Assessment of application

(1) On receipt of an application from or on behalf of a local company, proposed local company, foreign bank or foreign financial institution for a licence under this Act, the Central Bank may cause such investigation to be made of the local company, proposed local company, foreign financial institution or foreign bank, of its financial standing, and of any of its associates or affiliates as the Central Bank considers necessary to satisfy itself that the proposed bank or financial institution meets the criteria for licensing and that it will conduct its business in a sound and prudent manner. (2) For the purposes of this section, “associate” when used to indicate a relationship with any person, means44 (a) a body corporate of which the person so referred to beneficially owns or directly or indirectly controls, shares, or securities convertible into shares, carrying more than twenty-five per centum of the voting rights; (b) a partner of the person so referred to, acting on behalf of the partnership; (c) a trust or estate in which the person so referred to has a substantial beneficial interest or in respect of which he serves as a trustee or in a similar capacity. (3) Any person who furnishes any information which is in any material respect false or misleading in connection with an application under this section commits an offence and shall be liable on summary conviction thereof to a fine not exceeding fifty thousand dollars or to imprisonment for a term not exceeding one year or to both such fine and term of imprisonment.