(1) Subject to subsection (2), a financial institution or person engaged in other business activity that fails, within the time specified under section 6A(2), to comply with this Act, is liable —
(a) to a penalty not exceeding five thousand dollars;
(b) in the case of a continuous failure to comply, to a penalty not exceeding five hundred dollars for each day or part of a day that the failure continues.
(2) The Authority shall, give written notice to a financial institution or person engaged in other business activity of its liability to pay a penalty under subsection (1).
(3) A notice under subsection (2) must specify —
(a) the section with which the financial institution or person engaged in other business activity has failed to comply;
(b) the amount of the penalty for which a financial institution or person engaged in other business activity 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 financial institution or person engaged in other business activity, may, in writing, accept or decline liability for the payment of the penalty under paragraph (b);
(f) that failure to pay the penalty under paragraph (b) may result in prosecution.
(4) A notice under subsection (2) must be served on the financial institution or person engaged in other business activity.
(5) On being served with a notice under subsection (4) and within the period specified under subsection (3)(c), a financial institution or person engaged in other business activity may, in writing, accept or decline liability for the payment of the penalty under subsection (3)(e).
(6) A financial institution or person engaged in other business activity 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 financial institution or person engaged in other business activity declines liability for the payment of a penalty under subsection (5), proceedings shall be brought against a financial institution or person engaged in other business activity for the failure specified in the notice under subsection (3)(a).
(8) The Authority may, whether or not the penalty has been paid, withdraw a notice under subsection (2).
(9) Where a notice is withdrawn under subsection (8) and the penalty has been paid under subsection (6), the amount of the penalty must be refunded to a financial institution or person engaged in other business activity.
(10) Proceedings shall not be brought against a financial institution or person engaged in other business activity where a financial institution or person engaged in other business activity —
(a) has paid the penalty specified in the notice under subsection (3)(b) in the period specified in subsection (3)(c); or
(b) has been found liable and is penalized by a court for the failure specified in the notice under subsection (2).
(Inserted by Act 16 of 2021)