Act of Congress Criminal Code Act

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CONGRESS OF THE
COMMONWEALTH OF REDMONT






A BILL TO

RESTORE THE CRIMINAL CODE







The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:


PART I — PRELIMINARIES

1. Short Title and Enactment


(1) This Act may be cited as the 'Criminal Code Act'.

(2) This Act shall be enacted immediately upon its signage.

(3) This Act has been authored by Representative _GreyMC and other members of the PRP-WPR-IND coalition.

(4) This Act has been co-sponsored by Representative Alexis_123003.

2. Reasons and Intent

(1) The Criminal Code Act was repealed during the events of July 2026, leaving the Commonwealth without any codified criminal law.

(2) To restore the criminal law swiftly and with minimal disruption, this Act re-enacts the Code as Congress last knew it, subject only to targeted corrections.

(3) The targeted corrections are: a Continuity of Core Offences clause within Ex Post Facto; an express Double Jeopardy principle; an exclusion to Treason protecting lawful political activity; the replacement of "disqualification" with defined "Removal from office" language, referred to the Supreme Court in accordance with its original jurisdiction under § 20(1)(a) of the Constitution; and the reclassification of three excessively fined Summary offences as Indictable.

(4) To provide a single source of truth for offences, to simplify existing laws, and to provide a legal test for offences.

3. Repealed Laws

(1) All Acts repealed by the previous Criminal Code Act remain repealed, including:
(a) Act of Congress - Government Service Offenses Act
(b) Act of Congress - Accomplice and Conspiracy Offenses Act
(c) Act of Congress - Corruption and Espionage Offenses Act
(d) Act of Congress - Miscellaneous Offenses Act
(e) Act of Congress - Savior* Act
(f) Act of Congress - Violent Offences Act
(g) Act of Congress - Verbally Threatening Act
(h) Act of Congress - Animal & Pet Offences Act
(i) Act of Congress - Vehicular Offenses Act
(j) Act of Congress - Illicit Trafficking Offenses Act
(k) Act of Congress - Health and Medical Offenses Act
(l) Act of Congress - Standardized Criminal Code Act
(m) Act of Congress - Tresspassing and Theft Offenses Act
(n) Act of Congress - Illicit Renting Act

(2) All laws repealed by laws repealed by this law shall remain repealed.

4. Additions to the Code

(1) Additions are to be formatted in accordance with the code standard formatting.
(#) Offence Name
Offence Type: Indictable/Summary
Penalty: Various options.
(a) Up to x amount of imprisonment or penalty units
(b) x amount of imprisonment or penalty units or removal period
(c) First, Second, Subsequent offence list
(d) All separated by a semi-colon.
A person commits an offence if the person:
(a) establish the legal test for your offence
It is a defence to a charge under this section if the person:
(a) establish the legal test for your defence
This offence shall not occur where:
(a) establish the legal test where it is not an offence
Relevant Law:
(a) This section consists of links to relevant laws to provide linkage between offences and the acts they derive from (if applicable). Clerks can add or remove relevant laws as required.
(b) Clerks can add or remove significant common law verdict links to the relevant law section.
(c) Changes to this section are informative and are actionable without legislative authority for cases/laws which are relevant.

5. Display of the Code

(1) The code will be aesthetically presented on the Laws page for display purposes.

(2) This Act of Congress will be updated as required and is the authoritative legal document.

(3) All parts after this section will be presented on the Laws page.

PART I: INTERPRETATION AND APPLICATION
This Part sets out the guiding principles, definitions, and legal standards that govern how this Code is to be read, understood, and enforced. It provides the foundational framework for interpreting offences, resolving conflicts of law, and ensuring the fair and consistent application of justice across the Commonwealth of Redmont.

1 - Common Law Principles
(1) This Code shall be interpreted in a manner consistent with the principles of natural justice and common law unless expressly excluded. Judicial reasoning and precedent may inform interpretation and application of this Code where the law is silent or ambiguous.

2 - Purpose and Spirit of the Law
(1) This Code shall be interpreted to give effect to its purpose and the spirit of the law. Courts and enforcement bodies must avoid construing provisions in a manner that produces absurd, unjust, or unintended results.

3 - Codification of Criminal Law
(1) This Code constitutes the exclusive and exhaustive listing of criminal offences within the jurisdiction of Redmont.
(2) No person may be charged with a criminal offence unless that offence is contained within this Code.
(3) Any new offence that seeks to impose a fine or imprisonment must be introduced as an amendment to this Code.

4 - Conflict of Laws
(1) Where any other Act, regulation, directive, or rule conflicts with a provision of this Code, this Code shall prevail to the extent of the inconsistency and the conflicting act will be updated to reflect the content of this act.

5 - Sentencing
(1) Where an offence in this Code provides for a list or range of penalties, including fines, imprisonment, or other sanctions, it shall be within the discretion of the judicial officer to impose any part or the whole of the prescribed penalty, subject to the limits set out in this Code.
(2) In exercising discretion, the judicial officer shall consider:
(a) the nature and seriousness of the offence;
(b) the intent and conduct of the offender;
(c) any aggravating or mitigating circumstances;
(d) the offender's criminal history or lack thereof;
(e) the protection of the community and the deterrence of future offences.
(3) A judicial officer may impose a lesser sentence than the maximum provided for the offence, or a combination of penalties, unless:
(a) the law specifically requires the imposition of a mandatory minimum penalty; or
(b) the offence expressly prohibits alternatives to the maximum sentence.
(4) Nothing in this section limits the authority of the courts to impose additional lawful remedies such as restitution, damages, or community service where such powers are established under this Code or another Act.
(5) Where a penalty under this Code includes Removal from office, the convicting court shall refer the removal component to the Supreme Court, which retains original jurisdiction over removal from public office under § 20(1)(a) of the Constitution, and which shall give effect to the referral unless doing so would be manifestly unjust.

6 - Legal Principles
(1) Criminal Jurisdiction
(a) The standard of proof for criminal cases is defined in the Judicial Standards Act.
(b) The Court shall have jurisdiction over all indictable offences.
(c) If an individual is found to be not guilty of a crime after punishment has been imposed, they shall be compensated $50 per minute spent in jail for offences found unproven, alongside a reimbursement of any fine paid for unproven offences.
(2) Criminal Offence Classification
(a) All criminal offences must carry the classification of either: Indictable or Summary.
(b) Punishments for a Summary Criminal Offence can be carried out by the relevant Government Department without a trial, subject to Criminal Jurisdiction rules.
(c) Judicial Officers may impose punishments for any Summary Offense committed during proceedings; when imposing such punishments, a Judicial Officer must offer their reasoning for issuing the punishment in an order or verdict. Such punishment may not be upheld on appeal except for reasons listed in such order or verdict.
(d) Punishments for an Indictable Criminal Offence must be proven in a trial.
(e) If a criminal offence fails to be specified as an Indictable or Summary Offense, then it shall not be added to the code.
(3) Ex Post Facto
(a) General Rule. No person shall be charged with, convicted of, or punished for conduct that did not constitute an offence under the law in force at the time the conduct occurred.
(b) No Retroactive Increase in Penalty. No person shall be subject to a penalty greater than the penalty prescribed for that offence by the law in force at the time the conduct occurred.
(c) Benefit of the Lesser Penalty. Where the penalty prescribed for an offence is reduced between the time the conduct occurred and the time of sentencing, the offender shall receive the benefit of the lesser penalty.
(d) Pending Proceedings. Any legislation passed after a lawsuit has been filed shall not be considered in that lawsuit, nor in any appeal of that lawsuit, nor in any case arising from the acceptance of such an appeal.
(e) Congressional Override. Congress may override this subsection through a bill, however such a bill will require a supermajority in both chambers.
(f) Continuity of Core Offences. Notwithstanding clause (a), conduct which occurred during any period in which no criminal code was in force may be prosecuted under this Code where that conduct would have constituted Murder, Treason, Abuse of Power, Fraud, or Embezzlement under the criminal code in force immediately before that period.
(i) Rationale. The offences listed in this clause are wrong in themselves and are universally understood to be wrong irrespective of their codification. No person may reasonably claim to have believed such conduct to be lawful merely because the Code had been repealed. This clause exists to ensure that the repeal of the criminal code does not operate as an amnesty for the gravest conduct, and it is to be construed narrowly and strictly against the State.
(ii) Penalty Cap. The penalty imposed shall not exceed the lesser of the penalty prescribed by the former code and the penalty prescribed by this Code.
(iii) Limitation Period. Prosecution must be commenced within the Statute of Limitations, calculated from the date of the conduct, and the period during which no criminal code was in force shall not extend, toll, or suspend that limitation period.
(iv) Closed List. This clause extends to no offence other than Murder, Treason, Abuse of Power, Fraud, and Embezzlement. It shall not be extended by analogy, by implication, or by the operation of any other provision of this Code, and it does not apply to any inchoate or derivative offence, including Accomplice to a Crime, Accessory to a Crime, or Conspiracy to Commit a Crime, save where the principal offence is one listed in this clause.
(v) Burden and Standard. The State bears the burden of proving both the conduct and its correspondence to an offence listed in this clause, to the standard of proof applicable to criminal matters under the Judicial Standards Act.
(vi) Defences Preserved. All defences, exclusions, and legal principles available under this Code, including Self Defence and Castle Law, apply to a prosecution under this clause as they would to any other prosecution.
(vii) No Precedent for Expansion. Nothing in this clause shall be construed as authorising the retrospective creation, revival, or expansion of any other offence, whether by Congress, the Executive, or the Courts.
(4) Expungement
(a) Expungement is defined as the process in which a good behavior citizen may request to have a criminal record removed.
(b) Any citizen may file for their criminal records to be removed via expungement, provided it has been at least 2 months since they have been charged with a crime.
(c) Any citizen who qualifies may bring their request to the courts, following such process:
(i) The citizen will file an Expungement Request to the Federal Court, to be presided over by a Judge or Justice.
(ii) The Attorney General, or State's legal equivalency, will then be called to answer as to whether they meet the criteria or not.
(iii) The Judicial Officer will then determine a verdict on such a request with the State's consent.
(d) If the respective Judge or Justice agrees with the request of the citizen, and has the consent of the State, they may order the Department of Homeland Security to delete such criminal record(s).
(5) Commutation
(a) If a criminal who has been jailed has not served their entire prison sentence within seven days, they will be freed from jail to accommodate other criminals and fined based upon the time that they have remaining in minutes, multiplied by ten.
(6) Summary Offense Expiration
(a) The Department of Homeland Security may remove wanted points for players that have not been resolved within 4 months from the date of the initial issuing of the wanted point.
(i) This provision does not apply to any crimes classified as 'indictable'.
(b) Players shall be fined for any outstanding fines the cleared wanted point carries.
(c) Players shall be fined an additional $20 per minute of jail time that would have been imposed under the associated offenses for each cleared wanted point.
(d) Players retain the right to appeal their summary offense convictions in court even if they are fined under this Act. If a player's summary offense conviction is overturned, and said player was fined under this Act, then the Department of Homeland Security shall refund their fine in full.
(7) Statute of Limitations
(a) Except for claims arising from High Crimes, all legal action must be commenced within four months of the date of the alleged offense OR within 2-months of becoming aware of the offence, if outside the Statute of Limitations 4-month timeframe.
(b) High Crimes excepted from the time constraints of the Statute of Limitations include:
(i) Abuse of Power
(ii) Whistleblower Anonymity Violation
(iii) Electoral Fraud
(iv) Treason
(v) Political Espionage
(vi) Breach of Integrity
(vii) Bribery
(viii) Whistleblower Suppression
(8) Proceeds of Crime
(a) The funds or assets acquired from criminal acts can be seized by the Government in court proceedings
(i) Fine or civil recovery of an amount up to the total proceeds of the offence committed.
(9) Castle Law
(a) A person is permitted to use reasonable force, including lethal force, to defend themselves, their property, or others within their owned residence or plot against an unlawful intruder.
(b) The use of force must be proportionate to the threat posed by the intruder.
(c) This law does not justify pre-emptive or retaliatory attacks once the threat has ceased.
(10) Self Defence
(a) A reasonable and proportionate defensive response to an imminent threat where a criminal action against the individual or property has been directly made, threatened, or implied.
(b) Crimes committed can be appealed under a claim of self defense, at which point all punishments are to be delayed until after the appeal.
(11) Double Jeopardy
(a) No person shall be punished twice for the same conduct constituting the same offence.
(b) Where conduct constitutes multiple offences, a person may be charged with each offence, but a court shall have regard to totality in sentencing.
(c) Where one offence expressly overrides another, only the overriding offence shall be charged in respect of the same conduct.

7 - Criminal Law Definitions
(1) Offence means any act, omission, negligence, or conduct which contravenes a provision in this Code and is punishable by fine, imprisonment, or sanction.
(2) Summary Offence means an offence that may be dealt with by immediate penalty, without the need for formal trial. This can be contested before a judicial officer after issue.
(3) Indictable Offence means an offence that must be prosecuted through formal legal proceedings, where the accused is entitled to a fair trial and the opportunity to contest the charges before a judicial officer, and are prosecuted by the Department of Justice.
(4) Criminal Law pertains to offences committed against the peace, order, or security of the state, wherein the state undertakes the prosecution of individuals or entities. Sanctions under criminal law may include fines, imprisonment, community service, or other punitive measures as prescribed by law.
(5) Removal from office means that the person is removed from any public office they hold, and is ineligible to assume any public office for the period specified in the penalty.

8 - Penalty Units
(1) Penalty units are attributable to a dollar amount and are used as a standardised method for calculating monetary fines under this Code and other Acts of Congress.
(2) Where a law imposes a fine expressed in penalty units, the total monetary amount of the fine shall be calculated as:
Number of Penalty Units × Value of One Penalty Unit.
(3) One penalty unit shall be equivalent to $120.

PART II: PROPER ADMINISTRATION OF GOVERNMENT
This Part pertains to offences that impede, obstruct, or otherwise compromise the lawful operation, authority, or integrity of government institutions, officers, or processes. It seeks to uphold responsible governance and the proper conduct of public affairs.


1 - Abuse of Power
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Removal from office for up to 2 months
A person commits an offence if the person:
(a) exercises any power, function, or duty vested in them by virtue of their position as members of the Executive, Legislative, or Judicial branches, or employee of a government agency, in contravention of the law; and
(b) either:
(i) knows that the exercise of power is unlawful; or
(ii) acts with reckless disregard as to whether the exercise of power is lawful.
It is a defence to a charge under this section if the person:
(c) made a good faith mistake as to the lawfulness of their conduct; or
(d) sought legal advice in good faith from a competent legal practitioner prior to exercising the power and reasonably relied on that advice.
Relevant Law:


2 - Political Espionage
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 60 minutes imprisonment; Removal from office for up to 2 months
A person commits an offence if the person:
(a) gathers, infiltrates, or compromises any sensitive political information that has not already been released to the public.
Relevant Law:


3 - Electoral Fraud
Offence Type: Indictable
Penalty: Up to 250 Penalty Units (per alternate account, if applicable); Removal from office for up to 2 months
A person commits an offence if the person:
(a) rigs or meddles with an election through the use of alternate accounts, bribery, threats, or similar conduct.
Relevant Law: Act of Congress - Electoral Act


4 - Treason
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Removal from office for up to 2 months
A person commits an offence if the person:
(a) maliciously sabotages or undermines the stability, sovereignty, or national security of the Government of Redmont.
This offence shall not occur where:
(b) the conduct is lawful political advocacy or industrial action.
Relevant Law:


5 - Bribery
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; 30 minutes imprisonment; Removal from office for up to 2 months
A person commits an offence if the person:
(a) offers, gives, solicits, or receives an item or service of value to influence:
(i) an individual employed by, appointed to, or elected to serve in any capacity within the government of the Commonwealth of Redmont;
(ii) an individual serving in a legal capacity;
(iii) a public official in the exercise of their official duties; or
(iv) a law enforcement officer in the performance of their law enforcement functions.
Relevant Law: Act of Congress - Commercial Standards Act


6 - Failure to Recuse
Offence Type: Indictable
Penalty: Up to 350 Penalty Units; Up to 60 minutes imprisonment; Immediate removal from the office in which the offence was committed.
A person commits an offence if the person:
(a) knowingly takes, participates in, or directs an official act from which they were required to recuse under §6 of the Conflict of Interest Standards Act; or
(b) fails to disclose a declarable interest within the timeframe required by §5 or §7 of that Act; or
(c) fails to comply with a divestiture order made under §6(7) of that Act within 14 days of service.
Relevant Law: Act of Congress - Conflict of Interest Standards Act


7 - False Financial Disclosure
Offence Type: Indictable
Penalty: Up to 600 Penalty Units; Up to 60 minutes imprisonment; Removal from office, and from any position covered by §3 of the Conflict of Interest Standards Act, for up to 2 months
A person commits an offence if the person:
(a) knowingly provides false, incomplete, or misleading information in financial disclosures required for government service; or
(b) willfully omits material information required to be disclosed under the Conflict of Interest Standards Act; or
(c) submits fraudulent documentation in support of divestiture requirements.
Relevant Law: Act of Congress - Conflict of Interest Standards Act


8 - Harassment of a Polling Place
Offence Type: Indictable
Penalty:
(a) First offence - Up to 100 Penalty Units; Up to 10 minutes imprisonment; Removal from office for up to 2 months
(b) Subsequent offences - Up to 250 Penalty Units; Up to 25 minutes imprisonment; Removal from office for up to 2 months
A person commits an offence if the person:
(a) engages in any conduct inside a building containing a polling place or within 50 blocks of a building where a polling place is located that:
(i) interferes with the freedom of voters to vote; or
(ii) disrupts the administration of the polling place; or
(iii) violates the restrictions set out in §11(2) of the Electoral Act.
Relevant Law: Act of Congress - Electoral Act


9 - Obstruction of Government Department
Offence Type: Indictable
Penalty: Up to 60 minutes imprisonment; 3 Penalty Units
A person commits an offence if the person:
(a) willfully threatens or harms an employee of a government department during the course of that employee's official and lawful duty; or
(b) willfully takes action to impede an employee of a government department during the course of that employee's official and lawful duty
Relevant Law:


10 - Following a Manifestly Illegal Directive
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Removal from office for up to 1 month
A person commits an offence if the person:
(a) acts in an official capacity; and
(b) follows a directive or order that is clearly and obviously contrary to law, such that a reasonable person in that official capacity would recognise it as unlawful.
Relevant Law:


PART III: PROPER ADMINISTRATION OF JUSTICE

This Part provides for offences which interfere with the lawful administration of justice. It includes conduct that undermines court proceedings, disrespects judicial authority, or otherwise impairs the enforcement of the law.


