Section 41: Penalty for withdrawing money from trust account without authority

(1) A capital market operator who withdraws money from a trust account without the requisite authority commits an offence and is liable on conviction to a fine of not less than N500,000 or to a term of imprisonment not less than one year or to both such fine and imprisonment.
(2) For the purpose of subsection (1) of this section, a withdrawal from a trust account shall be deemed to be without requisite authority where the withdrawal is made for a purpose other than:
(a) to pay the person entitled to the payment;
(b) to defray brokerage and other proper charges; or
(c) as may otherwise be authorised by law.
(3) The Commission may, in lieu of prosecution for the offence prescribed under subsection (1) of this section, sanction a capital market operator who violates the provisions of this section by imposing a penalty of not less than N500,000.
(4) In addition to the penalty prescribed under subsection (3) of this section, the Commission shall direct the capital market operator to refund the monies received together with the interest thereon at a rate to be determined by the Commission.
(5) A capital market operator who, withdraws money from a trust account with intent to defraud, commits an offence and is liable on conviction to a fine of not less than N500,000 or to imprisonment for a term of not less than one year or to both such fine and imprisonment.