MONEY-CHANGING AND REMITTANCE BUSINESSES BILL

Order for Second Reading read.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Prior to the liberalisation of exchange controls on 1st June, 197 8, money-changers and remittance shops were licensed annually by the Monetary Authority of Singapore under the Exchange Control Act. Licences and permits were last issued in April 1978. Following liberalisation of exchange controls, the Authority no longer has the legal power to license such institutions. As a result, money-changing and remittance businesses in Singapore are now not regulated by any law.

It is necessary that the Authority should continue to license money-changers and remittance shops in order that undesirable persons are precluded from the conduct of such businesses. There were 139 licensed money-changers and 55 licensed remittance shops operating in Singapore last year. A proliferation of money-changers, especially in favoured locations, may cause them to become a nuisance to tourists. In the case of remittance shops, regulation is necessary as they are handling funds of the public.

The Money-changing and Remittance Businesses Bill now before the House provides for the licensing of persons who carry on money-changing or remittance business. The terms "money-changing business" and "remittance business" are defined in clause 2 of the Bill. Clause 3 specifically exempts retail shops and others who customarily accept foreign currency notes in payment for goods and services from the requirement of a money-changer's licence. Under clause 19, banks are exempted from the provisions of the Act. Apart from these categories, the Authority is empowered to exempt any person or class of persons from the provisions of the Act.

Clause 7 provides that the Authority may grant a licence with or without conditions or refuse to grant a licence without giving any reasons. In granting a licence, factors such as the character and financial position of the applicant, the quality of management of the company, if the applicant is a company, and the public interest will be taken into consideration. The Authority is empowered to vary the conditions of a licence or impose new conditions.

A person who carries on money-changing or remittance business without a licence or who contravenes the conditions of a licence granted to him commits an offence and is liable on conviction to a maximum fine of $5,000 or to imprisonment for a maximum term of six months or to both such fine and imprisonment. The Authority may appoint officers to inspect premises carrying on or suspected of carrying on money-changing or remittance business. Any person who, without reasonable excuse, fails to admit such officers to inspect the premises or fails to provide books or documents required by the officers in the course of investigation, commits an offence and shall be liable on conviction to a maximum fine of $2,000.

Clause 10 provides that a licensee who fails to comply with the conditions of his licence may have his licence revoked. Such a person may, within 21 days of the receipt of the notice of revocation or within such extended period of time as the Minister may allow, appeal in writing to the Minister whose decision shall be final.

Transitional provisions have been made in the Bill to enable a person who has been carrying on money-changing or remittance business, before the coming into force of this legislation, to continue doing so without a licence for a period of three months. Before the expiration of this period, he must apply for a licence to enable him to continue his business.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Hon Sui Sen].

Bill considered in Committee; reported without amendment; read a Third time and passed.