1 - Perjury
Offence Type: Summary
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) knowingly provides false testimony in a court of law; or
(b) knowingly provides false testimony in a congressional hearing.
Relevant Law:


2 - Contempt of Court
Offence Type: Summary
Penalty: Up to 100 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) disobeys a lawful order of the court; or
(b) engages in conduct that obstructs or interferes with the administration of justice.
Relevant Law:


3 - Obstruction of Justice
Offence Type: Indictable
Penalty: Up to 10 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) willfully interferes with the process of justice by threatening, harming, or impeding a witness or potential witness; or
(b) willfully interferes with the process of justice by influencing a witness, potential witness, or law enforcement officer; or
(c) knowingly provides false information to a law enforcement officer in the course of their duties.
Relevant Law:


4 - Frivolous Court Case
Offence Type: Summary
Penalty: 100 Penalty Units, or 10% of the value of the monetary value of prayer(s) for relief; whichever is higher
A person commits an offence if the person:
(a) lodges a legal case that has no serious purpose or value.
Relevant Law:


5 - False Accusations
Offence Type: Summary
Penalty: 1 Penalty Units
A person commits an offence if the person:
(a) falsely accuses another person of a crime, and
(b) could reasonably infer that the accused was innocent.
Relevant Law:


6 - Contempt of Congress
Offence Type: Summary
Penalty: 40 Penalty Units
A person commits an offence if the person:
(a) refuses to testify, withholds information, or obstructs a congressional inquiry or investigation; or
(b) engages in conduct that is disrespectful or unbecoming of the dignity of Congress or its proceedings.
Relevant Law: Information - Legislative Standards Act


7 - Police Misconduct
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 30 minutes imprisonment; Suspension from the DHS for up to 2 months
A person commits an offence if the person:
(a) issues punishments inconsistent with the specific penalties outlined in law.
Relevant Law:


8 - Whistleblower Anonymity Violation
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) discloses or attempts to disclose the identity of a whistleblower without their consent.
Relevant Law: Act of Congress - Whistleblowers Act


9 - Whistleblower Suppression
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) retaliates against an employee for reporting a violation involving corporate misconduct.
Relevant Law: Act of Congress - Commercial Standards Act


10 - Breach of Integrity
Offence Type: Indictable
Penalty: Up to 200 Penalty Units
A person commits an offence if the person:
(a) shares classified information without authorisation.
Relevant Law: Act of Congress - Classified Materials Act


11 - Breach of Confidence
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) knowingly or recklessly discloses private information of another individual or entity to the public domain or to unauthorised third parties without lawful authority or consent; or
(b) uses private information obtained in confidence for an unauthorised purpose that causes or is likely to cause harm to the individual or entity to whom the information relates.
This offence shall not occur where:
(c) the disclosure is required or permitted by law or court order; or
(d) the disclosure is made as part of official Congressional or Court proceedings; or
(e) the subject has provided explicit consent to the disclosure; or
(f) the information is already in the public domain through lawful means; or
(g) the information is general in nature and does not identify or could not reasonably identify any individual or entity.
Relevant Law: Act of Congress - Privacy Act


12 - Legal Qualification Fraud
Offence Type: Indictable
Penalty: Up to 300 Penalty Units; Up to 4 months disbarment
A person commits an offence if the person:
(a) intentionally misrepresents their legal credentials, qualifications, or rank, or engages in the practice of law without a valid legal qualification.
Relevant Law: Act of Congress - Modern Legal Reform Act


13 - Legal Malpractice
Offence Type: Indictable
Penalty: Up to 300 Penalty Units; Up to 4 months disbarment
A person commits an offence if the person:
(a) practices law, represents clients, or files cases in courts beyond their qualification rank or specialised jurisdiction.
Relevant Law: Act of Congress - Modern Legal Reform Act


14 - Conflict of Interest
Offence Type: Indictable
Penalty: Up to 350 Penalty Units; Up to 1 month disbarment
A person commits an offence if the person:
(a) represents both the defence and the plaintiff simultaneously in the same legal case.
Relevant Law: Act of Congress - Modern Legal Reform Act


15 - Duty to Disclose
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) fails to present to the opposing counsel any exculpatory evidence relating to a court case that the violator is either a plaintiff, defendant, or counsel in, that was either personally viewed or received.
Relevant Law: Act of Congress - Judicial Standards Act


16 - Ex Parte Communication
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) makes direct or indirect communication about a specific case with the presiding officer who is presiding over a case; and
(b) is either a plaintiff, defendant, or counsel in the case; and
(c) the communication is without the knowledge of all parties to the case (Plaintiff, Defendant, Counsel).
Relevant Law: Act of Congress - Judicial Standards Act


17 - Detective Misconduct
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 60 minutes imprisonment; Suspension from the Department of Homeland Security for up to 2 months
A person commits an offence if the person:
(a) being a detective:
(i) takes a case in which they were directly involved as the murderer; or
(ii) takes a case with the intent to conceal or destroy evidence.
Relevant Law:


18 - Violation of the Automatic Stay
Offence Type: Indictable
Penalty: Up to 450 Penalty Units; restitution of any improperly collected amount
A person commits an offence if the person:
(a) knowingly takes action prohibited by the Automatic Stay under the Bankruptcy Act, after notice of the stay.
Relevant Law: Act of Congress - Bankruptcy Act


19 - Prison Escape
Offence Type: Summary
Penalty: Imprisonment for each minute spent unlawfully outside of custody
A person commits an offence if the person:
(a) escapes from prison while serving out a sentence under this act.
(i) Escaping shall be determined when a player is given a wanted star by the server for escaping.
Relevant Law:

PART IV: DANGERS TO THE COMMUNITY​

This Part concerns offences which constitute a serious risk to public safety, order, or welfare. It includes conduct of a violent, hazardous, or otherwise dangerous nature directed at individuals, groups, environment, or the general public.


1 - Assault
Offence Type: Summary
Penalty: 1 Penalty Unit; 5 minutes imprisonment
A person commits an offence if the person:
(a) intentionally hits another player, causing a loss of no more than 3 hearts; or
(b) places another player in a position of danger, including but not limited to pointing a weapon at them.
Relevant Law:


2 - Attempted Murder
Offence Type: Summary
Penalty: 1 Penalty Unit; 10 minutes imprisonment
A person commits an offence if the person:
(a) intentionally hits another player, causing a loss of more than 3 hearts; or
(b) verbally threatens another player's life and attacks them.
Relevant Law:


3 - Murder
Offence Type: Summary
Penalty: 3.5 Penalty Units; 15 minutes imprisonment
A person commits an offence if the person:
(a) unlawfully kills another player.
Relevant Law:


4 - Mass Murder
Offence Type: Summary
Penalty: 6 Penalty Units per murder; 20 minutes imprisonment per murder; Additionally, if a firearm was used:
(a) 9 or fewer unlawful killings: 1 firearms license strike
(b) 10+ unlawful killings: 1 firearms license strike, plus an additional license strike for every 10 unlawful killings.
A person commits an offence if the person:
(a) unlawfully kills five or more players before being apprehended.
Relevant Law: Act of Congress - Firearms Licensing Act


5 - Deprivation of Liberty
Offence Type: Indictable
Penalty: 2 Penalty Units; 10 minutes imprisonment; Additionally:
(a) If a firearm was used: 1 firearms license strike
A person commits an offence if the person:
(a) unlawfully confines a player or tamed pet without consent or means of exit; or
(b) holds another player against their will, including under threat or ransom.
Relevant Law: Act of Congress - Firearms Licensing Act


6 - Violent Disorder
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 60 minutes imprisonment; Additionally:
(a) If a firearm was used: 1 firearms license strike
A person commits an offence if the person:
(a) is one of 3 or more persons who are present together; and
(b) they use or threaten unlawful violence; and
(c) their conduct would causes a person at the scene to fear for their own personal safety.
Relevant Law: Act of Congress - Firearms Licensing Act


7 - Unlawful Killing of Protected Entity
Offence Type: Summary
Penalty: 2 Penalty Units; 10 min imprisonment
A person commits an offence if the person:
(a) kills an animal owned by another player without consent; or
(b) kills an animal in the care of a shelter.
Relevant Law:


8 - Assault of Protected Entity
Offence Type: Summary
Penalty: 1 Penalty Unit; 5 minutes imprisonment
A person commits an offence if the person:
(a) intentionally hits an animal owned by another player without consent; or
(b) intentionally hits an animal in the care of a shelter.
Relevant Law:


9 - Unlawful Killing of Protected Villager
Offence Type: Summary
Penalty: 10 Penalty Units; 10 minutes imprisonment
A person commits an offence if the person:
(a) is the primary individual behind the villagers death; and
(b) the villager is owned by, or in the care of another person, business, or government entity.
Relevant Law:


10 - Unauthorised Firearms Possession
Offence Type: Summary
Penalty: 10 Penalty Units; 10 minutes imprisonment; Confiscation of unlicensed firearms
A person commits an offence if the person:
(a) possesses a firearm without holding a valid firearms license.
Relevant law: Act of Congress - Firearms Licensing Act


11 - Violation of Firearms License Restriction
Offence Type: Summary
Penalty: 30 Penalty Units; 5 minutes imprisonment; Confiscation of unlicensed firearms; 1 firearms license strike
A person commits an offence if the person:
(a) has a Restricted firearms license; and
(b) handles a restricted firearm.
Relevant law: Act of Congress - Firearms Licensing Act


12 - Unauthorised Firearms Sales
Offence Type: Indictable
Penalty: Confiscation of unlicensed firearms; Additionally:
(a) First offence: Up to 50 Penalty Units; Up to 30 minutes imprisonment; 2 firearms license strikes
(b) Subsequent offences: Up to 100 Penalty Units; Up to 60 minutes imprisonment; 3 firearms license strikes
A person commits an offence if the person:
(a) sells, distributes, or traffics a firearm:
(i) for which the recipient of the item lacks the proper licensure to handle; or
(ii) for which the offender lacks the proper licensure to handle.
Relevant law: Act of Congress - Firearms Licensing Act


13 - Contract Murder
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) gives or receives money, assets, positions of power, or another item of value in exchange for the murder of another citizen.
This offence shall not occur where:
(b) the form of the in-game bounty system is used with no other communication methods.
(c) this offence overrides Incitement and Accessory to a Crime.
Relevant Law:


PART V: DISRUPTING THE PEACE​

This Part addresses acts which disturb or are likely to disturb the peace, tranquility, and public order of the community. It includes disorderly, aggressive, or harassing conduct not amounting to serious violence.


1 - Disturbing the Peace
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) engages in disorderly behavior toward an individual or group that causes or is likely to cause harassment, alarm, or distress.
Relevant Law:


2 - Dispersal Order Breach
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) violates an established dispersal order.
Relevant Law: Act of Congress - Criminal Terminology Act


3 - Falsely Claiming Self Defense
Offence Type: Summary
Penalty: Double the punishment for the associated crimes
A person commits an offence if the person:
(a) falsely claims self-defense in relation to committing another offence.
Relevant Law:


4 - Threats
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) verbally threatens another player with communication to cause fear or force action.
Relevant Law:


5 - Public Nuisance
Offence Type: Summary
Penalty:
(a) First offence: Imprisonment for duration of event not exceeding 1 hour; 15 Penalty units.
(b) Second offence: Imprisonment for duration of event not exceeding 1 hour; 30 Penalty Units
(c) Subsequent offences: Imprisonment for duration of event not exceeding 1 hour; 45 Penalty Units
A person commits an offence if the person:
(a) willfully disrupts or trolls DPA-sanctioned or government events, or political rallies; or
(b) interferes with planning or execution of such events.
Relevant Law:


6 - Animal Abandonment
Offence Type: Summary
Penalty: 3.5 Penalty Units; 15 min imprisonment; Confiscation of animal
A person commits an offence if the person:
(a) leaves an animal on private land without the consent of the property owner; or
(b) leaves an animal on public land, plot, building, or territory, not designated for agricultural purposes without express government permission.
Relevant Law:


7 - Careless Operation of Vehicles
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) operates a vehicle off-road, on sidewalks, or otherwise improperly; or
(b) blocks traffic, operates a vehicle on the wrong side, or endangers others; or
(c) while under the influence (25% BAC or higher):
(i) operates a vehicle; or
(ii) operates an aircraft.
Relevant Law:


8 - Resisting Arrest
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) disregards or defies a directive given by a law enforcement officer while being arrested; or
(b) escapes from handcuffs; or
(c) disconnects from the server after being handcuffed.
Relevant Law:


9 - Illicit Weapon Offences
Offence Type: Summary
Penalty: 5 Penalty Units
A person commits an offence if the person:
(a) possesses, sells, or distributes weaponry without appropriate license.
Relevant Law:


PART VI: SUBSTANCE OFFENCES​

This Part regulates the unlawful creation, possession, administration, or distribution of restricted or controlled substances. It is intended to prevent the misuse of substances in a manner detrimental to health, safety, or public order.


1 - Minor Illicit Substance Possession
Offence Type: Summary
Penalty:
(a) Class 1 Buff - 3 Penalty Units; Seizure of illicit items.
(b) Class 2 Buff - 2 Penalty Units; Seizure of illicit items.
(c) Buff Components - 1 Penalty Unit; Seizure of illicit items.
(d) Buff Seeds - 1 Penalty Unit; Seizure of illicit items.
(e) Weaponized Buffs - 5 Penalty Units; Seizure of illicit items.
(f) Shine Elixir - 1 Penalty Units; Seizure of illicit items.
A person commits an offence if the person:
(a) possesses less than sixty-four of any illicit substances combined.
Relevant Law: Act of Congress - Criminal Terminology Act


2 - Major Illicit Substance Possession
Offence Type: Summary
Penalty:
(a) Class 1 Buff - 15 Penalty Units; Seizure of illicit items.
(b) Class 2 Buff - 10 Penalty Units; Seizure of illicit items.
(c) Buff Components - 5 Penalty Unit; Seizure of illicit items.
(d) Buff Seeds - 5 Penalty Unit; Seizure of illicit items.
(e) Weaponized Buffs - 50 Penalty Units; Seizure of illicit items.
(f) Shine Elixir - 5 Penalty Units; Seizure of illicit items.
A person commits an offence if the person:
(a) possesses sixty-four or more of any illicit substances combined.
Relevant Law: Act of Congress - Criminal Terminology Act


3 - Illicit Substance Trafficking
Offence Type: Indictable
Penalty:
(a) Class 1 Buff - Up to 250 Penalty Units; up to 60 minutes imprisonment; Seizure of illicit items.
(b) Class 2 Buff - Up to 100 Penalty Units; up to 60 minutes imprisonment; Seizure of illicit items.
(c) Buff Components - Up to 100 Penalty Units; up to 60 minutes imprisonment; Seizure of illicit items.
(d) Buff Seeds - Up to 100 Penalty Units; up to 60 minutes imprisonment; Seizure of illicit items.
(e) Weaponized Buffs - Up to 250 Penalty Units; up to 60 minutes imprisonment; Seizure of illicit items.
(f) Shine Elixir - Up to 100 Penalty Units; up to 60 minutes imprisonment; Seizure of illicit items.
A person commits an offence if the person:
(a) sells, distributes, or traffics any quantity of an illicit substance; or
(b) brings illicit substances into Redmont with the intention of selling.
Relevant Law: Act of Congress - Criminal Terminology Act


4 - Buffing
Offence Type: Summary
Penalty: 10 Penalty Units; 10 minutes imprisonment
A person commits an offence if the person:
(a) uses Weaponized Buffs on another person without their consent or on an animal (pet, livestock, etc.) without the owner's consent.
Relevant Law: Act of Congress - Criminal Terminology Act


5 - Illicit Substance Production
Offence Type: Indictable
Penalty: Up to 250 Penalty Units; up to 60 minutes imprisonment; Seizure of illicit items.
A person commits an offence if the person:
(a) Plants Buff Seeds
(b) Creates Illicit Substances
(c) Grows Illicit Substances on a plot registered to their name.
Relevant Law: Act of Congress - Criminal Terminology Act


6 - Weapon of Mass Destruction Possession
Offence Type: Summary
Penalty: 10 Penalty Units; 1 firearms license strike
A person commits an offence if the person:
(a) possesses a Weapon of Mass Destruction.
This offence shall not occur where:
(b) the person holds a valid Enhanced firearms license; and
(c) the possession is done with the permission of the DHS Secretary; and
(d) the possession is done in the course of the person's official duties as a member of the DHS.
Relevant Law: Act of Congress - Firearms Licensing Act


7 - Weapon of Mass Destruction Trafficking
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) sells or traffics a weapon of mass destruction; or
(b) distributes a Weapon of Mass Destruction.
Instance (b) of this offence shall not occur where:
(a) the person holds a valid Enhanced firearms license; and
(b) the possession is done with the permission of the DHS Secretary; and
(c) the possession is done in the course of the person's official duties as a member of the DHS.
Relevant Law: Act of Congress - Firearms Licensing Act


PART VII: CORPORATE OFFENCES
This Part governs offences committed in the course of business, commercial activity, or through corporate entities. It encompasses breaches of financial duty, economic integrity, and commercial regulation.



The Redmont Commerce and Finance Act amended these sections in an improper manner. For intepretation please see the amendment post[url].



1 - Corporate Espionage
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) participates in gathering, infiltration, or compromise of any sensitive information related to a company that has not already been released to the public.
Relevant Law:


2 - Market Manipulation
Section 2 (Market Manipulation): Up to 500 Penalty Units; Up to 60 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) being a person with responsibility for a public company or asset, fraudulently inflates or deflates its value; or
(b) undertakes any activity, regardless of a direct responsibility for a public company or asset, with the primary intention to artificially influence the price or trading volume of a security for personal gain.
Relevant Law: [URL='https://www.democracycraft.net/threads/commercial-standards-act.19886/']Act of Congress - Commercial Standards Act


3 - Insider Trading
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; up to 60 minutes imprisonment; and up to a 2-month suspension of securities trading privileges
A person commits an offence if the person:
(a) buys or sells a stock based on non-public information that would substantially impact a trader's decision to buy or sell that stock; or
(b) uses non-public information obtained through privileged access for personal gain in the purchase or sale of a stock; or
(c) leaks non-public information, which would substantially impact a trader's decision to buy or sell a stock, for personal gain or with the knowledge it will be used for such; or
(d) partakes in insider trading by use of non-public information obtained through a leak, knowing it was obtained illicitly or through a breach of confidence.
Relevant Law: Act of Congress - Commercial Standards Act


4 - Third-Party Misrepresentation
Section 4 (Third-Party Misrepresentation): Up to 400 Penalty Units; Up to 30 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; 10 minutes imprisonment
A person commits an offence if the person:
(a) aids or abets a party or entity in committing market manipulation, including unknowingly participating in a pump and dump scheme.
Relevant Law: Act of Congress - Commercial Standards Act


5 - Union Busting
Offence Type: Indictable
Penalty: Up to 200 Penalty Units
A person commits an offence if the person:
(a) takes action to disrupt or dismantle a union.
This offence shall not occur where:
(b) the action is a union member exercising their right to leave, resign from, or terminate their membership in the union; or
(c) the action is the voluntary dissolution of the union by a vote of its own membership in accordance with the union's established bylaws.
Relevant Law: Act of Congress - Commercial Standards Act


6 - Embezzlement
Section 6 (Embezzlement): Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Restitution of the misappropriated assets or their value.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; 10 minutes imprisonment
A person commits an offence if the person:
(a) fraudulently and knowingly misappropriates assets that have been entrusted to them, or have lawfully come into their possession by virtue of office, employment, or position of trust.
Relevant Law: Act of Congress - Commercial Standards Act


7 - Fraud
Section 7 (Fraud): Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Restitution of the loss or its value.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) knowingly or recklessly misrepresents or omits a material fact to another, causing the other party to rely on that misrepresentation, resulting in actual, quantifiable harm.
Relevant Law: Act of Congress - Commercial Standards Act


8 - Concealment of Criminal Proceeds
Section 8 (Concealment of Criminal Proceeds): Up to 1000 Penalty Units; Up to 60 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) conceals, disguises, or converts funds known to be derived from criminal activity, including through business transactions or commercial deals.
Relevant Law: Act of Congress - Commercial Standards Act


9 - Fraudulent Gaming Conduct
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) misrepresents or manipulates the odds, outcomes, or terms of a gambling or gaming activity to deceive participants or gain unfair advantage; or
(b) organizes or initiates illegal gambling as defined in the Gambling Regulation Act
Relevant Law: Act of Congress - Gambling Regulation Act


10 - Exploitation of New Players
Section 10 (Exploitation of New Players): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) exploits the inexperience, wealth, or assets of a new player for unlawful gain or advantage.
Relevant Law: Act of Congress - Commercial Standards Act


11 - False Advertising
Offence Type: Indictable
Penalty: Up to 50 Penalty Units
A person commits an offence if the person:
(a) authorises or disseminates a commercial advertisement containing knowingly false claims; and
(b) each instance of publication constitutes a separate offence.
Relevant Law: Act of Congress - Commercial Standards Act


