Development Financial Institutions Act 2002

Original Language Title: Development Financial Institutions Act 2002

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Laws of Malaysia Act 618 Reprinting development financial institutions Act 2002 Contain all amendments to 1 October 2008 published by the Commissioner of law revision, under the authority of Law Revision Act 1968 2008 laws of Malaysia Act 618 2 development financial institutions Act 2002 date of Assent.................. 29 January 2002 date of publication in the Gazette............ February 7, 2002 Reprint before Reprinting The first ... ... more 2004 the second Reprint of ... ... more 2006 development financial institutions 3 laws of Malaysia Act 618 development financial institutions Act 2002 arrangement of sections part i preliminary section 1. short title and commencement 2. Application of the 3. interpretation 4. Function part ii management, Ownership and control 5. the Board of Directors 6. Appointment of Chief Executive Officer and Director 7. disqualification of Chief Executive Officer and a Director of 8. the effect of disqualification 9. Exemption from disqualification 10. notice of termination of Office 11. Disclosure of interest 12. Acquisition of shares 13. report of the acquisition to the bank 14. Changes in consolidation and merger control, 15. Transfer business 16. Application to the High Court for the transfer of business 17. Transfer of immovable property laws of Malaysia Act 618 4 section 18. Own shares or shares of the parent company as a backup 19. Application to the bank 20. Pleadings relating to a violation of 21. effect of breach of 22. The initial order by bank 23. Confirmation of the starting order 24. the command that performs a command part iii restriction on Business 25. control over the establishment or acquisition of subsidiary 26. instructions with respect to subsidiary 27. Restriction or prohibition of business 28. prohibition of the credit line 29. Restrictions on credit to single person 30. Restrictions on the granting of credit facilities 31. Disclosure of Directors ' 32. Credit limit control 33. Investment assets of part iV obligations And financial resources 34. Statement of corporate intent 35. 36 annual funding. Restrictions on payment of dividends 37. Maintenance of liquid assets 38. Maintenance of capital money 39. Maintenance fund reserves 40. The maintenance of assets in malaysia, 41. other prudential requirements 42. Amendments to the constituent documents of development financial institutions 5 part V dealing with money the Government Section 43. The establishment and maintenance of 44 Trust Fund. The use of the money trust 45. Investment trust fund 46. credit to the Trust Fund 47. the assets of the Trust Fund as a backup 48. Evaluation of trust fund 49. Transportation trust fund 50. CBT 51. Termination of trust fund 52. The use of the Trust Fund in the winding up of part Vi Control errant person 53. inability to perform obligations 54. action by the bank is 55. action by Minister 56. representations concerning the order of 57. Appointment under section 54 58. Dismissal under section 54 59. Assumption of control 60. Reduction of share capital and cancellation of shares in 61. The expansion of the jurisdiction of 62. moratorium part Vii Auditors and 63 accounts. Appointment of Auditors 64. disqualification Auditors 65. Restrictions on audit firm is 66. Consent to act as auditors of laws of Malaysia Act 618 6 67. Appointment of audit firm is 68. Auditors shall not be deemed to be employees 69. Auditors ' report 70. an additional requirement of Auditors 71. Auditors must report certain matters to the bank 72. information to the auditor 73. annual accounts 74. Quarterly statements of 75. Accounting standards 76. annual and quarterly statement shall be corrected at 77. Presentation of annual accounts 78. action in relation to the annual accounts 79. admissibility 80. liability if proper accounting records were not saved 81. Application for trust fund part Viii inspection and investigation of 82. 83. Examination by the bank Minister's power to order the inspection of 84. obligation to submit and provide access to documents and information 85. Examination of a person other than the appointed institutions 86. the presence in front of examiners 87. An investigation by the bank at 88. The appointment of the investigating officer 89. the investigating officer power 90. the authority to examine people 91. 92. the admissibility of evidence Examination of person 93. obstacles to the exercise of power by investigating officer 94. needs to prepare translations 95. Surrender of property, records, reports or documents 96. Seizure of property, records, reports or documents Section 7 97 development financial institutions. Divestment, records, reports or documents seized 98. The investigating officer can arrest without warrant 99. the person arrested shall be handed over to the police officer 100. assistance to the police officer or other public officer 101. Investigating officers are deemed to be public servants and public officers 102. report to the Minister, 103. Minister's power 104. Application of section 84 to 86 105. Application of section 89 to 101 106. The provisions of this section shall apply part iX Miscellaneous 107. general offence 108. Fraud, concealment and destruction of documents 109. offences by body corporate 110. offences by individuals 111. Consolidation of the 112 offences. offence may be arrested 113. the power of the Governor to compound offences 114. Attempt, preparation, abetment and conspiracy is punishable as an offence of 115. 116 annual report. Production of information and statistics, 117. indemnity 118. prohibition of the acceptance of gifts, commissions, etc.
