Special examinations

(1) The Central Bank may at any time and without notice appoint one or more of its examiners or other qualified persons to carry out a special examination of the affairs of a licensee or financial holding company whether in Belize or elsewhere– (a) where it has reason to believe that such licensee or financial holding company may be carrying on its business in a manner detrimental to the interests of its depositors, creditors or other customers, or is operating in a manner that in the opinion of the Central Bank poses a threat to the stability of the financial system, or is not operating in a sound financial condition or may have insufficient assets to cover its liabilities to the public or may be, either in Belize or elsewhere, 145 contravening any of the provisions of this Act or regulations made hereunder; (b) if the licensee suspends payment to depositors or creditors or informs the Central Bank of its intention to do so; (c) if the Central Bank has reasonable grounds to believe that the licensee or financial holding company is involved in fraudulent or criminal activity, or is aiding or abetting others in committing fraudulent or criminal activity or is otherwise conducting its business in a manner detrimental to the public interest; or (d) if the Central Bank determines that such an examination is necessary in the public interest. (2) Every licensee or financial holding company of which an examination has been ordered under sub-section (1) shall produce to the examiners, or other persons appointed under this section, at such times and in such places as the examiners or persons may specify, all records, books, accounts, minutes, cash, securities, vouchers and other documents and assets in whatever form in the possession or custody of the licensee or financial holding company or of which it is entitled to possession or custody relating to its assets, liabilities and business generally, and shall give, within such time as the examiners or persons may specify, such oral information concerning its business as may be required. (3) As soon as may be practicable after the conclusion of an examination under this section, the examiners or persons appointed to carry out the examination shall submit a full report on such examination to the Central Bank. 146 (4) The Central Bank may order that all expenses of, and incidental to, a special examination under sub-section (1) shall be paid by the licensee or financial holding company examined. (5) Any director, officer or employee of a licensee or financial holding company who– (a) refuses or fails or neglects to produce or obstructs or delays the production of any record, book, document, asset or information required under this section shall pay to the Central Bank, on being called upon in writing by the Central Bank, a fine not exceeding ten thousand dollars for each day of the failure to comply; or (b) produces any record, book, document or information required under this section which is false or misleading in any material particular commits an offence and is liable on summary conviction to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding four years, or to both such fine and term of imprisonment.