Labuan Offshore Financial Services Authority Act 1996

Original Language Title: Labuan Offshore Financial Services Authority Act 1996

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WM laws of MALAYSIA Act REPRINTING 545 ACT LABUAN OFFSHORE FINANCIAL SERVICES 1996 Contains all amendments to 1 June 2006 PUBLISHED by the COMMISSIONER of law revision, UNDER the AUTHORITY of law REVISION ACT 1968 in COLLABORATION with PERCETAKAN NASIONAL MALAYSIA BHD 2006 laws of Malaysia ACT 5452 ACT LABUAN OFFSHORE FINANCIAL SERVICES 1996 date of Assent.................. January 24, 1996, the date of publication in the Gazette............ February 1, 1996 REPRINT BEFORE Reprinting the first............ 2006 financial services Offshore Labuan3 laws of MALAYSIA Act 545 ACT LABUAN OFFSHORE FINANCIAL SERVICES 1996 ARRANGEMENT of SECTIONS part I preliminary section 1. Short title and commencement 2. Interpretation Part II BOARD 3. The Board and its objectives 4. Functions and powers of the Board 5. Membership Of The Board 6. The term of Office 7. Resignation and revocation 8. Vacation of post 9. Power of Minister give directions and require information 10. The Board shall determine its own procedure 11. The Board may invite others to meetings 12. Remuneration or allowance 13. Seal 14. Delegation of functions or powers of the Board 15. The Board may establish committees 16. Minute 17. Disclosure of interest 18. Appointment of officers and servants of the Board laws of Malaysia ACT 5454 18A. The establishment of a welfare fund staff 19. Authority to provide loans and make advances to officers and servants 20. The Disciplinary Committee 21. Appeal against the decision of the Disciplinary Committee 22. Powers of the disciplinary regulations 23. 24. The imposition of a surcharge Notification of the surcharge 25. Revocation surcharges 26. Get a surcharge 27. Membership of the Board in special cases 28. Public servants PART II A SUBMISSION and PRESERVATION INFORMATION 28A. Interpretation in respect of Part IIA 28B. Submission of information 28C. 28D examination. The appointment of the investigating officer, the powers, functions and duties of PART III finance 29. The Fund 30. Expenses shall be charged on the Fund 31. Conservation Fund 32. Levy forms 32A. The authority to impose and collect fees 33. Accounts and reports 34. Power to borrow 35. Investment Section Offshore Financial Services Labuan5 PART IV GENERAL 36. Indemnity 36A. The Board appoints the officer or employee to appear in court on behalf of 36B. Compounding of offences 36C. Liability of Directors, officers, guards, etc.
37. power make regulations 38. Power of Minister to make modification 39. Savings and transitional laws of Malaysia ACT 5456 Offshore financial services Labuan7 the laws of MALAYSIA Act 545 ACT LABUAN OFFSHORE FINANCIAL SERVICES 1996 an act to establish the Board of Labuan Offshore financial services and to provide for its functions and powers and matters connected therewith.
[February 15, 1996, P.U. (B) 66/1996]
BE IT enacted by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: part I preliminary short title and commencement 1. This Act may be cited as the Act of the Board of Labuan Offshore financial services 1996 and shall come into force on such date as the Minister may, by notification in the Gazette; and the Minister may set different dates for the commencement of different provisions in this Act.
Interpretation 2. (1) in this Act, unless the context otherwise requires — "Bank" means a Bank Negara Malaysia which was established under the Bank of Malaysia Act 1958 [Act 519];
"offshore financial institution" means any person who hold offshore financial services;
"Committee" means any Committee established by the Board under subsection 15 (1);
Laws of Malaysia ACT 5458 "Fund" means the Fund established under subsection 29 (1);
"Labuan" means the area of the Labuan development authority defined in section 2 of the Labuan Development Board Act 1992 [Act 480];
"Board" means the Board of Labuan Offshore financial services established under section 3;
"Minister" means the Minister for the time being charged with the responsibility for finance;
"dependants", in respect of officials or servants of the Board, means the spouse, parent, child, including adopted children or stepchildren, or any other person as determined by the Board with the consent of the Minister from time to time by notice published in the W rta;
"accounting officers" includes every officers and servants charged with the duty of collecting, receiving, or mengakaunkan, or who actually collect, receive, or mengakaunkan, any money in the Fund, or charged with the receipt, care or disposal, or pengakaunan, any goods storage and property Board or actually receive, hold or dispose of goods storage and such property;
"Registrar" means the Registrar of companies under the companies Act 1965 [Act 125], and includes any Registrar, Deputy Registrar or Region Assistant Registrar of companies;
"Chairman" means the Chairman appointed under section 5;
"Offshore financial services" means any services provided by — (a) the company offshore or foreign offshore companies registered in Offshore companies Act 1990 [Act 441];
(b) any domestic or foreign company registered under the Labuan trust companies Act 1990 [Act 442];
Offshore financial services Labuan9 (c) any person who is licensed or registered, as the case may be, under the banking Offshore 1990 [Act 443], the offshore Insurance Act 1990 [Act 444], or any other law relating to offshore financial services;
(d) a limited partnership established offshore under the Labuan Offshore Limited Partnership 1997 [Act 565];
(e) a fund established or a licensed Fund Manager or an administrator Fund registered under the Labuan Offshore securities industry 1998 [Act 579];
(f) any person under any law as may be prescribed by the Minister in the Gazette, on the recommendation of the Board.
