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Financial Services Act 2013- Part 3

(2) On an application by the Bank, the High Court shall appoint as receiver and manager, such person as may be specified by the Bank in its application including such person as may be specified by the Bank to fill a vacancy or to remove and replace a receiver and manager appointed under this Subdivision.






(3) All costs and expenses of the Bank, including the remuneration of such receiver and manager shall be payable out of the funds and properties of the institution, as a first charge on the funds and properties of the institution.

(4) A receiver and manager appointed under this Subdivision may apply to the High Court for directions in relation to any particular matter arising under the appointment.

(5) Order 30 of the Rules of Court 2012 [P.U. (A) 205/2012] shall not apply to an application for the appointment of a receiver and manager under this Subdivision.

(6) An application for the appointment of a receiver and manager under this Subdivision may be made by way of an ex parte originating summons.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/173.Appointment of receiver and manager by persons other than Bank





173. Appointment of receiver and manager by persons other than Bank


(1) Any person may make an application to the High Court for the appointment of a receiver and manager to manage the whole or part of the business, affairs or property of a licensed person, an approved person, a registered person or an operator of a designated payment system, as the case may be, by giving prior written notice of thirty days to the Bank of its intention to do so.

(2) Where an application is made to the High Court for an order to appoint a receiver and manager to manage the whole or part of the business, affairs or property of a licensed person, an approved person, a registered person or an operator of a designated payment system, as the case may be, that person shall, as soon as practicable, deliver a sealed copy of the application to the Bank.

(3) Where, pursuant to a debenture or any other instrument, a receiver and manager is appointed over the whole or part of the business, affairs or property of a licensed person, an approved person, a registered person or an operator of a designated payment system, as the case may be, by a person other than the Bank, that person shall immediately notify the Bank of the appointment.

(4) Any person who contravenes subsection (1), (2) or (3) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/174.Provisions in relation to appointment of receiver and manager




 

174. Provisions in relation to appointment of receiver and manager


Where a receiver and manager has been appointed by the Bank to manage the whole or part of the business, affairs or property of an institution pursuant to section 172, the receiver and manager shall have the power--




(a) to enter into any premises of the institution and take possession and control of the whole or part of the business, affairs or property of the institution and require any person in the premises to account for and deliver up to the Bank or the receiver and manager, possession and control of the whole or such part of the business or property;

(b) subject to paragraph (c), to sell or otherwise dispose of the whole or part of the business or property of the institution on such terms and conditions as determined by the Bank; 

(c) to sell or otherwise dispose of any property of the institution that is subject to an agreement creating a security interest to any person who agrees to assume the obligation secured by the security interest;

(d) to arrange for the assumption of all or any part of the liabilities of the institution by any person;

(e) to carry on the whole or such part of the business of the institution to the extent that the receiver and manager deems it necessary or beneficial;

(f) to sue for, defend, compromise and settle, in the name of the institution, any claim made by or against it;

(g) in the name of the institution, to do all acts and execute all receipts and other documents and for that purpose, when necessary, use its common seal; and

(h) to do all such other things as may be necessary or incidental to the exercise of the rights and powers of the receiver and manager. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/175.Interpretation





Part XIII INTERVENTION AND REMEDIAL ACTION


Subdivision 4 Compulsory transfer of business, assets or liabilities



175. Interpretation


For the purposes of this Subdivision--


"residual institution"

means a licensed person whose business, assets or liabilities have been vested in the transferee in accordance with section 176;


"transacted price"


means the price at which the whole or part of the business, assets or liabilities of a licensed person referred to in section 176 is vested in the transferee;


"transferee"


means a bridge institution or any other person, as the case may be, in which is vested under this Subdivision the whole or part of the business, assets or liabilities of the licensed person referred to in section 176;


"transferor"


means the licensed person under this Subdivision referred to in section 176;


"transferred business"


means the whole or part of the business, assets or liabilities of the licensed person that has been vested in the transferee.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/176.Order for compulsory transfer of business, assets or liabilities





176. Order for compulsory transfer of business, assets or liabilities


(1) The Minister shall, on the recommendation of the Bank, designate in writing a body corporate established or acquired by the Bank under paragraph 48(1)(da) of the Central Bank of Malaysia Act 2009 as a bridge institution for the purposes of vesting in such body corporate the business, assets or liabilities of a licensed person referred to in subsection (2).

(2) Where any of the circumstances set out in section 165 exist in respect of a licensed person, the Bank may, with the prior approval of the Minister, by an order in writing, vest in a bridge institution or any other person, the whole or part of the business, assets or liabilities of such licensed person.

(3) For purposes of subsection (2), the Third Schedule of the Central Bank of Malaysia Act 2009 shall apply in relation to an order of the Bank under this Subdivision and such order shall be binding on all persons to whom the order is made or who are affected by the order.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/177.Additional provisions relating to compulsory transfer





177. Additional provisions relating to compulsory transfer


(1) The Third Schedule of the Central Bank of Malaysia Act 2009 shall apply in relation to an order of the Bank under this Subdivision, with modifications, as provided in Schedule 13 and the Minister may prescribe any other modification as may be necessary to give effect to such order.

(2) Where the Bank makes an order under this Subdivision to a licensed person, the Bank shall--


(a) notify that fact in the Gazette; and 

(b) give notice of such order as soon as is practicable by publication in at least two daily newspapers published in Malaysia, one of which shall be in the national language.

(3) The notice under paragraph (2)(b) shall include the transacted price of the transfer and the right of any aggrieved person to appeal on the transacted price to the Assessor Committee.


(4) The transacted price referred to in subsection (3) shall be determined by an independent valuer.

(5) Subject to subsection (9), the transferee and the transferor shall mutually agree on the person to be appointed by the Bank as the independent valuer referred to in subsection (4).

(6) Where an agreement under subsection (5) cannot be reached between the transferee and the transferor within a period the Bank determines to be reasonable, the Bank shall refer the matter to the Minister and the appointment of an independent valuer shall be made by the Minister.

(7) The remuneration of the independent valuer appointed under subsection (5) or (6) shall be payable out of the transacted price unless otherwise determined by the Bank.

(8) In determining the transacted price under subsection (4) for the business, assets or liabilities of the transferor, the independent valuer shall--


(a) have regard to matters which the independent valuer considers relevant including the prevailing market conditions for sale or disposal of similar business, assets or liabilities of the transferor; and

(b) disregard any benefit derived from any special financial assistance provided directly or indirectly by the Bank or the Government to the transferor.

(9) Where the vesting under this Subdivision is to be in a bridge institution, the independent valuer referred to in subsection (4) shall be appointed by the Minister.


(10) Where any person aggrieved by the transacted price appeals on the transacted price to the Assessor Committee, section 210 shall apply.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/178.Continuity obligations





178. Continuity obligations


(1) The Bank may direct the residual institution and any person who has been providing services and facilities to the transferor for the operation of its business, to continue to provide to the transferee, such services and facilities as may be required to enable a transferee to operate the transferred business effectively.

(2) The duty to provide services and facilities in pursuance of the direction of the Bank in subsection (1) is subject to a right to receive reasonable consideration from the transferee.

(3) Any residual institution or person who fails to comply with a direction under subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/179.Designation of bridge institution





Part XIII INTERVENTION AND REMEDIAL ACTION


Subdivision 5 Provisions relating to bridge institution



179. Designation of bridge institution


(1) Where the Minister designates a bridge institution under section 176--


(a) the designation shall expire two years after it is made, unless the designation is--

(i) extended under paragraph (b); or 

(ii) terminated under paragraph (c)

(b) the Minister may, on the recommendation of the Bank, extend the designation for one or more periods, each of which may not exceed one year; and

(c) the designation shall terminate on the earlier of the date of occurrence of any one of the following events:

(i) the Bank ceases to hold shares in the bridge institution;

(ii) all or a substantial amount of the assets of the bridge institution are acquired, or all or a substantial amount of the liabilities of the bridge institution are assumed, or both, by a person that is not a bridge institution; or

(iii) the Minister, on the recommendation of the Bank, decides that the designation shall be terminated.

(2) Where a bridge institution changes its company name within twelve months before or after such designation, the bridge institution shall be exempt from stating or otherwise showing the former name on any seal, document or instrument whatsoever

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/180.Publication of notice





180. Publication of notice


Upon the designation of a bridge institution or where such designation is extended under paragraph 179(1)(b) or terminated under paragraph 179(1)(c), the Bank shall as soon as practicable publish a notice, specifying the date on which that event occurred in at least two daily newspapers in Malaysia, one of which shall be in the national language.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/181.Bridge institution authorized to carry on business





181. Bridge institution authorized to carry on business


(1) Upon its designation as such, and for so long as the designation continues, a bridge institution shall be deemed to be licensed to carry on the business of the licensed person whose business, assets or liabilities have been vested in the bridge institution.

(2) The Bank may exempt the bridge institution from such requirements, or grant such approvals, under this Act as may be necessary to facilitate the carrying on of its licensed business.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/182.Bridge institution not liable for past obligations in respect of officers





182. Bridge institution not liable for past obligations in respect of officers


Where a bridge institution becomes the employer of any individual who is an officer or a former officer of a licensed person, the bridge institution shall not--




(a) be liable for any obligation of the licensed person or its predecessor in respect of such individual existing prior to the bridge institution becoming the employer of the individual or in respect of any pension plan or other post-employment benefit plan for such individual or his survivors, or in respect of any collective agreement with a trade union or a council of trade unions; or

(b) be liable for any wages or salary calculated by reference to a period of time prior to the bridge institution becoming the employer of the individual in question.


Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/183.Stay in respect of bridge institution





183. Stay in respect of bridge institution


During the period of ninety days following the designation of a bridge institution--




(a) no action, suit or proceeding in any court or tribunal, may be commenced or continued against the bridge institution or in respect of its assets;

(b) no attachment, garnishment, execution or other method of enforcement of a judgement, award or order against the bridge institution or its assets may take place or continue; and

(c) no creditor of the bridge institution has any remedy against the bridge institution or its assets. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/184.Financial assistance to bridge institution





184. Financial assistance to bridge institution


Notwithstanding section 76 of the Central Bank of Malaysia Act 2009, the Bank may provide a bridge institution with such financial assistance as the Bank thinks appropriate and the bridge institution shall, on demand or at such other time as the Bank specifies, repay or reimburse to the Bank, the financial assistance on such terms and conditions as determined by the Bank.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/185.Interpretation





Part XIII INTERVENTION AND REMEDIAL ACTION


Subdivision 6 Restructuring of share capital



185. Interpretation


For the purposes of this Subdivision, "institution" refers to a licensed person or an operator of a designated payment system.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/186.Power to reduce share capital of institution





186. Power to reduce share capital of institution


(1) Notwithstanding any constituent documents of an institution, the Bank may apply to the High Court for an order--


(a) where the paid-up capital of the institution is lost or unrepresented by available assets, to cancel such paid-up capital of the institution which is lost or unrepresented by available assets; or

(b) where a call has been made by the institution on its members to pay on the unpaid portion of their respective shares, if any, and payment has not been made within the time specified in the call, to consolidate the paid up portion of the shares as fully paid up and to cancel any shares which remain unpaid.

(2) Where the Bank applies for the cancellation of share capital under subsection (1), the institution shall not be required to notify or obtain the approval of its members or creditors in a general meeting or otherwise.


(3) Subject to subsections (1) and (2), the provisions of section 64 of the Companies Act 1965 shall apply.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/187.Interpretation





Part XIII INTERVENTION AND REMEDIAL ACTION


Subdivision 7 Financial assistance



187. Interpretation


For the purposes of this Subdivision, "institution" refers to a licensed person or an operator of a designated payment system.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/188.Liquidity or financial assistance to institution





188. Liquidity or financial assistance to institution


Notwithstanding section 76 of the Central Bank of Malaysia Act 2009 and subject to subsection 160(1)--




(a) the Bank may provide liquidity assistance upon such terms and conditions as the Bank deems fit, to an institution which in the opinion of the Bank is about to or is likely to suspend payment to any extent; or

(b) where any of the circumstances set out in section 165 exist in respect of an institution, the Bank may, with the prior approval of the Minister, provide financial assistance to another institution or any other person to purchase any shares, or the whole or any part of the business, assets or liabilities, of the first-mentioned institution.


Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/189.Interpretation





Part XIII INTERVENTION AND REMEDIAL ACTION


Subdivision 8 Moratorium



189. Interpretation


For the purposes of this Subdivision, "institution" refers to a licensed person or an operator of a designated payment system.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/190.Application for moratorium





190. Application for moratorium


(1) Where the Bank, in the interests of the depositors, policy owners or participants of an institution, has issued a direction prohibiting an institution from carrying on all or part of its business under this Act, the Bank may apply to the High Court and the High Court may, on the application of the Bank, make an order staying for a period not exceeding six months, the commencement or continuance of any proceedings of a civil nature by or against the institution with respect to any of its business and the High Court may, upon hearing an ex-parte originating summons filed by the Bank, make the order.

