Restriction of licence

(1) Where it appears to the Central Bank that there are grounds to revoke a licence but the circumstances are not such as to justify revocation, it may place restrictions on the licence instead of revoking it. (2) Where the Central Bank has reasonable grounds to believe that a licensee, in conducting its business, is committing or is about to commit a violation of this Act, or any regulation, guideline, directive, notice or condition imposed in writing by the Central Bank, or the Central Bank has reasonable grounds to believe that the licensee has engaged in any unsafe or unsound practice, the Central Bank may restrict the license by issuing such directives as the Central Bank thinks necessary to protect the interests of the licensee’s depositors or potential depositors. (3) Directives issued under this section may, in particular– (a) require the licensee or subject person to cease or refrain from doing the act or pursuing the course of conduct; (b) impose limitations on the acceptance of deposit and the incurring of credit exposures; (c) prohibit the licensee from soliciting deposits either generally or from persons who are not already depositors; 53 (d) prohibit the licensee from entering into any other transaction or class of transactions; (e) require the removal of any director or officer; (f) impose new conditions upon the licence of the licensee; or (g) contain such other requirements as may be considered necessary in any particular case. (4) At the expense of the licensee, the Central Bank may appoint a person who, in the opinion of the Central Bank, has adequate training and experience to advise the licensee on the proper conduct of its affairs and to report to the Central Bank thereon within such time as specified. (5) Where any licensee fails to satisfy the requirements of section 36 or section 37 pertaining to capital, or the requirements of section 39 or section 40 pertaining to reserves or section 57, the Central Bank may, by written directive to the licensee, require such licensee to take one or more of the following measures– (a) submit a plan to the Central Bank specifying the measures the licensee shall take to restore its capital or reserves and the timeframe for implementation of the plan; (b) increase the licensee’s capital and reserves; (c) suspend the licensee’s payment of dividends; (d) restrict the licensee’s asset growth; 54 (e) prohibit transactions with the holding body corporate, subsidiaries or other affiliates of the (f) restrict the activities of the licensee; or (g) require the licensee to take any other action which the Central Bank deems necessary to bring the licensee into compliance with the provisions of section 36 or 37 pertaining to capital, or the requirements of section 39, or 40 or 57. (6) A directive imposed under this section may be varied or withdrawn by the Central Bank. (7) A licensee or any director or officer thereof who fails to comply with any requirement or contravenes any prohibition imposed on it by a directive under this section, shall, upon being called to do so by the Central Bank, pay a fine not exceeding one hundred thousand dollars and in the case of a director or officer to a fine not exceeding fifty thousand dollars. (8) If a person to whom a directive is issued fails to comply with the said directive the Central Bank may, in addition to any other action that may be taken under this Act, apply to the Supreme Court for an Order requiring that person to comply with the directive, cease the contravention or do anything that is required to be done, and on such application the Supreme Court may so order and make any other Order it thinks fit.