(2) the expression "foreign companies", "company", "domestic offshore company" and "foreign offshore company" respectively have the meaning assigned to it in the Offshore Companies Act 1990.
PART II Board and its objectives 3. (1) a body corporate called "Board of Labuan Offshore financial services" established a perpetual and have a common seal, which may sue and be sued upon his name and, subject to and for the purposes of this Act, may enter into contracts and can acquire, purchase, take, hold and enjoy any kind of movable and immovable property and may transfer, assign, surrender , return, mortgage, charge, pledge, assign the mendemis, transferred or in any other manner dispose of, or make any arrangements regarding, any movable or immovable property or any interest thereon which are vested in the Board, upon such terms as he thinks fit.
Laws of Malaysia ACT 54510 (2) Objective of the Board is — (a) to promote and develop Labuan as a Centre for offshore financial services;
(b) to develop objectives, policies and priorities of the country for proper development and administration are offshore financial services in Labuan, and make recommendations to the Minister with respect thereto.
Functions and powers of the Board 4. (1) the functions of the Board are — (a) to administer, enforce, carry out and implement the provisions of — (i) Offshore Companies Act 1990;
(ii) Labuan trust companies Act 1990;
(iii) the Offshore Banking Act 1990;
(iv) the offshore Insurance Act 1990; and (v) any other laws relating to offshore financial services in Labuan;
(b) to carry out, perform and execute any powers, duties and functions under the law referred to in paragraph (a);
(c) to ensure that offshore financial transactions carried out in accordance with the laws relating to offshore financial services and norms established for conduct of good and noble and maintain the good name of Labuan as a Centre for offshore financial services;
(d) to carry out research and cause held studies on offshore financial services in Labuan;
(e) to make recommendations for creating and improving any facilities that will increase the attractiveness of Labuan as a Centre for offshore financial services;
Offshore financial services Labuan11 (f) to work with financial institutions and offshore professional associations and industry in Labuan to develop and provide offshore financial services and promoting high standards for offshore financial services in Labuan;
(g) to advise the Minister generally on matters relating to offshore financial services in Labuan.
(2) the Board shall have power to do all things expedient or reasonably necessary for, or incidental to, the performance of its functions and, in particular, but without prejudice to the generality of the above —

(a) to appoint any agent may deem fit for the purpose of discharging its functions;
(b) to impose fees or any other charges which it thinks fit to carry out any of the functions or powers;
(c) to do any other thing which he thinks fit to enable it to carry out its functions and its powers effectively.
(3) for the avoidance of doubt it is hereby declared that the Board shall also have the following functions, namely — (a) to license or register a person who carries on offshore financial services in Labuan;
(b) to regulate and oversee the conduct of offshore financial services in Labuan.
(4) the Board may, with the written approval of the Minister, establish or take part in any body corporate — (a) for the purpose of promoting research and training in respect of offshore financial services;
(b) for the purpose of enhancing the development of offshore financial services; or laws of Malaysia ACT 54512 (c) if the establishment or pengambilbahagian it expedient or reasonably necessary for, or incidental to, the implementation of the Board's functions under this Act.
(5) Notwithstanding any provision to the contrary in any other law relating to offshore financial services, when the Board is satisfied that it is necessary to do so for the purpose of implementing the objectives of the Board, the Board may issue instructions to an offshore financial institution in respect of all or any of the following matters: (a) policies to be followed by the offshore financial institutions in relation to the conduct of business of the institution in Labuan;
(b) monitoring and regulation of the offshore financial institutions according to law relating to offshore financial services;
(c) the monetary policy shall be implemented by the offshore financial institutions.
(6) any offshore financial institutions that do not comply with any instructions issued under subsection (5) commits an offence and shall on conviction be — (a) in the case of persons — (i) a fine not exceeding two hundred and fifty thousand dollars; and (ii) for the offence continues, to a fine not exceeding two thousand five hundred dollars for every day for the offence continues after conviction; and (b) in the case of a body corporate or partnership — (i) a fine not exceeding five hundred thousand dollars; and (ii) for the offence continues, to a fine not exceeding five thousand dollars for each day for the offence continues after conviction.
Offshore Financial Services Labuan13 Membership Of The Board 5. (1) the Board shall consist of the following members who shall be appointed by the Minister: (a) a Chairman;
(b) the Director General; and (c) not less than three and not more than seven others, two of whom shall be from the public sector.
(2) a member appointed under paragraph (1) (c) shall be from among people who have relevant experience in financial matters, commercial or law.
(3) the Director General shall be the Chief Executive Officer of the Board and shall be entrusted with the day-to-day administration of the Board.
(4) if the Director General of absent or unable to act due to illness or any other reason, the Chairman shall appoint any member of the Board to carry out the functions of the Director General.
The term of Office 6. Subject to any conditions specified in the instrument of appointment, a member of the Board shall, unless he first put or clear his Office or his appointment is sooner revoked, hold office for a term not exceeding three years and are eligible for re-election.
Resignation and revocation 7. (1) the appointment of any Member may at any time be revoked by the Minister.
(2) a member may at any time resign his Office by notice in writing addressed to the Minister.