12 - Misleading Advertising
Offence Type: Indictable
Penalty: Up to 50 Penalty Units
A person commits an offence if the person:
(a) authorises or disseminates an advertisement that is misleading in substance or presentation; and
(b) each instance of publication constitutes a separate offence.
Relevant Law: Act of Congress - Commercial Standards Act


13 - False Credentials
Offence Type: Indictable
Penalty: Up to 10 Penalty Units
A person commits an offence if the person:
(a) fraudulently misrepresents themselves or another individual as having a certification, commendation, or credential for personal gain.
Relevant Law: Act of Congress - Commercial Standards Act


14 - Tax Evasion
Section 14 (Tax Evasion): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) intentionally or maliciously transfers in-game funds to one or more personal in-game balances or company in-game balances without a legitimate purpose, resulting in the evasion of personal tax liability; or
(b) transfers property to one or more individuals without legal ownership or a legitimate purpose, with the intent to evade property tax liability.
Relevant Law: Act of Congress - Commercial Standards Act


15 - Market Allocation
Section 15 (Market Allocation): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) enters into an agreement between two or more businesses to divide market territory to reduce or eliminate regional competition.
Relevant Law: Act of Congress - Commercial Standards Act


16 - Bid Rigging
Section 16 (Bid Rigging): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) agrees with one or more businesses or individuals to:
(i) not compete in bidding to minimise losses; or
(ii) ensure a particular outcome.
Relevant Law: Act of Congress - Commercial Standards Act


17 - Price Fixing
Section 17 (Price Fixing): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment
A person commits an offence if the person:
(a) enters into an agreement with one or more businesses to set prices at a certain level to avoid price competition.
Relevant Law: Act of Congress - Commercial Standards Act


18 - Monopolisation
Section 18 (Monopolisation): Up to 500 Penalty Units; Up to 30 minutes imprisonment; Forced divestiture of entities.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 10 minutes imprisonment; Forced divestiture of entities
A person commits an offence if the person:
(a) engages in a business deal or merger that results in a single entity or owner-subsidiary relationship controlling a disproportionately large share of any market.
Relevant Law: Act of Congress - Commercial Standards Act


19 - Auction Levy Evasion
Offence Type: Indictable
Penalty:
(a) First offence - Eviction; Up to 50 Penalty Units; Up to 10 minutes imprisonment, or 30% of the winning bid, whichever is higher
(b) Subsequent offences - Eviction; Up to 50 Penalty Units; Up to 10 minutes imprisonment, or 30% of the winning bid, whichever is higher; Ban from auction participation for up to 2 weeks
A person commits an offence if the person:
(a) takes actions with the sole intent to avoid paying the auction levy while still obtaining the plot or its benefits.
Relevant Law: Act of Congress - Commercial Standards Act


20 - Usury
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Restitution of any unlawful interest charged.
A person commits an offence if the person:
(a) demands, receives, or contracts for interest, fees, or charges exceeding 20% per month in any lending or credit agreement with an individual who is not acting on behalf of a registered company.
(b) fees charged for late payment shall not be counted when calculating the effective interest rate.
Relevant Law:


21 - Unrecognized Foreign Exchange
Section 21 (Unrecognized Foreign Exchange): Up to 500 Penalty Units; Up to 60 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) being a registered Financial Institution:
(i) transfers or lends any money, real estate, company shares, financial instruments, or items, in exchange for or collateralised with foreign assets originating from an entity or state (server) unrecognized by the Commonwealth of Redmont; and
(ii) this is either directly or by a proxy intermediary involving other companies or players.
Relevant Law:


22 - Foreign Exchange Fraud
Section 22 (Foreign Exchange Fraud): Up to 500 Penalty Units; Up to 60 minutes imprisonment.
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) transfers or lends any money, real estate, company shares, financial instruments, or items, in exchange for or collateralised with assets originating from a foreign entity or state (server) recognised by the Commonwealth of Redmont; and
(b) the transfer was for a price well below its market rate (recent average exchange rate prices within bounds advised by Department of Commerce, subject to periodic review); and
(c) it was through misrepresentation, fraudulent intent, or any other criminal intent as enumerated by law.
Relevant Law:


23 - Falsification of an Audit Report
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Suspension of ability to issue audit reports.
A person commits an offence if the person:
(a) knowingly issues an audit report that presents a false or misleading impression of a company's financial condition or its compliance with applicable financial law.
Relevant Law:


24 - Refusal to Comply with Gambling Spot-Checks
Offence Type: Summary
Penalty:
(a) First offence - Up to 50 Penalty Units
(b) Subsequent offences - Up to 100 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) refuses, denies, or fails to allow a Department of Commerce employee to inspect a gaming machine to ensure compliance with the advertised odds.
Relevant Law: Act of Congress - Commercial Standards Act


25 - Grant Fraud
Offence Type: Indictable
Penalty: Up to 200% of the grant amount converted to penalty units; Up to an indefinite suspension from receiving grants.
A person commits an offence if the person:
(a) A person either:
(i) Obtains grant funding under false pretenses; or
(ii) Uses grant funding for purposes other than what was stated in the grant application; or
(iii) Uses grant funding in a way that solely financially benefits oneself.
Relevant Law:
(a) Grant Guidelines Act



The Redmont Commerce and Finance Act amends section 26 through 30 by using instructive language instead of red and green text:

Sections 26 to 30 of Part VII of the Criminal Code Act, being the offences inserted by Part V of the Banking Income Tax Act, are amended by substituting a reference to Part IX of the Commercial Standards Act for every reference to the Banking Income Tax Act,

Pending advisement from the DOJ and possible internal review, see the amendment post for interpretation.



26 - Financial Institution Tax Evasion
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment
A financial institution commits an offence if the financial institution:
(a) Understates, omits, or misrepresents taxable income;
(b) Overstates, fabricates, or improperly claims deductions;
(c) Conceals, disguises, or mischaracterizes any transaction, arrangement, or instrument; or
(d) Enters into any arrangement or series of arrangements for the purpose or effect of avoiding tax payable under the Banking Income Tax Act,
in a repeated, systematic, or coordinated manner and the conduct involves deliberate concealment or falsification.


27 - False Statement in Tax Matters
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 20 minutes imprisonment.
A person commits an offence if the person knowingly and intentionally:
(a) Makes, participates in, or assents to the making of a false, incomplete, or misleading statement; or
(b) Omits material information.
In any return, record, or document required under the Banking Income Tax Act.


28 - Obstruction of Tax Administration
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment.
A person commits an offence if the person:
(a) Obstructs, hinders, or interferes with an audit, inspection, or investigation under the Banking Income Tax Act; or
(b) Fails to comply with a lawful requirement of the Department of Commerce under the Banking Income Tax Act; or
(c) Provides false or misleading information during an audit.


29 - Failure to Maintain Records
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 10 minutes imprisonment.
A financial institution commits an offence if the financial institution:
(a) Fails to maintain records required under the Banking Income Tax Act; and
(b) That failure materially impedes the determination of tax liability.


30 - Liability of Directors and Officers
Offence Type: Indictable
Penalty: Same as underlying offence.
A person commits an offence if:
(a) a financial institution, or an operation carrying on regulated financial activity, commits an offence under Sections 26 to 29 or under any offence inserted by the Commercial Standards Act; and
(b) The person:
(i) Directed, authorized, or permitted the commission of the offence; or
(ii) Knew or ought reasonably to have known of the offence and failed to take reasonable steps to prevent it.


31 - Violation of the Credit Standards Act
Offence Type: Indictable
Penalty: Up to 100 Penalty Units
A person commits an offence if the person:
(a) omits required information when extending credit as detailed by the Credit Standards Act.
Relevant Law: Act of Congress - Credit Standards Act


32 - Bankruptcy Fraud
Offence Type: Indictable
Penalty: Up to 2,250 Penalty Units; up to 60 minutes imprisonment; denial of discharge
A person commits an offence if the person:
(a) knowingly makes a false statement under oath, declaration, or in a schedule filed in a bankruptcy case; or
(b) knowingly conceals property from the Trustee or the court; or
(c) knowingly transfers, conceals, or destroys property in contemplation of filing or while a bankruptcy case is pending, with intent to defraud creditors; or
(d) knowingly conceals, destroys, mutilates, or falsifies any book, record, document, or financial information relating to the debtor's affairs, in contemplation of filing or while a bankruptcy case is pending; or
(e) in contemplation of filing, incurs any debt or obtains money, property, or credit with intent not to repay it and to discharge the obligation through bankruptcy; or
(f) knowingly receives, holds, or retains property of the debtor or the estate for the purpose of concealing it from the Trustee or the court.
Relevant Law: Act of Congress - Bankruptcy Act


33 - False Proof of Claim
Offence Type: Indictable
Penalty: Up to 900 Penalty Units; up to 30 minutes imprisonment
A person commits an offence if the person:
(a) knowingly files a false Proof of Claim in a bankruptcy case; or
(b) knowingly receives a distribution from a bankruptcy estate to which the person is not entitled.
Relevant Law: Act of Congress - Bankruptcy Act


34 - Trustee Misconduct
Offence Type: Indictable
Penalty: Up to 2,250 Penalty Units; up to 60 minutes imprisonment; disqualification from appointment as a Trustee under the Bankruptcy Act
A person commits an offence if the person, while serving as a Trustee under the Bankruptcy Act, or as a Debtor in Possession under Part V of that Act:
(a) knowingly embezzles, misappropriates, or fraudulently applies property of the estate; or
(b) knowingly makes a distribution from the estate contrary to the priority rules of Part VI of the Bankruptcy Act; or
(c) knowingly makes a false entry in, or false report of, the accounts of the estate; or
(d) knowingly acts to advance an interest adverse to the estate while purporting to act on its behalf.
Relevant Law: Act of Congress - Bankruptcy Act


35 - Bankruptcy Bribery
Offence Type: Indictable
Penalty: Up to 2,250 Penalty Units; up to 60 minutes imprisonment
A person commits an offence if the person:
(a) gives, offers, or promises anything of value to a Trustee, a creditor, or any party in interest, with intent to influence any act, vote, objection, or forbearance in a bankruptcy case; or
(b) being a Trustee, creditor, or party in interest, solicits, accepts, or agrees to accept anything of value in exchange for any act, vote, objection, or forbearance in a bankruptcy case.
Relevant Law: Act of Congress - Bankruptcy Act


36 - Obstruction of a Trustee
Offence Type: Indictable
Penalty: Up to 900 Penalty Units; up to 30 minutes imprisonment
A person commits an offence if the person knowingly:
(a) obstructs, impedes, or interferes with a Trustee, or a Department of Commerce officer acting as a Trustee, in the performance of their duties under the Bankruptcy Act; or
(b) refuses a Trustee access to property, books, or records the Trustee is entitled to under the Bankruptcy Act; or
(c) intimidates or misleads a Trustee for the purpose of frustrating the administration of the estate.
Relevant Law: Act of Congress - Bankruptcy Act


37 - Unauthorized Post-Petition Disposition of Estate Property
Offence Type: Indictable
Penalty: Up to 900 Penalty Units; up to 30 minutes imprisonment; restitution to the estate
A person commits an offence if the person, after a bankruptcy petition has been accepted by the court, knowingly sells, transfers, encumbers, conceals, or dissipates property of the estate without the authorization of the court or the Trustee.
Relevant Law: Act of Congress - Bankruptcy Act


38 - Retaliation Against a Worker or Whistleblower in Bankruptcy
Offence Type: Indictable
Penalty: Up to 900 Penalty Units; up to 30 minutes imprisonment; restitution and reinstatement where applicable
A person commits an offence if the person dismisses, demotes, blacklists, threatens, or otherwise retaliates against a worker or any other person for:
(a) filing a Proof of Claim in a bankruptcy case; or
(b) cooperating with the Trustee or the court in a bankruptcy case; or
(c) reporting suspected bankruptcy-related criminal conduct.
Relevant Law: Act of Congress - Bankruptcy Act


39 - Collusive Secured Lending
Offence Type: Indictable
Penalty: Up to 2,250 Penalty Units; up to 60 minutes imprisonment
A person commits an offence if the person knowingly enters into an agreement with a debtor to extend a secured loan, or to take, perfect, or enforce a security interest in the debtor's property, where a substantial purpose of the agreement is to place that property beyond the reach of another creditor or of the bankruptcy estate, in contemplation of a bankruptcy process.
Relevant Law: Act of Congress - Bankruptcy Act


40 - Operating an Unlicensed Financial Institution
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment.
A person commits an offence if the person carries on, operates, or knowingly facilitates regulated financial activity, including taking deposits or offering interest, yield or a payout on funds received, without the licence and incorporation required by the Commercial Standards Act.


41 - Aggravated Operation of an Unlicensed Financial Institution
Offence Type: Indictable
Penalty: Up to 1500 Penalty Units; Up to 60 minutes imprisonment; Restitution.
A person commits an offence if the person commits the offence of Operating an Unlicensed Financial Institution and one or more of the following applies:
(a) the total customer funds taken or placed at risk exceed 500 Penalty Units in value;
(b) the scheme targeted new players or otherwise exploited the inexperience of customers;
(c) customer funds were dissipated, concealed or moved to a personal balance; or
(d) the person had previously been warned, sanctioned or barred in respect of similar conduct.


42 - Operating a Ponzi or Pyramid Scheme
Offence Type: Indictable
Penalty: Up to 2000 Penalty Units; Up to 60 minutes imprisonment; Restitution; Disgorgement of any benefit derived.
A person commits an offence if the person:
(a) operates, promotes or induces participation in an arrangement; and
(b) returns, payouts or yields to existing participants are paid wholly or substantially from contributions made by new participants rather than from genuine revenue or investment profit.
This offence shall not occur where:
(c) the returns are genuinely and substantially derived from the lawful trading or investment activity of a licensed financial institution.


43 - Misuse of Client Funds
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Restitution of the funds or their value.
A person commits an offence if the person:
(a) receives or holds client funds as defined in the Commercial Standards Act; and
(b) lends, pledges, invests, encumbers or otherwise applies them for the person's own account or to meet the person's own liabilities or operating costs, or fails to keep them segregated as required by that Act.
It is a defence if the person:
(c) applied the funds strictly as agent under the customer's mandate, with the customer bearing the investment risk.


44 - Breach of a Cease and Desist Order
Offence Type: Indictable
Penalty: Up to 750 Penalty Units; Up to 45 minutes imprisonment.
A person commits an offence if the person continues, resumes or causes the continuation of an activity after being served a Cease and Desist Order under the Commercial Standards Act. Each day of continued contravention is a separate offence.


45 - Dissipation of Frozen Funds
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment.
A person commits an offence if the person transfers, withdraws, conceals or disposes of funds or assets in contravention of a Freeze Order issued under the Commercial Standards Act.


46 - Breach of a Product Intervention or Trading Suspension Order
Offence Type: Indictable
Penalty: Up to 750 Penalty Units; Up to 45 minutes imprisonment. Each day of continued contravention is a separate offence.
A person commits an offence if the person offers, deals in or trades a financial product or security in contravention of a product intervention order or a trading suspension order issued under the Commercial Standards Act.


47 - Obstruction of Financial Regulation
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment.
A person commits an offence if the person obstructs, hinders or misleads the Department of Commerce in the exercise of its powers under the Commercial Standards Act, fails to comply with a lawful order, direction, requirement, undertaking or audit demand under that Act, or deletes, alters, conceals or destroys records the person is required to preserve.


48 - Tipping Off
Offence Type: Indictable
Penalty: Up to 300 Penalty Units; Up to 30 minutes imprisonment.
A person commits an offence if the person:
(a) knows or suspects that an investigation under the Commercial Standards Act is being, or is likely to be, conducted; and
(b) discloses information to the subject of the investigation, or to any other person, in a manner likely to prejudice the investigation.


49 - False Representation as a Financial Institution
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Up to 30 minutes imprisonment.
A person commits an offence if the person:
(a) represents, whether by name, advertising, conduct or otherwise, that the person is a bank, a licensed financial institution or an insured or government backed institution; and
(b) the person is not licensed as such under the Commercial Standards Act.


50 - Unlawful Offering of a Security or Financial Product
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment.
A person commits an offence if the person:
(a) offers a security or financial product to the public without a disclosure document registered by the Department of Commerce; or
(b) offers a security or financial product on the basis of a disclosure document the person knows, or ought reasonably to know, is materially false or misleading.
This offence shall not occur where:
(c) the offering, or a class of offerings to which it belongs, is exempt from the disclosure requirement under the Commercial Standards Act.


51 - Reckless Facilitation of Unlicensed Financial Activity
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment.
A person commits an offence if the person:
(a) hosts the infrastructure of, processes or routes payments for, or advertises or promotes, regulated financial activity carried on in contravention of the Commercial Standards Act; and
(b) is reckless as to whether that activity is unlicensed.
It is a defence if the person:
(c) took reasonable steps to verify the licensing status of the activity before providing the facilitation.


52 - Operating or Participating While Barred or Disqualified
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Extension of the Bar Order or disqualification by up to 2 months.
A person commits an offence if the person:
(a) is subject to a Bar Order under the Commercial Standards Act or to a disqualification order under the Legal Entity Act; and
(b) operates, controls, manages, finances or materially participates in a financial institution or legal entity in a capacity prohibited by that Order, whether directly or through a nominee, intermediary or other person.
This offence shall not occur where:
(c) the person acted with the prior written authorisation of the Department of Commerce.


53 - Wash Trading and Matched Orders
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment; Disgorgement of any benefit derived.
A person commits an offence if the person:
(a) enters into a transaction in a security or financial product that involves no change in beneficial ownership; or
(b) enters an order to buy, or to sell, knowing that a matching order of substantially the same size and price has been or will be entered by the same person or by a person acting in concert with them; and
(c) does so for the purpose of creating a false or misleading appearance of trading activity or price.


54 - Front Running
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment; Disgorgement of any benefit derived.
A person commits an offence if the person:
(a) knows that a customer, employer or client has placed, or intends to place, an order in a security or financial product that is likely to affect its price; and
(b) deals in that security or product, or causes another to do so, ahead of that order for the benefit of themselves or a person other than the customer.


PART VIII: PROPERTY OFFENCES
This Part provides for offences involving the unlawful interference with, or deprivation of, property belonging to another person. It includes acts such as theft, trespass, vandalism, and unlawful possession. This Part further encompasses the regulation of property use and the enforcement of statutory limitations placed upon the ownership, occupation, and development of property.