(2) Where an order has been made under subsection (1), the Bank shall notify that fact in the Gazette.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/191.Interpretation





Part XIII INTERVENTION AND REMEDIAL ACTION


Division 3 Winding up

Subdivision 1 General provisions on winding up



191. Interpretation


For the purposes of this Division--


"institution"

refers to a licensed person or an operator of a designated payment system;


"liquidator"


includes a provisional liquidator, wherever applicable.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/192.Application of Companies Act 1965 in relation to winding up of institution





192. Application of Companies Act 1965 in relation to winding up of institution


The provisions of the Companies Act 1965 in relation to the winding up of companies shall apply to the winding up of an institution, unless specifically provided otherwise in this Division.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/193.Bank to apply for winding up





193. Bank to apply for winding up


Subject to section 262, where any of the circumstances specified in section 165 exist in respect of an institution, the Bank may recommend to the Minister and the Minister may on such recommendation, authorize the Bank to file an application to the High Court for the winding up of an institution and the High Court may order the winding up of an institution pursuant to the application filed by the Bank under this Division.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/194.Restriction on voluntary winding up





194. Restriction on voluntary winding up


(1) An institution, whether or not its licence or designation has been revoked, or an approved person, shall not be wound up voluntarily without the prior written approval of the Bank.

(2) A registered person shall not be wound up voluntarily without giving prior written notice to the Bank.

(3) Any person who contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/195.Winding up by High Court on application by persons other than Bank





195. Winding up by High Court on application by persons other than Bank


(1) No application for the winding up of an institution or approved person may be presented to the High Court by any person without the prior written approval of the Bank.

(2) Subject to subsection (1), where an application for the winding up of an institution or approved person is presented to the High Court by a person other than the Bank--


(a) that person shall deliver a copy of the application to the Bank at the same time as it is presented; and

(b) the Bank shall be party to the winding up proceedings and shall be entitled to appear and be heard in all proceedings relating to the application and to call, examine and cross-examine any witness.

(3) Any person who contravenes subsection (1) or paragraph (2)(a) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/196.Appointment and remuneration of liquidator





196. Appointment and remuneration of liquidator


(1) The High Court, where a winding up order is made in respect of an institution pursuant to section 193, shall appoint as liquidator such person as the Bank may specify in its application and shall specify that the remuneration of the liquidator shall be determined by the Bank.

(2) On an application by the Bank, the High Court shall appoint as liquidator such person as the Bank may specify in its application--


(a) to fill a vacancy; or

(b) to remove and replace a liquidator appointed under subsection (1).


Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/197.Control of liquidator





197. Control of liquidator


Subject to an order of the High Court, a liquidator, other than the Official Receiver, appointed under section 196 shall carry out his functions under the direction and supervision of the Bank.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/198.Statement of affairs





198. Statement of affairs


The statement of affairs of an institution as at the date of the winding up order made pursuant to section 234 of the Companies Act 1965 shall be submitted to the Bank at the same time as it is submitted to the Official Receiver.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/199.Offences by officers of institution





199. Offences by officers of institution


Section 300 of the Companies Act 1965 shall apply to an institution as if references in that section to an "officer or a contributory" are references to a director, officer, agent or contributory of an institution.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/200.Valuation of assets and liabilities





Part XIII INTERVENTION AND REMEDIAL ACTION


Subdivision 2 Provisions specific to licensed insurers



200. Valuation of assets and liabilities


In the winding up of a licensed insurer, whether or not its licence is revoked and whether it is insolvent or not, the value of its assets and liabilities, including liabilities in respect of policies, shall be ascertained on such basis as the Bank may determine and the law relating to bankruptcy or insolvency shall not apply to the valuation of its liabilities.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/201.Termination of insurance policy





201. Termination of insurance policy


(1) A policy of a licensed insurer shall cease to remain in force with effect from the date a winding up order has been made in respect of the licensed insurer.

(2) Where a policy ceases to be in force under subsection (1), the policy owner shall only be eligible to claim as a debt due to him--


(a) in the case of a general policy, a refund of a portion of the premium that is commensurate with the remaining period of the policy;

(b) in the case of a life policy, the value of that life policy;

(c) the value of the investments or savings held separately in respect of the policy; or

(d) any other refund or amount, which shall be ascertained on such basis as may be prescribed by the Bank.


(3) The liquidator shall notify each policy owner and, in the case of a group policy, the group policy owner, about the cessation of an insurance policy by registered post to his last known address of residence or office and by publication in such newspapers as may be specified by the Bank.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/202.Waiver of strict proof of debt





202. Waiver of strict proof of debt


Where it appears to the liquidator that by reason of the inadequacy of its documents, or any other circumstances, hardship would be caused if he requires strict proof of debt, he may act on such evidence as he thinks fit and payment of a debt made by the liquidator in good faith to any person as being the person entitled to it shall discharge the liquidator from all liabilities in respect of that debt.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/203.Prohibition against issuance of policy





203. Prohibition against issuance of policy


No director, officer, agent or contributory, past or present, of a licensed insurer which is being wound up after its cessation of insurance business, shall continue to issue a policy.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/204.Continuation of life business





204. Continuation of life business


(1) Notwithstanding paragraph 236(1)(a) of the Companies Act 1965, the liquidator of a licensed life insurer--


(a) may carry on its life business with a view to it being transferred as a going concern to another licensed insurer but shall not effect a new policy; and

(b) subject to subsection (2), may transfer its assets and liabilities to another licensed insurer, including liabilities under life policies and Division 4 of Part VI shall apply to the transfer.

(2) The liquidator may, for the purpose of a transfer under paragraph (1)(b), apply to the High Court for an order to reduce--




(a) the amount of liabilities under life policies of the licensed insurer; or

(b) the amount of its other liabilities, and the High Court may reduce the liabilities to the extent necessary taking into consideration the value of its available assets subject to such condition as it considers fit.

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/205.Priority of payments in winding up of licensed investment bank





Part XIII INTERVENTION AND REMEDIAL ACTION


Subdivision 3 Priority of payments in winding up



205. Priority of payments in winding up of licensed investment bank


In the winding up of a licensed investment bank, the assets of the licensed investment bank shall be available to meet all liabilities of that licensed investment bank in respect of all deposits in Malaysia in priority over all other unsecured liabilities of that licensed investment bank in Malaysia other than the preferential debts set out in subsection 292(1) of the Companies Act 1965 in the order set out in that subsection and debts due and claims owing to the Government under section 10 of the Government Proceedings Act 1956 [Act 359].





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/206.Priority of payments in winding up of licensed investment bank carrying on Islamic banking business





206. Priority of payments in winding up of licensed investment bank carrying on Islamic banking business


(1) For the purposes of this section, "Islamic deposit" has the same meaning assigned to it in subsection 2(1) of the Islamic Financial Services Act 2012.

(2) Without prejudice to section 205, in the winding up of a licensed investment bank which has been approved under paragraph 15(1)(a) to carry on Islamic banking business--


(a) the assets of the licensed investment bank acquired in the course of its business other than its Islamic banking business, shall be applied to meet the liabilities incurred in the course of its business other than the Islamic banking business, in the order set out in section 205; and

(b) where the assets of the licensed investment bank referred to in paragraph (a) is in surplus after payment has been made to meet its liabilities under paragraph (a), such surplus assets of the licensed investment bank shall be applied to meet the liabilities of the licensed investment bank under subsection (3). 

(3) Without prejudice to section 205, in the winding up of a licensed investment bank--




(a) the assets acquired by the licensed investment bank in the course of its Islamic banking business including the Islamic banking funds or any accounts established under subsection 15(3), subject to paragraph (b)-- 

(i) shall not be subject to the debts of the licensed investment bank except in respect of its Islamic banking business or as provided in paragraph (c); and 

(ii) shall be available to meet all liabilities of that licensed investment bank in respect of its Islamic deposits in Malaysia in priority to all other unsecured liabilities incurred in the course of its Islamic banking business, other than the preferential debts set out in subsection 292(1) of the Companies Act 1965 in the order set out in that subsection and the debts due and claims owing to the Government under section 10 of the Government Proceedings Act 1956, which is attributable to its Islamic banking business as may be specified by the Bank;

(b) notwithstanding subsection 292(1) of the Companies Act 1965, but subject to any costs and expenses of the winding up set out in paragraph 292(1)(a) of the Companies Act 1965 directly incurred in realising the assets of the investment accounts and any tax set out in paragraph 292(1)(f) of the Companies Act 1965 which is attributable to the investment accounts, the assets of the investment accounts managed by the licensed investment bank in Malaysia, shall be available, in the order set out as follows: 

(i) to pay outstanding costs or expenses of the investment accounts;

(ii) to pay any profit, fees, gains or other remuneration due to the licensed investment bank; and

(iii) to meet the liabilities to the investment account holders; and

(c) where the assets of the licensed investment bank referred to in paragraph (a) is in surplus after payment has been made to meet its liabilities under subparagraph (a)(ii), such surplus assets of the licensed investment bank shall be applied to meet the liabilities of the licensed investment bank including the liabilities of the licensed investment bank under section 205 in the order of priority stated therein. 

(4) For purposes of subparagraph (3)(a)(ii), regulations may be made under section 260 to prescribe the order of priority for payments of different categories of Islamic deposits.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/207.Application of insurance fund in winding up





207. Application of insurance fund in winding up


(1) In the winding up of a licensed insurer, the assets of an insurance fund shall be applied to meet its liabilities to policy owners and claimants under policies of that fund and these liabilities shall have priority over unsecured liabilities of that fund, other than preferential debts set out in subsection 292(1) of the Companies Act 1965 and debts due and claims owing to the Government under section 10 of the Government Proceedings Act 1956, to the extent that they are apportioned to the insurance fund.

(2) Subject to subsection (1)--


(a) the assets of an insurance fund as established under section 81 shall first be applied to meet the liabilities of that fund;

(b) where the assets of an insurance fund, other than a life fund relating to participating life policies, exceed its liabilities, the surplus assets may be applied to meet the liabilities of its other insurance funds which are in deficit and if the surplus assets of two or more insurance funds are applied, they shall be applied proportionately to the amounts of the surpluses and if the surplus assets are applied to meet the liabilities of two or more insurance funds which are in deficit, they shall be applied proportionately to the amounts of the deficits;

(c) any deficit subsisting after application of the assets of the insurance funds under paragraphs (a) and (b) shall be met out of the assets of the shareholders' funds, and unsatisfied liabilities to a policy owner and claimant under a policy shall have priority over other unsecured liabilities other than preferential debts specified under subsection 292(1) of the Companies Act 1965 and debts due and claims owing to to the Government under section 10 of the Government Proceedings Act 1956; and 

(d) any other assets held by the licensed insurer, including surplus assets in a life fund relating to participating life policies, shall be used in a manner as may be prescribed by the Bank.

(3) Without limiting the generality of subsection (2), where the Bank under subsection 81(1) has specified that a licensed foreign insurer shall establish and maintain separate insurance funds for its Malaysian policies, in the winding up of the licensed foreign insurer, the assets of these funds--




(a) shall only be applied to meet the liabilities of those funds; and

(b) with effect from the date of the winding up of the licensed foreign insurer, shall not be sold, removed, dissipated, alienated, transferred, assigned, encumbered, distributed or otherwise dealt with in any manner whatsoever without the prior written approval of the Bank.

(4) Notwithstanding anything to the contrary in section 340 of the Companies Act 1965 or the winding up order for a licensed foreign insurer, the provisions of this section shall prevail and have full force and effect.


(5) Any person who contravenes paragraph (3)(b) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/208.Power of Bank to take action under this Part





Part XIII INTERVENTION AND REMEDIAL ACTION


Division 4 General provisions in relation to actions taken by Bank



208. Power of Bank to take action under this Part


Nothing in this Part shall preclude the Bank from taking any one or more actions that it is empowered to take under this Part.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/209.Qualified financial agreement





209. Qualified financial agreement


(1) For the purposes of this section, "institution" refers to a licensed person, an approved issuer of a designated payment instrument or operator of a designated payment system.

(2) The parties under a qualified financial agreement may continue to enforce their rights under the qualified financial agreement and shall not be affected by--


(a) the assumption of control of a licensed person or an operator of a designated payment system pursuant to section 167;

(b) the appointment of a receiver and manager of the business, affairs or property of any institution pursuant to section 172; or

(c) the making of an order for the compulsory transfer of the business, assets or liabilities of a licensed person pursuant to section 176, except during such period as may be prescribed in regulations made under section 260 upon the commencement of the assumption of control or the appointment of a receiver and manager.


(3) Where a qualified financial agreement is transferred to any person pursuant to the exercise of the powers under subsection 168(6) or section 174 or to a bridge institution or any other person under section 176--


(a) the acquiring person or bridge institution shall assume all the rights and obligations under such qualified financial agreement of the institution from which such agreement was transferred; and

(b) the enforcement by the parties of their rights under such qualified financial agreement shall be in accordance with the terms of such agreement as if the acquiring person or bridge institution had always been a party to such agreement.

(4) If the qualified financial agreement is not transferred to a bridge institution or another person, the parties to such qualified financial agreement shall be entitled to enforce their rights under such agreement at the expiry of the period referred to in subsection (2).


