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Deposit Takers Act 2023

Licensing of deposit takers - Key provisions

14: Offence for holding out

You could also call this:

"Breaking the rules on purpose can get you in big trouble"

Illustration for Deposit Takers Act 2023

If you do something that breaks the rules in section 13, you can get in trouble. You have to know that what you are doing is wrong, or not care that it might be wrong. This is called an offence.

If you commit this offence, you can get punished when you are found guilty. As an individual, you could go to prison for up to 2 years or get a fine of up to $500,000, or both. If you are not an individual, you could get a fine of up to $5,000,000.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS538419.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesCrime and justice > Criminal law
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13: No holding out as licensed, or

"Don't pretend to be a licensed deposit taker if you're not one"

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15: Bank may issue licence, or

"The Bank can give a special permit called a licence if it follows the rules."

Part 2Licensing of deposit takers
Key provisions

14Offence for holding out

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

  2. contravenes section 13; and
    1. knows that, or is reckless as to whether, what they are holding out is not the case.

      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.