1 - Trespass
Offence Type: Summary
Penalty:
(a) First offence - 3 Penalty Units
(b) Second offence - 5 Penalty Units; 5 minutes imprisonment
(c) Third offence - 7 Penalty Units; 10 minutes imprisonment
(d) Subsequent offences - 10 Penalty Units; 10 minutes imprisonment
A person commits an offence if the person:
(a) enters an area that has been restricted to public access via a no trespassing sign, book, or another form of communication visible from every entrance.
(i) to have this offence be proven, a government employee must use the /inspect command to ensure no edits had occurred afterwards.
Relevant Law:


2 - Animal Theft
Offence Type: Summary
Penalty: 1 Penalty Units
A person commits an offence if the person:
(a) steals or possesses a tamed or wild animal without permission.
Relevant Law:


3 - Pet Overcrowding
Offence Type: Summary
Penalty: 1 Penalty Unit; confiscation of animal(s) by the Department of the Interior
A person commits an offence if the person:
(a) fails to provide minimum space as defined by the Department of the Interior for pets.
Relevant Law:


4 - Animal Overcrowding
Offence Type: Summary
Penalty:
(a) First offence - 1 Penalty Unit; Confiscation of animal(s) by the Department of the Interior;
(b) Additional offences - 3 Penalty Units; Confiscation of animal(s) by the Department of the Interior; Eviction
A person commits an offence if the person fails to provide the minimum space as defined by the Department of the Interior.
Relevant Law:


5 - ATM Robbery
Offence Type: Summary
Penalty: 2 Penalty Units; 5 minutes imprisonment
A person commits an offence if the person:
(a) steals, attempts to steal, or attempts to hack money from an Automated Teller Machine (ATM).
Relevant Law:


6 - Bank Robbery
Offence Type: Summary
Penalty: 40 Penalty Units; 20 minutes imprisonment
A person commits an offence if the person:
(a) trespasses specifically within the bank's vault.
(i) this offence overrides Bank Trespass.
Relevant Law:


7 - Bank Trespass
Offence Type: Summary
Penalty: 15 Penalty Units; 5 minutes imprisonment
A person commits an offence if the person:
(a) trespasses behind the 'No Trespassing' sign in the bank
Relevant Law:


8 - NPC Robbery
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) steals or attempts to steal money from a Non-Player Character (NPC).
Relevant Law:


9 - Theft
Offence Type: Summary
Penalty: 10 Penalty Units; 10 minutes imprisonment; Restitution of the property or its value.
A person or legal entity commits an offence if that person or legal entity:
(a) takes property belonging to another without consent; and
(b) intends to:
(i) permanently deprive the owner of it; or
(ii) use it without authorization.
This offence shall not occur where:
(c) The taker reasonably believed they had the owner's consent; or
(d) The property was abandoned; or
(e) The taking of property was otherwise authorized by law.
Relevant Law: Theft Criminalization Act


10 - Aggravated Theft
Offence Type: Indictable
Penalty: Up to 200 Penalty Units and 60 minutes imprisonment; Restitution of the item(s) or their value.
A person commits an offence if the person:
(a) commits Theft, Theft from Containers, or Interference with a Private Chestshop, and one or more of the following aggravating circumstances apply:
(i) the value of the property is greater than that of 50 Penalty Units; or
(ii) the theft is from government property; or
(iii) the theft is committed while trespassing or enabled by lockpicking; or
(iv) the theft targets a business inventory or causes substantial economic disruption.
Relevant Law: Theft Criminalization Act


11 - Commercial Bribery
Offence Type: Indictable
Penalty: Up to 200 Penalty Units or the value of the bribe offered (whichever is greater); Up to 60 minutes imprisonment; Disgorgement.
A person commits an offence if the person:
(a) offers, gives, solicits, or receives an item or service of value to induce an employee/agent to breach a duty to their employer, client, or anyone to whom they may owe a fiduciary duty.
Relevant Law: Theft Criminalization Act


12 - Theft from Containers
Offence Type: Summary
Penalty:
(a) First offence - 10 Penalty Units; 10 minutes imprisonment; Restitution of the property or its value;
(b) Second offence - 15 Penalty Units; 15 minutes imprisonment; Restitution of the property or its value;
(c) Subsequent offences - 20 Penalty Units; 20 minutes imprisonment; Restitution of the property or its value.
A person commits an offence if the person:
(d) takes an item directly from a container they do not own or control, without the owner's consent.
This offence shall not occur in cases where:
(e) the taker reasonably believed they had the owner's consent, or
(f) the taking of property was otherwise authorized by law.
Relevant Law: Theft Criminalization Act


13 - Interference with a Private Chestshop
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 30 minutes imprisonment; Restitution of the property or its value
A person commits an offence if the person:
(a) obtains, attempts to obtain, or enables another to obtain items or money from a private chestshop without the owner's consent by lockpicking (as defined in the Criminal Terminology Act); or
(b) accesses an employee-only chestshop or a chestshop configured with non-public pricing or access (e.g., $0 purchase price or whitelist/employee access) by:
(i) entering through a locked door or restricted area without permission; or
(ii) circumventing access controls and/or lockpicking; or
(c) directly obtaining items from a private chestshop's backing container without the use of legitimate chestshop transactions and without consent of that chestshop's owner.
This offence shall not occur where:
(d) the taker reasonably believed they had the owner's consent, or
(e) the taking of property was otherwise authorized by law.
Relevant Law: Theft Criminalization Act


14 - Extortion
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units 120 minutes imprisonment; Restitution of the property or its value
A person or legal entity commits an offence if that person or legal entity (the "actor"):
(a) compels or induces another individual or entity to deliver funds or other property to the actor's self or to a third person by means of instilling in that individual or entity a fear that, if the property is not so delivered, the actor or another will:
(i) cause physical injury to some person in the future; or
(ii) cause damage to property; or
(iii) engage in other conduct constituting an offence under the Criminal Code Act; or
(iv) accuse some person of a crime or cause criminal charges to be instituted against that person; or
(v) expose a secret or publicize an asserted fact, whether true or false, tending to subject some person to hatred, contempt or ridicule; or
(vi) cause a collective labor action, such as a strike, that is injurious to some person's business or some government agency; except that such a threat shall not be deemed extortion when the property is demanded or received for the benefit of the group in whose interest the actor purports to act; or
(vii) testify or provide information, or withhold testimony or information, with respect to another's legal claim or defense; or
(viii) use or abuse actor's position as a public servant by performing some act within or related to the actor's official duties, or by failing or refusing to perform an official duty, in such manner as to affect some person adversely; or
(ix) perform any other act which would not in itself materially benefit the actor but which is calculated to harm another person materially with respect to such other person's health, safety, business, calling, career, financial condition, reputation, or personal relationships;
This offence shall not occur where:
(b) the funds or property sought by the actor are the lawful funds or property of the actor, and the offence would otherwise occur under clause (a)(iv-vii); or
(c) the actor is a lawyer representing an individual or legal entity seeking funds or property lawfully owed to that individual or legal entity, and the offence would otherwise occur under clause (a)(iv-vii).
Relevant Law: Theft Criminalization Act


PART IX: HEALTH OFFENCES
This Part provides for offences that undermine public health, the lawful regulation of healthcare, or the proper operation of Medicare and the Department of Health.


1 - Providing Treatment without a Licence
Offence Type: Summary
Penalty: Up to 50 Penalty Units; Up to 15 minutes imprisonment
A person commits an offence if the person:
(a) administers a Class A health treatment without holding a valid licence to practise.
Relevant Law: Act of Congress - Redmontian Health Service Act


2 - Illicit Trafficking of a Health Treatment
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Up to 60 minutes imprisonment
A person commits an offence if the person:
(a) sells or distributes a Class A health treatment; or
(b) dispenses a Class B health treatment without holding the required licence.
Relevant Law: Act of Congress - Redmontian Health Service Act


3 - Illicit Possession of a Class A Health Treatment
Offence Type: Summary
Penalty: 20 Penalty Units
A person commits an offence if the person:
(a) has wittingly in their possession, or within a container used by them for storage or commerce, a Class A health treatment, and one of the following conditions are met:
(i) the person is not properly licensed to possess the treatment; or
(ii) the possession is not within the course of the person's official duties as an employee of the Department of Health.
Relevant Law: Act of Congress - Redmontian Health Service Act


4 - Reckless Transmission of a Disease
Offence Type: Summary
Penalty:
(a) First offence - 10 Penalty Units; 20 minutes imprisonment
(b) Second offence - 20 Penalty Units; 40 minutes imprisonment
(c) Subsequent offences - 40 Penalty Units; 60 minutes imprisonment
A person commits an offence if the person:
(a) recklessly exposes another player to a contagious disease by failing to take or adhere to reasonable containment measures.
Relevant Law:


5 - Intentional Transmission of a Disease
Offence Type: Summary
Penalty:
(a) First offence - 20 Penalty Units; 20 minutes imprisonment
(b) Second offence - 40 Penalty Units; 40 minutes imprisonment
(c) Subsequent offences - 80 Penalty Units; 60 minutes imprisonment
A person commits an offence if the person:
(a) intentionally infects, or threatens to infect, another player with a contagious disease. This offence overrides Reckless Transmission of a Disease.
Relevant Law:


6 - Malingering
Offence Type: Indictable
Penalty: Up to 50 Penalty Units; Up to 60 minutes imprisonment; Revoked entitlement to Medicare
A person commits an offence if the person:
(a) intentionally and repeatedly contracts a health condition in a manner that substantially disrupts the regular operation or provision of public health services.
Relevant Law:


7 - Medicare Fraud
Offence Type: Indictable
Penalty: Up to 100 Penalty Units; Up to 60 minutes imprisonment; Revoked entitlement to Medicare; Revoked licence-to-practice
A person commits an offence if the person:
(a) claims a Medicare payment for a treatment that they administer to themself; or
(b) intentionally contracts a health condition for monetary benefit through the Medicare system; or
(c) knowingly collects Medicare payment for the treatment of a health condition that was contracted for monetary benefit; or
(d) knowingly collects Medicare payment for the treatment of a health condition that has already been paid for without the use of Medicare.
Relevant Law: Act of Congress - Redmontian Health Service Act


PART X: MISCELLANEOUS OFFENCES
This Part contains provisions for offences not otherwise classified but which are considered injurious to the public good, the proper functioning of society, or the enjoyment of rights by others.


1 - Incitement
Offence Type: Indictable
Penalty: Up to 30 Penalty Units; Up to 15 minutes imprisonment
A person commits an offence if the person:
(a) attempts to coax or encourage someone to break the law.
This offence shall not occur where:
(b) the attempt was expressed through the in-game bounty system.
Relevant Law: Act of Congress - Criminal Terminology Act


2 - Unlawful Restraint of Property
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) locks another citizen's property on their land without permission.
Relevant Law:


3 - Involuntary Servitude
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 120 minutes imprisonment
A person commits an offence if the person:
(a) coerces another individual, organisation, or entity into performing labour or services against their will, through manipulation, threats (explicit or implicit), violence, or blackmail;
(b) the individual justifiably feels compelled to perform such services due to such coercion;
This offence shall not occur where:
(c) the labour or service is part of a lawful criminal penalty.
Relevant Law:


4 - Obstruction of an Emergency Service
Offence Type: Summary
Penalty: 40 Penalty Units
A person commits an offence if the person:
(a) conspires to or engages in obstructing emergency services vital to public safety.
Relevant Law: Act of Congress - Executive Standards Act


5 - Government Impersonation
Offence Type: Indictable
Penalty: Up to 50 Penalty Units; Up to 15 minutes imprisonment
A person commits an offence if the person:
(a) impersonates a government official or employee for personal gain.
Relevant Law:


6 - Breaching Attorney-Client Privilege
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Up to 20 minutes imprisonment; Disbarment for a period of up to 2 months.
A person commits an offence if the person:
(a) discloses attorney-client communications without written permission.
Relevant Law: Act of Congress - Modern Legal Reform Act


7 - Illegal Advertising
Offence Type: Summary
Penalty:
First Offence - 5 Penalty Units.
Second Offence - 10 Penalty Units.
Subsequent Offences - 25 Penalty Units.
A person commits an offence if the person:
(a) advertises a business, goods, or a political campaign in a public chat not designated for advertising; or
(b) advertises a gaming institution or gambling in a public chat designated for advertising.
(c) advertises an illicit service, item, or other form of transaction that is deemed criminal by this act.
(i) This offence shall not occur when it is advertising specifically for a BM's (Black Market's) services in a proper channel.
Relevant Law:


8 - Dereliction of Community Service
Offence Type: Summary
Penalty:
(a) First offence - 10 Penalty Units;
(b) Second offence - 25 Penalty Units; 10 minutes imprisonment;
(c) Subsequent offences - 50 Penalty Units; 20 minutes imprisonment
A person commits an offence if the person:
(a) avoids, abuses, or commits crimes during assigned Community Service.
Relevant Law: Rescinded - Community Service Act


9 - Disrupting a Tour
Offence Type: Summary
Penalty:
(a) First offence - 10 Penalty Units;
(b) Subsequent offences - 25 Penalty Units; 15 minutes imprisonment
A person commits an offence if the person:
(a) disrupts an official tour given by a Tour Guide employed by the Department of Education.
(i) an official tour begins when the guide runs /doe-attend and ends either at the final stop set by the Department of Education or if the player or guide leaves the tour early.
Relevant Law:


10 - Unlawful Access to Emergency Vehicle
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) enters a police or medical vehicle without authority.
Relevant Law:


11 - Vehicle Abandonment
Offence Type: Summary
Penalty: 1 Penalty Unit; Vehicle impounded
A person commits an offence if the person:
(a) leaves a vehicle on public or government land outside of a parking bay,
(b) parks on private land without consent, or
(c) leaves a vehicle in a bay for more than 14 days.
Relevant Law:


12 - Accomplice to a Crime
Offence Type: Indictable
Penalty: Up to 75% of the penalty for the principal crime
A person commits an offence if the person:
(a) knowingly assists another in committing a crime.
Relevant Law:


13 - Operating Without A License
Offence Type: Summary
Penalty: 1 Penalty Unit
A person commits an offence if the person:
(a) drives a car without a Drivers License, or
(b) pilots a plane or helicopter without a Pilots License.
Relevant Law:


14 - Conspiracy to Commit a Crime
Offence Type: Indictable
Penalty: Up to 50% of the penalty for the principal crime
A person commits an offence if the person:
(a) intends to commit a crime, even if it has not yet been carried out.
Relevant Law:


15 - Accessory to a Crime
Offence Type: Indictable
Penalty: Up to 50% of the penalty for the principal crime
A person commits an offence if the person:
(a) provides aid or support after a crime, without directly participating.
Relevant Law:


16 - Reserve Requirement Violation
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; Forceful transfer of the reserve amount to the FRB
A person commits and offense if the person:
(a) being a registered Financial Institution:
(i) fails to meet reserve requirements after seven days' notice from the FRB.
Relevant Law:


17 - Persistent Corporate Violation
Offence Type: Indictable
Penalty: Up to 2,000 Penalty Units; Company dissolution under DOC receivership
A person commits an offence if the person:
(a) being an Incorporated Entity, persistently violates the Legal Entity Act; and
(b) the violations demonstrate a pattern of disregard for corporate governance requirements; and
(c) has received more than three warnings from the DOC concerning the same or related conduct, or has persistently violated the Legal Entity Act.
This offence shall not occur where:
(d) the Incorporated Entity has taken substantial remedial action to address the violations; or
(e) the violations were caused by circumstances beyond the entity's reasonable control.
Relevant Law: Act of Congress - Legal Entity Act
 
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@Rorroh votes AYE. They cannot currently vote on the forums due to a linking error.
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Retracted, as I have not really been "hired" yet.
 
Abstain - The CCA has to come back, and this bill has some interesting new things that are being introduced. That being said, the fact that this bill also introduces a clause for Ex Post Facto to be applied in certain cases makes it impossible for me to vote in favor of it in good conscience.

Ex Post Facto basically makes it so we punish an action that has taken place before the action is legislated as punishable. Basically, we are punishing an action when it wasn't punishable. I consider that against the Rule of Law, and so, as I said, I cannot vote in favor of this bill in good conscience. Plus, it would also open the door to criminalizing the strikers who went on strike for legitimate purposes.

For all of this, and seeing the impossibility of getting an agreement between the Congress members on fully removing Ex Post Facto applicability from this bill, I cannot vote in favor of the bill, but I also cannot contribute to the delay of the Administration functioning any further as of this very moment and context. And for that, I am casting an Abstention vote.

1950minecrafter Seal.pngWPRlogowithgradient.png

1950minecrafter
Former President
Former Speaker
Former Deputy Speaker
Former Representative
Senator

Former Mayor of Oakridge
Chair of the CC of the WPR
Former Leader of the SWP
Former Leader of the
SPP
 

Presidential Assent



Seal_President_Small.png
PRESIDENTIAL ASSENT


For eleven days the Commonwealth of Redmont has lived without a criminal code. Our courts have had nothing to apply, our officers nothing to enforce, and our citizens no protection but the goodwill of their neighbours. That is not a state any nation can remain in, and it is the first thing this administration promised to end.

I grant assent to this Act for four reasons.

First, it restores the rule of law without inventing it anew. This Act re-enacts the Code as Congress last knew it, which means officers, lawyers, and citizens can return to work today rather than relearning the law from scratch. Stability is best served by continuity.

Second, its corrections are targeted rather than sweeping. An express Double Jeopardy principle, a Treason exclusion protecting lawful political advocacy and industrial action, defined Removal from office language referred to the Supreme Court in accordance with its original jurisdiction under § 20(1)(a) of the Constitution, and the reclassification of three offences whose fines exceeded the District Court's own threshold for minor crimes. Each of these strengthens the rights of the accused, not the reach of the State.

Third, the Continuity of Core Offences clause is the narrowest possible answer to a genuine problem. A repeal of the criminal code cannot be permitted to operate as an amnesty for the gravest conduct, or every future dispute carries the temptation to repeal first and take afterwards. The clause covers five offences and no others, applies to no derivative offence, caps any penalty at the lesser of the two codes, runs the ordinary limitation period from the date of the conduct, places the full burden on the State, preserves every defence, and expressly forbids its own expansion. It is written to be used once, carefully, and never stretched.

Fourth, and most importantly, it was passed by a Congress elected days ago by the people of Redmont, working across party lines. This administration promised to be a partner to the legislature rather than an obstacle, and I am glad the first significant Act of this term is one built by coalition rather than by decree.

The rule of law returns to Redmont today.



This bill has been granted assent and is hereby signed into law.
signature

Theory Fontaine
30th President of the Commonwealth of Redmont

 

CONGRESS OF THE
COMMONWEALTH OF REDMONT




A BILL TO
Restate the Standards of Commerce



The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:
PART I — PRELIMINARIES

1. Short Title and Enactment

(1) This Act may be cited as the 'Redmont Commerce and Finance Act' or the 'RCFA'.
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by President Theory Fontaine, Commerce Secretary Planke Fontaine, and FRB Governer Coshjlose.
(4) This Act has been co-sponsored by Senator ElegantAlly.
(5) This Act repeals and replaces the following acts:
(a) Commercial Standards Act
(b) Financial Institutions Enforcement Act
(c) Banking Income Tax Act
(6) This Act amends the following acts:
(a) Taxation Act
(b) Criminal Code Act
(c) Redmont Civil Code Act
(d) Bankruptcy Act
(7) This Act is to be read with the Legal Entity Act, which governs the formation, governance and dissolution of legal entities.

2. Reasons and Intent

(1) The rules that govern commerce in Redmont are spread across four Acts that amend each other in both directions. The same institution can be told to report monthly in one Act, quarterly in another, and to a schedule set by rule in a third.

(2) The financial regulation added by the Financial Institutions Enforcement Act works, but it sits outside the standards Act it was written to support, and its enforcement ladder cannot be found by the businesses it applies to.

(3) The list of financial institutions has been closed at four types since it was written. Payment services, custody, insurance and managed funds have no licence to apply for, so they either operate unregulated or do not operate at all.

(4) Reporting has grown faster than the economy that produces it. A one player company listed on an exchange currently owes the same monthly statements, prepared by a licensed accountant, as the largest bank in Redmont.

(5) This Act therefore restates commercial standards in one place, opens the list of financial institutions to a licence class ladder, replaces every separate reporting obligation with one tiered return, and states the Department's enforcement powers as a single ordered escalation.

3. Definitions

(1) For the purposes of this Act:

(a) Administrative Sanction. A coercive and non punitive measure imposed by the Department to compel compliance, including a penalty, a disgorgement order and a restitution order.

(b) Advertising Puffery. A vague or wildly exaggerated claim that no reasonable person would take seriously.

(c) Client Funds. Money or value a person receives and holds for or on behalf of a customer that is not a deposit, including funds held for custody, escrow, brokerage, settlement, investment under mandate or as a customer account balance.

(d) Commercial Advertisement. An advertisement intended to benefit or harm a privately owned or operated business.