Laws of Malaysia ACT 54514 vacation of Office 8. Office of a member of the Board shall be vacated: (a) if he dies;
(b) if he has been convicted of any offence under any law;
(c) if he becomes bankrupt;
(d) if he is of unsound mind or otherwise is unable to meet its obligations; or (e) if he fails to attend three consecutive meetings of the Board without the permission of the Chairman or in the event the Chairman, without the permission of the Minister.
Power of Minister give directions and require information 9. (1) the Minister may, from time to time, give the Board directions of a General in accordance with the provisions of this Act and such instructions shall be binding on the Board.
(2) the Minister may, from time to time, require the Board to give the Minister of any statement, accounts and information about the implementation of any of its functions under this Act and any other law relating to offshore financial services and the Board shall comply with such requirements.
The Board shall determine its own procedure 10. Subject to this Act and the approval of the Minister, the Board shall determine its own procedure.
The Board may invite others to meetings 11. The Board may invite any person to attend any meeting or deliberation of the Board for the purpose of advising it on any matter under discussion, but any person so attending shall not have the right to vote at the meeting or deliberation.
Offshore financial services Labuan15 remuneration or allowance 12. Member of the Board or any person invited to attend any meeting or deliberation of the Board under section 11 may be paid such remuneration or allowance as determined by the Minister.
Seal 13. (1) the Board shall have a common seal and the seal may from time to time be broken, changed, altered and made anew as the Board may think fit.
(2) until a seal is provided by the Board, a stamp bearing the words "Board of Labuan Offshore financial services" may be used and shall be deemed to be the common seal of the Board.
(3) the common seal shall be kept in the custody of the Chairman or any other person authorized by the Board, and shall be authenticated either by the Chairman or by the authorized person or by any officer authorized by the Chairman in writing; and all deeds, documents and other instruments purporting to be sealed with the seal, authenticated as aforesaid, shall be deemed to have been validly executed until the contrary is proved: provided that any document or instrument which, if executed by a person not being a body corporate, would not be required to be sealed may be executed by the Board in such manner similar, and any document or instrument may be executed on behalf of the Board by any of the officers or servants of the Board granted power generally or specifically by the Board for that purpose.
(4) the common seal of the Board shall be given judicial notice for all official purposes.
Laws of Malaysia ACT 54516 Delegation functions or powers of the Board 14. (1) the Board may delegate any of its functions or powers to — (a) any member of the Board;
(b) any Committee established by the Board; or (c) any officers or servants of the Board.
(2) a delegation under this section shall not prevent the Board from discharging its own or exercise any function or power delegated such at any time.
The Board may establish committees 15. (1) the Board may establish such committees as it considers necessary or expedient to assist it in carrying out its functions under this Act.
(2) the Board may appoint any person to be a member of any Committee established under subsection (1).
(3) a Committee established under this section may elect any of its members to be Chairman and may regulate its own procedure and, in the exercise of its powers under this subsection, the Committee is subject to and shall act in accordance with any instructions given to the Committee by the Board.
(4) the meetings of a Committee established under this section shall be held at any time and at any place determined by the Chairman, subject to subsection (3).
(5) a Committee may invite any person, for the purpose of advising it on any matter under discussion, in order to attend any meeting of the Committee but such person invited shall not be entitled to vote at any such meeting.
Offshore financial services Labuan17 (6) a member of the Committee or any person invited to attend any meeting of a Committee may be paid such allowances and other expenses as determined by the Board.
(7) members of a Committee shall hold office for such period as may be specified in the letter of appointment and shall be eligible for reappointment.
(8) the Board may revoke the appointment of any member of a Committee without assigning any reason therefor.
(9) members of a Committee may at any time resign by giving notice in writing to the Chairman of the Board.
Minutes 16. (1) the Board or a Committee shall cause minutes of all its meetings to be maintained and stored in a proper form.

(2) any minutes made of meetings of the Board or of a Committee, if duly signed, shall, in any legal proceedings, be admissible as prima facie evidence of the facts stated therein and every meeting of the Board or of a Committee in respect of the proceedings thereon: such has been made shall be deemed to have been duly convened and held and all members at the meeting is entitled to act.
Disclosure of interest 17. (1) any member of the Board or of a Committee that has or acquires, directly or indirectly, own, or through his wife or her husband or his son, or his partner or his agent — (a) any share or interest in any offshore financial institutions;
(b) any share or interest — (i) in any contract made with the Board;
Laws of Malaysia ACT 54518 (ii) in any work done to the Board; or (iii) in any company or firm of which the Board proposes to enter into contracts with respect to any undertaking; or (c) any interest of the beneficiaries of the land proposed to be acquired, purchased, leased or operated as otherwise by the Board, which he knows will be affected or likely to be affected by any project, scheme or enterprise approved or proposed to be approved by the Board, shall declare the nature and extent of the share or interest to the Board or Committee, as the case may be.
(2) subject to subsection (7), declaration required to be made by a member under subsection (1) shall be made — (a) in the case of paragraph (1) (a), at the first meeting of the Board or Committee meetings held after he acquire shares or interest thereof;
(b) in the case of paragraph (1) (b) and (c) — (i) on board or Committee in which any question relating to the contract, procurement, purchasing, leasing, transactions, projects or schemes referred to in the first paragraph be considered;
(ii) if the Member does not have any share or interest as is mentioned in subparagraph (i) on the date of the meeting referred to in that subparagraph, the next at such meetings held after he acquire shares or interest thereof; or (iii) If a member acquires any share or interest in any contract with the Board after the contract is made, at the first meeting held after the members acquire shares or interest it.
