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bruneilawsby aturio
In force2022 Revised Edition
Contents

Part · Oversight Powers Over Designated Payment Systems

22. Removal of director or executive officer

(1)

Notwithstanding the provisions of any other written law, where the Authority is satisfied that a director of a Brunei Darussalam operator or

Brunei Darussalam settlement institution of a designated payment system, or an executive officer of an operator or a settlement institution of a designated payment system —

(a)

has been convicted, whether in Brunei Darussalam or elsewhere, of an offence committed before, on or after the date of commencement of this Order, being an offence —

Payment and Settlement Systems

(Oversight)

(i)

involving fraud or dishonesty; or

(ii)

the conviction for which involved a finding that he had acted fraudulently or dishonestly;

(b)

is an undischarged bankrupt, whether in Brunei Darussalam or elsewhere;

(c)

has had execution against him in respect of a judgment debt returned unsatisfied in whole or in part;

(d)

has, whether in Brunei Darussalam or elsewhere, entered into a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation;

(e)

has been a director of, or directly concerned in the management of, a regulated financial institution, whether in Brunei

Darussalam or elsewhere —

(i)

which is being or has been wound up by a court; or

(ii)

the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country, by the regulatory authority in that foreign country;

(f)

has wilfully contravened or wilfully caused the operator or settlement institution to contravene any provision of this Act;

(g)

has, without reasonable excuse, failed to secure the compliance of the operator or settlement institution with this Act or the

Brunei Darussalam Central Bank Order, 2010 (S 103/2010); or

(h)

has failed to discharge any of the duties of his office, the

Authority may, if it thinks it is necessary in the interests of the public or a section of the public, by notice in writing to the operator or settlement institution, direct the operator or settlement institution to remove the director or executive officer, as the case may be, from his office or employment within such period as may be specified by the

Authority in the notice.

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(2)

Without prejudice to any other matter that the Authority may consider relevant, the Authority shall, when determining whether a director or an executive officer of an operator or a settlement institution of a designated payment system has failed to discharge the duties of his office as described under subsection (1)(h), have regard to such criteria as the

Authority may determine.

(3)

Subject to subsection (4), the Authority shall not direct an operator or a settlement institution of a designated payment system to remove a person from his office or employment under subsection (1) without giving the operator or settlement institution an opportunity to be heard.

(4)

The Authority may direct an operator or a settlement institution of a designated payment system to remove a person from his office or employment under subsection (1) on any of the following grounds without giving the operator or settlement institution an opportunity to be heard —

(a)

the person is an undischarged bankrupt, whether in Brunei

Darussalam or elsewhere;

(b)

the person has been convicted, whether in Brunei Darussalam or elsewhere, of an offence committed before, on or after the date of commencement of this Act —

(i)

involving fraud or dishonesty, or the conviction for which involved a finding that he had acted fraudulently or dishonestly; and

(ii)

punishable with imprisonment for a term of 3 months or more.

(5)

Where the Authority directs an operator or a settlement institution of a designated payment system under subsection (4) to remove a person from his office or employment under subsection (1), the Authority need not give that person an opportunity to be heard.

(6)

An operator or a settlement institution of a designated payment system which is aggrieved by a direction of the Authority under subsection (1) may, within 30 days after the operator or settlement institution is notified of the direction, appeal in writing to the Minister, whose decision shall be final.

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(Oversight)

(7)

Notwithstanding the lodging of an appeal under subsection (6), any action taken by the Authority under this section shall continue to have effect pending the decision of the Minister.

(8)

The Minister may, when deciding an appeal under subsection (6), make such modifications as he considers necessary to any action taken by the

Authority under this section, and such modified action shall have effect from the date of the decision of the Minister.

(9)

An operator or a settlement institution of a designated payment system which fails to comply with a notice issued under subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding

$150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.

(10)

No criminal or civil liability shall be incurred by an operator or a settlement institution of a designated payment system, or any person acting on behalf of the operator or settlement institution, in respect of anything done

(including any statement made) or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the operator or settlement institution under this section.

(11)

In this section, unless the context otherwise requires —

“Brunei Darussalam operator” means an operator which is incorporated in Brunei Darussalam;

“Brunei Darussalam settlement institution” means a settlement institution which is incorporated in Brunei Darussalam;

“regulatory authority”, in relation to a foreign country, means an authority of the foreign country exercising any function that corresponds to a regulatory function of the Authority under this

Act, the Brunei Darussalam Central Bank Order, 2010

(S 103/2010) or any other written laws;

“regulated financial institution” means a person who carries on a business, the conduct of which is regulated or authorised by the

Authority or, if it is carried on in Brunei Darussalam, would be regulated or authorised by the Authority.

Payment and Settlement Systems

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Report

Read on from s 23

Part

Payment Instruments

Read on from Part

Part

Assistance to Foreign Regulatory Authorities

Read on from Part

Part

General

Read on from Part