(5) Where the qualified financial agreement of an institution is transferred to an acquiring person or a bridge institution during the period prescribed by the Bank under subsection (2), and where a person is a counterparty to two or more qualified financial transactions under that agreement with the same institution, all or none of such qualified financial transactions shall be transferred to the acquiring person or bridge institution.

(6) If a qualified financial agreement relating to financial collateral that applies to any property of the institution is transferred, that property shall also be transferred to the acquiring person or bridge institution.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/210.Assessor Committee





210. Assessor Committee


(1) Any person aggrieved by the transacted price as a result of--


(a) a sale or disposal of the whole or part of the business or property of a licensed person or an operator of a designated payment system by the Bank or the appointed person under subsection 168(6); or

(b) a compulsory transfer of the whole or part of the business, assets or liabilities of a licensed person pursuant to section 176, may, within twenty-one days from the date of such sale, disposal or transfer, appeal on the transacted price to the Assessor Committee by submitting an appeal in writing to the Bank.


(2) Where any person appeals under subsection (1), the Bank shall constitute an Assessor Committee consisting of three independent persons as members of the Assessor Committee, drawn from a panel of ten persons appointed by the Minister on the recommendation of the Bank and refer the appeal to the Assessor Committee to assess the reasonableness of the transacted price.

(3) The Assessor Committee constituted under subsection (2) may determine its own procedures.

(4) In assessing the reasonableness of the transacted price, the Assessor Committee shall have regard to such matters it considers relevant including the prevailing market conditions for the sale or transfer of similar property, business, assets or liabilities of the licensed person or operator of a designated payment system.

(5) Where the Assessor Committee decides that--


(a) the transacted price is less than the price that in its opinion is the reasonable price for the property, business, assets or liabilities, it shall advise the Bank to pay the difference between the transacted price and the reasonable price; or

(b) the transacted price is in its opinion the reasonable price, it shall advise the Bank accordingly.

(6) The Bank shall notify the aggrieved person in writing of the Assessor Committee's decision under subsection (5).


(7) Notwithstanding subsection (5), where the institution is insolvent and the whole of the property, business, assets or liabilities of the licensed person or operator of a designated payment system is sold or disposed of by the Bank or the appointed person under subsection 168(6), or transferred by the Bank under section 176, a consideration of one ringgit shall be deemed to be reasonable as the transacted price.

(8) The sale or disposal of the whole or part of the business or property under subsection 168(6) or the transfer of the whole or part of the business, assets or liabilities under section 176 shall take effect despite any appeal to or any decision made by, the Assessor Committee.

(9) A decision of the Assessor Committee is final and binding on the parties to the appeal.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/211.Interpretation





Part XIV OTHER POWERS OF BANK


Division 1 Regulation of prescribed financial institutions



211. Interpretation


For the purposes of this Division, "financial intermediation activities" includes--




(a) the accepting of deposits;

(b) the giving of any advance, loan or other facility in whatever form or by whatever name called;

(c) leasing business;

(d) factoring business;

(e) the purchase of bills of exchange, promissory notes, certificates of deposit, debentures or other negotiable instruments;

(f) the acceptance of, or the giving of any guarantee in relation to, liability, obligation or duty of any person;

(g) hire-purchase, including hire-purchase transactions pursuant to the Hire-Purchase Act 1967;

(h) acquiring rights or interests in a hire-purchase, leasing or other similar transaction;

(i) any activity that is incidental, ancillary or otherwise facilitates or is closely related to the activities referred to in paragraphs (a) to (h) above; and 

(j) such other business or activity as prescribed under section 3. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/212.Power of Minister to prescribe financial institutions





212. Power of Minister to prescribe financial institutions


(1) The Minister may prescribe any person which is not under the supervision or oversight of the Bank and engaging in financial intermediation activities as a prescribed financial institution--


(a) on the joint recommendation by the Bank and the relevant authority which is responsible for the regulation and supervision of such person; or

(b) on the recommendation by the Bank, in any other case, if such person, in the opinion of the Bank, poses or is likely to pose a risk to financial stability arising from--

(i) its financial intermediation activities which may include the generation of maturity or liquidity transformation, involve imperfect credit risk transfers, create or facilitate excessive leverage or raise concerns of regulatory arbitrage;

(ii) the nature, scope, size, scale or concentration of its financial intermediation activities; or

(iii) its interconnectedness with an authorized person or any other person regulated by the Bank under any written law enforced by the Bank.

(2) For the purpose of making a recommendation under subsection (1), the Bank may, with the approval of the Minister, exercise its examination powers under Part XI on a person referred to in subsection (1) as if the references in such provisions to an "authorized person" is a reference to the person referred to in subsection (1).


(3) The Minister may, on the recommendation of the Bank, apply all or any provisions of this Act to a prescribed financial institution from a date specified in the order under subsection (1) and with such amendments as the Minister, on the recommendation of the Bank, deems necessary, as if the references in such provisions to an "authorized person", a "licensed person", "licensed bank", "licensed insurer", "licensed investment bank", an "institution" and a "financial service provider", as the case may be, is a reference to such prescribed financial institution.

(4) With effect from the date specified in the order made under subsection (1), the prescribed financial institution concerned shall comply with, and be subject to, the provisions of this Act as specified in the order notwithstanding anything to the contrary in any written law.

(5) The Minister may, at any time, amend or revoke an order made under subsection (1)--


(a) on the joint recommendation by the Bank and the relevant authority, in the case of an order made under paragraph (1)(a); or

(b) on the recommendation by the Bank, in any other case.

(6) A prescribed financial institution which contravenes any provision of this Act or any standards, notice, direction, condition, specification or requirement specified or issued by the Bank under any provision of this Act applied to it under subsection (1) commits an offence under such provision and shall be liable to the same penalty applicable to a licensed person convicted of an offence under such provision and if no offence is provided for such contravention, the prescribed financial institution commits a breach and the Bank may take an action under paragraph 234(3)(b) in addition to other enforcement actions that the Bank is empowered to take under this Act.


(7) This section shall not apply to--


(a) a person licensed, approved or recognized by the Securities Commission under securities laws; or

(b) a licensed entity under the Labuan Financial Services and Securities Act 2010 [Act 704]. 

(8) For the purposes of this section, in the case of a registered person under the Capital Markets and Services Act 2007, the Bank shall--




(a) consult with the Securities Commission in forming an opinion under subsection (1);

(b) notify the Securities Commission before conducting an examination under subsection (2); and

(c) regularly review the status of such prescribed financial institution, together with the Securities Commission, to determine whether the circumstances under subsection (1) no longer applies.


Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/213.Interpretation





Part XIV OTHER POWERS OF BANK


Division 2 International and domestic transactions



213. Interpretation


(1) For the purposes of section 214, unless the context otherwise requires--

"designated account"

means an account opened in favour of any person by a financial institution as determined by the Bank;


"financial instrument"


includes derivatives;


"foreign currency"


includes--




(a) currency notes or coins which are legal tender in any country, territory or place outside Malaysia;

(b) any right to receive foreign currency--

(i) in respect of any credit or balance at a licensed bank or any other similar institution in or outside Malaysia; or

(ii) from any person in or outside Malaysia; or

(c) any document or device of a kind intended to enable the person to whom the document or device is issued to obtain foreign currency from another person on the credit of the person issuing it, and in particular, any traveller's cheque or other draft or letter of credit so intended;

"giving or obtaining of guarantee"


includes a renewal or extension of such guarantee;


"gold"


means--




(a) gold in whatever state or form other than gold which has been materially increased in value by skilled craftsmanship; or

(b) any right to receive gold--

(i) in respect of any credit or balance at a licensed bank or any other similar institution in or outside Malaysia; or

(ii) from any person in or outside Malaysia;

"guarantee"

includes the pledging of any security issued or registered in Malaysia or any other property in Malaysia to secure the repayment of a debt, obligation or liability;


"issue"


in relation to securities or financial instrument means to bring or cause to be brought into existence those securities or financial instrument, and the word "issued" or "issuance" shall be construed accordingly;


"non-resident"


means--




(a) any person other than a resident;

(b) an overseas branch, a subsidiary, regional office, sales office or representative office of a resident company;

(c) Embassies, Consulates, High Commissions, supranational or international organizations; or

(d) a Malaysian citizen who has obtained permanent resident status of a country or territory outside Malaysia and is residing outside Malaysia;

"payment"


includes the act of transferring to, or placing to the credit of, a person, ringgit, foreign currency, financial instrument, gold, other precious metals or other valuable consideration, as the case may be, whether under an obligation or otherwise;


"person"


means a natural person, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership or any other body, organization, association or group of persons, whether corporate or unincorporate and in addition includes the Government, any State Government or any other government;


"resident"


means--




(a) a citizen of Malaysia, excluding a citizen who has obtained permanent resident status in a country or a territory outside Malaysia and is residing outside Malaysia;

(b) a non-citizen of Malaysia who has obtained permanent resident status in Malaysia and is ordinarily residing in Malaysia;

(c) a body corporate incorporated or established, or registered with or approved by any authority, in Malaysia;

(d) an unincorporated body registered with or approved by any authority in Malaysia; or

(e) the Government or any State Government;

"ringgit"


means currency notes or coins which are legal tender in Malaysia and includes any right to receive ringgit in such form as may be specified by the Bank;


"securities"


means shares, stock, bonds, notes (other than promissory notes), debentures, debentures stock, units under a unit trust scheme, shares in an oil royalty, a secondary security and coupons, whether in scripless form or in bearer certificates, including certificates of title to securities or any letter of allotment which may be renounced, any letter of rights, any warrants conferring an option to acquire a security, any deposit certificate in respect of securities and such other documents conferring, or containing evidence of, rights to securities as may be specified by the Bank;


"settlement of a property"


includes the making of any disposition, covenant, agreement or arrangement whereby the property becomes subject to a trust;


"transfer of securities"


includes the buying, selling, borrowing or lending of securities.


(2) Where under this Division, power is given to the Bank to require any person, or where any person is required under this Division, to submit to the Bank any document or information--




(a) the Bank may specify that the document or information shall be submitted, within a period, at such intervals, in the manner or form as may be specified by the Bank; and

(b) such person shall not submit any document or information--

(i) which he knows, or has reason to believe to be false or misleading in a material particular; or

(ii) which is inaccurate or incomplete in respect of which there is a material error or omission, or any recurring error or omission.

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/214.Measures relating to international and domestic transactions

214. Measures relating to international and domestic transactions


(1) The Bank is empowered under this section to safeguard the balance of payments position and the value of the currency of Malaysia.

(2) No person shall undertake or engage in any transaction set out in Schedule 14 except with the written approval of the Bank.

(3) Subject to any direction issued by the Bank under paragraph (6)(e), the prohibition in subsection (2) in respect of the transactions in paragraph 1 of Schedule 14 shall not apply to any licensed bank.

(4) Unless otherwise expressly provided in this section and Schedule 14, subsection (2) shall apply to--


(a) all persons, classes, categories or descriptions of persons including their nominees or any person acting on their behalf notwithstanding that they are not in Malaysia; and

(b) all acts that are committed in or outside Malaysia including any act which involves, is in association with, or is preparatory to, the transactions set out in Schedule 14.

(5) The Bank in granting any written approval under subsection (2) may impose any requirement, restriction or condition in respect of the transactions in Schedule 14.


(6) The Bank may issue direction to--


(a) declare that a person is to be treated as a resident or a non-resident notwithstanding the definition of "resident" or "non-resident" in section 213;

(b) require any person to submit any document or information to the Bank or any person as may be specified by the Bank;

(c) require any payment to be made into a designated account and direct the use of such fund in the designated account as may be specified by the Bank;

(d) require any person who is entitled to sell, or to procure the sale of, any foreign currency, gold or other precious metals, to offer it, or cause it to be offered, for sale to a licensed bank or any person as may be specified by the Bank;

(e) require a licensed bank to undertake or engage in the transactions in paragraph 1 of Schedule 14 on such terms as may be specified by the Bank;

(f) require a licensed bank, or any other person to administer or ensure compliance with this section on such terms as may be specified by the Bank; or

(g) require any person to do or refrain from doing any act for the purpose of securing compliance with this section.

(7) Any written approval granted under subsection (2) and any direction issued under subsection (6) shall apply to such persons, classes, categories or descriptions of persons as may be specified by the Bank in that written approval and direction, as the case may be.


(8) Subsection (2) shall not affect the enforcement by the parties of their rights under a qualified financial agreement.

(9) Except for paragraph 7 in Schedule 14, any person who contravenes subsection (2) or fails to comply with any requirement, restriction or condition imposed under a written approval granted under subsection (2) or any direction issued under subsection (6) commits an offence under this Act and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.