Offshore financial services Labuan19 (3) for the purposes of this section, a general notice given to members of the other by a member which means that he is a shareholder or Director of any company or firm specific and should be interested in any contract which may, after the date of the notice, be made to or by the company or the firm, shall be deemed to be sufficient on the importance of perisyitharan in relation to any contract so made.
(4) the notice given under subsection (3) shall not have effect unless it is given at a meeting of the Board or Committee, as the case may be, or member concerned took reasonable steps to ensure that the notice is submitted and read on the Board or Committee of the next after the notice is given.
(5) every declaration made pursuant to subsection (1) shall be recorded in the minutes of the meeting at which the Declaration is made or read.
(6) no member of the Board or Committee may — (a) to take part in any deliberation (except by invitation of the Board or Committee, as the case may be) on any matter affecting any offshore financial institutions in which he has any share or interest, whether or not he has to declare the interest or share, or in any decision related to it or in any matter incidental thereto;
(b) vote on any resolution or question relating to any contract, procurement, purchase, lease, transactions, projects or schemes in which he has any share or interest, whether or not he has to declare the interest or share, or take part in any deliberation (except by invitation of the Board or Committee, as the case may be) or any decision related to it or any matter incidental thereto , and if he do so — (aa) her vote cannot be counted; and the laws of Malaysia ACT 54520 (bb) he cannot be counted in the quorum present at the meeting regarding the deliberation of stipulation or question it.
(7) a member who, prior to his appointment as a member of the Board or of a Committee, already acquire shares or interest referred to in subsection (1) shall declare the nature and extent of the interest or shares to the Board or Committee, as the case may be, as soon as she was elected through general notice that must be given to the Board or the Committee.
(8) any member of the Board or a Committee does not disclose or share his interests as provided under this section commits an offence and shall on conviction be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding five years or both.
Appointment of officers and servants of the Board 18. (1) the Board may, from time to time, employ people who shall be paid such remuneration and allowances and that person shall be employed on such other terms and conditions specified by the Board.
(2) the Board may make arrangements for payments to officers and pekhidmatnya as well as their dependants of any retirement benefits, gratuity or other allowance as determined by the Board.
The establishment of a staff welfare fund 18A. (1) the Board may, with the written approval of the Minister, by using the money of the Board, establish and maintain a trust account known as "Staff Welfare Fund Board of Labuan Offshore financial services" for the benefit of officers and employees including their dependents.
Offshore financial services Labuan21 (2) Staff Welfare Fund Board of Labuan Offshore financial services shall be used for purposes incompatible with the welfare of the officers and employees of the Board, including their dependents, as may from time to time the provisions of the trust directive issued by the Board with the approval of the Minister, and such instructions can assign the manner and procedure for the making of grants, loans or other payments out of the Fund.
Authority to provide loans and make advances to officers and servants 19. The Board can provide loans and make advances to officers and pekhidmatnya on such terms and conditions as may be determined by the Board.
The Disciplinary Committee 20. (1) the Board shall have disciplinary powers over all officers and pekhidmatnya and shall exercise disciplinary control in respect of all such person pursuant to this Act and any regulations made under section 22.
(2) for the purposes of this section — (a) shall be established a Disciplinary Committee of the Board with respect to Director-General consists of — (i) the Chairman of the Board, who shall be the Chairman of the Committee; and (ii) at least two members of the Board, excluding the Director General specified from among members of itself; and (b) the Board may, by notification in the Gazette, establish different Disciplinary Committee for different categories of officials or servants of the Board.
(3) the following shall apply to any disciplinary Committee established under paragraph (2) (b): (a) the Committee shall consist of such number of members of the Board, other than the Chairman of laws of Malaysia ACT 54522 Board, or officer of the Board, or any combination of members and the officer; and (b) an officer who is a member of a Disciplinary Committee shall not be lower than any meteoric officers or servants who thereon of the Committee he sits on has a disciplinary power.
(4) Committee established pursuant to paragraph (2) (b) shall exercise its powers in all matters relating to discipline officers and servants placed under its jurisdiction.
(5) in the exercise of its functions and powers, a Disciplinary Committee referred to in subsection (2) shall have the authority to take disciplinary action and impose any disciplinary punishment or any combination of two or more disciplinary punishment as provided under any regulations made under section 22.
Appeal against the decision of the Disciplinary Committee 21. (1) a decision of the Disciplinary Committee under paragraph 20 (2) (a) may appeal to the Minister.
(2) a decision of the Disciplinary Committee under paragraph 20 (2) (b) may be appealed to the Board of disciplinary Appeals shall consist of the following members: (a) the Chairman of the Board, who shall be the Chairman of the Board of disciplinary Appeals and has a casting vote; and

(b) three members of the Board, who is not a member of the Disciplinary Committee whose decision is the matter of the appeal, which shall be appointed by the Chairman of the disciplinary board of Appeal with the approval of the Board for the purposes of the appeal.
(3) the Minister or the disciplinary Appeal Board, as the case may be, may affirm, reverse or vary the decision of the Disciplinary Committee.
