Central Bank (Individual Accountability Framework) Act 2023

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Considerations relevant to imposition of sanctions

48. Part IIIC of the Act of 1942 is amended by the insertion of the following section after section 33AR:

“33ARA. (1) In determining under section 33AQ or 33AR whether to impose a sanction on a natural person, what sanction to impose on a natural person, or the level of any monetary penalty to be imposed on a natural person, the Bank shall have regard, together with any other relevant considerations, to any of the following that appear to it to be relevant:

(a) any consideration affecting the seriousness of the prescribed contravention concerned, including—

(i) the person’s seniority and level of responsibility, and the nature of any role performed by the person, at the time of the person’s commission of or participation in the prescribed contravention,

(ii) the extent to which the person’s conduct in committing or participating in the prescribed contravention departs from any standard to which the person is subject,

(iii) whether the person’s conduct was intentional, negligent, or dishonest,

(iv) whether the person’s conduct involved or facilitated the commission of an offence, and the nature and seriousness of any such offence,

(v) the duration of the period over which the person committed or participated in the prescribed contravention,

(vi) whether the sanction relates to more than one prescribed contravention, or to the repeated commission of or participation in a prescribed contravention, and

(vii) any benefit gained or loss avoided, by means of the prescribed contravention, by the person or a regulated financial service provider or any other person,

(b) the effect of the prescribed contravention, including—

(i) whether it has affected or may affect the orderliness of the financial markets, including public confidence in those markets,

(ii) any loss or detriment it has caused or may cause to a regulated financial service provider, or to customers, consumers, other market users or third parties, and

(iii) whether any loss or detriment has affected or may affect vulnerable persons,

(c) the conduct of the person during and after the person’s commission of or participation in the prescribed contravention, including—

(i) how quickly, effectively and completely the person brought the prescribed contravention to the attention of a regulated financial service provider, the Bank or any other relevant regulatory authority, agency or criminal investigative body, and

(ii) the degree of cooperation by the person with the Bank or any other relevant regulatory authority, agency or criminal investigative body provided during an investigation of the contravention,

(d) the previous record of the person, including—

(i) whether or not the Bank has previously imposed a sanction on the person or the Bank or the Governor has issued a prohibition notice to the person under section 43 of the Central Bank Reform Act 2010 , and

(ii) whether or not the person has previously been convicted of an offence relevant to the performance of a controlled function,

(e) any consideration relating to pending or possible criminal proceedings, including whether such proceedings may be prejudiced by the imposition of a sanction, and

(f) any matter relevant to the financial position of the person.

(2) In determining under section 33AQ or 33AR whether to impose a sanction, what sanction to impose, or the level of any monetary penalty, in the case of a contravention of section 53C of the Central Bank Reform Act 2010 , the Bank shall have regard to the importance of promoting a culture of compliance with the common conduct standards and additional conduct standards (within the meaning of Part 3A of that Act).”.