(e) Deposit. An arrangement under which a person receives funds or value and is obligated, whether legally, contractually or in practice, to repay or return money or equivalent value, where one or more of the following applies:

(i) the principal is fixed, determinable or represented to be stable, and repayable at or near its original value on demand or within a determinable period;

(ii) the funds are withdrawable, redeemable or transferable on demand or on limited notice;

(iii) the holder is not exposed to a material risk of loss of principal under normal or reasonably foreseeable conditions;

(iv) the return is fixed, guaranteed, administratively determined or otherwise not materially dependent on the recipient's performance; or

(v) the arrangement is marketed or functions as a store of value, passive income, cash equivalent or means of payment.

(f) Department. The Department of Commerce.

(g) False Advertisement. A commercial advertisement containing untrue information that would deceive a reasonable person, where the advertiser acted knowingly. Where the information is publicly accessible, the advertiser is presumed to have been aware of it.

(h) Financial Institution. A person carrying on regulated financial activity, whether or not licensed and whether or not incorporated.

(i) Financial Product. Any instrument, token, account, contract or arrangement offered to the public that in substance constitutes a deposit, a security, an investment or another regulated financial interest, whatever it is called, and includes a depositary receipt issued under the Legal Entity Act.

(j) Fund. An arrangement pooling money or assets from more than one investor for collective investment, including an Exchange Traded Fund.

(k) Licence. An authorisation granted by the Department under Part V to carry on a class of regulated financial activity.

(l) Misleading Advertisement. A commercial advertisement containing true information presented in a way that may confuse or mislead a reasonable person, including by omitting information a reasonable person would consider in their decision making, by using ambiguous language, or by omitting the non serious or satirical intent of the advertisement.

(m) Operator. A person who carries on, controls, directs, manages, finances or materially participates in regulated financial activity, including an individual who receives, holds or disburses customer funds.

(n) Person. An individual or a legal entity, including a group of persons acting in concert.

(o) Political Advertisement. An advertisement intended to promote a political message, influence public opinion on a social issue, or persuade a person to support a candidate, party or policy.

(p) Public Company. A company whose securities are listed on a registered Stock Exchange in Redmont.

(q) Regulated Financial Activity. Carrying on, or holding oneself out as carrying on, the business of any of the following, whether or not it falls within a licence class under Part V: taking deposits; holding money or assets for another; lending or providing credit; dealing in, arranging deals in, or advising on financial products; managing money or assets for another; operating a trading venue, exchange or fund; underwriting or selling insurance; or providing payment, settlement or escrow services. Where an activity is within this definition but within no licence class, the Department shall allocate it to a class under section 17.

(r) Union. An organised association of workers formed to protect and advance their rights and interests.

(s) Whistleblower. A person with inside knowledge of an organisation who reports misconduct, dishonesty or illegal activity that may have occurred within it.

4. Interpretation

(1) For the purposes of this Act:

(a) the economic substance and practical effect of a transaction, instrument or arrangement prevails over its legal form, label or characterisation;

(b) a transaction includes a series of transactions or steps, whether or not documented, and rights or expectations may be express or implied and may arise from conduct, practice or marketing;

(c) designating a payment as a purchase, sale, donation, commodity, token or investment does not exempt it where it functions in substance as a deposit or another regulated financial product;

(d) carrying on regulated financial activity in contravention of this Act is a continuing course of conduct, and each day it continues is a fresh contravention; and

(e) where a provision admits more than one reading, the reading that best protects customers and prevents avoidance prevails.

(2) Any arrangement entered into wholly or mainly to avoid the application of this Act is disregarded, and this Act applies as if it had not been made. The use of a sham entity, nominee or intermediary to obscure the true Operator does not defeat liability or enforcement.

PART II — THE DEPARTMENT OF COMMERCE

5. Functions


(1) The Department is responsible for:

(a) the licensing and supervision of financial institutions;

(b) the integrity of markets and the protection of customers and depositors;

(c) the collection of the taxes imposed by Part IX;

(d) the investigation of commerce related white collar crime, findings being referred to the Department of Justice for prosecution; and

(e) the administration of the Company Register under the Legal Entity Act.

(2) Where it is unclear which department should investigate a crime, the matter is referred to the Department of Justice.

6. General Powers

(1) The Department may, subject to the notice and appeal procedure in section 54 and the escalation duty in section 44:

(a) monitor financial transactions and publish generalised reporting on transaction statistics;

(b) access the accounts of licensed financial institutions on request for the purpose of monitoring compliance;

(c) conduct random spot checks of gaming machines to verify advertised odds, non compliance being fraudulent trading;

(d) disband an in game company that does not meet the requirements to be a company, or that is used to carry on or disguise activity in contravention of this Act; and

(e) exercise the supervisory and enforcement powers in Part X.

(2) An employee of the Department engaged in the regulation of securities exchanges may not hold a security for less than 30 days.

7. Rulemaking

(1) The Department may make rules to give effect to this Act, including rules on licensing, fit and proper standards, client fund segregation, reporting forms, market conduct, and the operation of exchanges and funds.

(2) A rule must serve a legitimate governmental purpose and be reasonably tailored to achieve it, and must not conflict with this Act.

(3) A rule takes effect on publication.

(4) The Department may by rule impose a filing, a record keeping obligation or a periodic return on any person carrying on regulated financial activity, and on any Public Company or person operating a Fund. A rule doing so shall:

(a) state the burden it imposes and the purpose that burden serves;

(b) exempt a Tier 3 reporting person, unless the rule addresses the safety of customer funds; and

(c) not require information the person has already filed, or that is already available to the Department.

(5) A rule may not require a report from a person who is not carrying on regulated financial activity and is not a Public Company, a person operating a Fund or a tax exempt non-profit.

(6) Where the Department reasonably believes an emerging practice poses an immediate risk to customers or the financial system, it may issue an emergency temporary rule effective on publication, which lasts up to 60 days and may then be renewed or replaced only through ordinary rulemaking.

(7) Congress may disallow a rule by resolution of both chambers, and a rule so disallowed ceases to have effect and may not be remade in substantially the same terms in the same Congress.

8. Service Standards and Deemed Approval

(1) Where a person applies to the Department for a licence, a registration, a variation, an exemption, an advance ruling or the registration of a disclosure document, the Department shall decide the application within 14 days.

(2) The Department may, once per application, extend that period by a further 14 days by notice stating why.

(3) Where the Department does not decide within the applicable period, the application is deemed granted on the terms applied for, and the grant is provisional and revocable by the Department within a further 30 days.

(4) Deemed approval under subsection (3) is not available for:

(a) a licence in a class permitted to take deposits;

(b) an exemption, waiver or variation of any requirement of Part VI;

(c) a non objection to a qualifying holding under section 18(5); or

(d) the registration of a disclosure document under section 27.

(5) A refusal must state the reason and the steps required to cure it.

(6) This section does not apply where the applicant has failed to provide information the Department has requested, and the period is suspended until that information is provided.

9. Rights of Regulated Persons

(1) Information the Department requires from a person must satisfy a need to know principle. The Department does not always need the identity of account holders, and must have a reasonable justification for the data it requests, which it need not share.

(2) The Department may compel the production of information only in the course of its official duties.

(3) The Department and the Federal Reserve Bank shall treat the data of financial institutions as commercial in confidence, the sole exception being the use of strictly necessary data in a public report, and only to the extent required to describe and justify a regulatory or enforcement action.

(4) Data shared with the Department may also be shared with the Federal Reserve Bank, and with the Department of Justice or the Department of Homeland Security for the purposes of investigation, prosecution or financial stability.

PART III — WHISTLEBLOWERS

10. Whistleblowers


(1) Whistleblower protections are the protections provided to a whistleblower to enable them to come forward without fear of retribution or personal detriment.

(2) A person who in good faith reports a contravention of this Act is a whistleblower and is entitled to those protections and to the protections of the Criminal Code Act.

(3) No person may retaliate against a whistleblower.

(4) The Department may recommend to the Department of Justice the reduction or waiver of sanctions for an Operator or employee who voluntarily discloses a contravention and cooperates fully before being notified of an investigation.

PART IV — ADVERTISING AND FAIR TRADING

13. Advertising


(1) A person may not publish, or authorise the publication of, a false advertisement or a misleading advertisement.

(2) A person authorises an advertisement by displaying it of their own volition, or by agreeing to have another person display it on their behalf.

(3) The following are exempt from the definitions of false and misleading advertisement:

(a) advertising puffery; and

(b) political advertisements.

14. Financial Promotions

(1) A person may not make a false or misleading representation as to the safety, return, insurance or licensing status of a financial product.

(2) A person may not promote a deposit or financial product using representations of fixed, guaranteed, insured or risk free returns unless those representations are true and reasonably substantiated at the time they are made.

(3) A person may not represent, by name, advertising or conduct, that they are a bank, a licensed financial institution or an insured or government backed institution, unless they are licensed as such.

PART V — LICENSING OF FINANCIAL INSTITUTIONS

15. Requirement to be Licensed


(1) No person may carry on, or hold themselves out as carrying on, regulated financial activity unless that person is:

(a) an Incorporated Entity in good standing under the Legal Entity Act; and

(b) licensed by the Department for that activity.

(2) A person who receives deposits or client funds otherwise than through a licensed and incorporated financial institution contravenes this Act, notwithstanding any disclaimer, terms of service or characterisation of the funds as anything other than a deposit.

(3) Compliance with this Act does not relieve a person of any obligation under any other enactment.

(4) A licence states the classes the holder may carry on. A holder may apply at any time to add or surrender a class.

16. Licence Classes

(1) The licence classes are:

(a) Class A, Commercial Bank. May take deposits, lend and invest them for its own account, operate a reserve of less than 100%, and carry on any activity within Classes C to G.

(b) Class B, Credit Union. A member governed deposit taker formed as a cooperative or non-profit under the Legal Entity Act, whose leadership is democratically elected and whose surplus is distributed to members or reinvested for the benefit of all members. May carry on any activity within Classes C to E.

(c) Class C, Investment Firm. May broker securities, invest for clients under mandate, advise on investments, and lend. May not take deposits. May charge for its services.

(d) Class D, Custody and Payment Institution. May hold client funds and assets in custody, operate escrow and settlement, and process, route or store value for payment purposes. May not take deposits, lend client funds or invest them for its own account.

(e) Class E, Fund Manager. May establish, operate and manage a Fund, including an Exchange Traded Fund, and may market interests in it.

(f) Class F, Stock Exchange. The sole class able to list Redmont based securities for public trading. May charge commissions.

(g) Class G, Insurer. May underwrite and sell contracts of insurance, being contracts under which the insurer accepts a defined risk of a customer in exchange for a premium, and may hold and invest reserves against those contracts.

(h) Class H, Credit Provider. May lend to the public on its own account. May not take deposits or hold client funds. A Credit Provider shall make the disclosures required by the Credit Standards Act on every extension of credit, and shall not charge interest, fees or charges in excess of the limit in Section 20 of Part VII of the Criminal Code Act.

(2) A person may not carry on an activity reserved to a class it does not hold.

(3) An Investment Firm may not hold a taxation exemption on in game balances, but does not pay the Financial Institution Depositor Insurance Tax.

(4) The Department may attach to any licence conditions on permitted and prohibited activities, capital, reserves, client fund segregation, reporting and fit and proper standards, and may vary them on notice.

(5) An applicant for a licence shall hold, and a licensed institution shall maintain at all times, capital of not less than:

(a) $750,000 for a Class A Commercial Bank;

(b) $300,000 for a Class G Insurer;

(c) $250,000 for a Class F Stock Exchange;

(d) $150,000 for a Class D Custody and Payment Institution;

(e) $100,000 for a Class B Credit Union; and

(f) $75,000 for a Class C Investment Firm, a Class E Fund Manager or a Class H Credit Provider.

(6) Where an institution holds more than one class, the highest applicable figure applies.

(7) Capital for the purposes of subsection (5) must be equity within the meaning of section 36(4), must be paid up, and may not consist of client funds or deposits, of money borrowed from a connected person, or of a claim against a connected person. A connected person is an owner, Operator or related party within the meaning of section 38, or a person acting in concert with any of them.

(8) An institution shall hold the capital required by subsection (5) in unencumbered liquid assets. It may not lend, pledge, distribute or otherwise return that capital to an owner, Operator or connected person, and a transaction that has that effect is voidable at the instance of the Department. An applicant shall satisfy the Department as to the source of its capital, and shall not dispose of it for 90 days after the licence is granted.

(9) Capital counted towards the requirement for one institution may not be counted towards the requirement for another.

(10) The Department may by rule raise a figure in subsection (5), set an ongoing own funds requirement expressed as a proportion of an institution's assets or liabilities, and set a figure for a class of institution it designates under section 17. It may not lower a figure in subsection (5) for a class named in that subsection.

(11) An institution whose capital falls below the applicable requirement shall notify the Department within 48 hours and submit a plan to restore it. The Department may restrict the institution's activities, prohibit distributions, require the institution to stop taking new customers, or act under Part X until the requirement is met.

(12) The Department may by rule set fees for each licence class, as follows:

(a) an application fee, not exceeding 1% of the capital figure for that class in subsection (5);

(b) a supervisory fee, payable on the same cycle as the institution's reporting period under section 31, of not less than 1% and not more than 5% of that capital figure in aggregate over any 12 month period;

(c) the rate under paragraph (b) must be uniform for every institution holding the same licence class, and the Department shall publish the rate in force for each class;

(d) a fee must be proportionate to the supervisory burden the class imposes, and the Department may reduce or waive it for an institution in its first reporting period after licensing, or one that is winding down following the surrender or revocation of its licence;

(e) a supervisory fee is charged pro rata where an institution holds its licence for part of a period only, and is payable with the report due under Part VIII;

(f) a fee is a regulatory and compliance cost for the purposes of section 37(2)(d);

(g) fee revenue is directed to the DCGovernment account; and

(h) an unpaid fee is recoverable as a debt and is a ground for action under section 18(3).

(13) A Stock Exchange licence may not be held by, or by an affiliate of, an institution whose securities are listed on that exchange or that deals on it. An institution holding a Class F licence together with any other class shall keep the exchange function operationally separate, shall execute customer orders ahead of its own, and shall disclose any interest it has in a listed security. The Department may by rule set further conflict of interest and order handling requirements.

17. Designation of New Classes and Instruments

(1) The Department may by rule create, define, recognise and regulate a new licence class in addition to those in section 16, and may set the requirements that apply to it.

(2) This power is deliberately broad. The Department may bring within regulation any business dealing in deposits, investments, lending, custody, escrow, insurance, payments, funds or any other financial activity, however described, structured or labelled.

(3) The Department may by rule classify, define and regulate financial instruments, products and arrangements, including deposits, bonds, notes, securities, derivatives, foreign exchange, funds and tokens, and determine how any of them is treated under this Act.

(4) Where it is unclear whether an arrangement is a deposit, a security, an investment or another instrument, the Department may determine its classification by reference to its economic substance, and that determination governs unless set aside on appeal or by a court.

(5) A designated class or classified instrument carries the protections, obligations and enforcement consequences of this Act, and a person carrying on the activity without a licence contravenes this Act.

(6) A rule under this section may not create a new criminal offence, and may not apply retrospectively to conduct completed before its publication.

18. Fit and Proper Persons and Bar Orders

(1) The Department may assess whether a person seeking a licence, or acting as an Operator of a licensed institution, is fit and proper, having regard to honesty, prior contraventions and any Bar Order.

(2) A person subject to a Bar Order may not hold a licence, or operate, control or materially participate in any financial institution, for the duration of the Order.

(3) The Department may refuse, condition, suspend or revoke a licence where an Operator is not fit and proper or where continued operation would endanger customer funds.

(4) The Department may deregister a licensed institution for persistent non compliance, having considered investigatory and legal due diligence, the best interests of depositors, and restraint.

(5) A person shall notify the Department and obtain its non objection before acquiring, alone or acting in concert, a qualifying holding in a licensed financial institution, being an interest carrying 20% or more of its voting power, or an interest that makes that person its parent within the meaning of the Legal Entity Act.

(6) The Department shall decide within 14 days, and section 8 applies. It may object only where the acquirer is not fit and proper, where the acquisition would endanger the sound and prudent management of the institution or the safety of customer funds, or where the source of the funds for the acquisition has not been satisfactorily explained.

(7) Voting power acquired in contravention of subsection (5) is suspended until the Department gives its non objection, and the Department may direct the disposal of the holding.

(8) A licensed institution shall notify the Department within 7 days of becoming aware of a change in the identity of a person holding a qualifying holding in it.

19. Prohibited Conduct

(1) A person may not:

(a) take deposits, or offer interest, yield, payout or any return on a deposit, without a Class A or Class B licence;

(b) invest or manage funds for others, or offer a financial product to the public, without the appropriate licence; or

(c) contravene section 14.

(2) A person may not knowingly facilitate regulated financial activity carried on in contravention of this Act, including by hosting its infrastructure, processing or routing its payments, or advertising or promoting it. Accessory and accomplice liability under the Criminal Code Act applies.

(3) Nothing in this Act prohibits the issuance of bonds, notes or other debt instruments to raise capital for the issuer's own business, or dealing in securities, derivatives or foreign exchange, where conducted by or through an appropriately licensed institution or as the Department provides by rule. Such instruments are regulated as securities or investments and not as deposits, unless in substance they constitute deposit taking.

20. Advance Rulings

(1) A person may apply to the Department for a determination whether a proposed product, service or activity is regulated financial activity or requires a licence.

(2) The Department may issue a binding ruling, which it may make subject to conditions, and on which the applicant may rely while it remains in force.

(3) The Department may vary or revoke a ruling, with effect only from the date of variation or revocation, where the facts or the law have changed.

21. Regulatory Sandbox

(1) The Department may permit a person to test a new or innovative financial product, service or model under supervision, on conditions and for a limited period it sets, with such modifications to the requirements of this Act as it considers appropriate.

(2) Participation does not exempt the person from liability to customers, and the Department may end participation at any time.

(3) The Department may set the eligibility, safeguards and customer protections that apply.

PART VI — CLIENT MONEY, DEPOSITS AND GUARANTEE

22. Client Funds


(1) A licensed institution other than a Commercial Bank or Credit Union that receives client funds shall:

(a) hold them as liquid cash or on deposit with a Commercial Bank or Credit Union;

(b) keep them fully segregated from its own funds; and

(c) not lend, pledge, invest or otherwise use them for its own account or to meet its own liabilities or operating costs.

(2) Client funds may be invested only as agent under the customer's mandate, with the customer bearing the investment risk, and only by an institution licensed for that activity.

(3) Client funds are the property of the customer, do not form part of the institution's estate, and are not available to its creditors.

(4) An institution holding client funds shall identify each customer's entitlement in its records, and shall not hold with any one Commercial Bank or Credit Union an amount of client funds exceeding what the deposit guarantee would cover for the customers concerned. Where a bank holding client funds fails, the shortfall is borne by the customers pro rata, and the holding institution is liable for any part of the shortfall attributable to its breach of this subsection.

(5) The Department may by rule set the manner of segregation, reconciliation and reporting of client funds, may determine what constitutes client funds and permitted use, and may grant an exemption from any requirement of this section other than subsections (1)(b), (1)(c) and (3).

23. Deposits

(1) Only a Commercial Bank or a Credit Union may take deposits, and only a Commercial Bank may lend or invest deposits for its own account and operate a reserve of less than 100%.

(2) A Credit Union shall operate the reserve its licence conditions require.

(3) The Federal Reserve Bank sets and enforces reserve ratios and monetary reserve requirements for deposit taking institutions. Where this Act empowers the Department to set a reserve requirement, the Department shall act in consultation with the Federal Reserve Bank and consistently with the requirements it sets. This does not affect the Department's authority over client fund segregation, licensing, conduct or enforcement.

(4) A Commercial Bank is owned by an owner or group of owners who may make all decisions regarding the bank, its investments, employees and rates. Its profits are shared among its owners as its constitution provides.

24. Deposit Guarantee

(1) The Federal Government guarantees deposits of up to $100,000 per person, per licensed deposit taking institution.

