Hong Kong Ordinances

BANKING ORDINANCE - SECT 51A

Control of establishment, etc. of overseas banking corporations

(Past version on 19/11/1999).
(Past version on 30/06/1997).

(1) In this section-

"overseas banking corporation" (海外銀行法團) means a company which-

   (a)  is incorporated outside Hong Kong (and whether or not it is an
        authorized institution); and

   (b)  may, whether or not in or outside Hong Kong, lawfully take deposits
        from the general public, whether or not on current account;

"relevant day" (有關日期) means the day of *commencement of the Banking
(Amendment) Ordinance 1993 (94 of 1993).

(2) An authorized institution incorporated in Hong Kong, and any
holding company incorporated in Hong Kong of such an institution, shall each
be subject to a condition that it shall not-

   (a)  establish or acquire, by whatever means, an overseas banking 
        corporation such that that corporation becomes the subsidiary of the
        institution or of the holding company, as the case may be, without the
        approval of the Monetary Authority;

   (b)  if any such approval granted in respect of that corporation is revoked
        under subsection (5), maintain that corporation as a subsidiary on or
        after the time such revocation comes into effect.

(3) Approval under subsection (2) shall be deemed to have been granted in
respect of any overseas banking corporation-

   (a)  which was, immediately before the relevant day, the subsidiary of an
        authorized institution or of any holding company of the institution;
        or

   (b)  which becomes, not later than 3 months after the relevant day, the
        subsidiary of an authorized institution or of any holding company of
        the institution where the acts or circumstances by virtue of which
        such corporation became such a subsidiary substantially occurred
        before the relevant day.

(4) The Monetary Authority may at any time, by notice in writing served upon
an authorized institution or its holding company, attach, with effect from
such time as is specified in the notice (being a time reasonable in all the
circumstances of the case), to an approval granted under subsection (2), or
deemed to have been granted under subsection (3), in respect of any
overseas banking corporation which is to become or is a subsidiary of the
institution or of the holding company, as the case may be, such conditions, or
amend or cancel, with effect from such time as is specified in the notice
(being a time reasonable in all the circumstances of the case), any conditions
so attached, as he may think proper. (Amended 42 of 1999 s. 3)

(5) The Monetary Authority may revoke-

   (a)  in such case as he thinks fit; and

   (b)  with effect from such time as is specified by him, being a time
        reasonable in all the circumstances of such case, an approval granted
        under subsection (2), or deemed to have been granted under subsection
        (3), in respect of any overseas banking corporation.

(6) Where the Monetary Authority refuses to grant approval under subsection
(2) or revokes an approval under subsection (5), he shall notify the
authorized institution or its holding company concerned in writing of the
refusal or revocation.

(7) (Repealed 4 of 1997 s. 27)

(8) Every director, every chief executive and every manager of an
authorized institution or of its holding company which contravenes the
condition in subsection (2) or any condition attached under subsection (4)
commits an offence and is liable- (Amended 32 of 2001 s. 24)

   (a)  on conviction upon indictment to a fine at tier 7; or

   (b)  on summary conviction to a fine at tier 5, and, in the case of a
        continuing offence, to a further fine at tier 2 for every day during
        which the offence continues. (Amended 4 of 1997 s. 27) (Added 94 of
        1993 s. 15)
        ___________________________________________________________________________
        __ Note:

* Commencement date: 31 December 1993.

"overseas banking corporation" (海外銀行法團)

"relevant day" (有關日期)