(10) Any ringgit, foreign currency, gold, other precious metals, security or financial instrument or any other article which is subject to a prohibition under subsection (2) in respect of the transactions in paragraph 7 of Schedule 14 shall be deemed to be prohibited goods under the Customs Act 1967 [Act 235] and any person who fails to comply with such prohibition or any requirement, restriction or condition imposed under a written approval granted under subsection (2) commits an offence under that Act and shall, on conviction, be liable to the penalty provided in that Act.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/215.Power of Bank to impose levies or charges





215. Power of Bank to impose levies or charges


(1) For the purposes of safeguarding the balance of payments position or the value of the currency of Malaysia, regulations may be made under section 260 to impose levies or charges in respect of any transaction specified in Schedule 14, either generally or with conditions or in circumstances set out in the regulations.

(2) Levies or charges imposed pursuant to the regulations referred to in subsection (1) may be--


(a) specific;

(b) a minimum or maximum amount; or

(c) a percentage or proportion of the amount which is the subject matter of the transaction in Schedule 14. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/216.Power of Bank, with approval of Minister, to issue directions





216. Power of Bank, with approval of Minister, to issue directions


(1) The Bank may, with the approval of the Minister, in the national interest, issue directions to any person in Malaysia, to prohibit, restrict or require the doing of any act as may be specified by the Bank, with or without conditions, in relation to dealings or transactions, with any person resident in a country or territory, or in any currency, as may be specified by the Bank.

(2) Any person for whom the directions are issued under subsection (1) shall comply with the directions notwithstanding any other duty imposed on that person by any contract or international agreement.

(3) No person shall, in carrying out any act in compliance with the directions made under subsection (1), be treated as being in breach of any such contract or international agreement.

(4) Any person who fails to comply with any direction or condition referred to in subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/217.Power of Minister to declare holiday for licensed person





Part XIV OTHER POWERS OF BANK


Division 3 Holiday for licensed person



217. Power of Minister to declare holiday for licensed person


(1) The Minister may, on the recommendation of the Bank, by notice in the Gazette, declare any day to be a holiday for all licensed persons, or for any class, category or description of licensed persons, or for such offices of such licensed persons, throughout, or in any part of, Malaysia, as may be specified in the notice.

(2) No licensed person, or the office of the licensed person specified in the notice, shall carry on any business on any day declared as a holiday for such licensed person under subsection (1) unless the Minister, on the recommendation of the Bank, otherwise approves.

(3) Where a day is declared to be a holiday under subsection (1)--


(a) the licensed person or its office specified in the notice is not compellable on such holiday to make a payment or to do any other act that it would not be compellable to do on any day which is public holiday within the meaning of any law relating to public holidays; and

(b) no person shall be compellable to make any payment on such holiday in or at a licensed person or its office specified in the notice, or to do in or at a licensed person or its office specified in the notice any act requiring the services of such licensed person, and the obligation to make the payment or to do the act shall be deemed to be an obligation to make the payment or to do the act on the next day which is not a public holiday within the meaning of any law relating to public holidays.


(4) A day declared as a holiday for a licensed person or its office under subsection (1) shall not necessarily be a public holiday and nothing in this section shall affect the operation of any law relating to public holidays.

(5) Any declaration of a holiday made under subsection (1) shall not--


(a) invalidate any contract, agreement, transaction or arrangement entered into by the licensed person with any person; and

(b) affect any right, obligation or liability arising under such agreement, transaction or arrangement. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/218.Investigation by Bank





Part XV ENFORCEMENT AND PENALTIES


Division 1 Investigation powers



218. Investigation by Bank


Where the Bank is satisfied or has any reason to believe that any person has committed an offence under this Act, the Bank may cause an investigation to be made and for such purpose may exercise all the powers of investigation provided under this Act.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/219.Appointment of investigating officer





219. Appointment of investigating officer


The Bank may appoint an officer of the Bank or any other person appointed under subsection 7(6) to be an investigating officer to conduct an investigation under this Division.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/220.Powers of investigating officer





220. Powers of investigating officer


(1) An investigating officer appointed under section 219 shall have all the powers and functions conferred on the Bank under this Part, and where such investigating officer is not an officer of the Bank, he shall, in relation to such powers and functions--


(a) be subject to; and

(b) enjoy such rights, privileges, protection, immunities and indemnities as may be specified in, the provisions of this Act, the Central Bank of Malaysia Act 2009 or any other written law applicable to an officer of the Bank as if he was an officer of the Bank.


(2) An investigating officer, in exercising his powers and performing his functions, shall be subject to and comply with the directions, controls, instructions, conditions, restrictions or limitations as may be specified by the Bank, orally or in writing, either generally, or in any particular case or circumstance.

(3) The Governor shall have all the powers and functions of an investigating officer.

(4) An investigating officer conducting any examination of any person under this Division shall have the power to administer an oath or affirmation to the person who is being examined.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/221.Powers of entry, search and seizure with warrant





221. Powers of entry, search and seizure with warrant


(1) Where it appears to a magistrate, upon written information, on oath and after such inquiry as he considers necessary that there is reasonable cause to believe that--


(a) any premises have been used or are about to be used for; or

(b) there is in any premises evidence necessary to the conduct of an investigation into, the commission of an offence under this Act, the magistrate may issue a warrant authorizing an investigating officer named in the warrant, at any reasonable time, by day or by night and with or without assistance to enter the premises and if need be by force.


(2) A warrant under subsection (1) may authorize the investigating officer to--


(a) enter any premises and search for, seize and detain any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information;

(b) have access to, inspect, make copies of, or take extracts from, any computer, computer output, system, data, books, document or information so seized and detained, including access to any program or data held in any computer or have access to, inspect or check the operation of any computer and any associated apparatus or material;

(c) take possession of, and remove from the premises, any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information so seized and detained;

(d) search any person who is in, or on, such premises, and for the purpose of such search, detain such person, subject to section 225, and remove him to such place as may be necessary to facilitate the search, and seize and detain any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information found on such person;

(e) break open, examine, and search, any article, container or receptacle, including assessing into a computer; or

(f) stop, detain or search any conveyance.

(3) An investigating officer may if it is necessary so to do--


(a) break open any outer or inner door of such premises or other obstruction to the premises, in order to effect entry into the premises;


(b) forcibly enter the premises and every part of the premises;


(c) remove by force any obstruction to entry, search, seizure, detention or removal as he is empowered to effect under this section; or


(d) detain, subject to section 225, any person found in any premises, or in any conveyance, searched under subsection (1) until such premises or conveyance have been searched.





(4) An investigating officer shall for the purposes of this section be provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of any program or data held in any computer including in a form in which the information contained in a computer can be taken away and in which it is visible and legible.


(5) Any computer output, data, books, document, information or statement obtained by or provided to an investigating officer in the course of a search under this section shall, notwithstanding any law to the contrary, be admissible in evidence in any proceedings under this Act.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/222.Powers of entry, search and seizure without warrant





222. Powers of entry, search and seizure without warrant


If an investigating officer is satisfied upon information received that he has reasonable cause to believe that by reason of delay in obtaining a search warrant under section 221 the investigation would be adversely affected or evidence of the commission of an offence is likely to be tampered with, removed, damaged or destroyed, the investigating officer may enter the premises and exercise in, upon and in respect of the premises all the powers referred to in section 221 in as full and ample a manner as if he was authorized to do so by a warrant issued under that section.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/223.List of seized property, etc.





223. List of seized property, etc.


(1) An investigating officer, in the course of his investigation or search, shall--


(a) prepare and sign a list of all property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information seized; and

(b) state in the list the location in which, or the person on whom, the property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information is found or obtained.

(2) The occupant of the premises entered under subsection 221(1) or section 222 in the course of investigation, or any person on his behalf, shall in every instance be permitted to attend during the search, sign the search list or affix his thumb print thereon, and be given a copy of the search list prepared and signed or affixed thumb print under this section.


(3) Where such occupant or person acting on behalf of the occupant under subsection (2) refuses to sign the search list or affix his thumb print on the search list, the investigating officer shall endorse on the search list, under his name, the fact of and reasons for such refusal, if any, stated by such occupant or person acting on behalf of the occupant.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/224.Release of seized property, etc.





224. Release of seized property, etc.


(1) An investigating officer shall, unless otherwise ordered by any court--


(a) on the close of investigations or any proceedings arising from such investigations; or

(b) with the prior written consent of the Bank at any time before the close of investigations, release any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information seized, detained or removed by him or any other investigating officer under this Part, to such person as he determines to be lawfully entitled to the property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information if he is satisfied that it is not required for the purpose of any prosecution or proceedings under this Act, or for the purpose of any prosecution under any other written law.


(2) A record in writing shall be made by the investigating officer effecting any release of any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information under subsection (1) in respect of such release specifying therein in detail the circumstances of, and the reason for, such release.

(3) Where an investigating officer is unable to locate the person who is lawfully entitled to the property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information the investigating officer shall cause to be published a notice in the Bank's website calling upon any person who is lawfully entitled to the property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information to claim such property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information within the period stipulated in the notice.

(4) Where no claim is made upon the expiry of the period specified in the notice published under subsection (3), the investigating officer shall make an application in writing to the court as to the disposal of such property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information.

(5) The court upon receiving the application under subsection (4) and being satisfied that the person under subsection (1) who is lawfully entitled to the property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information cannot be located shall order the same to be forfeited or disposed of by the Bank in accordance with the order made by the court.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/225.Search of person





225. Search of person


(1) An investigating officer may search any person whom he has reason to believe has on his person any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document or information, or other article necessary, in his opinion, for the purpose of investigation into any offence under this Act.

(2) For the purpose of a search of a person under subsection (1), section 221 or 222, an investigating officer may, subject to the provisions of the Criminal Procedure Code [Act 593], detain such person as may be necessary to have the search carried out, and may remove him in custody to such place as may be necessary to facilitate such search.

(3) An investigating officer making a search of a person under subsection (1) may seize, detain or take possession of any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document, information or article, found upon such person for the purpose of the investigation being carried out by him.

(4) Any search of a person conducted under this Part shall be in accordance with the provisions in the Criminal Procedure Code.

(5) No person shall be searched except by a person who is of the same gender, and such search shall be conducted with strict regard to decency.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/226.Obstruction to exercise of powers by investigating officer





226. Obstruction to exercise of powers by investigating officer


(1) No person shall--


(a) refuse any investigating officer exercising his powers under section 221, 222 or 225, access to any premises or any part of such premises, or fail to submit to the search of his person;

(b) assault, obstruct, hinder or delay any investigating officer in the exercise of his powers under this Part;

(c) fail to comply with any lawful demand of any investigating officer in the execution of his duties under section 221, 222 or 225;

(d) refuse to give to an investigating officer any information which may reasonably be required of him and which he has it in his power to give;

(e) fail to produce to, or conceal or attempt to conceal from, an investigating officer any property, books, other document or article in relation to which the investigating officer has reasonable grounds for suspecting that an offence or breach has been or is being committed under this Act;

(f) retrieve or endeavour to retrieve any thing which has been duly seized;

(g) furnish to an investigating officer as true, information which he knows or has reason to believe to be false, misleading, inaccurate or incomplete; or

(h) before or after any seizure, break or otherwise destroy any thing to prevent the seizure thereof, or the securing of such thing.

(2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/227.Requirement to provide translation





227. Requirement to provide translation


(1) Where an investigating officer finds, seizes, detains or takes possession of any computer, computer output, system, data, books, document or information, in the exercise of any power under this Part, and such books, other document or information or any part thereof is in a language other than the national language or the English language, or in any sign or code, the investigating officer may, orally or in writing, require the person who had the possession, custody or control of such computer, computer output, system, data, books, document or information, to furnish to the investigating officer a translation in the national language or the English language of such computer output, system, data, books, document or information within such reasonable period as the investigating officer may specify, having regard to the length of the computer output, system, data, books, document or information, or other circumstances relating to it.

(2) No person shall knowingly furnish a translation under subsection (1) which is not an accurate, faithful and true translation, or knowingly make a translation under that subsection which is not accurate, faithful and true.

(3) Where the person required to furnish a translation under subsection (1) is not the person who is suspected to have committed the offence or breach under investigation, the Bank shall pay him reasonable fees for the translation.

(4) Any person who contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding one year or to a fine not exceeding five million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/228.Power to examine persons





228. Power to examine persons


(1) Where an investigating officer suspects any person to have committed an offence or a breach under this Act, he may, if in his opinion it is reasonably necessary to do so for the purposes of an investigation into such offence--


(a) order any person in writing to attend before him for the purpose of being examined orally in relation to any matter which may assist in the investigation into the offence or breach;

(b) order any person in writing to produce before him, within the time specified by such officer, any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document, information, article or thing which may assist in the investigation into the offence or breach; or

(c) by notice in writing require any person to furnish a statement in writing made on oath or affirmation setting out therein all such information which may be required under the notice, being information which would be of assistance in the investigation into the offence or breach.