119. the confidentiality 120. Permissible disclosure-121. decision of the Minister is final 122. 123. Exemption Rule 124. Amendment of schedule 125. Application of other laws Section laws of Malaysia Act 618 8 126. the power to issue guidelines, etc.
127. The application of the Exchange Control Act 1953 128. Violations of the no contract, agreement or arrangement 129. Islamic banking or 130 Islamic finance business. saving Table Section 9 development financial institutions laws of Malaysia Act 618 development financial institutions Act 2002 an act to provide for the regulation and supervision of financial institutions development and for matters connected therewith.
[February 15, 2002, P.U. (B) 51/2002] enacted by the Parliament of malaysia as follows: part i preliminary short title and commencement 1. (1) this Act may be cited as the development financial institutions Act 2002.
(2) of this Act come into force on such date as the Minister may, by notification in the Gazette.
Application 2. (1) this Act shall apply to any development financial institutions as may be prescribed by the Minister by order published in the Gazette.
(2) for the avoidance of doubt, the Minister may, by order published in the Gazette, on the recommendation of the bank, provide that the whole or any part of the provisions of this Act shall not apply in respect of any development financial institutions, or shall apply with such modifications as may be specified in such order and modification that must be in accordance with the intent and purposes of this Act.
Laws of Malaysia Act 618 10 interpretation 3. (1) in this Act, unless the context otherwise requires — "child" includes a child's invalid status, stepchildren and adopted children under any written law or in any place outside malaysia, or under any customs recognized by any class of persons in or outside malaysia;
"Member", in relation to an inst i tusi who is — (a) a corporation, means the shareholders; and (b) a partnership, means a partner;
"statutory body" means any authority or body, whether incorporated or unincorporated, which established, appointed or constituted by any written law, but does not include any local authority;
"bank" means a bank negara malaysia which was established under the bank of malaysia Act 1958 [Act 519];
"related", in relation to a corporation, means pertaining within the meaning of section 6 of the companies Act 1965 [Act 125];
"security" includes a mortgage or charge (whether at law or in equity), debenture, Bill of Exchange, promissory note, guarantee, lien or backup (whether actual or constructive), letter hipotekasi, indemnity, undertaking or other means to ensure payment or settlement of a debt or liability (whether present or future, or whether vested or contingent);
"determined" means determined in writing;
"prescribed" means prescribed by order published in the Gazette;
"document" has the same meaning as in the evidence Act 1950 [Act];
Development financial institutions 11 "constituent document", in relation to an institution, means the statutes, Charter, memorandum of Association and articles of the Association, rules and by-laws, partnership agreement, or other instruments, under which or whom the institution established and control structure and administration and scope of business, function, power and duties stated, whether contained in a single document or more;
"Governor" means the Governor of the bank, including the Deputy Governor of the bank;
"property" ert inya any property, movable or immovable, and includes — (a) any right, title, interest, claim, rights in

action, power or privilege, either currently or in the future, or whether vested or contingent, in relation to any property, or that otherwise has a value; and (b) any conveyancing executed for memindahhakkan, assign, melan t CI, deliver, or otherwise transfer or otherwise dispose of immovable property if the person complete the conveyancing is the proprietor or owner of, or entitled to a contingent right, either for the whole or part of the interest;
"individual" means a natural person;
"financial development institution" means an institution which carries on any activity, whether for profit or otherwise, with or without any funding from the Government, for the purpose of promoting the development of the industrial, agricultural, commercial or other economic sectors, including the allocation of capital or other credit facilities; and for the purposes of this definition, "development" includes an initial venture any industrial, commercial, agricultural or other economic ventures or expansion or repair any such ventures existing;
"specified institution" means a development financial institutions designated by the Minister under subsection 2 (1);
Laws of Malaysia Act 618 12 "approved company auditors" have the same meaning as in the companies Act, 1965;
"line of credit" means an advance, loan or any other facilities that the borrowers gain access through it, directly or indirectly, to the money lender and includes the provision of a guarantee or credit insurance in respect of a credit facility;
"the importance of a shares" means an interest in law or equity of a share;
