
Insolvency Order, 2016, either by the Court or subject to the supervision of the Court (and in this subsection “the Court” has the same meaning as in that Order).
(6)
In the case of a licensee which is an international business company, the reference in subsection (5)(d) to the Insolvency Order, 2016, is a reference to that Order as it applies to such a company by virtue of the International Business Companies Order, 2000.
(7)
Whenever the Authority revokes a licence under subsection (2)(a) or subsection (5)(d), it shall cause notice of the revocation to be published in the Gazette and may also cause notice to be published, whether within Brunei Darussalam or elsewhere, in such newspaper or other publication as he may think fit in the circumstances.