(2) For the purposes of subsection (1):

(a) a person and their alternate accounts are one person;

(b) all accounts a person holds at the same institution are aggregated; and

(c) the covered amount is reduced by any amount that person owes the institution and that is due or capable of set off.

(3) The guarantee does not cover:

(a) a deposit held by, or for the benefit of, an owner, Operator, related party or connected person of the institution, or a person acting in concert with any of them;

(b) a deposit made by a person who caused or materially contributed to the failure of the institution;

(c) a deposit of funds known to the depositor to be derived from criminal activity; or

(d) a deposit taken by a person who was not licensed to take it.

(4) Where a licensed institution holds client funds on behalf of identified customers in accordance with section 22, the guarantee applies to each of those customers separately and not to the holding institution as a single depositor.

(5) Every licensed deposit taking institution is automatically covered. Coverage continues for 30 days after deregistration, surrender of the licence, or the institution ceasing to take deposits, whichever occurs first.

(6) The guarantee is Financial Institution Depositor Insurance and is compulsory for the stability of the financial system. It is funded by the Financial Institution Depositor Insurance Tax imposed by section 34(2) and by any contribution the Department sets by rule under subsection (7). Contributions offset past and future payouts but do not imply an exhaustive fund.

(7) The Department may by rule require a licensed deposit taking institution to pay a contribution calculated by reference to the covered deposits it holds and the risk it presents, and may set a lower contribution for an institution that holds capital above the requirement in section 16(5).

(8) A licensed deposit taking institution may not hold covered deposits exceeding ten times the capital it is required to hold under section 16(5) unless the Department approves the excess and imposes additional capital or conditions to match it. An institution that exceeds the limit shall notify the Department within 48 hours, and the Department may restrict its taking of further deposits or act under Part X.

(9) Where an institution fails, the Department shall determine each covered depositor's entitlement and pay it within 14 days of the failure, or within 14 days of the depositor establishing their entitlement, whichever is later. A depositor who does not claim within 3 months of the failure ceases to be entitled under the guarantee, but keeps their claim against the estate.

(10) On paying a depositor under this section, the Government is subrogated to that depositor's claim against the institution to the extent of the payment, and ranks as a Class 2 claim under Part VI of the Bankruptcy Act. A depositor may not recover the same loss twice.

(11) The Department may recover the cost of a payout from the institution, and may sell a collapsed institution or part of one to another party where that is in the best interests of depositors.

(12) The Department may recover the cost of a payout from a director, manager or Operator of the failed institution only where that person is liable under section 53 of this Act, section 11(6) or section 73 of the Legal Entity Act, or by order of the Federal Court. A recovery under this subsection shall be effected with the least practicable disruption to the estate targeted.

(13) Once subsections (11) and (12) are exhausted, the Department is pre authorised to use unappropriated Government funds to satisfy the guarantee. Where the amount required exceeds ten times the capital the institution was required to hold under section 16(5), the excess requires an appropriation by Congress.

(14) The Department may apply to the Federal Court to dismiss or stay a bankruptcy petition by or against a licensed financial institution, and may instead proceed under section 25 or section 50 of this Act. Where a petition has been accepted, the Department may apply within 14 days to set it aside on the ground that it was obtained by concealment or misrepresentation. A decision or application under this subsection is subject to section 54 and does not affect a right acquired in good faith in reliance on the earlier position.

(15) Where the Department disbands an in game company under section 6(1)(d), all customer funds and client funds held through it shall first vest in a receiver appointed under section 50, and the disbandment takes effect only once that receiver has been appointed.

(16) A licensed deposit taking institution shall state, wherever it advertises or offers a deposit, that deposits are guaranteed up to $100,000 per person and that the guarantee is subject to this section.
25. Commandeering

(1) In extraordinary circumstances, including insolvency, near insolvency, financial crisis, or where continued operation poses a systemic risk to the financial system or to depositors, the Department may take temporary control of a financial institution.

(2) Control under this section lasts no longer than 72 hours unless extended by the Federal Court on an application for receivership under section 50.

PART VII — MARKETS, SECURITIES AND FUNDS

26. Stock Exchanges


(1) The Department may monitor the operations of a Stock Exchange with full access to its trading channels and data.

(2) A Stock Exchange may not calculate the market price of shares in a Public Company using any factor other than the market supply of and demand for those shares, and is responsible for updating those prices without further input from the company.

(3) Each listed company must have its price updated at least once every 30 days.

(4) The Department may make rules for the operation of Stock Exchanges for the purpose of preserving their stability and preventing or investigating illicit activity.

27. Offering Disclosure

(1) A person may not offer a security or financial product to the public unless a disclosure document in the form the Department requires has been filed with and registered by the Department.

(2) The disclosure document shall fairly present the nature of the offering, the risks, the use of funds and the financial position of the issuer.

(3) The Department may refuse, suspend or revoke the registration of a disclosure document that is inadequate, inaccurate or misleading.

(4) The following are exempt from subsection (1):

(a) an offering made only to persons who have held an interest in the issuer, acquired for value, for at least 90 days;

(b) an offering made to fewer than 10 persons, counted together with every other offering by the issuer and its affiliates in the preceding 12 months;

(c) an offering with a total value of less than 500 penalty units, counted together with every other offering by the issuer and its affiliates in the preceding 12 months; and

(d) any offering or class of offering the Department exempts by rule or order.

(5) An exemption from subsection (1) is not an exemption from section 14.

28. Funds

(1) A Fund may be operated only by a Class E Fund Manager.

(2) An Exchange Traded Fund is a Fund whose interests are listed for trading on a Stock Exchange.

(3) A Fund Manager shall hold the assets of a Fund separately from its own and from those of any other Fund it manages, and section 22 applies to those assets.

(4) The Department may by rule set the valuation, redemption and disclosure requirements of Funds.

29. Trading Suspension and Product Intervention

(1) The Department may by order suspend or halt trading in a security, financial product or listing where it reasonably believes the available information is inadequate or inaccurate, the market is disorderly, or suspension is necessary to protect customers or investors.

(2) The Department may by order prohibit, suspend or restrict the offering of a financial product or arrangement that it reasonably believes poses a risk of harm to customers or the financial system. The order may apply to a named product or person or to a class.

(3) An order under this section takes effect on publication and remains in force for the period stated, which the Department may extend or lift.

PART VIII — REPORTING AND AUDIT

30. Single Reporting Regime


(1) This Part states the whole of the periodic reporting owed to the Department, to a Stock Exchange and to the public by a licensed financial institution, a Public Company and a person operating a Fund.

(2) No other periodic report may be required of such a person by rule, by an exchange, or by a licence condition, except a report the Department requires from a single named institution for a stated supervisory reason and for a stated period.

(3) A single report satisfying the requirements of this Part satisfies every obligation to report the same information, however arising.

31. Reporting Tiers

(1) A reporting person falls into a tier by the greater of its own total assets and the total client funds and Fund assets it holds or administers, averaged over the reporting period:

(a) Tier 1, total assets of $1,000,000 or more, or holding a Class A or Class F licence: reports monthly;

(b) Tier 2, total assets of $100,000 or more but less than $1,000,000: reports monthly;

(c) Tier 3, total assets of less than $100,000: reports quarterly.

(2) A tax return under Part IX is filed on the same cycle as the reporting person's tier, and a taxation period for a Tier 2 or Tier 3 institution is its reporting period.

(3) The Department may move a person to a higher tier by notice stating a supervisory reason, and may move a person to a lower tier on request where it has met the threshold for a full reporting period.

(4) A person that has moved between tiers reports on its new cycle from the start of the next reporting period.

32. Contents of a Report

(1) A report shall contain:

(a) a balance sheet;

(b) an income statement;

(c) a statement of changes in equity, for a Tier 1 reporting person only;

(d) a cash flow statement, for a Tier 1 reporting person only; and

(e) a management discussion and analysis addressing, so far as applicable:

(i) significant changes in financial condition, operations or performance since the last report;

(ii) a summary of investment activity, capital resources and major assets, liabilities and financing arrangements, and for a Fund, its strategy, allocation, major holdings, performance, distributions and change in total value;

(iii) any regulatory action, legal proceeding, contractual dispute or other material event that may affect the person's position or operations; and

(iv) the person's compliance status with applicable requirements.

(2) A Tier 3 reporting person may satisfy subsection (1)(e) with a short narrative and is not required to address a matter that does not apply to it.

(3) A report shall be prepared in accordance with generally accepted accounting standards or, at the person's election, International Financial Reporting Standards.

(4) A report is due within 30 days of the end of the reporting period.

(5) The report of a Public Company or a Fund shall be made publicly available in a downloadable form through the Stock Exchange on which it is listed and, where applicable, its Discord.

33. Accountants and Audit

(1) The report of a Tier 1 or Tier 2 reporting person shall be prepared and submitted by a licensed accountant with their name attached.

(2) The report of Tier 3 reporting person may be prepared by any person, and shall be signed by a director or manager who certifies that it is true to the best of their knowledge.

(3) A Public Company shall disclose its audit status alongside its report, being:

(a) Audited, where it has received a statutory audit in the previous 6 months, stating the date of that audit and who conducted it; or

(b) Unaudited, where it has not.

(4) A statutory audit shall give a fair and impartial assessment of the financial health of the person audited, validate its reported statements, and confirm compliance with financial law. It must verify the existence and fair valuation of each item on the balance sheet, and the existence and legitimacy of the cash flows on each line of the income statement.

(5) An assessment that does not meet subsection (4) may not be labelled an audit by a Public Company or a Stock Exchange.

(6) Records supporting a report shall be retained for not less than 12 months, and indefinitely where they relate to a matter under investigation.

PART IX — TAXATION OF FINANCIAL INSTITUTIONS

34. Tax Imposed


(1) A Financial Institution Tax of 15% is imposed on the taxable income of every licensed financial institution for each taxation period.

(2) A Financial Institution Depositor Insurance Tax of 10% is imposed on the taxable income of every licensed deposit taking financial institution for each taxation period.

(3) Both taxes apply to the same taxable income.

(4) Licensed deposit taking financial institutions are exempt from all balance taxes under the Taxation Act from the point of licensing. The Department may withdraw the exemption where the institution does not meet the requirements of this Act.

(5) A licensed deposit taking financial institution that holds a balance tax exemption pays instead a deposit tax of 1% monthly.

(a) The tax is charged on the average balance held in the accounts of the institution over the taxation period, measured by daily sampling or by such other method as the Department sets by rule.

(b) The following are excluded from the base of the deposit tax:

(i) capital the institution is required to hold under section 16(5);

(ii) any reserve the Federal Reserve Bank requires it to hold; and

(iii) client funds held for identified customers under section 22.

(c) Lending, investing, paying out, or otherwise deploying deposits in the ordinary course of the institution's business is not avoidance of the deposit tax.

(d) A transfer made wholly or mainly to reduce the deposit tax, including a transfer to a related party or to another account that is reversed after the end of the taxation period, is disregarded, and the amount transferred is included in the base.

(e) The deposit tax is administered by plugin, or by the Department if no plugin is implemented, and the Department may make rules necessary to enforce it.

(f) The deposit tax does not apply to an institution while it is in receivership under section 50, while a bankruptcy case under the Bankruptcy Act is on foot in respect of it, or while it is winding down following the surrender or revocation of its licence. Relief under this paragraph ends when that process ends.

35. Taxation Period

(1) A taxation period is a calendar month for a Tier 1 institution, and otherwise the institution's reporting period under section 31.

(2) Taxable income is determined separately for each taxation period.

36. Computation of Income

(1) Accounting income for a taxation period is the net increase in the institution's equity arising from all increases in assets and all decreases in liabilities, other than contributions of capital by an owner, and is increased by the amount of every dividend, distribution, buyback, redemption, deemed dividend and other transfer of value to an owner or related party made during the period.

(2) Taxable income is accounting income as adjusted by this Part.

(3) An unrealised gain, and any other amount that is not realised, is excluded from taxable income.

(4) For the purposes of this Part, an interest in an institution is equity only if it:

(a) exposes the holder to a genuine and unrestricted risk of loss of principal;

(b) provides returns that are variable and materially dependent on the institution's performance;

(c) is not redeemable, retractable, repurchaseable or callable at a fixed, guaranteed or predetermined amount other than on dissolution or bankruptcy;

(d) gives no contractual, implied or practical entitlement to liquidity, withdrawal or repayment on demand or within a determinable period;

(e) is fully subordinated in all circumstances to the claims of depositors and other creditors; and

(f) contains no feature, side agreement or understanding whose purpose or effect is to preserve capital, act as a store of value or otherwise replicate a deposit.

37. Deductions

(1) An institution may deduct only expenses that are incurred for the purpose of earning income and are reasonable in the circumstances and in amount.

(2) Without limiting subsection (1), the following are deductible:

(a) interest expenses;

(b) ordinary operating and administrative expenses;

(c) employee compensation up to $25,000 per employee, and only where the employee performed genuine services of at least that value;

(d) regulatory and compliance costs; and

(e) credit losses, to the extent realised in the taxation period.

(3) No deduction may be made for:

(a) a dividend or other distribution to an owner;

(b) a share buyback, redemption or other equity repurchase;

(c) so much of an amount paid or payable to a related party as exceeds fair market value for the goods, services or use of money actually provided, fair market value being the price that would be agreed between parties dealing at arm's length;

(d) an expense providing a direct or indirect benefit to an owner or related party, including housing, vehicles, luxury goods or services, memberships, subscriptions, private services, or entertainment not strictly required for business operations;

(e) employee compensation above $25,000 per employee;

(f) the acquisition or improvement of a capital asset, being property acquired or held for continuing use in the business and not held primarily for resale, except that the institution may deduct one twelfth of the cost of the asset in each of the twelve months following its acquisition; or

(g) an expense lacking economic substance or incurred primarily to reduce taxable income.

38. Related Parties and Deemed Dividends

(1) A related party is:

(a) an owner holding 10% or more of the equity of the institution, or exercising control over it;

(b) an entity controlled by, or at least 50% owned by, such a person; and

(c) an entity controlled by, or at least 50% owned by, the institution itself.

(2) Control is the ability, whether direct or indirect and whether exercised or not, to determine, influence or direct the strategic, financial or operational decisions of an entity, whether through voting interests or contractual rights. A person is not a related party by reason only of being a customer, depositor or lender of the institution on ordinary commercial terms.

(3) An amount paid or payable as salary, wages, bonus or other compensation to a person described in subsection (1)(a) is deemed to be a dividend and is not deductible.

39. Losses

(1) A loss may be carried forward and offset against income in the following three months.

(2) A loss not applied within that period expires.

40. Filing and Payment

(1) An institution shall file a tax return with the Department for each taxation period, in the form the Department prescribes, within 30 days of the end of the period. The return is filed together with the report required by Part VIII and forms part of it.

(2) Tax is payable within 30 days of the end of the taxation period.

(3) Where a return has not been filed by the time tax becomes payable, the amount due is the tax payable for the preceding taxation period, or the institution's reasonable estimate for the current period.

(4) Interest accrues daily at 1% per day on tax that remains unpaid after the due date, and is payable and enforceable as tax.

(5) Interest on a deficiency runs from the original due date, whether or not a return was filed and whether or not the amount paid was based on a reasonable estimate.

(6) Where the amount paid exceeds the tax payable, the Department shall refund the excess within 30 days of receiving the return.

(7) An institution that fails to file a return is liable to a penalty of $1,000 per day from the filing deadline, rising to $2,500 per day on a repeated failure. The penalty may not exceed the greater of $25,000 and the tax payable for the period to which the return relates.

41. Records, Assessment and Appeal

(1) An institution shall maintain records sufficient to establish its accounting income, its taxable income, the nature and amount of each deduction claimed, and its compliance with this Part.

(2) The burden of establishing the correctness of a return and the entitlement to a deduction rests on the institution. Where an institution fails to provide sufficient evidence of an amount, the Department may disregard it and determine the tax consequences accordingly.

(3) The Department may inspect, examine or audit the books, records and affairs of an institution, and may require it to produce documents, provide explanations and reconciliations, identify the parties to a transaction, demonstrate the commercial purpose of a transaction, and establish the source and nature of any payment, receipt, asset or liability. Failure to comply permits the Department to draw adverse inferences.

(4) Where the Department is not satisfied with the accuracy or completeness of a return, it may determine the income and tax payable, and in doing so may deny an unestablished deduction, include an unreported amount, recharacterise a transaction according to its economic substance, substitute fair market value for a non arm's length transaction, and disregard an artificial or avoidance arrangement. A determination may be based on available records, reasonable assumptions and estimates.

(5) The Department may assess or reassess tax, interest and penalties, and shall issue a notice stating the period, the amounts and the basis of the assessment in reasonable detail. An assessment is presumed correct unless the institution establishes otherwise.

(6) The Department may reassess a return within 12 months of its filing, and at any time where the return was knowingly filed incorrectly.

(7) An institution may appeal an assessment by filing a notice of appeal with the Department within 7 days of the notice of assessment, specifying the grounds and including the material relied on. An appeal may be brought only on the ground that the assessment contains a factual error, misapplies this Act, or is unreasonable on the available evidence.

(8) An appeal is reviewed by the Secretary of the Department, or by a designated officer not involved in the original assessment where practicable, who may confirm, vary or vacate the assessment. One further administrative appeal lies against a reassessment, after which the decision is final for the purposes of this Act.

(9) An institution dissatisfied with a final decision may seek relief before the Federal Court. Tax remains payable and continues to accrue interest during any appeal unless the Court orders otherwise.

42. Voluntary Disclosure

(1) An institution, or a director, officer or employee of one, may make a voluntary disclosure to the Department of any understatement of income, overstatement of deductions, failure to report, or other non compliance with this Part.

(2) A disclosure is valid only where it is made voluntarily and before the person is notified of an audit or investigation into the subject matter, receives an assessment relating to it, or becomes aware that enforcement action is intended, and where it is complete and accurate and the person cooperates fully in correcting the deficiency.

(3) Where a disclosure is valid:

(a) no prosecution may be commenced under the Criminal Code Act in respect of the disclosed conduct;

(b) any penalty may be reduced or waived at the Department's discretion; and

(c) the institution shall be given a reasonable period to file amended returns, provide records and pay the tax owing.

(4) Relief does not apply where the disclosed conduct involved deliberate fraud, falsification of records or intentional deception, or where the disclosure is incomplete or misleading, but the Department may grant partial relief where the disclosure substantially assists in resolving non compliance and it is in the public interest to do so.

PART X — SUPERVISION AND ENFORCEMENT

43. Investigation


(1) The Department may supervise, investigate and enforce compliance with this Act in respect of any person reasonably suspected of carrying on regulated financial activity, whether or not licensed or incorporated, and may exercise its powers against an Operator personally.

(2) The Department may by notice require such a person or Operator to produce records, transaction logs, communications and account data, to identify all persons, accounts, customers and amounts involved, and to account for the location and disposition of all customer funds.

(3) On the opening of an investigation or the service of a notice, the person and every Operator shall preserve all relevant records and data and shall not delete, alter, conceal or destroy them.

(4) Failure to comply permits the Department to draw adverse inferences and to proceed on any reasonable basis.

(5) The Department may conduct test transactions, including by posing as a customer, to verify compliance, and information so obtained may be used in any investigation, sanction or proceeding.

44. Escalation

(1) The powers in sections 45 to 50 are an escalation. The Department shall use the least intrusive power adequate to the risk, and shall record in the notice why a more intrusive power was necessary where it uses one.

(2) Nothing in subsection (1) prevents the Department acting immediately where customer funds are at risk of dissipation, concealment or loss.

45. Independent Audit and Monitors

(1) The Department may require a licensed institution, or a person reasonably suspected of carrying on regulated financial activity, to obtain and submit an independent audit of its accounts, funds and customer liabilities, prepared by a licensed accountant and at the expense of the person audited.