Offshore financial services Labuan23 (4) when the disciplinary Appeal Board considers an appeal under subsection (2), a member of the Disciplinary Committee against appealed from who is also member of the Board may not be present on or in any way participate in any proceeding relating to the appeal.
(5) the decision of the Minister or the Board of Disciplinary Appeals under subsection (3) shall be final and conclusive.
Powers of the disciplinary regulations 22. (1) the Board may, with the approval of the Minister, make any regulations it considers necessary or expedient to provide for disciplinary officers and servants of the Board.
(2) the disciplinary regulations made under this section — (a) may establish a disciplinary offence;
(b) may provide for disciplinary punishment deemed appropriate by the Board, and the sentence may include warnings, fines, forfeiture of emoluments, delay the movement of salaries, salary reductions, demotion and throw away the work;
(c) shall give to the person against whom the disciplinary proceeding taken the opportunity to make representations against the disciplinary charge made against him before the decision was reached by the Disciplinary Committee, except in the case of the following: (i) If an officer or Board servants dismissed or lowered promoted by reason of the conduct in respect of which a criminal charge has been proved against him;
(ii) j if the Board, on the recommendation of the Minister charged with domestic affairs, is satisfied that in the interest of the security of the Federation or any part thereof is not expedient to carry out the requirements of this paragraph; or laws of Malaysia ACT 54524 (iii) if it has been made against an officer or the Board of servants of any detention order, supervision, residential limited, banishment or expulsion, or if there has been imposed on the officials or servants of the Board any form of restriction or supervision by bond or otherwise under any written law relating to the security of the Federation or any part thereof, crime prevention, preventive detention, residential limited , banishment, immigration, or the protection of women and girls;
(d) may provide for the retention of work reduction emoluments of officers or servants of the Board pending completion of the criminal proceedings against him or disciplinary proceedings against him for the purpose of removing work or lose meteoric; and (e) may provide for suspension without emoluments of an officer or the Board of servants or the servants if he has been convicted by any court or if a criminal detention or restriction order was made with respect to or imposed on any officer or the servants.
The imposition of a surcharge 23. (1) a person who is or has been employed by the Board may disurcaj if it appears to the Board that such person — (a) not collect any money owed to the Board pemungutannya be its duties;
(b) who is or was responsible for any payment of moneys of the Board which should not be made or for any payment of money not approved accordingly;
(c) which are or have been responsible, directly or indirectly, for any deficiency in, or for destruction, any money savings, goods or other property of the Board;
(d) as or while an accounting officer, did not keep proper records or account; or Offshore financial services Labuan25 (e) shall not make any payment, or who is or has been responsible for any delay in the payment of moneys of the Board to any person to whom the payment is to be made under any law or under any contract, agreement or arrangement made between the person with the Board.
(2) the Board shall, before the person disurcaj, serve a notice in writing to him requesting show cause why he should not be disurcaj.
(3) If satisfactory explanations are not accepted within fourteen days from the date of service of the notice as mentioned earlier, the Board may — (a) in the case of paragraph (1) (a), (b) and (c) mensurcajkan against such a sum of money not exceeding the amount not collected, or any payments should not be made, or deficiency in, or destruction of property is done; and (b) in the case of paragraph (1) (d) and (e), mensurcajkan any amount of money against such person as he may deem fit.
24. the surcharge notification The Board shall notify the person who disurcajkan in respect of a surcharge imposed under subsection 23 (3).
Revocation of surcharge 25. Notwithstanding subsection 23 (3) and section 24, the Board may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it turns out otherwise that no surcharge should be made, and the Board shall immediately inform the person of the revocation shall be disurcajkan.
Laws of Malaysia ACT 54526 surcharges Obtain 26. The amount of any surcharge imposed under subsection 23 (3) and not withdrawn under section 25 shall be a debt due to the Board of the person against whom the surcharges are applicable and may be prosecuted and diperdapatkan in any court on the legal Board and can also, if directed by the Board, through diperdapatkan — (a) deductions from the salary of the person disurcajkan; or (b) the pension of people who disurcajkan, with equal monthly instalments not exceeding one quarter of the total monthly salary or pension, as the case may be, that person.
Membership of the Board in special cases 27. In any action a surcharge to the Director General, membership of the Board for the purpose of section 23 to 26 shall not include the Director-General.
Public servants 28. All members of the Board or any of its committees or any of its officers, servants or agents of the Board while on their duties as a member, officer, or agent of such servants shall be deemed to be public servants within the meaning of the Penal Code [Act 574].
PART II A SUBMISSION and PRESERVATION of INFORMATION Interpretation in respect of Part IIA 28A. In this section, unless the context otherwise requires — "agency enforcement of local laws" means the Royal Malaysian Police as defined in the Police Act 1967 [Act 344];
Offshore financial services Labuan27 "licensed offshore bank" has the meaning assigned to it in the Offshore Banking Act 1990;
"financial institution" means a licensed offshore bank, licensee, trust company or Fund Manager;
"credit facility" has the meaning assigned to it in the Offshore Banking Act 1990;
"criminal offence" means any offence under — (a) any law in Malaysia relating to offshore financial services, if the offence can be sentenced to imprisonment;
(b) of the Penal Code [Act 574];
(c) the dangerous drugs Act 1952 [Act 234];
(d) of the dangerous drugs (forfeiture of Property) 1988 [Act 340]; or (e) Kidnapping Act 1961 [Act 365];
"licensee" has the meaning assigned to it in the offshore Insurance Act 1990;
"Fund Manager" means a Manager as defined in the securities industry Act Offshore Labuan 1998;
"keeper" means any person who has put the savings or save a sum of money in banks licensed offshore;
"authority" means any authority which is located within or outside Malaysia;
"the financial authorities of the country of origin" has the meaning assigned to it in the Offshore Banking Act 1990, and includes Bank;
"the local regulatory authority" means any body or authority which is responsible for regulating a licensee in any country;
Laws of Malaysia ACT 54528 "trust companies" have the meaning given to it in the Labuan trust companies Act 1990.
