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Deposit Takers Act 2023

Licensing of deposit takers - Bank’s approval required for certain changes - Consequences of failing to get approval

44: Offence to fail to get approval

You could also call this:

"Breaking rules without Bank approval is a crime"

Illustration for Deposit Takers Act 2023

If you break the rules in sections 39, 41, or 42 of the Deposit Takers Act 2023, you commit an offence. You must know you are breaking the rules or not care that you need to get approval from the Bank. If you are found guilty, you can get in trouble. You might go to prison for up to one year, or get a fine of up to $100,000, or both, if you are an individual.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS538434.

Topics:
Money and consumer rights > Banking and loansCrime and justice > Criminal lawBusiness > Industry rules
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43: Overseas licensed deposit taker must notify Bank if it amalgamates with another person, or

"Tell the Bank if your overseas deposit taking company merges with another company"

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45: Failure to get approval does not invalidate proposed change, or

"Changing a deposit taker without approval doesn't automatically make the change invalid."

Part 2Licensing of deposit takers
Bank’s approval required for certain changes: Consequences of failing to get approval

44Offence to fail to get approval

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

  2. contravenes section 39, 41, or 42; and
    1. knows that, or is reckless as to whether, it must obtain the Bank’s approval under that section.

      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 1 year or to a fine not exceeding $100,000 (or both):
        1. in any other case, to a fine not exceeding $2,500,000.