(2) The Department may appoint an independent monitor to a licensed institution to observe, report on and supervise its compliance, where its concerns fall short of requiring receivership. The institution shall give the monitor full access to its records, accounts and personnel and shall bear the monitor's reasonable costs.

(3) Failure to comply with, or obstruction of, an audit or a monitor permits the Department to draw adverse inferences and to proceed on any reasonable basis.

46. Enforceable Undertakings

(1) The Department may accept a written undertaking from a person to do, or refrain from, any act in order to remedy or prevent a contravention, including to cease activity, segregate or return funds, or compensate customers.

(2) An accepted undertaking is binding, and the Department may apply to the Federal Court to enforce it.

47. Cease and Desist Orders

(1) Where the Department reasonably believes a person is carrying on regulated financial activity in contravention of this Act, it may issue a binding Cease and Desist Order requiring that person to stop the activity, the related advertising and the acceptance of further funds immediately, and may require the person to honour outstanding withdrawal or repayment requests.

(2) The Order takes effect on service and remains in force unless stayed or set aside.

48. Freeze Orders and Third Party Directions

(1) Where the Department reasonably believes customer funds are at risk of dissipation, concealment or loss, it may issue a Freeze Order restraining the transfer or disposal of specified funds or assets held by or on behalf of an Operator, including funds in an Operator's personal balance.

(2) A Freeze Order may be issued without prior notice, takes effect immediately on service, and shall be limited to the amount reasonably necessary to protect customer funds and satisfy potential restitution.

(3) A Freeze Order lapses 72 hours after service unless within that period the Department applies to the Federal Court to extend or confirm it. The Court may extend, vary, confirm or discharge it and make any further order necessary to preserve customer funds.

(4) The Department may direct any third party holding funds, assets, records or infrastructure of or for an Operator, including an exchange, payment provider, custodian or host, to freeze, preserve, produce or deliver them. A third party that complies in good faith is immune from liability for doing so.

49. Asset Tracing and Recovery

(1) The Department may trace customer funds through any account, balance or transaction, including funds moved to an Operator's personal balance or to a third party.

(2) The Department may seize the assets of an Operator, with the least practicable disruption to their estate, and apply them to the restitution of customers and the costs of enforcement.

(3) Where a third party received customer funds otherwise than in good faith and for fair value, the Department may recover those funds from that third party for the benefit of customers.

(4) This section operates alongside the Proceeds of Crime provisions of the Criminal Code Act and the Knowing Receipt provisions of the Redmont Civil Code Act.

50. Receivership

(1) Where the Department reasonably believes it necessary to protect customer funds, it may apply to the Federal Court to place an operation carrying on regulated financial activity, together with the relevant assets of its Operators, into receivership, whether or not the operation is licensed or incorporated.

(2) A receiver so appointed has, in addition to the powers of a receiver under the Legal Entity Act, the power to take control of all customer funds and operational assets, suspend the activity and wind down the operation.

(3) The receiver shall apply recovered assets first to the restitution of customers, and thereafter to creditors, penalties and the costs of the receivership.

(4) Pending a receivership application the Department may act under section 25.

51. Sanctions, Disgorgement and Restitution

(1) Administrative sanctions under this Act are coercive and not punitive.

(2) Where the Department determines that a person has contravened this Act, it may impose a proportionate administrative penalty, order the disgorgement of any profit or benefit derived from the contravention, and order restitution to affected customers.

(3) Amounts recovered, including frozen, seized and disgorged funds, are applied first to the restitution of customers and thereafter to penalties and enforcement costs.

(4) An administrative sanction may be contested before a judicial officer in accordance with the Redmont Civil Code Act, and does not bar criminal prosecution for the same conduct.

52. Public Warnings, Bar Orders and the Public Register

(1) The Department may issue public warnings identifying an unlicensed person or operation and stating that it is unlicensed and uninsured.

(2) The Department may by Bar Order prohibit a named individual from operating, controlling or materially participating in any financial institution for a specified period, where that individual has operated an unlicensed scheme or seriously or repeatedly contravened this Act.

(3) The Department shall maintain a public register of licences, Cease and Desist Orders, Freeze Orders, Bar Orders, product intervention orders and trading suspensions.

53. Personal Liability of Operators

(1) Every Operator of an operation that carries on regulated financial activity in contravention of this Act is personally, jointly and severally liable for the repayment of customer deposits and for any penalty, disgorgement or restitution ordered.

(2) Where the activity is carried on without a licensed and incorporated entity, no limitation of liability applies and the Operators are liable as principals.

(3) Liability is not avoided by characterising the funds as a purchase, investment, commodity or token, by the resignation, removal or substitution of an Operator after the conduct, by the transfer or purported transfer of ownership or control, or by reliance on terms to which customers did not demonstrably and knowingly assent.

54. Notice, Appeals and Court Recourse

(1) On issuing an order or sanction, the Department shall serve notice stating the order, the conduct concerned and the basis for it in reasonable detail. Service in respect of an unincorporated operation may be effected on any Operator.

(2) A person subject to an order or sanction may appeal to the Secretary of the Department, or to a designated officer not involved in the original decision, within 7 days of service. The reviewing authority may confirm, vary or set aside the order.

(3) A person dissatisfied with the decision on appeal may seek relief before the Federal Court.

(4) An order or sanction remains in force during an appeal unless stayed by the Secretary or the Federal Court, and nothing in this section limits the Court's power to grant urgent relief or to preserve customer funds.

(5) The Department acts on reasonable belief. Where a sanction is contested before a judicial officer, the standard of proof is that set by the Redmont Civil Code Act for administrative violations.

55. Delegation and Immunity

(1) The Secretary may delegate any power under this Act to an officer or delegate of the Department, except the power to make rules.

(2) The Department, its officers and any receiver or monitor appointed under this Act are immune from civil liability for acts done in good faith in the exercise of their powers. The immunity does not apply to criminal conduct or to acts outside the scope of their authority.

PART XI — OFFENCES AND CIVIL VIOLATIONS

56. Amendments to the Criminal Code Act


(1) Part VII of the Criminal Code Act is amended by adding the following sections, numbered sequentially after the last existing section of that Part:
Operating an Unlicensed Financial Institution
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment.

A person commits an offence if the person carries on, operates, or knowingly facilitates regulated financial activity, including taking deposits or offering interest, yield or a payout on funds received, without the licence and incorporation required by the Commercial Standards Act.
Aggravated Operation of an Unlicensed Financial Institution
Offence Type: Indictable
Penalty: Up to 1500 Penalty Units; Up to 60 minutes imprisonment; Restitution.

A person commits an offence if the person commits the offence of Operating an Unlicensed Financial Institution and one or more of the following applies:

(a) the total customer funds taken or placed at risk exceed 500 Penalty Units in value;

(b) the scheme targeted new players or otherwise exploited the inexperience of customers;

(c) customer funds were dissipated, concealed or moved to a personal balance; or

(d) the person had previously been warned, sanctioned or barred in respect of similar conduct.
Operating a Ponzi or Pyramid Scheme
Offence Type: Indictable
Penalty: Up to 2000 Penalty Units; Up to 60 minutes imprisonment; Restitution; Disgorgement of any benefit derived.

A person commits an offence if the person:

(a) operates, promotes or induces participation in an arrangement; and

(b) returns, payouts or yields to existing participants are paid wholly or substantially from contributions made by new participants rather than from genuine revenue or investment profit.
This offence shall not occur where:

(c) the returns are genuinely and substantially derived from the lawful trading or investment activity of a licensed financial institution.
Misuse of Client Funds
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Restitution of the funds or their value.

A person commits an offence if the person:

(a) receives or holds client funds as defined in the Commercial Standards Act; and

(b) lends, pledges, invests, encumbers or otherwise applies them for the person's own account or to meet the person's own liabilities or operating costs, or fails to keep them segregated as required by that Act.
It is a defence if the person:

(c) applied the funds strictly as agent under the customer's mandate, with the customer bearing the investment risk.
Breach of a Cease and Desist Order
Offence Type: Indictable
Penalty: Up to 750 Penalty Units; Up to 45 minutes imprisonment.

A person commits an offence if the person continues, resumes or causes the continuation of an activity after being served a Cease and Desist Order under the Commercial Standards Act. Each day of continued contravention is a separate offence.
Dissipation of Frozen Funds
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment.

A person commits an offence if the person transfers, withdraws, conceals or disposes of funds or assets in contravention of a Freeze Order issued under the Commercial Standards Act.
Breach of a Product Intervention or Trading Suspension Order
Offence Type: Indictable
Penalty: Up to 750 Penalty Units; Up to 45 minutes imprisonment. Each day of continued contravention is a separate offence.

A person commits an offence if the person offers, deals in or trades a financial product or security in contravention of a product intervention order or a trading suspension order issued under the Commercial Standards Act.
Obstruction of Financial Regulation
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment.

A person commits an offence if the person obstructs, hinders or misleads the Department of Commerce in the exercise of its powers under the Commercial Standards Act, fails to comply with a lawful order, direction, requirement, undertaking or audit demand under that Act, or deletes, alters, conceals or destroys records the person is required to preserve.
Tipping Off
Offence Type: Indictable
Penalty: Up to 300 Penalty Units; Up to 30 minutes imprisonment.

A person commits an offence if the person:

(a) knows or suspects that an investigation under the Commercial Standards Act is being, or is likely to be, conducted; and

(b) discloses information to the subject of the investigation, or to any other person, in a manner likely to prejudice the investigation.
False Representation as a Financial Institution
Offence Type: Indictable
Penalty: Up to 400 Penalty Units; Up to 30 minutes imprisonment.

A person commits an offence if the person:

(a) represents, whether by name, advertising, conduct or otherwise, that the person is a bank, a licensed financial institution or an insured or government backed institution; and

(b) the person is not licensed as such under the Commercial Standards Act.
Unlawful Offering of a Security or Financial Product
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment.

A person commits an offence if the person:

(a) offers a security or financial product to the public without a disclosure document registered by the Department of Commerce; or

(b) offers a security or financial product on the basis of a disclosure document the person knows, or ought reasonably to know, is materially false or misleading.
This offence shall not occur where:

(c) the offering, or a class of offerings to which it belongs, is exempt from the disclosure requirement under the Commercial Standards Act.
Reckless Facilitation of Unlicensed Financial Activity
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment.

A person commits an offence if the person:

(a) hosts the infrastructure of, processes or routes payments for, or advertises or promotes, regulated financial activity carried on in contravention of the Commercial Standards Act; and

(b) is reckless as to whether that activity is unlicensed.
It is a defence if the person:

(c) took reasonable steps to verify the licensing status of the activity before providing the facilitation.
Operating or Participating While Barred or Disqualified
Offence Type: Indictable
Penalty: Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Extension of the Bar Order or disqualification by up to 2 months.

A person commits an offence if the person:

(a) is subject to a Bar Order under the Commercial Standards Act or to a disqualification order under the Legal Entity Act; and

(b) operates, controls, manages, finances or materially participates in a financial institution or legal entity in a capacity prohibited by that Order, whether directly or through a nominee, intermediary or other person.
This offence shall not occur where:

(c) the person acted with the prior written authorisation of the Department of Commerce.
Wash Trading and Matched Orders
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment; Disgorgement of any benefit derived.

A person commits an offence if the person:

(a) enters into a transaction in a security or financial product that involves no change in beneficial ownership; or

(b) enters an order to buy, or to sell, knowing that a matching order of substantially the same size and price has been or will be entered by the same person or by a person acting in concert with them; and

(c) does so for the purpose of creating a false or misleading appearance of trading activity or price.
Front Running
Offence Type: Indictable
Penalty: Up to 500 Penalty Units; Up to 30 minutes imprisonment; Disgorgement of any benefit derived.

A person commits an offence if the person:

(a) knows that a customer, employer or client has placed, or intends to place, an order in a security or financial product that is likely to affect its price; and

(b) deals in that security or product, or causes another to do so, ahead of that order for the benefit of themselves or a person other than the customer.

(2) Section 17 (Persistent Corporate Violation), in Part X of the Criminal Code Act, is amended as follows:
(c) has received more than three warnings from the DOC within 2 weeks.
(c) has received more than three warnings from the DOC concerning the same or related conduct, or has persistently violated the Legal Entity Act.

(3) The penalties for the following offences in Part VII of the Criminal Code Act are amended as follows:
Section 2 (Market Manipulation): Up to 500 Penalty Units; Up to 60 minutes imprisonment.
Section 4 (Third-Party Misrepresentation): Up to 400 Penalty Units; Up to 30 minutes imprisonment.
Section 6 (Embezzlement): Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Restitution of the misappropriated assets or their value.
Section 7 (Fraud): Up to 1000 Penalty Units; Up to 60 minutes imprisonment; Restitution of the loss or its value.
Section 8 (Concealment of Criminal Proceeds): Up to 1000 Penalty Units; Up to 60 minutes imprisonment.
Section 10 (Exploitation of New Players): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Section 14 (Tax Evasion): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Section 15 (Market Allocation): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Section 16 (Bid Rigging): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Section 17 (Price Fixing): Up to 500 Penalty Units; Up to 30 minutes imprisonment.
Section 18 (Monopolisation): Up to 500 Penalty Units; Up to 30 minutes imprisonment; Forced divestiture of entities.
Section 21 (Unrecognized Foreign Exchange): Up to 500 Penalty Units; Up to 60 minutes imprisonment.
Section 22 (Foreign Exchange Fraud): Up to 500 Penalty Units; Up to 60 minutes imprisonment.

(4) Sections 26 to 30 of Part VII of the Criminal Code Act, being the offences inserted by Part V of the Banking Income Tax Act, are amended by substituting a reference to Part IX of the Commercial Standards Act for every reference to the Banking Income Tax Act, and Section 30 (Liability of Directors and Officers) is further amended as follows:
(a) A financial institution commits an offence under Sections 26 to 29; and
(a) a financial institution, or an operation carrying on regulated financial activity, commits an offence under Sections 26 to 29 or under any offence inserted by the Commercial Standards Act; and

(5) The offences inserted into Part VII of the Criminal Code Act by Section 34(1) of the Financial Institutions Enforcement Act are repealed, being:
Operating an Unregistered Financial Institution; Aggravated Operation of an Unregistered Financial Institution; Operating a Ponzi or Pyramid Scheme; Misuse of Client Funds; Breach of a Cease and Desist Order; Dissipation of Frozen Funds; Breach of a Product Intervention or Trading Suspension Order; Obstruction of Financial Regulation; Tipping Off; False Representation as a Financial Institution; Unlawful Offering of a Security or Financial Product; Reckless Facilitation of Unregistered Financial Activity; Operating or Participating While Barred or Disqualified; Liability of Operators, Directors, and Officers.

(6) The offences added by subsection (1) replace those repealed by subsection (5). Conduct occurring before the enactment of this Act remains chargeable under the offence in force at the time it occurred, in accordance with Part I, Section 6(3) of the Criminal Code Act.

(7) Nothing in this section affects Section 3 (Insider Trading), Section 20 (Usury) or Section 31 (Violation of the Credit Standards Act) of Part VII, or Sections 32 to 39 of Part VII, being the offences inserted by the Bankruptcy Act.

57. Amendments to the Redmont Civil Code Act

(1) Part X of the Redmont Civil Code Act is amended by adding the following violations, each with the Commercial Standards Act as its Relevant Law:
Breach of the Commercial Standards Act
Violation Type: Administrative
Remedy: Up to 250 Civil Penalty Units; Compliance order; Disgorgement; Restitution; Receivership

A person commits a violation if the person:

(a) carries on or facilitates regulated financial activity in contravention of the Commercial Standards Act; or

(b) fails to comply with a lawful order or sanction of the Department of Commerce under that Act.
This violation shall not occur where:

(c) the person is taking reasonable steps to remedy their compliance.
Failure to Licence a Financial Institution
Violation Type: Administrative
Remedy: Up to 250 Civil Penalty Units; Compliance order

A person commits a violation if the person:

(a) carries on regulated financial activity without being licensed and incorporated as required by the Commercial Standards Act.
This violation shall not occur where:

(b) the person is taking reasonable steps to obtain a licence, or to cease the activity and return customer funds.
Breach of Client-Fund Segregation Duty
Violation Type: Strict Liability
Remedy: Restitution; Up to 250 Civil Penalty Units; Disgorgement

A person commits a violation if the person:

(a) receives or holds client funds; and

(b) fails to segregate them from the person's own funds, or applies them otherwise than as permitted under the Commercial Standards Act.
This violation shall not occur where:

(c) the funds were applied strictly as agent under the customer's mandate.
Failure to Honour Withdrawal or Redemption
Violation Type: Strict Liability
Remedy: Specific performance; Restitution; Up to 200 Civil Penalty Units

A person commits a violation if the person, without lawful excuse, fails to honour a customer's valid withdrawal, redemption or repayment request within the time required by the agreement or by law.
This violation shall not occur where:

(b) performance was prevented by a Freeze Order, court order or other lawful restraint.
Mis-selling of a Financial Product
Violation Type: Intentional/Negligent
Remedy: Rescission; Restitution; Up to 250 Civil Penalty Units

A person commits a violation if the person:

(a) recommends, sells or supplies a financial product to a customer;

(b) the product is unsuitable for that customer, or is supplied without fair disclosure of its risks, returns, fees or the possibility of loss of principal; and

(c) the customer suffers loss as a result.
This violation shall not occur where:

(d) the customer was a sophisticated party who did not rely on the person's recommendation.
Misleading Promotion of a Financial Product
Violation Type: Intentional/Negligent
Remedy: Up to 250 Civil Penalty Units; An order for corrective disclosure

A person commits a violation if the person:

(a) promotes a deposit or financial product using representations of fixed, guaranteed, insured or risk free returns; and

(b) those representations are false, or are not reasonably substantiated at the time they are made.
This violation shall not occur where:

(c) the representation constitutes puffery on which no reasonable person would rely.
Failure to File a Required Report or Return
Violation Type: Administrative
Remedy: Up to 100 Civil Penalty Units per failure; Compliance order

A person commits a violation if the person, being required to report under Part VIII or Part IX of the Commercial Standards Act, fails to file within the time required.
Failure to Comply with an Audit Demand
Violation Type: Administrative
Remedy: Up to 250 Civil Penalty Units; Adverse inference

A person commits a violation if the person fails to obtain and submit an independent audit required under the Commercial Standards Act, or obstructs such an audit or an independent monitor.

PART XII — REPEALS, AMENDMENTS AND TRANSITION

58. Amendments to Other Acts


(1) Section 5 (Alternative Financial Institution Taxes) of the Taxation Act is repealed, its subject matter being restated in section 34 of this Act.

(2) Section 6 (Powers of the Department of Commerce) of the Taxation Act is repealed, its subject matter being restated in Parts II and X of this Act.

(3) Section 7 (Deposit Guarantee) of the Taxation Act is repealed, its subject matter being restated in section 24 of this Act.

(4) Section 8 (Financial Institution Rights) of the Taxation Act is repealed, its subject matter being restated in section 9 of this Act.

(5) A reference in the Taxation Act or any other enactment to the taxation of financial institutions, or to the computation of their income, is read as a reference to Part IX of this Act.

(6) Section 25(1)(b) of the Bankruptcy Act is amended as follows:
Class 2: Customer deposits, up to the deposit guarantee limit under the Taxation Act, as that limit may be set from time to time;
Class 2: Customer deposits and client funds, up to the deposit guarantee limit under the Commercial Standards Act, as that limit may be set from time to time. Client funds held in accordance with section 22 of that Act are the property of the customer and do not form part of the estate at all.

(7) Section 32(1) of the Bankruptcy Act is amended as follows:
Where the debtor is a Financial Institution, the Department of Commerce retains primary authority under the Taxation Act and the Seizure and Insurance Adjustment Act.
Where the debtor is a Financial Institution, the Department of Commerce retains primary authority under the Commercial Standards Act and the Seizure and Insurance Adjustment Act.