Submission of requested information 28B. (1) the Board may, in the exercise of its stewardship function under this Act or under any other law relating to offshore financial services, require any financial institution or any corporation that is related to any financial institution so as to submit to the Board any information considered by the Board necessary or expedient for the implementation of the surveillance, but the Board may not require any information that disclose Affairs , identity or account a client any such corporation or institution.
(2) the Board may disclose any information submitted under subsection (1) — (a) to any person in a way combined or grouped if it sees fit to do so but the disclosure shall be limited to any information which is not related to an individual institution; or

(b) to the financial authorities of the country of origin of the institution, and the disclosure could include any information relating to an individual institution under the supervision of the financial authorities of the country of origin.
(3) no nothing in subsection (1) and (2) shall be construed as preventing the Board's exercise of its powers to require the submission of any information relating to the identity or particulars of any person who has acquired any credit facilities of a licensed offshore bank, if the Board is satisfied that the information is necessary for or incidental to its stewardship function, and the Board may disclose all or some of that information — (a) to the financial authorities of the country of origin of the bank if the Board is satisfied that any information that's necessary for and incidental to the function of the Board Labuan29 offshore financial services supervisory authorities of the home country's financial and monetary authorities in the country of origin the provisions of confidentiality in the document have konstituennya to protect any information provided from any disclosure that is not valid in law; or (b) to the enforcement of local law if the Board is satisfied, based on the evidence available to the Board, that fraud or criminal offence has been or is likely to be done.
(4) without prejudice to subsection (1) and (3), if the Board is satisfied, based on the evidence available to the Board that fraud or criminal offence has been or is likely to be done, the Board may require the submission of any information relating to — (a) Affairs, identity or account any certain depositors of any licensed offshore bank;
(b) Affairs, identity or account any policy owner a licensee;
(c) Affairs, accounts, the arrangement or details of customer or any person involved with the ownership or management, or business with, a trust company; or (d) Affairs, identity or account any specific customers Fund Manager someone or the contributors to the Fund is governed or managed by the Fund Manager.
(5) Notwithstanding subsection (2) and (3), if the Board is satisfied, based on the evidence available to the Board, that fraud or criminal offence has been or is likely to be done, the Board can provide information about the behaviour or convey any or all information relating to the conduct of — (a) in the case of the information provided under paragraph (4) (a), to the authorities of the country of origin or financial agency enforcement of local laws;
(b) in the case of the information provided under paragraph (4) (b), to the local regulatory authority or agency enforcement of local laws; or laws of Malaysia ACT 54530 (c) in the case of the information provided under paragraph (4) (c), or (4) (d), to the enforcement of local law.
(6) subject to subsection (3), (4) and (5), any information obtained by the Board under subsection (1), (3) and (4) or any other provisions of this Act shall be a secret between the Board with those who supply it, and none have any information or document at his knowledge has been disclosed in contravention of this subsection may be in any way disclose the information or document to another person.
(7) without prejudice to any other provisions of this Act, the Board may receive any information from any person or authority within the exercise of any power or duty under this Act or any other law relating to offshore financial services.
(8) for the purposes of this section, no action, suit or prosecution or other proceedings may be taken or carried or maintained in any court or before any other authority against any person because he complied with any provision of this section.
(9) this section shall have effect and affect wholly, notwithstanding anything to the contrary or permissible to it in this Act or in any provision under any other laws relating to offshore financial services.
(10) any offshore financial institutions that do not comply with this section commits an offence and shall on conviction be — (a) in the case of a person liable to a fine not exceeding one million five hundred thousand dollars or to imprisonment for a term not exceeding three years or to both; and (b) in the case of a body corporate or partnership liable to a fine of not more than three million dollars.
Offshore financial services Labuan31 (11) any person who does not withhold such information as required under subsection (6) commits an offence and shall on conviction be liable to a fine not exceeding five hundred thousand dollars or to imprisonment for a term not exceeding six months or to both.
28C examination. (1) the Director General or any person authorized by the Board may examine and investigate, subject to confidentiality, any financial institution or any corporation associated with any financial institution for the purpose of verifying information submitted under sukseksyen 28B (1), (3) and (4).
(2) if there is a discrepancy between the provisions of this section with the provisions of any other laws relating to offshore financial services, the provisions of this section shall prevail.
The appointment of the investigating officer, the powers, functions and duties 28D. (1) for the purpose of investigation of any offence under this Act or under any other law relating to offshore financial services, the Board may appoint, by a written instrument, any officer or employee of the Board or any other person who is suitable to be the investigating officer.
