International Finance Corporation Act 1968

International Finance
Corporation Act 1968

2020 REVISED EDITION

This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021

An Act to implement the International Agreement for the establishment and operation of the International Finance Corporation and to enable Singapore to become a member thereof and for matters connected therewith.

[15 August 1968]

Short title

1.  This Act is the International Finance Corporation Act 1968.

Interpretation

2.  In this Act, unless the context otherwise requires —

“Agreement” means the Articles of Agreement opened for signature at Washington on 25 May 1955 (as may be subsequently amended) providing for the establishment and operation of the international body known as the International Finance Corporation;

“Corporation” means the International Finance Corporation established under the Agreement.

Acceptance of Agreement

3.  The President is hereby authorised by instrument under his hand to empower such person as may be named in the instrument, on behalf of the Government —

(a) to sign the Agreement; and

(b) to deposit with the International Bank for Reconstruction and Development an instrument of acceptance stating that the Government has accepted without reservation in accordance with the laws of Singapore the Agreement and the terms and conditions of the Resolution by the Board of Governors of the Corporation, dated 8 March 1968, providing for the admission of Singapore to membership, and has taken all steps necessary to enable the Government to carry out all its obligations under the Agreement and the said Resolution.

Financial provisions

4.  There shall be charged and paid out of the Consolidated Fund all sums required for the purpose of making payments on behalf of the Government —

(a) under section 3 of Article II of the Agreement (which provides for the subscription of shares of stock of the Corporation); and

(b) under section 4 of Article V of the Agreement (which relates to the cessation of membership of the Corporation).

Power to raise loans

5.  For the purposes of providing any sums required for making any payments to the Corporation, the Minister with the President’s concurrence under Article 144(1)(b) of the Constitution may, on behalf of the Government, raise loans by the creation and issue of securities bearing such rates of interests and subject to such conditions as to repayment, redemption or otherwise as he may think fit, and the principal and interest of those securities and any expenses incurred in connection with their issue shall be charged on and paid out of the Consolidated Fund.

Receipts

6.  All sums received by or on behalf of the Government from the Corporation shall be paid into the Consolidated Fund.

Certain provisions of Agreement to have force of law

7.—(1)  Notwithstanding anything to the contrary in any other written law, the provisions of the Agreement set out in the Schedule shall have the force of law:

Provided that nothing in section 9 of Article VI of the Agreement shall be construed as —

(a) entitling the Corporation to import into Singapore goods free of any duty of customs without any restriction on their subsequent sale therein;

(b) conferring on the Corporation any exemption from taxes or duties which form part of the price of goods sold; or

(c) conferring on the Corporation any exemption from taxes or duties which are no more than charges for services rendered.

(2)  The Minister may, by notification in the Gazette, amend the Schedule in conformity with any amendments to the provisions of the Agreement set out therein which may hereafter be duly made and adopted.

Power to make rules

8.—(1)  The Minister may make rules for carrying out or giving effect to the provisions of this Act.

(2)  Such rules shall be presented to Parliament as soon as possible after publication.

THE SCHEDULE

Section 7

Provisions of Agreement having the force of law

Article VI

Status, Immunities and Privileges

Section 2.  Status of the Corporation

The Corporation shall possess full juridical personality and, in particular, the capacity —

(i) to contract;

(ii) to acquire and dispose of immovable and movable property;

(iii) to institute legal proceedings.

Section 3.  Position of the Corporation with Regard to Judicial Process

Actions may be brought against the Corporation only in a court of competent jurisdiction in the territories of a member in which the Corporation has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. No actions shall, however, be brought by members or persons acting for or deriving claims from members. The property and assets of the Corporation shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Corporation.

Section 4.  Immunity of Assets from Seizure

Property and assets of the Corporation, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action.

Section 5.  Immunity of Archives

The archives of the Corporation shall be inviolable.

Section 6.  Freedom of Assets from Restrictions

To the extent necessary to carry out the operations provided for in this Agreement and subject to the provisions of Article III, section 5, and the other provisions of this Agreement, all property and assets of the Corporation shall be free from restrictions, regulations, controls and moratoria of any nature.

Section 7.  Privilege for Communications

The official communications of the Corporation shall be accorded by each member the same treatment that it accords to the official communications of other members.

Section 8.  Immunities and Privileges of Officers and Employees

All Governors, Directors, Alternates, officers and employees of the Corporation —

(i) shall be immune from legal process with respect to acts performed by them in their official capacity;

(ii) not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;

(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members.

Section 9.  Immunities from Taxation

(a) The Corporation, its assets, property, income and its operations and transactions authorised by this Agreement, shall be immune from all taxation and from all customs duties. The Corporation shall also be immune from liability for the collection or payment of any tax or duty.

(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Corporation to Directors, Alternates, officials or employees of the Corporation who are not local citizens, local subjects, or other local nationals.

(c) No taxation of any kind shall be levied on any obligation or security issued by the Corporation (including any dividend or interest thereon) by whomsoever held —

(i) which discriminates against such obligation or security solely because it is issued by the Corporation; or

(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Corporation.

(d) No taxation of any kind shall be levied on any obligation or security guaranteed by the Corporation (including any dividend or interest thereon) by whomsoever held —

(i) which discriminates against such obligation or security solely because it is guaranteed by the Corporation; or

(ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Corporation.

Section 11.  Waiver

The Corporation in its discretion may waive any of the privileges and immunities conferred under this Article to such extent and upon such conditions as it may determine.

LEGISLATIVE HISTORY

International Finance Corporation Act 1968

 

This Legislative History is a service provided by the Law Revision Commission on a best-efforts basis. It is not part of the Act.
1.	Act 20 of 1968—International Finance Corporation Act, 1968
	Bill	:	32/1968
	First Reading	:	11 July 1968
	Second and Third Readings	:	31 July 1968
	Commencement	:	15 August 1968
2.	1970 Revised Edition—International Finance Corporation Act (Chapter 70)
	Operation	:	1 April 1971
3.	1985 Revised Edition—International Finance Corporation Act (Chapter 144)
	Operation	:	30 March 1987
4.	Act 11 of 1991—Statutes (Miscellaneous Amendments) Act 1991
	(Amendments made by section 2 read with item (14) of the Schedule to the above Act)
	Bill	:	4/1991
	First Reading	:	3 January 1991
	Second Reading	:	14 January 1991
	Notice of Amendments	:	14 January 1991
	Third Reading	:	14 January 1991
	Commencement	:	30 November 1991 (section 2 read with item (14) of the Schedule)
5.	2013 Revised Edition—International Finance Corporation Act (Chapter 144)
	Operation	:	31 December 2013
6.	2020 Revised Edition—International Finance Corporation Act 1968
	Operation	:	31 December 2021

Abbreviations

	(updated on 29 August 2022)
G.N.	Gazette Notification
G.N. Sp.	Gazette Notification (Special Supplement)
L.A.	Legislative Assembly
L.N.	Legal Notification (Federal/Malaysian)
M.	Malaya/Malaysia (including Federated Malay States, Malayan Union, Federation of Malaya and Federation of Malaysia)
Parl.	Parliament
S	Subsidiary Legislation
S.I.	Statutory Instrument (United Kingdom)
S (N.S.)	Subsidiary Legislation (New Series)
S.S.G.G.	Straits Settlements Government Gazette
S.S.G.G. (E)	Straits Settlements Government Gazette (Extraordinary)