Cap. 371 Art. 22Investigations.

(1) If it appears to the competent authority desirable to do so in the interests of the depositors or potential depositors of a credit institution, or if otherwise required to fulfil its supervisory responsibilities, it may appoint one or more competent persons, as inspectors, to investigate and report on -

(a) the nature, conduct or state of the credit institution’s business or any particular aspect of it, or

(b) the ownership or control of the credit institution, and the competent authority shall give written notice of any such appointment to the credit institution concerned.

(2) If a person appointed under sub-article (1) thinks it necessary for the purposes of his investigation, he may also investigate the business of any person who is or has at any relevant time been -

(a) a holding company, subsidiary or a company which is a connected person of the credit institution under investigation;

(b) a subsidiary or a company which is a connected person of a holding company of that credit institution;

(c) a holding company of a subsidiary of that credit institution; or

(d) a controller of that credit institution; or

(e) an outsourcing service provider of that credit institution.

(3) The competent authority may exercise the powers conferred by sub-article (1) in relation to any person who has a qualifying shareholding in a credit institution if it considers that the exercise of those powers is desirable in the interests of the depositors or potential depositors of that credit institution.

(4) Where a person appointed under sub-article (1) decides to investigate the business of any person by virtue of sub-article (2) or sub-article (3) he shall inform that person by notice in writing.

(5) It shall be the duty of every person who is or was an officer, employee, agent, banker or auditor of a body which is under investigation under this Act and any regulations made and, or Banking Rules and, or Conduct of Business Rules issued thereunder, or any person appointed to make a report in respect of that body under this Act and any regulations made and, or Banking Rules and, or Conduct of Business Rules issued thereunder and anyone who has a qualifying shareholding in, or is a controller of, that body -

(a) to produce to the persons appointed under sub-article (1), within such time and at such place as they may require, all documents relating to the body concerned which are in his custody or power;

(b) to attend before the persons so appointed at such time and place as they may require; and

(c) otherwise to give those persons all assistance in connection with the investigation which he is reasonably able to give, and those persons may take copies of or extracts from any documents produced to them under paragraph (a) above.

(6) A person exercising powers by virtue of an appointment under this article shall, if so required, produce evidence of his authority.

(7) No person shall -

(a) without lawful excuse fail to produce any documents which it is his duty to produce under sub-article (5);

(b) without lawful excuse fail to attend before the persons appointed under sub-article (1) when required to do so; or

(c) without lawful excuse fail to answer any question which is put to him by persons so appointed with respect to any credit institution which is under investigation or a body which is being investigated by virtue of sub-article (2) or (3).

(8) A statement made by a person in compliance with a requirement imposed by virtue of this article may be used in evidence against him.

(9) The competent authority shall have the power to recover from a credit institution reported on under sub-article (1) the costs and expenses incurred in relation to such report.

(10) For the purposes of this article, reference to a credit institution shall include reference to persons appearing to be carrying out the business of banking.