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Deposit Takers Act 2023

Licensing of deposit takers - Key provisions

11: Offence for deposit taker to carry on business without licence

You could also call this:

"Breaking the law by taking deposits without a licence can lead to big fines or jail time."

Illustration for Deposit Takers Act 2023

If you carry on business as a deposit taker without a licence, you commit an offence. You must know you need a licence or not care that you need one to commit this offence. This applies to you if you are a deposit taker.

If you commit this offence, you can be punished when convicted. As an individual, you can be imprisoned for up to 2 years or fined up to $500,000, or both. If you are not an individual, you can be fined up to $5,000,000.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS538417.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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10: Deposit taker must be licensed, or

"To take people's money, you need a special permit called a licence."

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12: Liquidation of deposit taker that carries on business without licence, or

"What happens to companies that take people's money without permission"

Part 2Licensing of deposit takers
Key provisions

11Offence for deposit taker to carry on business without licence

  1. A person (A) commits an offence if A—

  2. carries on business as a deposit taker without holding a licence; and
    1. knows that, or is reckless as to whether, it must hold a licence.

      1. A person that commits an offence against this section is liable on conviction,—

      2. in the case of an individual, to imprisonment for a term not exceeding 2 years or to a fine not exceeding $500,000 (or both):
        1. in any other case, to a fine not exceeding $5,000,000.