The proposed Finance Business Bill was passed by the Parliament and this new act will enhance the supervisory powers of the regulators over licensed finance companies and provide legal provisions to effectively curb unauthorised deposit taking persons and institutions.
According to the Central Bank this new Act will repeal and replace the Finance Companies Act, No. 78 of 1988, the current law relating to finance business.
Carrying on finance business without authority and accepting deposits without authority are made indictable offences by the Attorney General in the High Court. The provisions in the new Act are expected to enable more effective litigation action and be a deterrent to those who contravene the law.