The legal reform landscape

BOM not subject to Equal Opportunities Act when appointing consultants

BOM entitled to consider applications from subsidiaries of banks incorporated abroad

New BOM powers to suspend banking licences

New reporting obligations imposed on directors in relation to company, including AMC/CFT matters

Wilful default of borrowers on loans to be made a criminal offence

Protection afforded to whistleblowers

Obligation on financial institutions to put in place procedures requiring employees to disclose interests and employees to be prohibited from taking part in deliberations/decisions

Disclosure by listed entities of transaction of a value of at least 10% of company’s assets

Disclosure of individual remuneration of directors in annual report

Declared dividends to be paid no later than 15 months, subject to solvency test

Disqualification of directors in case of a successful claim made by shareholders

‘Beneficial owner’ will be defined in Companies Act / Limited Liability Partnerships Act / Limited Partnerships Act

At least one woman on the board of public companies and statutory bodies

Sandbox licencing framework for fintech activities to be upgraded in line with UN Office on Drugs & Crime policies

Whistleblowers to benefit from immunity in relation to disclosures

Creation of a Financial Crime Commission to ensure coordination with investigative agencies (ICAC, FIU and enforcement department of the FSC)

Licensed auditors to be subject to relevant regulations issued by the FIU

Licensed auditor/audit firm will be liable to a fine not exceeding Rs5m in case of breach of the FRA or any rules, code, guidelines or standards relating to auditing issued by the FRC

Threshold applicable to unexplained wealth will be decreased from Rs10m to Rs2.5m

Properties acquired, in possession, custody or control of a person before 1 January 2016 will fall under the scope of the Act

Additional responsibility placed on the Horse Racing Organiser to ensure same treatment to all licensees of the GRA including but not limited to the display of odds and other information to correct any unfair treatment

Powers of the GRA to seek court order to obtain information from telecom operators regarding phones and phone records in relation to jockeys or horse owners

Calculation of gratuity on retirement will be amended to be based on the full length of service of a worker irrespective of the number of employers worked for and a Portable Gratuity Fund will be set up for that purpose

Creation of a fund guaranteeing workers who lose their job following insolvency, a payment of up to Rs50,000

Minister of Environment will have powers to approve or refuse an EIA licence within 5 days, or otherwise refer the decision to a Technical Assessment Committee within 7 days