(8) Section 32(3)(b) of the Bankruptcy Act is amended by substituting a reference to the Commercial Standards Act for the reference to the Taxation Act.

(9) Section 18(1) of the Bankruptcy Act is amended by deleting the words "including sole proprietorships", sole proprietorships being dealt with under Section 18(2) of that Act and not being Incorporated Entities under the Legal Entity Act.

(10) The Credit Standards Act continues in force and applies to every extension of credit by a Class H Credit Provider and by any other licensed institution. A failure to make the disclosures that Act requires is a contravention of this Act as well as an offence under Section 31 of Part VII of the Criminal Code Act.

59. Continuity of Licences and Registrations

(1) A person registered as a financial institution immediately before the enactment of this Act holds a licence for the corresponding class, being:

(a) Commercial Bank, Class A;

(b) Credit Union, Class B;

(c) Investment Bank, Class C; and

(d) Stock Exchange, Class F.

(2) A person who, immediately before the enactment of this Act, was lawfully carrying on an activity that this Act brings within a new licence class has 30 days to apply for that licence, and may continue the activity while the application is pending.

(3) A registration, exemption, order, undertaking, ruling, warning, Bar Order or sanction made under a repealed Act continues in force as if made under the corresponding provision of this Act.

(4) A rule made under a repealed Act continues in force so far as it is consistent with this Act.

(5) An institution licensed under subsection (1) has 90 days from the enactment of this Act to meet the capital requirement in section 16(5), and shall file a plan to do so within 30 days. This period is a maximum and the Department may not extend it.

(6) An institution that does not meet the requirement within the applicable period shall either surrender its licence and return customer funds in an orderly manner, or apply for a licence class whose requirement it does meet. The Department may act under Part X where it does neither.

(7) Section 18(5) does not apply to a qualifying holding acquired before the enactment of this Act, but the holder shall notify the Department of it within 30 days.

60. Transition

(1) This Act applies to regulated financial activity carried on before, on or after its enactment, and to all outstanding customer funds and deposits, regardless of when the activity commenced or the funds were received.

(2) The supervisory, recovery and remedial powers in Part X and the liability in section 53 apply to conduct, activity and funds arising before or after the enactment of this Act.

(3) A person carrying on regulated financial activity without a licence shall, within 7 days of the enactment of this Act, either apply for a licence or cease the activity and return all customer funds. A person who has applied within that period may continue the activity while the application is pending unless the Department directs otherwise.

(4) An offence under Part XI is committed only where the relevant conduct occurs on or after the enactment of this Act.

(5) A taxation period that commenced before the enactment of this Act continues to be governed by the law as it stood immediately before that time. A loss arising under the repealed Banking Income Tax Act or the Taxation Act is carried forward for no more than 3 months from the enactment of this Act.

(6) An amendment made to another Act by a repealed Act named in Section 1(5) survives the repeal except where this Act expressly provides otherwise, and a reference in any surviving amendment to a repealed Act is read as a reference to the corresponding provision of this Act.

(7) The first report due under Part VIII from a Tier 2 or Tier 3 reporting person is due at the end of its first full reporting period after the enactment of this Act.

(8) Nothing in this Act affects an existing legal action or a liability already accrued.

61. Relationship to Other Acts

(1) This Act supplements and does not limit the Redmont Corporate Entities Act, the Criminal Code Act or the Redmont Civil Code Act.

(2) Where this Act and another enactment both address the substance of a deposit or a financial product, they are read consistently and in favour of preventing avoidance.

(3) A reference in any enactment to the Commercial Standards Act, the Financial Institutions Enforcement Act or the Banking Income Tax Act is read as a reference to this Act.

62. Severability

(1) If any provision of this Act is held invalid or unenforceable, the remainder continues in full force and effect.[/B]
 

CONGRESS OF THE
COMMONWEALTH OF REDMONT






A BILL TO

IMPRISON PEOPLE WHO ESCAPE JAIL AND SYNC THE CCA TO THE NEW PLUGIN







The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:


PART I — PRELIMINARIES

1. Short Title and Enactment


(1) This Act may be cited as the ‘Plugin Sync Act’

(2) This Act shall be enacted immediately upon its signage.

(3) This Act has been authored by Speaker _GreyMC with input from Homeland Secretary Technofied.

(4) This Act has been co-sponsored by Representative lovepurplepoodle.

(5) This Act amends the following acts:

(a) Criminal Code Act

2. Reasons and Intent

(1) The server now automatically applies stars for wanted records, but the CCA does not have a provision for it. This act adds that provision.

PART II - AMENDMENTS
3. Criminal Code Act


(1) The following shall be added as Part III, §19 of the Criminal Code Act:

19 - Prison Escape
Offence Type: Summary
Penalty: Imprisonment for each minute spent unlawfully outside of custody
A person commits an offence if the person:
(a) escapes from prison while serving out a sentence under this act.
(i) Escaping shall be determined when a player is given a wanted star by the server for escaping.
Relevant Law:
 

CONGRESS OF THE
COMMONWEALTH OF REDMONT






A BILL TO

Reform Conflict of Interest Standards to Permit Ownership Subject to Recusal







The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:


PART I — PRELIMINARIES

1. Short Title and Enactment


(1) This Act may be cited as the ‘Conflict of Interest Reform Act’

(2) This Act shall be enacted immediately upon its signage.

(3) This Act has been authored by President Theory Fontaine.

(4) This Act has been co-sponsored by Representative lovepurplepoodle, Deputy president of the senate ElegantAlly.

(5) This Act amends the following acts:

(a) Conflict of Interest Standards Act

(b) Criminal Code Act

2. Reasons and Intent

(1) The Conflict of Interest Standards Act treats ownership itself as the harm. The harm is not ownership, it is an officeholder exercising public power over their own interest.

(2) Forced divestiture is a disproportionate remedy in a Commonwealth of this size. It punishes the most experienced citizens for the very experience that makes them suitable, and it drives capable people out of public service rather than into it.

(3) Recusal is the ordinary remedy for conflicts in every mature jurisdiction. It is targeted, verifiable, and does not require a citizen to liquidate their life's work as the price of a nomination.

(4) The intent of this Act is that a Secretary may found, own, and hold a controlling stake in a bank, but may never audit, charter, licence, penalise, or contract with that bank. The conflict is managed at the point of decision rather than at the point of ownership.

(5) The power to compel divestiture is retained by the President for the narrow cases where recusal cannot protect the public interest, subject to public justification and Congressional oversight.

3. Definitions

(1) For the purposes of this Act, the following definitions shall apply:

(a) Declarable Interest. Any ownership, executive, directorship, partnership, or significant financial interest described in §4 of the Conflict of Interest Standards Act.

(b) Official Act. Any exercise of public authority by an officeholder, including any decision, vote, approval, audit, investigation, award, order, or determination made in their official capacity.

(c) Recusal. The complete withdrawal of an officeholder from a matter, including abstaining from any decision, vote, direction, or deliberation on it, and refraining from accessing confidential information concerning it.

(d) Alternate Officer. A person who discharges a duty from which the officeholder has recused, in accordance with §6 of the Conflict of Interest Standards Act.

PART II — AMENDMENTS TO THE CONFLICT OF INTEREST STANDARDS ACT

4. Amendment of §4


(1) §4 of the Conflict of Interest Standards Act is amended as follows:

4 - Prohibited Conflicts of Interest Declarable Conflicts of Interest

(1) No person may be nominated, appointed, or continue to serve in any position covered by §3 if they have any of the following conflicts: A person covered by §3 holds a declarable interest, and must comply with §5 and §6, where any of the following apply:

(2) Business Ownership Conflicts:

(a) Owns, wholly or in part, any business entity that regularly contracts with or is regulated by the government department they would serve in. They own, wholly or in part, any business entity that contracts with or is regulated by the government department or body they serve in.

(b) Holds a controlling interest in any business entity operating within the same sector or field as the government department they would serve in. They hold an interest, including a controlling interest, in any business entity operating within the same sector or field as the government department or body they serve in.

(3) Corporate Executive Conflicts:

(a) Sits on They sit on the board of directors of any business entity that operates within the same sector or field as the government department they would serve serve in.

(b) Holds They hold an executive officer position in any business entity that operates within the same sector or field as the government department they would serve serve in.

(4) Legal Practice Conflicts:

(a) Owns, operates, or holds a partnership in any active legal firm while serving in the Judicial Branch. They own, operate, or hold a partnership in any active legal firm while serving in the Judicial Branch.

(b) A judicial officer holding an interest under (a) must recuse themselves from any matter in which that firm, or any partner or employee of it, appears or has appeared, and must not personally appear as counsel before any court of the Commonwealth while holding judicial office.

(5) Financial Conflicts:

(a) Holds They hold significant financial investments in any single company that operates within the same sector or field as the government department they would serve serve in.

(6) For the avoidance of doubt, a declarable interest is not a bar to nomination, appointment, or continued service. No person may be denied office, removed from office, or compelled to divest by reason only of holding a declarable interest, including a controlling interest.

5. Amendment of §5

(1) §5 of the Conflict of Interest Standards Act is amended as follows:

5 - Disclosure Requirements

(1) All nominees for positions covered by this Act must provide a detailed financial disclosure statement, including:

(a) All business ownership interests

(b) All executive officer positions held in the past 3 months

(c) All significant financial investments and assets

(d) All directorships held and all interests in active legal firms

(2) These disclosures must be made available to the confirming body in the nominee’s opening statement.

(3) Failure to provide complete and accurate disclosure shall disqualify the nominee from consideration.

(4) A person covered by §3 must update their disclosure within 7 days of acquiring, materially increasing, or disposing of a declarable interest.

6. Substitution of §6

(1) §6 of the Conflict of Interest Standards Act is repealed and substituted as follows:

6 - Divestiture Requirements Recusal and Management of Conflicts

(1) Nominees who have conflicts as defined in §4 must completely divest themselves of such conflicts before assuming office. A person covered by §3 who holds a declarable interest must recuse themselves from any official act that specifically affects the business entity in which that interest is held.

(2) Divestiture must be completed within 14 days of nomination, or the nomination shall be considered withdrawn. Official acts requiring recusal include, but are not limited to:

(a) audits, examinations, inspections, and investigations;

(b) the granting, refusal, suspension, or revocation of charters, licences, permits, or registrations;

(c) enforcement action, fines, or penalties;

(d) the award or administration of any government contract, grant, or subsidy;

(e) any rule, order, or determination applying only or primarily to that entity.

(3) Proof of divestiture must be provided before the nominee may assume their duties. A recused duty shall pass to the most senior officer of the same department or body who does not hold a conflict in the matter. Where no such officer exists, the President shall appoint an impartial alternate officer to discharge that duty for that matter alone.

(4) Where the FRB Governor or Lieutenant Governor holds a declarable interest in a financial institution, no audit, examination, or enforcement action concerning that institution may be conducted, approved, or signed off by them. Such action shall instead be carried out by the other officer, or by an independent auditor appointed by the President.

(5) Each recusal shall be recorded in writing, stating the matter and the interest concerned, and published within 7 days.

(6) Nothing in this Act prevents a person covered by §3 from founding, owning, acquiring, retaining, or increasing an interest in any business entity, including a controlling interest, provided they comply with §5 and this section.

(7) The President may, by written order stating reasons, require a specific interest to be divested where recusal alone cannot protect the public interest, including where recusal would prevent the officeholder from discharging the substantial majority of their duties. Such an order must be publicly announced, is subject to Congressional oversight, and must be complied with within 14 days of service.

7. Amendment of §7

(1) §7 of the Conflict of Interest Standards Act is amended as follows:

7 - Ongoing Compliance

(1) Any individual who acquires a conflict of interest as defined in §4 while serving must immediately disclose such conflict and divest within 14 days or resign their position. Any individual who acquires a declarable interest while serving must disclose it within 7 days and recuse in accordance with §6.

(2) The President shall monitor compliance and report violations as appropriate.

8. Repeal of §9

(1) §9 of the Conflict of Interest Standards Act is repealed in its entirety, the prohibitions to which it applied having been replaced by the recusal framework in §6.

9 - Exemptions and Waivers Repealed

(1) The President may grant a limited waiver for conflicts, only if any of the following conditions are met:

(a) The conflict is minor and unlikely to affect the individual's judgment;

(b) The individual's expertise is essential, and no suitable alternative candidate exists;

(c) Appropriate safeguards are established to prevent improper influence.

(2) All waivers must be publicly announced with written justification and are subject to Congressional oversight.

9. Amendment of §10

(1) §10 of the Conflict of Interest Standards Act is amended as follows:

10 - Transition Period

(1) Current office holders have 14 days from the enactment of this Act to come into compliance with its requirements. the Conflict of Interest Reform Act to file a disclosure under §5.

(2) Those who cannot or will not comply must resign their positions within this period. No office holder shall be required to resign or divest by reason only of an interest disclosed under this section.

10. Amendment of §11

(1) §11 of the Conflict of Interest Standards Act is amended by inserting the following subsection:

(6) "Declarable Interest", "Official Act", "Recusal", and "Alternate Officer" bear the meanings given to them in §3 of the Conflict of Interest Reform Act.

PART III — AMENDMENTS TO THE CRIMINAL CODE ACT

11. Amendment of PART II: PROPER ADMINISTRATION OF GOVERNMENT


(1) Offence 6 of PART II of the Criminal Code Act is amended as follows:

6 - Conflict Violation Failure to Recuse

Offence Type: Indictable
Penalty: Up to 350 Penalty Units; Up to 60 minutes imprisonment; immediate removal from the office they hold a conflict of interest. the office in which the offence was committed.

A person commits an offence if the person:

(a) serves in a position covered by the Conflict of Interest Standards Act while knowingly maintaining a prohibited conflict of interest; or knowingly takes, participates in, or directs an official act from which they were required to recuse under §6 of the Conflict of Interest Standards Act; or

(b) fails to divest themselves of a prohibited conflict of interest within the required timeframe; or fails to disclose a declarable interest within the timeframe required by §5 or §7 of that Act; or

(c) acquires a prohibited conflict of interest while serving and fails to disclose and divest within 14 days. fails to comply with a divestiture order made under §6(7) of that Act within 14 days of service.

Relevant Law: Act of Congress - Conflict of Interest Standards Act

(2) Offence 7 of PART II, False Financial Disclosure, is unamended and remains in full force.

PART IV — FINAL PROVISIONS

12. Severability


(1) If any provision of this Act is found to be unconstitutional or invalid, the remaining provisions shall continue in full force and effect.
 

Presidential Assent



Seal_President_Small.png


PRESIDENTIAL ASSENT




The Plugin Sync Act adds a summary offence of Prison Escape to Part III of the Criminal Code Act, committed when a player serving a sentence under that Act escapes, as determined by the wanted star the server now issues for it. The server already punishes the conduct; the law should say so, and after this Act it does. It creates a narrow offence tied to an objective trigger, and it limits no right. I assent to it.




I record the following for Congress and for the Office of Congressional Affairs.

These are not conditions of my assent.

(1) The penalty is "imprisonment for each minute spent unlawfully outside of custody" without saying how much imprisonment per minute. I read it as one minute for one minute, which is what the plugin applies, and Congress should say so.




My thanks to Speaker _GreyMC for authoring this Bill, to Homeland Secretary Technofied for the input recorded at section 1(3), and to Representative lovepurplepoodle for co-sponsoring it.


Accordingly, I assent to this Bill, and it is enacted as law.

signature


Theory Fontaine
30th President of the Commonwealth of Redmont

 

Presidential Assent


Seal_President_Small.png


PRESIDENTIAL ASSENT




This Act restates the law of commerce and finance in a single instrument. It repeals and replaces the Commercial Standards Act, the Financial Institutions Enforcement Act and the Banking Income Tax Act, opens a closed list of institutions into eight licence classes with a capital figure attached to each, replaces every separate reporting obligation with one tiered return, restates the taxation of financial institutions in one Part, and states the Department's enforcement powers as a single ordered escalation with notice and appeal at each step.

I grant assent for two reasons.

First, the law it replaces could not be followed by the people it bound. Four Acts amended one another in both directions, a one player company owed the same monthly statements as the largest bank in Redmont, and the enforcement ladder written to protect depositors sat in an Act those subject to it had no reason to read. The paperwork this Act removes is larger than the paperwork it adds.

Second, the licence class ladder ends a closed market. Payments, custody, insurance and managed funds had no licence to apply for, so they operated unregulated or did not operate. Each now has a class, a capital figure and a supervisor, and Section 17 lets the Department bring the next one in without a further Act of Congress.

This Act is my own work, with Secretary Planke Fontaine. I record that here rather than leave it to be pointed out.

I record the following for Congress and for the Office of Congressional Affairs. These are not conditions of my assent.

1. The Act is cited as the Redmont Commerce and Finance Act at Section 1(1), but Parts XI and XII refer throughout to the Commercial Standards Act, including in the offences inserted into the Criminal Code Act. Section 61(3) reads those as references to this Act, so nothing fails, but the Criminal Code will carry offences citing a repealed statute by name until it is tidied.

2. There are no Sections 11 or 12. Part III ends at Section 10 and Part IV opens at Section 13.

3. Section 61(1) refers to the Redmont Corporate Entities Act, which is not yet law. Until it is, that reference is to be read as a reference to the Legal Entity Act.

4. The violation at Section 57(1) headed Failure to Honour Withdrawal or Redemption begins its lettering at (b).

My thanks to Commerce Secretary Planke Fontaine for co-authoring, and to Senator ElegantAlly for co-sponsoring.



This bill has been granted assent and is hereby signed into law.
signature

Theory Fontaine
30th President of the Commonwealth of Redmont

 

Presidential Assent



Seal_President_Small.png


PRESIDENTIAL ASSENT




The Conflict of Interest Reform Act ends forced divestiture as the price of public service and puts recusal in its place. Ownership was never the harm. The harm is an officeholder exercising public power over their own interest, and that is what this Act now prohibits with precision: a Secretary may found, own, and hold a controlling stake in a bank, and may never audit, charter, licence, penalise, or contract with it. A judicial officer may keep their firm, provided they step back from every matter it touches and never appear as counsel while holding office. Disclosure is broadened and put on a clock, every recusal is recorded and published, and the Criminal Code offence is recast from maintaining a conflict to failing to recuse from one. Divestiture survives only where recusal cannot protect the public interest, as a reasoned written order of the President, publicly announced and subject to Congressional oversight. A Commonwealth of this size cannot go on telling its most capable citizens that the price of a nomination is liquidating their life's work.




I record the following for Congress and for the Office of Congressional Affairs. These are not conditions of my assent.

1. A declarable interest is not a bar to nomination, appointment, or continued service. No person may be denied office, removed from office, or compelled to divest by reason only of holding one, including a controlling interest.

2. Every recusal must be recorded in writing, stating the matter and the interest concerned, and published within 7 days. Those records are public documents and should be kept as such.

3. A recused duty passes to the most senior officer of the same department or body who holds no conflict in the matter. Where no such officer exists, I will appoint an impartial alternate for that matter alone.

4. Current officeholders have 14 days from enactment to file a disclosure under §5. Nobody is required to resign or divest by reason only of what that disclosure reveals.

5. The divestiture power under §6(7) is a narrow reserve, not an ordinary tool. It will be exercised in writing, with reasons, in public, and it remains subject to Congressional oversight.

6. Offence 6 of Part II of the Criminal Code Act is now Failure to Recuse. False Financial Disclosure is untouched and remains in full force.




My thanks to Representative lovepurplepoodle and to Deputy President of the Senate ElegantAlly for co-sponsoring this Bill, and to both chambers for their consideration of it.


Accordingly, I assent to this Bill, and it is enacted as law.

signature


Theory Fontaine

30th President of the Commonwealth of Redmont

 
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