Lawyerment Homepage – Malaysian Financial Law – Banking Law – Bank Negara – BAFIA(banking and financial institutions act) Bank Negara Malaysia (BNM) is empowered to act as the regulator of banking institutions under the Financial Services Act (FSA), the. THE BANKING AND FINANCIAL INSTITUTIONS ACT, Introduction The in relation to deposit taking.e. from any person in Malaysia or outside Malaysia In.

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Evidence obtained in investigations may be used in civil proceedings. As part of the application process, BNM requires the home supervisor to provide a letter of no objection and confirmation that it performs consolidated supervision over the applicant and its affiliates, including the Malaysian subsidiary.

Bank Negara Malaysia

Powers of investigating officer. The Bank may issue one or more of the directions specified in section if the Bank is of the opinion that an institution, its director, chief executive officer or senior officer—. Stay in respect of bridge institution. Business of financial holding company. Bfaia 4 – Compulsory transfer of business, assets or liabilities.

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 or the regulatory objectives of this Act, by an order published in malaysi Gazetteexempt 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.

Additional provisions relating to compulsory malaysiq. Current deposits and savings deposits under the concept of Wadiah guaranteed custody. Approved insurance broker, approved financial adviser and approved issuer of designated payment instrument to establish customer account.


Financial Services Act | Bank Negara Malaysia | Central Bank of Malaysia

SPI level referring to a licensed bank or licensed investment bank that has been approved under the FSA to carry on Islamic banking businessas if it were a stand-alone banking institution. The author opines that the principles from the abovementioned cases must be interpreted in the context of the statutory regime. Archived from the original on 20 February A financial holding company, its subsidiary, director or chief executive officer of such financial holding company or such subsidiary who fails to comply with a direction issued under subsection 2 or 3 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.

Interest in shares includes direct and effective interest under Schedule 3 of the FSA. Purpose of this Part. Savings in respect of licences granted under repealed Acts.

Bank Negara Malaysia – Wikipedia

Non-contestability for life insurance contracts. The Central Bank is empowered through enactment of legislation by the Parliament of Malaysia. Be in line with the acct and risk strategies, corporate values and long-term interests of the financial institution.

The prior written approval of Bank Negara Malaysia must be obtained for property or liability to be insured, with an insurer outside Malaysia. List of seized property, etc. Bqfia on payment of dividend by licensed person.

For the Moldovan central bank, see National Bank of Bxfia. Power of Bank to specify standards for payment systems. The Minister may, on the recommendation of the Bank, prescribe—.

Division 5 Appointed actuaries. Termination of malayzia policy. The acquisition of a bank can be made by a purchase of shares or of the business and assets of the bank. What is the legal framework for liquidation of banks? Liberalising and deregulating the onshore ringgit hedging market.


Approval is required for both direct and indirect acquisitions of the shares in a bank.

During this period there was widespread belief that the ringgit was undervalued and that if the peg was removed, the ringgit would appreciate.

Unless the Bank otherwise approves, no licensed insurer shall pay to any person any remuneration out of the assets of an insurance fund in relation to a business transfer scheme.

Application of Schedule and other laws. There is no limit on the number of licences that can be issued, mmalaysia there is understood to be currently a moratorium on the issuance of new banking licences by BNM. A banker owes a duty of secrecy to its customers at all times, including a duty to keep information concerning its customers’ affairs confidential.

Subject to the approval of the Minister, present a petition to the relevant HC for the winding up of the member institution.

Banking regulation in Malaysia: overview

These action plans are currently being implemented and are at various stages of completion. Bank which is a branch of a foreign institution.

The liquidation of a bank which is a company incorporated in Malaysia is governed by the Companies Act CA. Restriction on inquiring specifically into affairs of particular customer.

Power of Bank to issue certificate of finality.

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