(2) A person to whom an order under paragraph (1)(a) or (b), or a notice under paragraph (1)(c), has been given shall comply with the terms of such order or notice, as the case may be, and, in particular--




(a) a person to whom an order under paragraph (1)(a) has been given shall-- 

(i) attend in accordance with the terms of the order to be examined, and shall continue to so attend from day to day as directed by the investigating officer until the examination is completed; and

(ii) during such examination disclose all information which is within his knowledge, or which is available to him, or which is capable of being obtained by him, in respect of the matter in relation to which he is being examined, whether or not any question is put to him with regard thereto, and where any question is put to him he shall answer the question truthfully and to the best of his knowledge and belief, and shall not refuse to answer any question on the ground that it tends to incriminate him or his spouse;

(b) a person to whom an order has been given under paragraph (1)(b) shall not conceal, hide, destroy, alter, remove from or send out of Malaysia, or deal with, expend, or dispose of, any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document, information, article or thing specified in the order, or alter or deface any entry in any such computer output, system, data, books, document or information, or cause such acts to be done, or assist or conspire to do such acts; and 

(c) a person to whom a notice has been given under paragraph (1)(c) shall, in his statement made on oath or affirmation, furnish and disclose truthfully all information required under the notice which is within his knowledge, or which is available to him, or which is capable of being obtained by him, and shall not fail to furnish or disclose the same on the ground that it tends to incriminate him or his spouse. 

(3) A person to whom an order or a notice is given under subsection (1) shall comply with such order or notice and with the provisions of subsection (2) in relation thereto, notwithstanding any law, whether enacted before or after the commencement of this Act, or of any oath, undertaking or requirement of secrecy, or of any obligation under any contract, agreement or arrangement, whether express or implied, to the contrary.


(4) Where any person discloses any information or produces any property, equipment, apparatus, machinery, computer, computer output, system, data, books, document, information, article or thing, pursuant to subsections (1) and (2), neither the first-mentioned person, nor any other person on whose behalf or direction or as whose agent or officer the first-mentioned person may be acting, shall, on account of such disclosure or production, be liable to any prosecution for any offence under or by virtue of any law, or to any proceeding or claim in any form or of any description by any person under or by virtue of any agreement or arrangement, or otherwise.

(5) An investigating officer may seize, take possession of and retain for such duration as he deems necessary, any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document, information, article or thing produced before him in the course of an investigation under subsection (1), or search the person who is being examined by him under paragraph (1)(a), or who is producing anything to him under paragraph (1)(b), for ascertaining whether anything relevant to the investigation is concealed, or is otherwise upon such person.

(6) An examination under paragraph (1)(a) shall be reduced into writing by the investigating officer and shall be read to and signed by the person being examined or affixed with his thumb print, and where such person refuses to sign the record or affix his thumb print, the investigating officer shall endorse thereon under his hand the fact of such refusal and the reasons thereof, if any, stated by the person examined.

(7) The record of an examination under paragraph (1)(a), or a written statement on oath or affirmation made pursuant to paragraph (1)(c), or any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document, information, article or thing produced under paragraph (1)(b) or otherwise in the course of an examination under paragraph (1)(a) or under a written statement on oath or affirmation made pursuant to paragraph (1)(c) shall be admissible in evidence in any proceedings in any court for, or in relation to--


(a) an offence or breach under this Act;

(b) any other matter under this Act; or

(c) any offence under any other written law, regardless whether such proceedings are against the person who was examined, or who produced the property, apparatus, equipment, machinery, computer, computer output, system, data, books, document, information, article or thing, or who made the written statement on oath or affirmation, or against any other person.


(8) Any person who contravenes subsection (1) or (2) or furnishes to an investigating officer any information or statement that is false or misleading in any material particular, commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/229.Service of orders or notices generally, etc.





229. Service of orders or notices generally, etc.


(1) Any order or notice that is given under this Part, shall, where it is required to be served on an individual, be served by--


(a) delivering it personally to the person for whom it is intended;

(b) delivering it to an adult person at the last-known place of residence, occupation or business of the person for whom it is intended; or

(c) sending it by registered post to the person for whom it is intended.

(2) Any order or notice that is given under this Part shall, where it is required to be served on a body corporate or unincorporate, be served by delivering the order or notice to an officer or agent of the body corporate or unincorporate at its registered address or business address.


(3) If the officer effecting any order or notice under subsection (1) or (2) is satisfied, for reasons to be recorded by him in writing, that the order or notice cannot be served in the manner provided in subsection (1) or (2), the order or notice may be served by affixing the order or notice on a conspicuous part of the premises--


(a) in which the individual for whom the order or notice is intended is known to have last resided, to have been last employed or to have last carried on business; or

(b) at the last known registered address or business address of the body corporate or unincorporate for whom the order or notice is intended, and in such case the order or notice shall be deemed to have been duly served.


(4) If upon an investigation made under this Act, it appears to the investigating officer that there is sufficient evidence or reasonable grounds for suspicion to justify the commencement or continuance of any proceedings against any person, the investigating officer shall require a complainant, if any, and so many of the persons who appear to such investigating officer to be acquainted with the circumstances of the case as he thinks necessary, to execute a bond to appear before any court therein named or to give evidence in any court proceedings.

(5) If any complainant or person referred to in subsection (4) refuses to execute a bond under that subsection, the investigating officer shall report such refusal to the court which may thereupon in its discretion issue a warrant or summons to secure the attendance of such complainant or person.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/230.Surrender of travel documents





230. Surrender of travel documents


(1) Notwithstanding any written law to the contrary, an investigating officer may, by notice in writing, require any person who is the subject of an investigation for an offence under this Part, to surrender his travel documents including passport or exit permit in his possession, within such period as specified in the notice.

(2) A notice under subsection (1) shall be served personally to the person to whom it is addressed in accordance with section 229.

(3) A person to whom a notice under subsection (1) is served shall comply with such notice, failing which he may be arrested and taken before a magistrate.

(4) Where a person is taken before a magistrate, unless such person complies with the notice under subsection (1) or satisfies the magistrate that he does not possess a travel document, the magistrate shall by warrant commit such person to prison--


(a) until the expiry of a period of fourteen days from the date of his committal; or

(b) until he complies with the notice under subsection (1), whichever occurs earlier.


(5) For the purpose of subsection (4), a certificate signed by the Public Prosecutor to the effect that the person has complied with the written notice under subsection (1) shall be sufficient warrant for the Superintendent of Prison to discharge such person.

(6) An investigating officer may, with the written approval of the Bank, by notice in writing issued to any immigration officer, request that any person who is the subject of an investigation in respect of an offence under this Act be prevented from leaving Malaysia.

(7) The immigration officer may, upon being notified of a written notice made under subsection (6), require the person who is the subject of an investigation in respect of an offence under this Act, to surrender his passport, exit permit or any other travel document in his possession to an immigration officer.

(8) Subject to any order issued or made under any written law relating to immigration, "immigration officer" means any person appointed under section 3 of the Immigration Act 1959/63 [Act 155].



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/231.Agent provocateur





231. Agent provocateur


Notwithstanding any law or rule of law to the contrary, in any proceedings against any person for an offence under this Act--




(a) no agent provocateur, whether he is an officer of the Bank or not, shall be presumed to be an accomplice or be unworthy of credit by reason only of his having attempted to commit or to abet, or having abetted or having been engaged in a criminal conspiracy to commit, such offence if the main purpose of such attempt, abetment or engagement was to secure evidence against such person; 

(b) any statement whether oral or in writing made to an agent provocateur by any person, including any person who is subsequently charged with an offence under this Act, shall be admissible in evidence and given due weight and consideration at any trial for an offence under this Act; and 

(c) a conviction for any offence under this Act solely on the uncorroborated evidence of any agent provocateur shall not be illegal and no such conviction shall be set aside merely because the court which tried the case has failed to refer in the grounds of its judgment to the need to warn itself against the danger of convicting on such evidence. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/232.Assistance to police or other public officer





232. Assistance to police or other public officer


The Bank may at its own initiative, or on the request of a public officer--




(a) supply to a police officer or any other public officer a copy of any books, computer output, data, document or information seized, detained or taken possession of under section 221, 222 or 225, or of any record of examination under paragraph 228(1)(a), or of any written statement on oath or affirmation made under paragraph 228(1)(c) or of any books, computer output, data, document or information produced under paragraph 228(1)(b), or otherwise in the course of any examination under paragraph 228(1)(a), or under any written statement on oath or affirmation made pursuant to paragraph 228(1)(c), and such police officer or other public officer may make such use of such copy of such record, statement, books, computer output, data, document or information as may be necessary or expedient in relation to the exercise of his powers, the performance of his functions, or the discharge of his duties, in respect of any person; or 

(b) allow a police officer or any other public officer to have access to and inspect any property, apparatus, equipment, machinery, computer, computer output, system, data, books, document, information, article or thing which had been produced before, or seized, detained or taken possession of, by an investigating officer under this Part, and such police or other public officer may make such use of any knowledge gained by such access or inspection as may be necessary or expedient in relation to the exercise of his powers, the performance of his functions, or the discharge of his duties, in respect of any person. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/233.Investigating officer deemed to be public servant and public officer





233. Investigating officer deemed to be public servant and public officer


An investigating officer shall be deemed to be a public servant for the purposes of the Penal Code [Act 574], and to be a public officer for the purposes of the Criminal Procedure Code and the Evidence Act 1950 or any other written law which the Minister may, on the recommendation of the Bank, prescribe.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/234.Power of Bank to take action





Part XV ENFORCEMENT AND PENALTIES


Division 2 Administrative actions



234. Power of Bank to take action


(1) A person has committed a breach under this Act if the person fails to comply with or give effect to--


(a) any provision of this Act;

(b) any regulations made under this Act;

(c) any order made or any direction issued under this Act by the Bank including an order made under section 94 or a direction issued under section 116 or 156, subsection 214(6) or section 216; or

(d) any standards, condition, restriction, specification, requirement or code under this Act.

(2) The Bank shall have regard to the following matters in determining the appropriate action to be taken in each case:




(a) the effectiveness of the enforcement action to be taken under this Act;

(b) the proportionality of the action to be taken with the breach committed;

(c) deterrence of future breaches of similar nature by other persons; and

(d) any other matter that is considered as relevant in the opinion of the Bank.

(3) If the Bank is of the opinion that a person has committed a breach and it is appropriate to take action against that person, the Bank may, subject to section 262, take any one or more of the following actions:




(a) make an order in writing requiring the person in breach--

(i) to comply with or give effect to; or

(ii) to do or not to do any act in order to ensure compliance with, such provisions, regulations, order, direction, standards, condition, restriction, specification, requirement or code referred to in subsection (1);

(b) subject to subsection (4), impose a monetary penalty--

(i) in accordance with the order published in the Gazette made under section 236 or if no such order has been made, such amount as the Bank considers appropriate, but in any event not exceeding five million ringgit in the case of a breach that is committed by a body corporate or unincorporate or one million ringgit in the case of a breach that is committed by any individual, as the case may be; 

(ii) which shall not exceed three times the gross amount of pecuniary gain made or loss avoided by such person as a result of the breach; or

(iii) which shall not exceed three times the amount of money which is the subject matter of the breach, whichever is greater for each breach or failure to comply;

(c) reprimand in writing the person in breach or require the person in breach to issue a public statement in relation to such breach, if it is in the opinion of the Bank that such breach is relevant for the information of the general public;

(d) make an order in writing requiring the person in breach to take such steps as the Bank may direct to mitigate the effect of such breach; or

(e) make an order in writing requiring an authorized person, an operator of a designated payment system, a registered person or a market participant to remedy the breach including making restitution to any other person aggrieved by such breach.

(4) The Bank may impose a monetary penalty under paragraph (3)(b) only in respect of the following:




(a) breach of any provision set out in Schedule 15;

(b) breach of any requirement under any other provision of this Act where no offence is provided for non-compliance of that requirement;

(c) failure to comply with any requirement imposed under regulations made under this Act where no provision for imposition of penalty is provided for in accordance with paragraph 260(2)(d); or 

(d) failure to comply with any standards, code, order, direction, requirement, condition, specification, restriction or otherwise made or imposed pursuant to any provision set out in Schedule 15.

(5) If a breach is committed by a body corporate or unincorporate, any action under subsection (3) can be taken against a person--




(a) who is its director, controller, officer or partner, or was purporting to act in any such capacity; or

(b) who is concerned in the management of its affairs, at the time of the breach unless that person demonstrates that the breach was committed without his consent or connivance and that he exercised such diligence to prevent the breach as he ought to have exercised, having regard to the nature of his function in that capacity and to the circumstances.


(6) If a breach is committed by a person--


(a) who is a director, controller, officer or partner of a body corporate or unincorporate, or was purporting to act in any such capacity; or

(b) who is concerned in the management of the affairs of a body corporate or unincorporate, an action under subsection (3) can be taken against the body corporate or unincorporate.


(7) For the purposes of paragraph (3)(e), in determining whether or not any amount is to be paid by a person in breach, the Bank shall have regard to--


(a) whether or not one or more persons have suffered loss or been otherwise adversely affected as a result of the breach; or

(b) the profits that have accrued to such person in breach.

(8) Any monetary penalty paid by a person in accordance with paragraph (3)(b) shall be paid into and form part of the Federal Consolidated Fund.


(9) Where a person fails to pay a monetary penalty imposed by the Bank under paragraph (3)(b) within the period specified by the Bank, the penalty imposed by the Bank may be sued for and recovered as a civil debt due to the Government.

