Malaysia Banking and Financial Institutions Act, 1989
- 1 Part I: PRELIMINARY
- 2 LICENSING OF BANKING, FINANCE COMPANY, MERCHANT BANKING, DISCOUNT HOUSE AND MONEY-BROKING BUSINESSES
- 3 PART III: SCHEDULED BUSINESSES AND REPRESENTATIVE OFFICES
- 4 PART IV: RESTRICTIONS RELATING TO ACCEPTANCE AND SOLICITATION OF, ADVERTISEMENT FOR, AND INDUCEMENT TO MAKE, DEPOSITS
- 5 PART V: SUBSIDIARIES AND OFFICES OF LICENSED INSTITUTIONS
- 6 PART VI: RESTRICTIONS ON DEALINGS OF LICENSED INSTITUTIONS
- 7 PART VII: FINANCIAL REQUIREMENTS AND DUTIES OF LICENSED INSTITUTIONS
- 8 PART VIII: OWNERSHIP, CONTROL AND MANAGEMENT OF LICENSED INSTITUTIONS
- 9 PART IX: RESTRICTIONS ON BUSINESS OF LICENSED INSTITUTIONS
- 10 PART X: POWERS OF SUPERVISION AND CONTROL OVER LICENSED INSTITUTIONS
- 11 PART XI: INVESTIGATION, SEARCH AND SEIZURE
- 12 PART XII: APPLICATION OF PARTS X AND XI TO NONSCHEDULED INSTITUTIONS ENGAGED IN PROVISION OF FINANCE
- 13 PART XIII: INFORMATION AND SECRECY
- 14 PART XIV: OFFENCES
- 15 PART XV: GENERAL PROVISIONS
- 16 PART XVI: AMENDMENT, REPEAL AND TRANSITIONAL PROVISIONS
- 17 Schedules
- 18 Related Topics
Part I: PRELIMINARY
- Section 1: Short title and commencement
- Section 2: Interpretation
- Section 3: Functions, powers and duties of Bank
LICENSING OF BANKING, FINANCE COMPANY, MERCHANT BANKING, DISCOUNT HOUSE AND MONEY-BROKING BUSINESSES
- 4. Banking, finance company, merchant banking, discount house and money-broking businesses to be carried on only under licence.
- 5. Submission of application for licence to the Bank.
- 6. Grant or refusal of application by Minister.
- 7. Revocation of licence.
- 8. Imposition of restrictions in lieu of revocation of licence.
- 9. Power to impose new conditions and to vary or revoke conditions imposed on licence under section 6 (4) or this section.
- 10. Notice of revocation of licence, imposition of restrictions, or variation or revocation of conditions, or imposition of new conditions.
- 11. Mandatory revocation of licence and restriction of licence in cases of emergency.
- 12. Surrender of licence.
- 13. Prohibition on carrying on of licensed business upon revocation, expiry of duration or surrender of licence.
- 14. Requirements for grant and continuance of licence.
- 15. Restriction on use of word “bank”, etc.
- 16. Names to be affixed outside office.
- 17. Amendment or alteration of constituent documents of licensed institution.
- 18. Publication of list of licensed institutions.
PART III: SCHEDULED BUSINESSES AND REPRESENTATIVE OFFICES
- 19. Requirements for commencing or carrying on scheduled business.
- 20. Requirements for setting up or maintaining a representative office.
- 21. Submission of documents, statements, etc.
- 22. Amendment or alteration of constituent documents of scheduled or foreign institution.
- 23. Restriction on use of words “building credit”, etc.
- 24. Regulation of scheduled institutions and representative offices under Parts V, VI, VII, VIII, IX, X and XIII.
PART IV: RESTRICTIONS RELATING TO ACCEPTANCE AND SOLICITATION OF, ADVERTISEMENT FOR, AND INDUCEMENT TO MAKE, DEPOSITS
- 25. Receiving, taking or acceptance of deposits prohibited except under and in accordance with a valid licence granted under section 6 (4).
- 26. Unsolicited calls.
- 27. Advertisements for deposits.
- 28. Fraudulent inducement in relation to deposits.
PART V: SUBSIDIARIES AND OFFICES OF LICENSED INSTITUTIONS
- 29. Control of establishment or acquisition of subsidiaries.
- 30. Restriction on establishment of offices of licensed institutions.
- 31. Establishment of correspondent banking relationship.
PART VI: RESTRICTIONS ON DEALINGS OF LICENSED INSTITUTIONS
- 32. Restriction on carrying on of trade by licensed institution.
- 33. Restriction on trading by licensed finance company, etc.
- 34. Deposits to be subject to specified minimum or maximum period, minimum or maximum amount, and other specified terms and conditions.
- 35. Control of advertisements issued by licensed institutions.
PART VII: FINANCIAL REQUIREMENTS AND DUTIES OF LICENSED INSTITUTIONS
- 36. Maintenance of reserve fund.
- 37. Maintenance of capital funds.
- 38. Maintenance of liquid assets.
- 39. Maintenance of assets in Malaysia.
- 40. Appointment and duties of auditor.
- 41. Financial statements to be submitted to Bank.
- 42. Publication and exhibition of audited balance sheet, etc.
- 43. Statistics and information to be submitted.
- 44. Licence fees.
PART VIII: OWNERSHIP, CONTROL AND MANAGEMENT OF LICENSED INSTITUTIONS
- 45. Acquisition or disposal of aggregate of five per centum holding.
- 46. Maximum permissible holdings.
- 47. Prohibited holdings by licensed institution.
- 48. Saving in respect of acquisitions, disposals and holdings before effective date.