"Government" means the Federal Government or any State Government, any local authority or any other authority or body, whether incorporated or unincorporated, which established, appointed or established through any written law;
"Chief Executive Officer", in relation to an institution, an individual, means a person who either alone or in association with another person or more, shall be liable, subject to the authority of the Director, for the conduct of business and the administration of the institution;
"client" includes a client;
"Trust Fund" means any fund established under section 43;
"liability" includes every type of debt, duties and obligations, whether present or future, or whether vested or contingent;
"Minister" means the Minister for the time being charged with the responsibility for finance;
"officer", in relation to an institution, means any employees and includes Chief Executive Officer;
"Office" includes principal place of business, a branch, an agency, a business move, a place of business which is established and maintained for a limited period only and any other place of business;
Development financial institutions 13 "stakeholders", in relation to an institution prescribed means Government or any person providing funding or any other assistance to institutions and members, customers, depositors, policy owner or his creditors, as the case may be;
"Director" includes any person who holds the position of Director, and includes any person in accordance with the instructions and advice of the Director or officer asked acting and alternate Director or alternate Director, and without prejudice to the previous provisions, in the case of — (a) a cooperative, means a member of the Board, or other control body for the cooperative;
(b) a statutory body, means a member of the Board, Committee, Council or other control bodies for statutory body thereof;
(c) a partnership, means a partner;
(d) a single ownership means a sole proprietor; and (e) any body, association or other group of persons, whether incorporated or unincorporated, means a person who directs and controls the business management or its affairs;
"controller", in relation to an institution, means a person who — (a) has an interest of more than fifty per cent of the shares of the institution;
(b) have the authority to appoint or cause to be appointed a majority of the directors of the institution; or (c) has the power to make or cause to be made a decision with respect to the business or administration of the institution, and enforce such results or cause to such decision is enforced, and the word "control" shall be construed accordingly;
Laws of Malaysia Act 618 14 "Corporation" has the same meaning as in the companies Act, 1965;
"agreement" means an agreement whether formal or informal, verbal or written, express or implied;
"arrangement" means an arrangement, whether formal or informal, verbal or written, express or implied;
"business" means any activity carried out for the purpose of getting the gain or profit and includes all property obtained from, or used in, or for the purposes of such activities, and all rights and liabilities arising from such activities;
"premises" includes any land, building, structure or place;
"relative", in respect of a person, means — (a) the husband or wife of that person; (b) a brother or brother or sister of the person; (c) sister or brother or sister of the person's spouse;
or (d) any parents and ancestors or descendants sezuriat that person;
"allies", in relation to a person, means — (a) any person who is a nominee or officer of such person; (b) any person who manages the Affairs of that person; (c) any firm that that person, or any nominee of his, becoming his partner or person be r t anggung & a bag i a t au that control the l its business or Affairs;
(d) any corporation within the meaning of the companies Act 1965, which that person, or any nominee of his, becoming its Director or responsible for or control business or Affairs, or in which the person, alone or together with any nominee of his, interest development financial institutions 15 control, or overall value of shares not less than thirty per cent of the total issued share capital of the Corporation; or (e) a trustee of any trust, if — (i) the trust was created by that person; or (ii) the total value of the assets contributed by that person to the trust at any time, whether before or after the trust is established, amounting at any time shall not be less than twenty per cent of the total value of the trust assets;
"subsidiary" has the same meaning as in section 5 of the companies Act, 1965;
"company" has the same meaning as in the companies Act, 1965;
"holding company" has the same meaning as in section 5 of the companies Act, 1965;
"shares", in relation to a corporation, means the issue of shares of the Corporation and includes stock except where differences between the shares turned out or implied;
"modification" includes amendment, adaptation, alteration, variation, addition, Division, replacement or exemption;
"capital moneys" means paid up capital and reserves, and includes, for the purposes of sections 38 and 39, the whole or any part of any class, category or description other capital as determined by the bank.
