(1) Subject to subsection (3), a licensed financial institution that fails to comply with the sections specified in Part B of Schedule 3, is liable —
(a) to a penalty not exceeding five thousand dollars; and
(b) to a penalty not exceeding five hundred dollars, in the case of a continuous failure to comply, for each day or part of a day that the failure continues, from the date immediately following the period specified in subsection (4)(c).
(2) A penalty for which a licensed financial institution is liable under subsection (1)(b) must not apply in respect of a period of more than 30 days.
(3) The Central Bank shall serve a written notice to a licensed financial institution.
(4) A notice under subsection (3) must state —
(a) the section specified under Part B of Schedule 3 with which the licensed financial institution has failed to comply;
(b) the amount of the penalty for which the licensed financial institution is liable under subsection (1)(a) or (b);
(c) the period within which the penalty under paragraph (b) must be paid;
(d) that the penalty is payable to the Government;
(e) that the licensed financial institution, may, in writing, accept or decline liability for the payment of the penalty under paragraph (b); and
(f) that failure to pay the penalty under paragraph (b) may result in prosecution.
(5) On being served with a notice under subsection (3) and within the period specified under subsection (4)(c), a licensed financial institution may, in writing, accept or decline liability for the payment of the penalty under subsection (4)(e).
(6) A licensed financial institution that accepts liability for the payment of a penalty under subsection (5) may pay the amount of the penalty stated in the notice.
(7) If a licensed financial institution declines liability for the payment of a penalty under subsection (5), proceedings shall be brought against the licensed financial institution for the failure specified in the notice under subsection (4)(a).
(8) The Central Bank may, whether or not the penalty has been paid, withdraw a notice under subsection (3).
(9) Where a notice is withdrawn under subsection (8) and the penalty has been paid under subsection (6), the amount of the penalty must be refunded to the licensed financial institution.
(10) Proceedings shall not be brought against a licensed financial institution where the licensed financial institution —
(a) has paid the penalty specified in the notice under subsection (4)(b) in the period specified in subsection (4)(c); or
(b) has been found liable and is penalized by a court for the failure specified in the notice under subsection (3).
(Inserted by Act 16 of 2021)