(2) subject to subsection (3), an investigator appointed under subsection (1) shall have all the powers, functions and duties conferred to an investigating officer under this Act, and if the investigating officer is not an officer or employee of the Board, he shall, in respect of the powers, functions and duties of that — (a) subject to the; and (b) enjoy any right, privilege, protection, immunity and indemnity guarantee as specified in, the provisions of this Act or any other written law applicable to an officer or employee of the Board.
Laws of Malaysia ACT 54532 (3) an investigator shall be subject to the direction and control of the Board and Director-General, or any other officer of the Board authorized by the Board to act on behalf of the Board, and any officer or other investigating officer is higher than her meteoric, and shall exercise its powers, its functions and meet their obligations referred to in subsection (2) to comply with any order , instructions, conditions, restrictions or limitations stated by the Board or the Director-General, or officer of the Board authorized to act on behalf of the Board, or an investigating officer is higher than her meteoric, orally or in writing, either generally, or in the case or circumstances.
(4) the Director General shall have all the powers, functions and duties of the investigating officer.
(5) An investigator conducting an investigation under this part shall have the power to handle the oath or pledge against people who are investigated.
(6) any person who prevents any investigating officer from carrying out his duties under this Act commits an offence and shall on conviction be liable to a fine not exceeding five hundred thousand dollars or to imprisonment for a term not exceeding six months or to both.
PART III FINANCIAL Fund 29. (1) for the purposes of this Act, a Fund was set up to be administered and controlled by the Board.
(2) the Fund shall consist of — (a) any sums allotted from time to time for the purposes of this Act by the Parliament;
(b) the amount of money borrowed by the Board for the purpose of fulfilling any of its obligations or discharging any of its obligations;
(c) a levy payable under section 32;
Offshore financial services Labuan33 (d) fees, costs or other charges imposed by the Board under this Act or other laws relating to offshore financial services;
(e) any compound that is payable under this Act or other laws relating to offshore financial services; and (f) all sums of money or other property that may in any way be payable to or vested in the Board consented to with any matter incidental to the functions and powers.
Expenses shall be charged on the Fund 30. The Fund shall be expended for the purpose of — (a) to pay any expenses lawfully incurred by the Board, including fees and legal costs and fees and other costs, and the remuneration of officers and servants of the Board, including lending, retirement allowances or remuneration;
(b) pay any expenses, costs or other expenses incurred or is received properly by the Board in the performance of its functions or exercise of its powers under this Act;

(c) purchase or rent equipment, machinery and any other materials, acquire land and erect the building, and exercise such other functions and the undertaking in the performance of its functions or exercise of its powers under this Act;
(d) refund any moneys borrowed under this Act and the interest payable thereon; and (e) generally, to pay such expenses for carrying out the provisions of this Act.
Conservation Fund 31. Be the duty of the Board to preserve the Fund by its functions and exercise of its powers under this Act in such a way so that with that amount of revenue the Board sufficient to pay all sums charged to revenue account should include depreciation and interest on capital, from year to year.
Laws of Malaysia ACT 54534 Levi 32. (1) an offshore financial institutions liable, in the case of any offshore financial services held by him, to pay a levy to the Board.
(2) for the purposes of subsection (1), the Minister may, by order published in the Gazette, specify any rate levies as may be necessary to pay the cost of administration and operation of the Board; and different rates can be determined in respect of different classes of offshore financial services.
(3) the amount of any levy payable under this section may be obtained as a civil debt due to the Board.
(4) the Minister may make regulations in respect of — (a) the payment of the levy under this section;
(b) subject to the provisions relating to confidentiality under any written law relating to offshore financial institutions, storage, inspection and auditing accounts offshore financial institutions relating to the collection of the levy.
The authority to impose and collect fees forms 32A. Notwithstanding any provision under any other laws relating to offshore financial services, the Board may, with the approval of the Minister, by order published in the Gazette, impose and collect any fees for any service provided by or on behalf of the Board under this Act or any other law relating to offshore financial services and for the granting or withdrawal of any license , permits, registration, approval or exemption may be allowed or granted by the Board under any law.
Offshore Financial Services Accounts and the reports of Labuan35 33. (1) the Board shall cause to be kept proper accounts for and reports should be about its activities and shall, as soon as practicable after the end of each financial year, cause provided — (a) a statement of accounts of the Board which shall include a balance sheet and income and expenditure accounts; and (b) a statement of its activities, for that financial year.
(2) the Board shall as soon as may send a copy of the statement of account certified by the Auditors and a copy of the Auditors ' report to the Minister which shall be so laid before both houses of Parliament.
(3) of the statutory bodies (accounts and annual reports) 1980 [Act 240] shall apply to the Board.
Power to borrow 34. The Board may from time to time, with the approval of the Minister, borrow, at such rate of interest and for such period and upon such terms as to the time and method of repayment and otherwise as may be approved by the Minister, any sums required by the Board to meet its obligations or to carry out any of its functions under this Act.
The investment of 35. Money the Board shall, in so far as it is not required to be expended by the Board under this Act, be invested in such manner as the Board may think fit.