(10) Where a person fails to remedy the breach including making restitution to any other person aggrieved by the breach under paragraph (3)(e), notwithstanding any other written law, the Bank may sue for and recover such sum as a civil debt due to the person aggrieved by the breach.

(11) Nothing in this section shall preclude the Bank from taking any of the actions that it is empowered to take under this Act, in particular, section 94, 116 or 156, or any written law.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/235.Lodgment of amount not distributed with Registrar of Unclaimed Moneys





235. Lodgment of amount not distributed with Registrar of Unclaimed Moneys


To the extent that any of the amount paid under paragraph 234(3)(e) or subsection 234(10) has not been distributed by the person in breach after reasonable efforts to notify the aggrieved persons have failed due to the difficulty of notifying the aggrieved persons, such amount shall be lodged with the Registrar of Unclaimed Moneys in accordance with the provisions of the Unclaimed Moneys Act 1965 [Act 370].





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/236.Power of Bank to prescribe monetary penalty





236. Power of Bank to prescribe monetary penalty


The Bank may, for giving full effect to or for convenient implementation of subparagraph 234(3)(b)(i), or for the purposes of regulatory objectives of this Act, prescribe the following matters as it deems necessary:




(a) classify or designate the breaches under this Act into different categories of breaches; and

(b) fix, in accordance with paragraph (a), a monetary penalty, or a range of monetary penalties, in respect of each category. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/237.Application for appeal of decisions





237. Application for appeal of decisions


(1) Any person who is aggrieved by a decision of the Bank under paragraph 234(3)(b) or (e) may within twenty-one days after the person has been notified of the decision, appeal by filing a notice in writing to the Monetary Penalty Review Committee.

(2) The decision of the Bank under paragraph 234(3)(b) or (e), as the case may be, shall not take effect until the appeal is disposed of.

(3) The Monetary Penalty Review Committee may decide to confirm the decision of the Bank or require the Bank to reconsider and reach a decision in accordance with the findings of the Committee.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/238.Monetary Penalty Review Committee





238. Monetary Penalty Review Committee


(1) There shall be established a committee to be known as the Monetary Penalty Review Committee for the purposes of section 237.

(2) The Monetary Penalty Review Committee shall consist of not less than three but not more than five members appointed by the Minister from amongst non-executive directors of the Bank or other persons.

(3) The Monetary Penalty Review Committee may determine its own procedures.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/239.Civil action by Bank





Part XV ENFORCEMENT AND PENALTIES


Division 3 Civil actions



239. Civil action by Bank


Where it appears to the Bank that there is a reasonable likelihood that any person will contravene or has contravened or will breach or has breached or is likely to fail to comply with or has failed to comply with any--




(a) provisions of this Act;

(b) provisions of any regulations made pursuant to this Act;

(c) order made or direction issued by the Bank under this Act including an order made under section 94 or a direction issued under section 116 or 156, subsection 214(6) or section 216;

(d) standards, condition, restriction, specification, requirement or code made or issued pursuant to any provision of this Act; or

(e) action taken by the Bank under subsection 234(3), the Bank may institute civil proceedings in the court seeking any order specified under subsection 240(1) against that person whether or not that person has been charged with an offence in respect of the contravention or breach or whether or not a contravention or breach has been proved in a prosecution

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/240.Orders by court





240. Orders by court


(1) The court may, on an application by the Bank under section 239, make one or more of the following orders:


(a) an order requiring the person to pay an amount which shall not exceed three times--

(i) the gross amount of pecuniary gain made or loss avoided by such person as a result of the contravention, breach or non-compliance; or

(ii) the amount of money which is the subject matter of the contravention, breach or non-compliance, as the case may be;

(b) an order requiring the person to pay a civil penalty in such amount as the court considers appropriate having regard to the severity or gravity of the contravention, breach or non-compliance, but in any event not exceeding twenty-five million ringgit;

(c) an order--

(i) restraining the person from engaging in any specific conduct; or

(ii) requiring the cessation of the contravention, breach or non-compliance;

(d) an order directing a person to do a certain act;

(e) an order directing the person, or any other person who appears to have been involved in the contravention, breach or non-compliance to take such steps as the court may direct to mitigate the effect of such contravention breach or non-compliance;

(f) an order directing the authorized person, operator of a designated payment system, registered person or market participant to remedy the contravention, breach or non-compliance including making restitution to any other person aggrieved by such contravention, breach or non-compliance;

(g) where a person has refused or failed to comply with any action taken by the Bank under subsection 234(3), an order directing the person to comply with such action that is taken by the Bank; and

(h) any other order deemed appropriate by the court including any ancillary order deemed desirable in consequence of the making of an order under any provision in this subsection.

(2) The court may make an order under subsection (1) against a person--




(a) who is the director, controller, officer or partner, or was purporting to act in any such capacity; or

(b) who is concerned in the management of the affairs, of a body corporate or unincorporate in the event where the contravention, breach or non-compliance has been committed by the body corporate or unincorporate unless that person proves that the contravention, breach or non-compliance was committed without his consent or connivance and that he exercised such diligence to prevent the commission of the contravention, breach or non-compliance as he ought to have exercised, having regard to the nature of his function in that capacity and to the circumstances.


(3) If a contravention, breach or non-compliance is committed by a person--


(a) who is a director, controller, officer or partner of a body corporate or unincorporate, or was purporting to act in any such capacity; or

(b) who is concerned in the management of the affairs of a body corporate or unincorporate, an order under subsection (1) can be made against the body corporate or unincorporate.


(4) Any sum ordered by the court under subsection (1), shall be applied--


(a) firstly, to reimburse the Bank for all costs of the proceedings in respect of the contravention, breach or non-compliance; and

(b) secondly, to pay persons aggrieved by the contravention, breach or non-compliance in the case of an order under paragraph (1)(f); or 

(c) thirdly, to pay into and form part of the Federal Consolidated Fund unless the court orders for such sums or part thereof to be used to compensate persons who have suffered loss as a result of the contravention, breach or non-compliance.

(5) If the authorized person, operator of a designated payment system, registered person or market participant considers that it is not practicable to provide a remedy to the persons referred to in paragraph (1)(f), in view of the amount of any potential distribution to each person or the difficulty of ascertaining or notifying the person whom it is appropriate to provide a remedy, the authorized person, operator of a designated payment system, registered person or market participant shall lodge such amount with the Registrar of Unclaimed Moneys in accordance with the provisions of the Unclaimed Moneys Act 1965.


(6) The court may revoke or vary an order made by it under this section or suspend the operation of such an order.

(7) The powers conferred on the court under this section are in addition to any of its other powers, and do not derogate from its other powers provided under any other written law.

(8) Applications under this section may be commenced at any time within six years from the date on which the Bank discovered the contravention, breach or non-compliance.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/241.Civil action to seek compensation





241. Civil action to seek compensation


(1) Where any person--


(a) has been convicted of an offence under this Act or under any other written law; or

(b) has had any offence committed by him compounded under section 253, and such offence has resulted in, or caused, or subsequent to its commission, results in, or causes, any loss or damage of any nature or in any form to a licensed person, the Bank may institute civil proceedings in court for the purposes of seeking indemnity from the persons referred to in subsection (2).


(2) The following persons shall be jointly and severally liable to indemnify the licensed person in full for any loss or damage to the licensed person:


(a) the person convicted of the offence, or the person whose offence has been compounded under section 253; and

(b) any director, officer or controller of the licensed person,any other person purporting to act in any such capacity, or any person who is in any manner or to any extent responsible for the management of the affairs of the licensed person, or any person who is assisting in such management.

(3) The court may, upon reviewing an application by the Bank, make an order specifying the amount of moneys the persons referred to in subsection (2) are liable to indemnify the licensed person.


(4) The persons referred to in subsection (2) shall not be liable to so indemnify the licensed person if--


(a) the offence was committed without his knowledge, consent or connivance; and

(b) he took all reasonable precautions and had exercised due diligence to prevent the commission of the offence as he ought to have taken precautions or to have exercised, having regard to the nature of his functions and to all the circumstances in which the offence was committed.

(5) An amount ordered by the court under subsection (3) shall be applied--




(a) firstly, to reimburse the Bank for all costs of the proceedings to seek the indemnity; and

(b) secondly, to compensate the licensed person.

(6) Civil proceedings under subsection (1) may be commenced at any time within six years from the date on which the person has been convicted of the offence under this Act or other written law or compounded under section 253.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/242.Interim orders





242. Interim orders


If an application is made to a court for an order under subsection 240(1) or 241(1), the court may, if it deems appropriate, before considering the application, make an interim order of the kind applied for and such order shall be expressed to have effect pending the determination of the application.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/243.Contravention of court order





243. Contravention of court order


(1) Any person who contravenes an order of the court under subsection 240(1) or 241(3) or section 242 commits an offence and shall, on conviction be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.

(2) Subsection (1) does not affect the powers of the court in relation to the punishment of contempt of court.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/244.No undertaking as to damages





244. No undertaking as to damages


Where the Bank makes an application for an order under subsection 240(1) or 241(1), the court shall not, as a condition of the grant of the order, require any undertaking as to damages to be given by or on behalf of the Bank.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/245.Other actions





245. Other actions


An application made pursuant to subsection 240(1) or 241(1) shall not prejudice any other action that may be taken by the Bank, aggrieved person or licensed person, as the case may be, under this Act or any other law.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/246.Evidence obtained in investigations may be used in civil proceedings





246. Evidence obtained in investigations may be used in civil proceedings


(1) Notwithstanding any law, any document or information obtained by the Bank in the exercise of its investigation powers against--


(a) an authorized person, operator of a designated payment system, a registered person or market participant;

(b) any director or officer of the persons referred to in paragraph (a)

(c) any agent of the persons referred to in paragraph (a); or 

(d) any other person, may be used by the Bank in a civil action instituted by the Bank.


(2) For the avoidance of doubt, any document or information referred to in subsection (1) shall not be inadmissible in any civil proceedings under this Part to which the Bank is a party by reason only that it was obtained by the Bank in the exercise of its investigation powers and the admissibility thereof shall be determined in accordance with the rules of evidence under any law.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/247.Imprisonment





Part XV ENFORCEMENT AND PENALTIES


Division 4 Criminal offences



247. Imprisonment


Where the penalty of imprisonment has been provided for an offence under this Act, such penalty shall not apply to a body corporate convicted of the offence.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/248.Offences in relation to entries in documents





248. Offences in relation to entries in documents


(1) No person shall--


(a) make or cause to be made a false entry;

(b) omit to make, or cause to be omitted, any entry; or

(c) alter, extract, conceal or destroy, or cause to be altered, extracted, concealed or destroyed, any entry, in any book or record, or in any report, slip, statement or other document whatsoever, relating to the business, affairs, transactions, condition, property, assets, liabilities or accounts, of an authorized person, a registered person or an operator of a designated payment system.


(2) No person shall evade the provisions of this Act by altering, forging, destroying, mutilating, defacing, concealing or removing any document.

(3) Any person who contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/249.Offence committed by any person acting in official capacity





249. Offence committed by any person acting in official capacity


(1) Where an offence is committed by a body corporate or unincorporate, a person--


(a) who is its director, controller, officer or partner, or was purporting to act in any such capacity; or

(b) who is concerned in the management of its affairs, at the time of the commission of the offence is deemed to have committed that offence unless that person proves that the offence was committed without his consent or connivance and that he exercised such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his function in that capacity and to the circumstances.


(2) An individual may be prosecuted for an offence under subsection (1) notwithstanding that the body corporate or unincorporate has not been convicted of the offence whether or not a prosecution has been initiated or a conviction has been obtained against the body corporate or unincorporate.

(3) Subsection (1) shall not affect the criminal liability of the body corporate or unincorporate for the offence referred to in that subsection.

(4) The penalty of imprisonment for an offence applies to an individual convicted of an offence by virtue of subsection (1), notwithstanding that the imprisonment does not apply to the body corporate or unincorporate by virtue of section 247.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/250.Offence by employees, etc.





250. Offence by employees, etc.


Where a person is liable under this Act to a penalty for any act, omission, neglect or default, such person shall be liable to the same penalty for the act, omission, neglect or default of his employee, director, controller or agent if the act, omission, neglect or default was committed by--




(a) his employee in the course of the employee's employment;

(b) his director in carrying out the function of a director;

(c) his controller in carrying out the function of a controller; or

(d) his agent when acting on his behalf. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/251.Seizable offence





251. Seizable offence


Every offence punishable under this Act shall be a seizable offence, and a police officer not below the rank of Inspector, or an investigating officer appointed under section 219 may arrest without warrant a person whom he reasonably suspects to have committed or is committing the offence.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/252.Duty of investigating officer to make over arrested person to police





252. Duty of investigating officer to make over arrested person to police


An investigating officer who makes an arrest under section 251 shall make over the arrested person to a police officer without unnecessary delay and the arrested person shall be dealt with according to the law relating to criminal procedure as if he had been arrested by a police officer.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/253.Power to compound





253. Power to compound


(1) The Governor may, with the consent in writing of the Public Prosecutor, offer in writing to compound any offence punishable under this Act or any regulations made under this Act, by accepting from the person reasonably suspected of having committed the offence, such sum of money not exceeding the amount of the maximum fine to which that person would have been liable if he had been convicted of the offence, within such time as may be specified in the offer.