(2) for the purposes of this Act — (a) "persons acting in concert" means a person who has made an agreement or arrangement to obtain in association or separate interest on shares of a corporation for the purpose of acquiring or consolidating control over such corporation or association acting for the purpose of exercising control over the laws of Malaysia Act 618 16 a corporation using the interest on the shares of the Corporation, which already held by them in association or separate; and (b) without prejudice to the generality of paragraph (a), the following shall be considered as persons acting together, unless the contrary is proved: (i) a corporation and a related corporation and its associated corporations;
(ii) a corporation and any of its directors, or a relative or associate of any of its directors, or any trust in touch;
(iii) a corporation and any pension fund established by it;
(iv) any person and any investment company, trust or other fund investment managed by that person based on discretion; or (v) a financial adviser and his client that is a corporation if the financial adviser managing the money of the client based on the discretion and has ten per cent or more interest on the client share.
(3) for the purposes of this Act — (a) a corporation is established when it is incorporated;
(b) a statutory body formed when it starts to exist under laws that establish, appoint or membentuknya;
(c) a cooperative is established when it is registered;
(d) a partnership was established when it was formed;

(e) a single ownership established when it started its business;
(f) any person, body, association or other group of persons, whether incorporated or unincorporated, which require registration or other forms of recording or recognition under any financial institution Development 17 law before it can start its activities lawfully, established when it registered, recorded or recognised as such.
(4) for the purposes of this Act, a corporation is an affiliate of another corporation to an otherwise less than twenty per cent and not more than fifty per cent of the shares of the Corporation that first-mentioned held by the other corporation.
Function 4. (1) the bank shall have all of the functions conferred upon him by this Act and shall perform the functions of the bank Governor in his stead.
(2) the bank may authorise any officer to perform any of its functions under this Act.
(3) the bank may, either generally or in any particular case, appoint a person who is not an officer of the bank to effect any or all of its functions or provide any assistance in the performance of its functions under this act as may be specified by the bank.
Part ii of the management, Ownership and control of the Board of Directors 5. the Board of Directors of an institution prescribed shall be responsible for carrying out the policy and administrative affairs and institutional business prescribed in accordance with this Act.
Appointment of Chief Executive Officer and Director 6. (1) an institution shall appoint a Chief Executive Officer and Director for an initial term not exceeding two years and ceo of laws of Malaysia Act 618 18 and Director is eligible for reappointment each year subject to the institution's constituent document specified.
(2) Notwithstanding subsection (1), an institution may be prescribed shall, before appointing any person as the Chief Executive Officer or Director, to obtain the confirmation of the bank whether the person meets the criteria set out in the schedule.
(3) any prescribed institution who contravenes subsection (1) or (2) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
(4) an institution prescribed shall notify the bank about the appointment of Chief Executive Officer and Director, within fourteen days from the date of appointment.
