Banking Act 2009

Enforcement U.K.

193 Inspection U.K.

(1) The Bank of England may appoint one or more persons to inspect the operation of a recognised F1 ... payment system.

(2) The operator of a recognised F1 ... payment system must—

(a) grant an inspector access, on request and at any reasonable time, to premises on or from which any part of the system is operated, and

(b) otherwise co-operate with an inspector.

Textual Amendments

F1 Word in s. 193(1)(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 15

Commencement Information

I1 S. 193 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

194 Inspection: warrant U.K.

(1) A justice of the peace may on the application of an inspector issue a warrant entitling an inspector or a constable to enter premises if—

(a) any part of the management or operation of a recognised F2 ... payment system is conducted on the premises (whether by an operator of the system or by someone providing services used by an operator), and

(b) any of the following conditions is satisfied.

(2) Condition 1 is that—

(a) a requirement under section 204 in connection with the payment system has not been complied with, and

(b) there is reason to believe that information relevant to the requirement is on the premises.

(3) Condition 2 is that there is reason to suspect that if a requirement under section 204 were imposed in connection with the payment system in respect of information on the premises—

(a) the requirement would not be complied with, and

(b) the information would be destroyed or otherwise tampered with.

(4) Condition 3 is that an inspector—

(a) gave reasonable notice of a wish to enter the premises, and

(b) was refused entry.

(5) Condition 4 is that a person occupying or managing the premises has failed to co-operate with an inspector.

(6) A warrant—

(a) permits an inspector or a constable to enter the premises,

(b) permits an inspector or a constable to search the premises and copy or take possession of information or documents, and

(c) permits a constable to use reasonable force.

(7) Sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 (warrants: procedure) apply to warrants under this section.

(8) In the application of this section to Scotland—

(a) the reference to a justice of the peace includes a reference to a sheriff, and

(b) ignore subsection (7).

(9) In the application of this section to Northern Ireland—

(a) the reference to a justice of the peace is a reference to a lay magistrate, and

(b) the reference to sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 is a reference to the equivalent provisions of the Police and Criminal Evidence (Northern Ireland) Order 1989.

Textual Amendments

F2 Word in s. 194(1)(a) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 16

Commencement Information

I2 S. 194 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

195 Independent report U.K.

(1) The Bank of England may require the operator of a recognised F3 ... payment system to appoint an expert to report on the operation of the system.

(2) The Bank may impose a requirement only if it thinks—

(a) the operator is not taking sufficient account of principles published by the Bank under section 188,

(b) the operator is failing to comply with a code of practice under section 189, or

(c) the report is likely for any other reason to assist the Bank in the performance of its functions under this Part.

(3) The Bank may impose requirements about—

(a) the nature of the expert to be appointed;

(b) the content of the report;

(c) treatment of the report (including disclosure and publication);

(d) timing.

Textual Amendments

F3 Word in s. 195(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 17

Commencement Information

I3 S. 195 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

196 Compliance failure U.K.

In this Part “compliance failure” means a failure by the operator of a recognised F4 ... payment system to—

(a) comply with a code of practice under section 189,

(b) comply with a requirement under section 190,

(c) comply with a direction under section 191, or

(d) ensure compliance with a requirement under section 195.

Textual Amendments

F4 Word in s. 196 omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 18

Commencement Information

I4 S. 196 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

197 Publication U.K.

(1) The Bank of England may publish details of a compliance failure by the operator of a recognised F5 ... payment system.

(2) The Bank may publish details of a sanction imposed under sections 198 to 200.

Textual Amendments

F5 Word in s. 197(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 19

Commencement Information

I5 S. 197 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

198 Penalty U.K.

(1) The Bank of England may require the operator of a recognised F6 ... payment system to pay a penalty in respect of a compliance failure.

(2) A penalty—

(a) must be paid to the Bank of England, and

(b) may be enforced by the Bank as a debt.

(3) The Bank must prepare a statement of the principles which it will apply in determining—

(a) whether to impose a penalty, and

(b) the amount of a penalty.

(4) The Bank must—

(a) publish the statement on its internet website,

(b) send a copy to the Treasury,

(c) review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and

(d) in applying the statement to a compliance failure, apply the version in force when the failure occurred.

