Admin Fines - Sharing of Information (2020-10-13)

Summary

This is a Supervisory Information Circular issued by CIMA on 13 October 2020, reminding regulated entities that the Monetary Authority (Administrative Fines) (Amendment) Regulations, 2020 (the "Administrative Fines Regime"), gazetted on 26 June 2020, is now in force. The circular highlights one specific scenario now subject to administrative fines: breaches of confidentiality requirements attached to notices issued by CIMA under Section 34(8) of the Monetary Authority Law (2020 Revision).

• Who may receive a Section 34(8) notice: CIMA may issue a written notice to a regulated person (Licensee or Registered Person), a connected person, or anyone believed to hold information relevant to a CIMA enquiry, requiring them to provide specified information or documents.
• Additional requirements CIMA may impose: CIMA may impose additional requirements in such a notice, including a prohibition on disclosing the existence or content of the notice to any third party, including the subject of the notice.
• Consequences of non-compliance: Failure to comply with such requirements -- particularly the non-disclosure obligation -- will be treated seriously and may result in enforcement action, including the imposition of an administrative fine.

This is an informational reminder rather than a new standalone rule; it reiterates existing statutory obligations and flags the fine exposure now attached to breaches of them.

Key obligations

• Recipients of a Section 34(8) notice must provide the specified information or documents required by the notice.
• Where a CIMA notice requires confidentiality, the recipient must not inform, directly or indirectly, any third party (including the subject of the notice) of the notice's requirements, content, or existence.
• Recipients must otherwise adhere to all requirements set out in a Section 34(8) notice, as breach may result in enforcement action including an administrative fine.

Applies to

Licensees, Registered Persons, connected persons, persons regulated under the regulatory laws