Laws of Malaysia ACT 54536 PART IV GENERAL limit of 36. The Board, any member of the Board or any Committee established by the Board, any person appointed by the Board under this Act and any officers or servants of the Board shall not be liable for any action or other proceeding for damages for or by reason of, or in connection with, any act done or statement made, left than done or made, pursuant to or in furtherance of this Act or in performing any of the functions , or in the exercise of any power conferred by or under any written law relating to offshore financial services: provided that the action, statement, the implementation functions or the exercise of that power has been done or made in good faith.
The Board appoints the officer or employee to appear in court on behalf of 36A. (1) Notwithstanding the provisions of any other written law — (a) in any civil proceedings by or against the Board; or (b) in any civil proceedings other Board required or allowed by the Court to be represented or heard, or otherwise have the right to be represented or be heard, any Member, officer or employee of the Board was admitted as a barrister and solicitor under the legal profession Act 1976 [Act 166] and authorised by the Board for that purpose, may, on behalf of the Board such proceedings, or to appear as advocates within it and may make and do all such acts in respect of the proceedings on behalf of the Board.
Offshore financial services Labuan37 (2) Notwithstanding any provision to the contrary in this Act, the Board may appoint a barrister and Solicitor for the purposes provided for in subsection (1).
Compounding of offences 36B. (1) the Director General may, with the written consent of the public prosecutor, in a case if he thought appropriate and eligible to do so, mengkompaunkan any offence committed by any person is punishable under this Act by making an offer in writing to that person to mengkompaunkan the offence when paid to the Director General, within the time specified in the offer, an amount not exceeding fifty per cent of the amount of the maximum fine that may be imposed on that person if he or she convicted of the offence.
(2) an offer under subsection (1) may be made at any time after the offence, but before any prosecution for him started.
(3) if the amount specified in the offer under subsection (1) is not paid within the period specified in the offer, or within any extended period granted by the Director General, a prosecution for the offence may be commenced at any time after that to the person to whom the offer is made.
(4) If an offence is compounded under subsection (1), no prosecution can then started in respect of the offence against a person to whom an offer to mengkompaunkan the offence made.
Liability of Directors, officers, guards, etc.
36C. If any offence against any provision of this Act has been committed by any offshore financial institutions, any person that at the time of the Commission of the offence was a Director, officer, or the controller, in the offshore financial institutions or purporting to act in any such property, or has in any way until the laws of Malaysia ACT 54538 any extent responsible of the management of any Affairs of the offshore financial institutions , or assist in the management of such committed such offence unless he proves that it was committed without agreed or is left by him and that he has undertaken every effort to prevent the Commission of the offence as he ought to be carried out by him, by giving attention to the type of functions on the properties and all the circumstances.
The power of making regulations 37. (1) the Minister may make such regulations as expedient or necessary for implementing or enforcing the provisions of this Act.
(2) regulations made under this section — (a) may provide that any breach of any of its provisions is an offence; and (b) may provide for the imposition of penalties not exceeding twenty-five thousand dollars for any offence thereunder.
Power of Minister to make modification of the 38. (1) subject to subsection (2), the Minister may, whenever it considers necessary or expedient made so either for the purpose of removing difficulties or due to the terlulusnya of this Act, by order make such modifications to any of the provisions of any law relating to offshore financial services as it sees fit.
(2) the Minister may not exercise the powers conferred under subsection (1) after the expiry of two years from the commencement of this Act.
Offshore financial services savings and transitional Labuan39 39. (1) all regulations, guidance, instructions, orders or decisions made by the Registrar or the Bank, as the case may be, under any law relating to offshore financial services that existed before the commencement of this Act shall be deemed to have been made by the Board until amended or revoked or until the expiration date.

(2) all regulations, guidance, direction, order or decision made by the Minister in charge of the Offshore Companies Act 1990 and Labuan trust companies Act 1990 under the Act-the Act that existed before the commencement of this Act shall be deemed to have been made by the Minister charged with the responsibility for finance unless amended or revoked or until the expiration date.
(3) all applications, approval or decision pending before the Registrar or the Bank, as the case may be under any law relating to offshore financial services shall, upon the commencement of this Act, are managed by the Board.
(4) all applications, approval or decision pending before the Minister in charge of the Offshore Companies Act 1990 and Labuan trust companies Act 1990 under the acts shall, upon the commencement of this Act, are managed by the Minister charged with the responsibility for finance.
(5) all instrument, certificate or document lodged with the Registrar or Bank, as the case may be, under any law relating to offshore financial services before the commencement of this Act shall, upon the commencement of this Act, be deemed to have been lodged with the Board.
Laws of Malaysia ACT 54540 laws of MALAYSIA Act 545 ACT LABUAN OFFSHORE FINANCIAL SERVICES 1996 LIST AMENDMENT law short title effect from that amend Act A1036 Act 15-10-1998 Labuan Offshore financial services (Amendment) 1998 Offshore financial services Labuan41 the laws of MALAYSIA Act 545 ACT LABUAN OFFSHORE FINANCIAL SERVICES 1996 LIST SECTION AMENDED Section Power amend with effect from 2 Act A1036 15-10-1998 4 Act A1036 15-10-1998 18A Act A1036 15-10-1998 28A-28D Act A1036 15-10-1998 29 Act A1036 15-10-1998 forms 32A A1036 Act 15-10-1998 36 Act A1036 15-10-1998 36A A1036 Act 15-10-1998 36B A1036 Act 15-10-1998 36C A1036 Act 15-10-1998

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