(2) An offer under subsection (1) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted, and if the amount specified in the offer is not paid within the time specified in the offer or within such extended period as the Governor may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

(3) Where an offence has been compounded under subsection (1), no prosecution shall be instituted in respect of the offence against the person to whom the offer to compound was made, and any document or thing seized in connection with the offence may be released by the Bank, subject to such terms and conditions as the Bank thinks fit.

(4) All sums of money accepted under subsection (1) shall be paid into the Federal Consolidated Fund.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/254.Attempts, abetments and conspiracies





254. Attempts, abetments and conspiracies


(1) Any person who--


(a) attempts to commit an offence under this Act;

(b) does an act preparatory to, or in furtherance of, the commission of an offence under this Act; or

(c) abets or is engaged in a criminal conspiracy to commit (as those terms are defined in the Penal Code) an offence under this Act, whether or not the offence is committed in consequence of it, commits an offence and is liable to the penalty for that offence.


(2) A provision of this Act which refers to an offence under a specific provision of this Act shall be read as including a reference to an offence under subsection (1) in relation to the offence under that specific provision.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/255.Prosecution





255. Prosecution


No prosecution for an offence under this Act shall be instituted except with the written consent of the Public Prosecutor.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/256.Protection in relation to disclosure of information to Bank





Part XV ENFORCEMENT AND PENALTIES


Division 5 General matters



256. Protection in relation to disclosure of information to Bank


(1) Where a person discloses in good faith to the Bank, his knowledge or belief or any document or information that a breach or contravention has been committed or is about to be committed under this Act--


(a) such person shall not be liable for a breach of a duty of confidentiality imposed by any law, contract or rules of professional conduct;

(b) it shall be a defence in an action, a suit, prosecution or proceeding that is brought, instituted or maintained in any court or before any other authority against the person who made the disclosure to the Bank that in his belief the disclosure was necessary for the carrying into effect the provisions of this Act; or

(c) no contractual or other rights or remedy may be enforced against the person on the basis of disclosure.

(2) Any document or information disclosed to the Bank under subsection (1) and the information and identity of the person making the disclosure shall be secret between the Bank and the person who made the disclosure.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/257.Evidential provision





257. Evidential provision


In any criminal or civil proceedings under this Act--




(a) any statement purporting to be signed by the Governor or any other person authorized to perform the functions of the Bank on its behalf, which forms part of or is annexed to any letter, register, record or document, however expressed, described or represented; or

(b) the production of a printed copy of a standard, specification, order in writing, direction, instruction, notice, requirement, condition or restriction, letter, register, record, document or any other instrument specified or issued pursuant to this Act, shall, until the contrary is proved, be evidence of any fact stated therein

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/258.Power of Bank to publish information





258. Power of Bank to publish information


The Bank may, where it thinks necessary, publish in such form and manner as it thinks fit, any information in relation to--




(a) any enforcement action taken under this Act including criminal proceedings, compounding, civil actions and administrative actions; and

(b) the outcome of actions referred to in paragraph (a) including the outcome of any proceedings, settlement in or out of court in relation to any breach or contravention of provisions of this Act. 


Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/259.Enforceable undertakings





Part XVI GENERAL PROVISIONS





259. Enforceable undertakings


(1) The Minister or the Bank may accept a written undertaking given by a person in connection with a matter in relation to which the Minister or the Bank, as the case may be, has a power or function under this Act.

(2) The written undertaking accepted under subsection (1) may be varied or withdrawn by the person giving the undertaking with the consent of the Minister or the Bank, as the case may be.

(3) If the Bank considers that a person who has given a written undertaking has breached any of the terms of the undertaking--


(a) given to the Bank, the Bank may apply; or

(b) given to the Minister, the Bank may recommend to the Minister to apply, to the High Court for an order under subsection (4) by way of originating summons.


(4) If the High Court is satisfied that a person has breached a term of the undertaking, the High Court may make any or all of the following orders:


(a) an order directing the person to comply with the undertaking;

(b) an order directing the person to pay to the Federal Consolidated Fund an amount up to the amount of any financial benefit that the person obtained (whether directly or indirectly) and that is reasonably attributable to the breach;

(c) any order that the High Court considers appropriate directing the person to compensate any other person who has suffered loss or damage as a result of the breach; or

(d) any other order that the High Court considers appropriate.

(5) The Bank shall be entitled to be heard in proceedings relating to an application made to the High Court in respect of a breach of undertaking given to the Minister.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/260.Regulations





260. Regulations


(1) The Minister may, on the recommendation of the Bank, make such regulations as may be necessary or expedient for--


(a) giving full effect to the provisions of this Act;

(b) carrying out or achieving the regulatory objectives and purposes of this Act;

(c) the further, better or more convenient implementation of the provisions of this Act; or

(d) providing for any supplemental, incidental or consequential matters in relation to this Act.

(2) Without limiting the generality of subsection (1), regulations may be made--




(a) to provide for control by the Bank by supervision, regulation, restriction, prohibition, or otherwise howsoever, with respect to the provision of finance, financial intermediation activities as defined in section 211, banking services or insurance services supplied or carried on by persons other than an authorized person or registered person;

(b) to provide for forms in respect of any matter under this Act, or under any regulations made under this section;

(c) to provide for fees to be paid to the Bank in respect of any matter under this Act or under any regulations made under this section; and

(d) to provide for the imposition of penalties for any offence under the regulations which shall not exceed imprisonment for a term not exceeding five years or a fine not exceeding ten million ringgit or to both.

(3) Regulations made under this section may relate to all or any class, category or description of persons, and may make different provisions for different classes, categories or descriptions of persons.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/261.Provisions relating to approvals, consents, standards, codes, specifications, notices, requirements, directions or measures





261. Provisions relating to approvals, consents, standards, codes, specifications, notices, requirements, directions or measures


(1) Unless otherwise expressly provided, any approval or consent granted, or any standards, code, specification, notice, requirement, direction or measures specified or issued, under this Act--


(a) may be either general or specific;

(b) may be amended or revoked by the Bank or the Minister, as the case may be; or

(c) shall be issued or communicated in such manner as the Bank thinks appropriate and shall be valid for all purposes.

(2) Any approval or consent under subsection (1) may be--




(a) absolute or conditional; or

(b) limited so as to expire on a specified date, unless renewed. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/262.Opportunity to make representations





262. Opportunity to make representations


(1) Where--


(a) the Minister, on the recommendation of the Bank, proposes to take any action against any person under subsection 13(1), 20(1) or (2), 30(3) or section 193; or

(b) the Bank proposes to take any action against any person under subsection 13(1), 20(1), (2) or (3), section 21, subsection 30(3), section 34 or 39, subsection 94(2), 116(2) or (3), 120(1), 140(5) or 156(1), section 162, subsection 167(1) or 172(1) or against any person in breach referred to in subsection 234(1), the Bank shall serve on such person a written notice of the proposed action.


(2) The written notice under subsection (1) shall set out--


(a) the action that the Minister or the Bank, as the case may be, proposes to take and the grounds for such action;

(b) the period within which the person referred to in subsection (1) may make a written representation to the Minister or the Bank, as the case may be;

(c) in the case of any proposed action under subsection 94(2), 140(5) or 234(3), the non-compliance or breach committed by the person; and

(d) where the Bank proposes to impose a monetary penalty under paragraph 234(3)(b), the right of the person in breach to pay, within a period specified in the notice, the monetary penalty stated in such notice. 

(3) The person referred to in subsection (1) shall be given a reasonable opportunity to make a written representation to the Minister or the Bank, as the case may be, by submitting such representation to the Bank within fourteen days from the date of the notice by the Bank.


(4) After the expiry of the period of fourteen days from the date of the notice by the Bank and considering any written representation under subsection (3), the Minister, on the recommendation of the Bank, or the Bank, as the case may be, shall decide whether to--


(a) proceed with the proposed action or a variation of such action; or

(b) take no further action.

(5) The Minister or the Bank, as the case may be, shall give the person referred to in subsection (1) a written notice of the decision under subsection (4) and the decision shall take effect from the date specified in the notice.


(6) Notwithstanding subsection (1), the Minister or the Bank may, as the case may be, first take the proposed action and the opportunity to make representations shall be given immediately after the action has been taken if any delay in taking the proposed action would be detrimental to the interests of any authorized person, registered person, operator of a designated payment system, depositors, policy owners, participants, creditors, the financial system or the public generally.

(7) The Minister or the Bank may, as the case may be, confirm, amend or revoke the exercise of action taken under subsection (6) in consequence of representations made under that subsection.

(8) Subsection (6) shall not apply to any action taken under section 234.

(9) This section shall not apply to--


(a) a proposed action under subsection 13(1) unless the proposed action is likely to prejudice the interest of the person referred to in subsection (1); and

(b) a revocation of a licence under paragraph 20(1)(e)(f) or (g)


Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/263.Exemptions





263. Exemptions


The Minister may, on the recommendation of the Bank and provided that it is consistent with the objects and functions of the Bank under the Central Bank of Malaysia Act 2009 or the regulatory objectives of this Act, by an order published in the Gazette, exempt any particular person or any class, category or description of persons, from all or any of the provisions of this Act, for such duration, and subject to such conditions, as may be specified by the Minister in the order.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/264.Power of Minister to amend Schedule





264. Power of Minister to amend Schedule


The Minister may, on the recommendation of the Bank, from time to time, by an order published in the Gazette, amend any provision in Schedules 1, 2, 4, 5, 6, 7, 9, 11, 12 and 13 of this Act and upon such publication, such provision as amended shall come into full force and effect and shall be deemed to be an integral part of this Act as from the date of such publication or from such later date as may be specified in the order.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/265.Decision of Minister to be final





265. Decision of Minister to be final


Any decision made by the Minister under this Act shall be final.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/266.Power of Bank to issue guidance





266. Power of Bank to issue guidance


The Bank may issue guidance in writing to any person or to any class, category or description of persons consisting of such information, advice or recommendation as it considers appropriate--




(a) with respect to the provisions of this Act;

(b) for the purpose of carrying out or achieving the regulatory objectives of this Act; or

(c) with respect to any other matter which, in the opinion of the Bank, is desirable to give information, advice or recommendation. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/267.Protection against suits and legal proceedings





267. Protection against suits and legal proceedings


No action, suit, prosecution or other proceeding shall lie or be brought, instituted, or maintained in any court or before any other authority against--




(a) the Minister;

(b) the Bank;

(c) the Governor;

(d) the Deputy Governor; or

(e) any of its director, officers or employees or any person acting on behalf of the Bank, for or on account of, or in respect of, any act done or statement made or omitted to be done or made, or purporting to be done or made or omitted to be done or made, in pursuance or in execution of, or intended pursuance or execution of, this Act, or any order in writing, direction, instruction, notice or other thing issued under this Act if such act or such statement was done or made, or was omitted to be done or made, in good faith.

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/268.Application of Companies Act 1965





268. Application of Companies Act 1965


Where an authorized person, a registered person, an operator of a designated payment system or a person prescribed as a prescribed financial institution under section 212 is a corporation to which all or any of the provisions of the Companies Act 1965 apply, such provisions shall be in addition to the provisions of this Act and not in derogation thereof, but where there is any conflict or inconsistency between the provisions of the Companies Act 1965 and this Act in their respective application to the person or operator, the provisions of this Act shall prevail.


(2) Where any difficulty or doubt arises in the application of subsection (1) in relation to any particular authorized person, registered person or operator of a designated payment system, or any particular matter or circumstance, or generally, the Minister may on the reference of the difficulty or doubt to him by the Bank, resolve the same by a direction in writing.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/269.Application of certain provisions of Act to Labuan entities





269. Application of certain provisions of Act to Labuan entities


(1) For the purpose of this section, "Labuan Financial Services Authority" means Labuan Financial Services Authority established under section 3 of the Labuan Financial Services Authority Act 1996 [Act 545].

(2) Without prejudice to the generality of Division 2 of Part XIV, the provisions in such Division shall apply to any person who is under the supervision or oversight of the Labuan Financial Services Authority and the Bank may exercise such powers and perform such functions under this Act to ensure compliance with Division 2 of Part XIV by such person.

(3) For the purposes of the Bank exercising oversight over a financial group, a reference to--


(a) "subsidiary" in sections 115 and 116; and

(b) "related corporation" in Parts X and XI, shall be deemed to include a person who is under the supervision or oversight of the Labuan Financial Services Authority where such person is within the financial group.


(4) Sections 178 and 185 of the Labuan Financial Services and Securities Act 2010 and sections 139 and 146 of the Labuan Islamic Financial Services and Securities Act 2010 shall not restrict the Bank in the exercise of powers or performance of functions under section 115 or 116, or Part X or XI, and the Bank may exercise such powers and perform such functions under this Act to ensure compliance with section 115 or 116, or Part X or XI.