Textual Amendments

F6 Word in s. 198(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 20

Commencement Information

I6 S. 198 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

199 Closure U.K.

(1) This section applies if the Bank of England thinks that a compliance failure—

(a) threatens the stability of, or confidence in, the UK financial system, or

(b) has serious consequences for business or other interests throughout the United Kingdom.

(2) The Bank may give the operator of the F7 ... payment system concerned an order to stop operating the system (a “closure order”)—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(3) A closure order may apply to—

(a) all activities of the payment system, or

(b) specified activities.

(4) An operator who fails to comply with a closure order commits an offence.

(5) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

Textual Amendments

F7 Word in s. 199(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 21

Commencement Information

I7 S. 199 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

200 Management disqualification U.K.

(1) The Bank of England may by order prohibit a specified person from being an operator of a recognised F8 ... payment system—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(2) The Bank may by order prohibit a specified person from holding an office or position involving responsibility for taking decisions about the management of a recognised F8 ... payment system—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(3) A person who breaches a prohibition under subsection (1) or (2) commits an offence.

(4) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

Textual Amendments

F8 Word in s. 200(1)(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 22

Commencement Information

I8 S. 200 in force at 12.11.2009 for specified purposes and 31.12.2009 in so far as not already in force by S.I. 2009/3000, arts. 2, 4, Sch. para. 2

201 Warning U.K.

(1) Before imposing a sanction on the operator of [F9 a] payment system or on another person the Bank of England must—

(a) give the operator or other person a notice (a “warning notice”),

(b) give the operator or other person at least 21 days to make representations,

(c) consider any representations made, and

(d) as soon as is reasonably practicable, give the operator or other person a notice stating whether or not the Bank intends to impose the sanction.

(2) In subsection (1) “imposing a sanction” means—

(a) publishing details under section 197(1),

(b) requiring the payment of a penalty under section 198,

(c) giving a closure order under section 199, or

(d) making an order under section 200.

(3) Despite subsection (1), if satisfied that it is necessary the Bank may without notice—

(a) give a closure order under section 199, or

(b) make an order under section 200.

Textual Amendments

F9 Word in s. 201(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 23

Commencement Information

I9 S. 201 in force at 12.11.2009 for specified purposes and 31.12.2009 in so far as not already in force by S.I. 2009/3000, arts. 2, 4, Sch. para. 2

202 Appeal U.K.

(1) Where the Bank of England notifies a person under section 201(1)(d) that the Bank intends to impose a sanction, the person may appeal to the [F10 Upper Tribunal].

(2) Where the Bank of England imposes a sanction on a person without notice in reliance on section 201(3), the person may appeal to the [F11 Upper Tribunal].

[F12 (3) The Bank of England may not impose a sanction while an appeal under this section could be brought or is pending.]

Textual Amendments

F10 Words in s. 202(1) substituted (6.4.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 151(a) (with Sch. 5)

F11 Words in s. 202(2) substituted (6.4.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 151(a) (with Sch. 5)

F12 S. 202(3) substituted (6.4.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 151(b) (with Sch. 5)

Commencement Information

I10 S. 202 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

[F13 202A Injunctions U.K.

(1) If, on the application of the Bank of England, the court is satisfied—

(a) that there is a reasonable likelihood that there will be a compliance failure, or

(b) that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,

the court may make an order restraining the conduct constituting the failure.

(2) If, on the application of the Bank of England, the court is satisfied—

(a) that there has been a compliance failure by the operator of a recognised F14 ... payment system, and

(b) that there are steps which could be taken for remedying the failure,

the court may make an order requiring the operator, and anyone else who appears to have been knowingly concerned in the failure, to take such steps as the court may direct to remedy it.

(3) If, on the application of the Bank of England, the court is satisfied—

(a) that there may have been a compliance failure by the operator of a recognised F15 ... payment system, or

(b) that a person may have been knowingly concerned in a compliance failure,

the court may make an order restraining the operator or person from dealing with any assets which it is satisfied the operator or person is reasonably likely to deal with.

(4) The jurisdiction conferred by this section is exercisable—

(a) in England and Wales and Northern Ireland, by the High Court, and

(b) in Scotland, by the Court of Session.

(5) In this section—

(a) references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,

(b) references to remedying a failure include mitigating its effect, and

(c) references to dealing with assets include disposing of them.]

Textual Amendments

F13 S. 202A inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(7), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F14 Word in s. 202A(2)(a) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 24

F15 Word in s. 202A(3)(a) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 24