- 49. Sanction required for reconstruction, etc. of licensed institutions.
- 50. Application to High Court to facilitate agreement or arrangement for transfer of whole or part of business of licensed institution being given effect to.
- 51. Licensed institution to report acquisition or disposal of aggregate of five per centum holding to Bank.
- 52. Credit facilities on security of licensed institution’s property to be reported to Bank.
- 53. Defence relating to contravention of provisions of this Part.
- 54. Prohibitions and restrictions in the event of contravention.
- 55. Bank’s consent required to be director of licensed institution.
- 56. Disqualifications of director or officer of licensed institution.
- 57. Appointment of chief executive.
PART IX: RESTRICTIONS ON BUSINESS OF LICENSED INSTITUTIONS
- 58. Restrictions on payments of dividends.
- 59. Advance against security of own shares or shares of holding company.
- 60. Grant of secured and unsecured credit facilities.
- 61. Restriction of credit to single customer.
- 62. Prohibition of credit facilities to director and officer.
- 63. Restriction on giving of credit facilities.
- 64. Disclosure of interest by director.
- 65. Control of credit limit.
- 66. Restrictions on investments.
- 67. Limitations, terms and conditions in respect of giving of credit facility, including credit facility for the purpose of financing the acquisitions of shares or immovable property.
- 68. Proof of compliance.
PART X: POWERS OF SUPERVISION AND CONTROL OVER LICENSED INSTITUTIONS
- 69. Examination of licensed institution.
- 70. Power of Minister to direct investigation to be made.
- 71. Production of licensed institution’s books, etc.
- 72. Licensed institution unable to meet obligations to inform Bank.
- 73. Action by Bank in respect of licensed institution in certain circumstances.
- 74. Provisions in relation to appointment under section 73.
- 75. Provisions in relation to removal from office under section 73 (1) (C) or (D) (i).
- 76. Provisions relating to assumption of control under section 73 (2) (a).
- 77. Power to reduce share capital and to cancel shares of licensed institution which is subject to an order under section 73 (2) (a).
- 78. Loans to licensed institution and acquisition of its shares.
- 79. Extension of jurisdiction under this Part to related corporations of licensed institution and to director controlled institutions.
- 80. Moratorium.
- 81. Priority of payments in the event of insolvency of licensed institution.
PART XI: INVESTIGATION, SEARCH AND SEIZURE
- 82. Appointment of investigating officers, their powers, functions and duties.
- 83. Powers of entry, search and seizure.
- 84. Search of person.
- 85. Obstruction to exercise of powers by an investigating officer.
- 86. Requirement to provide translation.
- 87. Power to examine persons.
- 88. Specific persons in respect of whom powers of investigation may be exercised.
- 89. Assistance to police or other public officer.
- 90. Investigator deemed to be public servant and public officer.
PART XII: APPLICATION OF PARTS X AND XI TO NONSCHEDULED INSTITUTIONS ENGAGED IN PROVISION OF FINANCE
- 91. Report to Minister in respect of non-scheduled institution.
- 92. Powers of Minister in relation to report under section 91.
- 93. Minister’s power to apply provisions of Part X to nonscheduled institutions.
- 94. Power of Minister to revoke licence, etc. of non-scheduled institution.
- 95. Provisions of this Part to prevail.
PART XIII: INFORMATION AND SECRECY
- 96. Restriction on inquiring specifically into affairs of particular customer.
- 97. Secrecy.
- 98. Disclosure for facilitating performance of functions by Bank.
- 99. Other permitted disclosures.
- 100. Disclosure under Banker’s Books (Evidence) Act 1949.
- 101. Examination by relevant overseas supervisory authority.
- 102. Disclosure by Bank of information to relevant overseas supervisory authority.
PART XIV: OFFENCES
- 103. Scheduled offences and penalties for them.
- 104. General penalty.
- 105. Offences in relation to entries in books, documents, etc.
- 106. Offences by institution and by servants and agents.
- 107. Joinder of offences.
- 108. Power of Governor to compound offences.
- 109. Power of officer of Bank to prosecute offences under Act with consent of Public Prosecutor.
- 110. Offences to be seizable offences.
- 111. Duty of investigating officer to make over arrested person to police.
- 112. Attempts, preparations, abetments and conspiracies punishable as offences.
PART XV: GENERAL PROVISIONS
- 113. Submission to Bank of information required by it.
- 114. Indemnity.
- 115. Prohibition on receipt of gifts, commissions, etc.
- 116. Regulations.
- 117. Decision of Minister to be final.
- 118. Exemptions.
- 119. (Deleted).
- 120. Declaration of holidays.
- 121. Compensation.
- 122. Application of Companies Act 1965.
- 123. Application of Exchange Control Act 1953.
- 124. Islamic banking or financial business.
- 125. Contravention not to affect contract, agreement or arrangement.
- 126. Power to issue guidelines, etc.
PART XVI: AMENDMENT, REPEAL AND TRANSITIONAL PROVISIONS
- 127. Retrospective amendment of Finance Companies Act 1969.
- 128. Repeal of Finance Companies Act 1969 and Banking Act 1973, and savings in respect thereof.
- 129. Savings in respect of licences granted under Banking Act 1973 and Finance Companies Act 1969.
- 130. Modifications to construction of other written laws.
- 131. Consequential amendments to the Companies Act 1965.
- First Schedule: (Section 2 (1), paragraph (D) of the definition of “deposit”)
- Second Schedule: (Section 6 (1)) Minimum Criteria
- Third Schedule:(Section 2 (1), definition of “scheduled business”.)
- Fourth Schedule: (Section 103) Offences and Penalties