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Deposit Takers Act 2023

Supervision of deposit takers - Reporting duty

117: Offence to fail to monitor compliance and report contraventions

You could also call this:

"Breaking the rules: deposit takers must check and report if they're doing something wrong"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must follow the rules. You must check that you are doing what you are supposed to do and tell someone if you are not. If you do not do this without a good reason, you can commit an offence. You can be fined up to $500,000 if you are found guilty of breaking the rules in section 115 or 116. This means you have to make sure you are doing the right thing and report if you are not, or you might get in trouble.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS538459.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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116: Licensed deposit taker must report contraventions, or

"Banks must tell the Bank if they break important rules."

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118: Restriction on use of report, or

"Reports from banks and lenders can't be used against them in court, except to prove they're false."

Part 4Supervision of deposit takers
Reporting duty

117Offence to fail to monitor compliance and report contraventions

  1. A licensed deposit taker that, without reasonable excuse, contravenes section 115 or 116 commits an offence and is liable on conviction to a fine not exceeding $500,000.