(5) Section 185 of the Labuan Financial Services and Securities Act 2010 shall not restrict the application of this Act to any person under the supervision or oversight of the Labuan Financial Services Authority who, under this Act--


(a) operates a payment system, is a participant, or issues a payment instrument; or

(b) is a market participant. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/270.Breach or contravention not to affect contract, agreement or arrangement





270. Breach or contravention not to affect contract, agreement or arrangement


Except as otherwise provided in this Act, or in pursuance of any provision of this Act, no contract, agreement or arrangement, entered into in breach or contravention of any provision of this Act shall be void solely by reason of such breach or contravention:


Provided that nothing contained in this section shall affect any liability of any person for any administrative, civil or criminal actions under this Act in respect of such breach or contravention.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/271.Repeal





Part XVII REPEAL, SAVINGS AND TRANSITIONAL





271. Repeal


The Banking and Financial Institutions Act 1989, the Exchange Control Act 1953, the Insurance Act 1996 and the Payment Systems Act 2003 are repealed.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/272.Savings and transitional





272. Savings and transitional


Notwithstanding section 271--




(a) any rule, regulation, order, notification or other subsidiary legislation made and any approval, authority, consent, decision, direction, exemption, notice, order, permission, recommendation, requirement, specification or other executive act granted or done under the repealed Acts and in force or having effect before the appointed date, shall be deemed to have been made, granted or done under a corresponding provision in this Act or a corresponding provision in any direction issued pursuant to section 156, subsection 214(6) or section 216, and shall continue to remain in full force and effect in relation to the person to whom it applied until amended or revoked, except those subsidiary legislation set out in Schedule 16 which are deemed to have been revoked;

(b) every guideline, direction, circular or notice under the repealed Acts in relation to any matter which corresponds with any provision of this Act, issued before the appointed date and in force immediately before the appointed date, shall be deemed to be standards which have been lawfully specified under such provisions of this Act and shall remain in full force and effect in relation to the person to whom it applied until amended or revoked;

(c) any application for a licence, approval, authorization, notification, acknowledgment, consent, permission or for any other purpose whatsoever made by any person under the repealed Acts before the appointed date and pending before the appointed date, shall--

(i) if there is a corresponding provision in this Act or in any direction issued under subsection 214(6) or section 216, be dealt with as if it was made under that provision;

(ii) if a different provision has been made for the application under this Act or in any direction issued under subsection 214(6) or section 216, be dealt with in accordance with such provision; and

(iii) if there is no corresponding provision in this Act or a different provision has not been made for the application under this Act or in any direction issued under subsection 214(6) or section 216, lapse on the appointed date and any fees or other payment received with the application shall be refunded to such person;

(d) all transactions, credit facilities, dealings, contracts, powers of attorney or arrangements lawfully executed or entered into and all business lawfully done under the repealed Acts with any person shall be deemed to have been lawfully and validly executed, entered into or done under this Act, and accordingly, any right or liability under such transaction, dealing, business existing before the appointed date shall be deemed to continue to be lawful and valid under this Act;

(e) without limiting the generality of paragraph (d), all insurance policies issued, all transactions or dealings lawfully executed or entered into, and all business lawfully done under the repealed Insurance Act 1996 by a person who was licensed under that repealed Act and who is authorized or registered or deemed to be authorized or registered under this Act with any policy owner, customer, creditor, debtor or other person shall be deemed to have been lawfully and validly executed, entered into, or done, under and in accordance with this Act, and any right or liability under the transaction, dealing or business existing before the appointed date shall be deemed to continue to be lawful and valid under this Act; 

(f) nothing shall affect any person's liability to be investigated, prosecuted or punished for offences committed under the repealed Acts before the appointed date;

(g) any pending legal proceedings, criminal prosecution or investigation under the repealed Acts shall be continued under the repealed Acts as if the repealed Acts are in force;

(h) subject to paragraph (i), any reference to the repealed Acts in any written law shall be construed as a reference to this Act and any reference to any specific provision of the repealed Acts in any written law shall be construed as a reference to a provision of this Act which corresponds closely to such specific provision; 

(i) any reference to the Exchange Control Act 1953 or exchange control or any specific provision, or generally to the provisions, of the repealed Exchange Control Act 1953 in any written law shall be construed as a reference to section 214 or 216 of this Act or a corresponding provision in any direction issued under subsection 214(6) or section 216;

(j) any reference to the Controller of Foreign Exchange in any written law shall accordingly be construed as a reference to the Bank;

(k) any reference to an "authorized dealer" in subsection 1(3) of the Money Services Business Act 2011 [Act 731] shall be construed as a reference to a licensed bank under this Act and the interpretation of an "authorized dealer" in section 2 of that Act shall be construed accordingly; 

(l) any right, benefit, privilege, obligation or liability acquired, accrued or incurred under the repealed Acts, shall continue to remain in force under this Act; and

(m) all other acts or things done under the repealed Acts shall be deemed to have been done under this Act and accordingly, shall continue to be valid and lawful under this Act. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/273.Savings in respect of licences granted under repealed Acts





273. Savings in respect of licences granted under repealed Acts


(1) Subject to the provisions of subsection (2)--


(a) a licence granted to a person by the Minister--

(i) under subsection 6(4) of the repealed Banking and Financial Institutions Act 1989 to carry on banking business or merchant banking business, as the case may be, under that Act; and

(ii) under section 16 of the repealed Insurance Act 1996 to carry on insurance business under that Act, shall be deemed to be a licence granted under section 10 authorizing such person to carry on banking business, investment banking business or insurance business, as the case may be;

(b) a licence granted to a person--

(i) by the Minister under subsection 6(4) of the repealed Banking and Financial Institutions Act 1989 to carry on money-broking business; and

(ii) by the Bank under section 17 of the repealed Insurance Act 1996 to carry on insurance broking business or financial advisory business, shall be deemed to be an approval granted under section 11 authorizing such person to carry on money-broking business, insurance broking business and financial advisory business, as the case may be; and

(c) an adjuster licensed by the Bank under section 17 of the repealed Insurance Act 1996 to carry on adjusting business shall be deemed to be a registered person under subsection 18(1).

(2) The persons referred to in subsection (1) shall continue to be subject to the conditions applicable to it before the appointed date as if such conditions were imposed under this Act.


(3) Where in any written law, any reference is made to a merchant bank licensed under subsection 6(4) of the repealed Banking and Financial Institutions Act 1989, it shall be construed as a reference to a licensed investment bank.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/274.Savings in respect of Islamic financial business





274. Savings in respect of Islamic financial business


The following persons shall be deemed to be approved under subsection 15(1):




(a) a licensed bank or licensed investment bank which has consulted the Bank under section 124 of the repealed Banking and Financial Institutions Act 1989, and has obtained the approval of the Bank to carry on Islamic banking business;

(b) an approved issuer of a designated payment instrument which has obtained a written approval under subsection 25(1) of the repealed Payment Systems Act 2003 for the issuance of Islamic designated payment instruments; and

(c) an operator of--

(i) a payment system which has been notified under subsection 5(1) of the repealed Payment Systems Act 2003 provided that the business of the operator of that payment system corresponds to a payment system set out in Part 1 of Schedule 1 of the Islamic Financial Services Act 2012; or

(ii) a designated payment system that facilitates participants engaged in Islamic financial business to transfer, clear or settle funds or securities, and any conditions imposed on such persons under the repealed Acts referred to in paragraphs (a)(b) and (c) before the appointed date shall be deemed to be imposed under subsection 15(1). 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/275.Savings and transitional provision in respect of specific provisions of repealed Insurance Act 1996





275. Savings and transitional provision in respect of specific provisions of repealed Insurance Act 1996


Notwithstanding the repeal of the Insurance Act 1996 under section 271--




(a) subsections 147(4) and (5), and sections 150 and 151 of the repealed Insurance Act 1996 shall continue to remain in full force and effect until such date to be appointed by the Minister in accordance with subsection 1(2) for the coming into operation of section 129 and Schedule 9;

(b) sections 144 and 224 of the repealed Insurance Act 1996 shall continue to remain in full force and effect until such sections are repealed by the Minister by notification in the Gazette; and 

(c) an insurance fund established and maintained under section 38 of the repealed Insurance Act 1996 shall be deemed to have been established and maintained under section 81. 

Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/276.Conversion to single insurance business





276. Conversion to single insurance business


A licensed insurer, other than a licensed professional reinsurer, lawfully carrying on both life business and general business under the repealed Insurance Act 1996 shall comply with subsection 16(1) within five years of the appointed date or such longer period as may be specified by the Minister, on the recommendation of the Bank, by notice in writing to the insurer upon its written application before the expiry of the five years.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/277.Designated payment systems deemed certified





277. Designated payment systems deemed certified


The Real Time Electronic Transfer of Funds and Securities System or RENTAS and the Sistem Penjelasan Informasi Cek Kebangsaan secara Elektronik or eSPICK, which were prescribed as designated payment systems under the Payment Systems (Designated Payment Systems) Order 2009 [P.U. (A) 3/2009] in force before the appointed date shall be deemed to be certified designated payment systems under this Act.





Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/278.Savings in respect of approvals granted, notification given and prescription made under repealed Payment Systems Act 2003





278. Savings in respect of approvals granted, notification given and prescription made under repealed Payment Systems Act 2003


(1) An operator of a payment system who has received a written notification under subsection 5(1) of the repealed Payment Systems Act 2003 shall be deemed to have been approved under section 11 or deemed to be registered under subsection 18(1) respectively, provided that the business of the operator of that payment system corresponds to either a payment system set out in Division 1 of Part 1 of Schedule 1 or a payment system set out in Part 2 of Schedule 1.

(2) An issuer of a designated payment instrument who has obtained a written approval under subsection 25(1) of the repealed Payment Systems Act 2003 shall be deemed to have been approved under section 11 in respect of the issuance of that designated payment instrument.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/279.Savings in respect of interest in shares





279. Savings in respect of interest in shares


(1) Where a person holds five per cent or more of interest in shares of a licensed person on the appointed date, but was not required to obtain an approval under section 45 of the repealed Banking and Financial Institutions Act 1989 or section 67 of the repealed Insurance Act 1996, as the case may be, such person shall be deemed to be approved under paragraph 90(3)(a) provided that he submits such documents or information as may be specified by the Bank within six months after the appointed date.

(2) Where an individual has been approved by the Minister under section 67 of the repealed Insurance Act 1996 to hold interest in shares of a licensed person of more than the percentage specified in section 92, such holding shall be deemed to be lawful and valid for a period of five years after the appointed date and such individual shall, before the expiry of such period, take necessary actions to comply with section 92.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/280.Savings in respect of financial holding company





280. Savings in respect of financial holding company


(1) A company which has been approved by the Minister under section 45 or 46 of the repealed Banking and Financial Institutions Act 1989 to hold more than fifty per cent of interest in shares of a licensed bank or licensed merchant bank as defined in subsection 2(1) of that Act and has been designated by the Bank as a financial holding company or bank holding company, as the case may be, shall be deemed to be approved as a financial holding company under subsection 112(3).

(2) Where the Bank has not designated a financial holding company or bank holding company for a licensed bank or licensed merchant bank before the appointed date, a company which holds more than fifty per cent of interest in shares of such licensed bank or licensed merchant bank shall submit an application to the Bank for it to be approved as a financial holding company within a period of twelve months from the appointed date or such longer period as may be specified by the Bank.

(3) A company which has been approved by the Minister under section 67 of the repealed Insurance Act 1996 to hold more than fifty per cent of interest in shares of a licensed insurer, shall submit an application to the Bank for it to be approved as a financial holding company within a period of twelve months from the appointed date or such longer period as may be specified by the Bank.

(4) An application referred to in subsection (2) or (3) shall be dealt with as if it was made under section 110 and a company referred to in subsection (2) or (3) which fails to submit an application after the expiry of the twelve months or such longer period specified by the Bank under subsection (2) or (3) commits a breach and the Bank may take any action under subsection 234(3).



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/281.Savings in respect of deposits accepted by co-operative societies





281. Savings in respect of deposits accepted by co-operative societies


(1) Subject to the provision of this section, nothing contained in sections 137 and 138 shall render invalid any deposit accepted lawfully by a co-operative society from a person who is not a member of such co-operative society before the appointed date provided that such co-operative society shall, within six months from the appointed date or such longer period as may be specified by the Bank, submit an application to the Bank together with such documents or information as may be specified by the Bank for it to continue accepting deposits from non-members.

(2) The Bank may approve, with or without conditions, or reject the application referred to in subsection (1) and a co-operative society so approved shall comply with any condition imposed on it by the Bank.

(3) The Bank may grant an approval under subsection (2) if the Bank is satisfied that such co-operative society has given a written undertaking that it will comply with such conditions as may be imposed by the Bank under subsection (2).

(4) Section 259 shall apply to a written undertaking given under this section.

(5) The Bank may, at any time, in writing amend or revoke any existing condition imposed on such approval under subsection (2) or impose any new condition thereto.



Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/SCHEDULE 1