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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Additional provisions relating to assumption of control. Money paid acg any person, other than a licensed bank or licensed investment bank, by—. The business record and experience of the applicant. Engaging in conduct that is misleading or deceptive, or is likely to mislead or deceive in relation to the nature, features, terms or price of any financial service or product.

Authorized business to be carried on by authorized person. Provisions in relation to appointment of receiver and manager.

Bank Negara Malaysia – Wikipedia

Other business specified by the Labuan FSA, with the approval of the Minister, subject to compliance with the applicable exchange control restrictions under the FSA. Approval is required at two stages: The various committees described above also play a bqfia in supervising management. Crowdfunding is solicitation of small amounts funds from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause.

Advises the government on macroeconomic policies and managing the public debt. Valuation of assets and liabilities. Application to be financial holding company. Issuing or facilitating a person to issue an advertisement in relation to making such illegal deposit is also prohibited. Demanding payments from a financial consumer in any manner for unsolicited financial ach or products including threatening to bring legal proceedings unless the financial consumer has communicated his acceptance of the offer for such financial services or products either orally or in writing.

Prudential requirements that apply to a licensed bank also apply to a financial holding company and its subsidiaries. Against this background, the aim of this exploratory note is twofold.

Applicants for commercial banking licences, investment banking licences or Islamic banking licences must be public companies incorporated under the Companies Act CA see Question 2.


Bank Negara Malaysia

Division 4 Representative baria. Entity level, referring to the global operations of the banking institution that is, including its overseas branch operations on a stand-alone basis, and including its Labuan banking subsidiary. The duty of secrecy continues even after the termination of the banker and customer relationship. No prosecution for an offence under this Act shall be instituted except with the written consent of the Public Prosecutor. Are there specific restrictions on foreign shareholdings in banks?

An Act to provide for the regulation and supervision of financial institutions, payment systems and other relevant entities and the oversight of the money market and foreign exchange market to promote financial stability and for related, consequential or incidental matters.

There are, however, an increasing number of banks that have dedicated divisions which malsysia services to high net worth individuals. Unless BNM otherwise approves, a financial holding company of a ma,aysia is not permitted to carry on any business other than the business of holding investments directly or indirectly in corporations which are primarily engaged in financial services.

Banking regulation in Malaysia: overview

List of central banks Central banks and currencies of Africa Central banks and currencies of Asia-Pacific Central banks and currencies of the Caribbean Central banks and currencies of Europe Central banks and currencies of Central America and South America. Savings in respect of deposits accepted by co-operative societies. This imposes a criminal penalty. General provisions dealing with directions. Power to issue directions to financial holding company and subsidiaries.

The provisions of the Companies Act in relation to the winding up of companies shall apply to the winding up of an institution, unless specifically provided otherwise in this Division. Is supervised by a competent regulatory authority. An investigating officer who makes an arrest under section 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.

Remedies for careless or innocent misrepresentation. A banker owes a duty of secrecy to its customers at all times, including a duty to keep information concerning its customers’ affairs confidential. Outline Index Book Category Portal. Oversees payment systems and money and foreign exchange markets.


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. Duty to provide access to, and produce documents, information, etc. In discharging its supervisory functions, BNM adopts a risk-based supervision approach, under which financial institutions are assessed and monitored based on risk profiles and adequacy of risk management systems.

  ISO 8611-1 PDF

Further information, including the list of information to be submitted by affected shareholders are available on Bank Negara Malaysia website: Registered person to comply with standards. Investment banks are allowed to conduct activities based on the types of licences held prior to their rationalisation, and are additionally allowed to undertake fund management and unit trust businesses in line with securities laws and guidelines issued by the SC.

To the extent that any of the amount paid under paragraph 3 e or subsection 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 [ Act ].

Section 3 of the FSA states that a person who has any information or document which to his knowledge has been disclosed in contravention of section 1 of the FSA is prohibited from bafiia the same to any other person. Bafoa undue pressure, influence or using or threatening to use harassment, coercion, or physical force in relation to the provision of any financial service or product to a financial consumer, or the payment for any financial service or product by a financial consumer.

Power of Minister to declare holiday for licensed person.

DFIs are subject to the specific requirements of the BNM guidelines on capital framework, financial reporting, anti-money laundering and prudential limits and standards.