Cap. 371 Art. 35AAdministrative penalties and other administrative measures imposed by the competent authority.

(1) Without prejudice to the provisions of articles 29AA(1)(c), 35 and 35B and to any regulations made under articles

3(1)(a), 3(1)(c) and 3(1)(e), where any person fails to comply with any of the conditions imposed in a licence, and, or where the competent authority is satisfied that a person’s conduct amounts to a breach of any of the provisions of this Act, or any regulations made or Banking Rules issued thereunder, or the CRR, or such person has failed to comply with a directive issued by the competent authority under this Act, or any regulation made or

Banking Rules or Conduct of Business Rules issued thereunder, or the

CRR, or any binding legal instruments issued under the CRD, the competent authority may, by notice in writing and without recourse to a court hearing, impose on such person an administrative penalty of -

(a) up to twice the amount of the benefit derived from the breach where that benefit can be determined;

(b) in the case of a natural person, up to five million euro (€5,000,000); or

(c) in the case of a legal person, up to 10% of the total annual net turnover of the undertaking in the preceding business year including the gross income consisting of interest receivable and similar income, income from shares and other variable or fixed-yield securities, and commissions or fees receivable in accordance with Article 316 of the CRR: Provided that, in the case of a subsidiary of a parent undertaking, the relevant gross income shall be the gross income resulting from the consolidated account of the ultimate parent undertaking in the preceding business year.

(2) The Minister may, acting on the advice of the competent authority, make regulations as shall be deemed appropriate to provide for the establishment and imposition of administrative penalties and other administrative measures on licence holders or others as may be specified therein.

(3) Where the competent authority decides to impose an administrative penalty in terms of this Act or any regulations made thereunder, it shall notify the person on whom the penalty is being imposed by means of a notice in writing.

(4) Where the person upon whom the notice referred to in sub-article (3) is served -

(a) fails to pay to the competent authority the amount of the penalty within a period of thirty days of the service of the notice, and fails to appeal from the decision of the competent authority to the Financial Services Tribunal; or

(b) appeals to the Financial Service Tribunal and fails within a period of fifteen days from the decision of the Tribunal to pay the administrative penalty as confirmed or as reduced by that Tribunal, then, in every case, the amount of the administrative penalty, as originally imposed or as reduced, as the case may be, shall be due to the competent authority as a civil debt, and the provisions of sub-article (5) shall apply.

(5) A notice as is referred to in sub-article (3), or the decision of the Financial Services Tribunal, as the case may be, shall upon the service by judicial act of a copy thereof on the person indicated in the notice, constitute an executive title for all effects and purposes of Title VII of Part I of Book Second of the Code of Organization and Civil Procedure.

(6) The imposition by the competent authority of an administrative penalty in terms of this Act, or any regulations made thereunder, shall be without prejudice to any other consequences of the act or omission of the offender under civil or criminal law: Provided that in all cases where the competent authority imposes an administrative penalty in respect of anything done or omitted to be done by any person and such act or omission also constitutes a criminal offence, no proceedings may be taken or continued against the said person in respect of such criminal offence.