(5) any prescribed institution who contravenes subsection (4) commits an offence and shall on conviction be liable to a fine not exceeding one hundred thousand dollars and, in the case of a continuing offence, a further fine not exceeding one hundred dollars for each day the offence continues after convictions.
disqualification of Chief Executive Officer and a Director of 7. (1) no prescribed institution may appoint someone and no person shall accept appointment as Chief Executive Officer or Director of an institution set — (a) if he is a bankrupt and has made a settlement with his creditors, whether within or outside malaysia;
(b) t anpa menje jaskan paragraph (c), j if sua tu charge for criminal offence relating to dishonesty, fraud or violence under any written law punishable with imprisonment for a term of one year or more, whether imprisonment only, or in lieu of, development financial institutions 19 or in addition to, a fine, was proved against him in any court within or outside malaysia;
(c) If a charge for any offence under this Act has been proved against him;
(d) if made against him any detention order, supervision, residential limited, banishment or expulsion, or if have imposed upon him any form of restriction or surveillance, with bonds or otherwise, under any law relating to crime prevention, or preventive detention for the prevention of crime or drug trafficking, or limited residential, or banishment or immigration; or (e) if he has become a Director, or directly involved in the management of, any corporation which is being or has been wound up by the Court or other authority competent to do so in or outside malaysia.
(2) any institution or person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
the effect of disqualification 8. (1) If a person disqualified by virtue of subsection 7 (1), he shall cease to hold office, and specified institutions shall terminate his appointment on such properties, and that person, notwithstanding any contract of service, is not entitled to claim any compensation for loss of Office or termination of appointment.
(2) Notwithstanding subsection (1), banks, with the agreement of the Minister charged with the responsibility for an institution that may be prescribed, may direct the institutions stipulated that terminate the appointment of any person who is disqualified by virtue of subsection 7 (1) and with the laws of Malaysia Act specified shall terminate 618 20 appointment of such person on such properties, and that person, notwithstanding any contract services , shall not be entitled to claim any compensation for loss of Office or termination of appointment.
(3) While waiting for settlement of any criminal proceedings in any court for any offence referred to in paragraph 7 (1) (b) or (c) against any person who is the Chief Executive Officer or Director of an institution that is fixed, the person cannot act upon the properties, or hold any other position, or act upon any other properties, in specified institutions, or by any other means , either directly or indirectly, engage in, or participate or engage in, any activities, Affairs or business institution prescribed or in relation to prescribed institution, except as permitted by the bank, and subject to any conditions imposed by the bank.
(4) any institution that fails to comply with the instructions under subsection (2) or any person who contravenes subsection (3) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
(5) for the purposes of subsection (3), criminal proceedings referred to in that subsection shall be deemed to be pending from the date on which the accused person was first charged in court for the offence until the date of the final decision the proceedings, whether in a Court of competent authority or, if there is any appeal by any party, the Court of final appeal's power of competent.
Exemption from disqualification 9. (1) a person who is disqualified by virtue of paragraph 7 (1) (e) may, with the written consent specified institutions in which he hold office or be appointed, apply to the bank in writing so that the mengecualikannya of the paragraph, and, the bank may, with the agreement of the Minister, provide an exception that, subject to such conditions as the bank may absolutely deem fit to impose.
Development financial institutions 21 (2) the person who applied for an exemption under subsection (1) and specified institutions in which he hold office or be appointed shall submit such particulars and information as may be specified by the bank.
notice of termination of Office 10. (1) an institution shall notify the bank in writing of the fact that a person has stopped from becoming Chief Executive Officer or Director and the reasons for the termination within fourteen days from the date of such termination.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one hundred thousand dollars and, in the case of a continuing offence, a further fine not exceeding one hundred dollars for each day the offence continues after convictions.
Disclosure of interest 11. (1) a Director who has an interest, directly or indirectly, in relation to any matters under consideration, or be considered, by the Board of Directors of institutions should disclose the type of significance to the Board as soon as practicable after the relevant facts came to the knowledge of the Director.

(2) any person who contravenes subsection (1) 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 three months or to both and, in the case of a continuing offence, a further fine not exceeding two hundred fifty dollars for each day the offence continues after convictions.
(3) the Secretary to the Board shall be recorded in the minutes of the Board of the disclosure referred to in subsection (1).
Laws of Malaysia Act 618 22 (4) any person who contravenes subsection (3) commits an offence and shall on conviction be liable to a fine not exceeding ten thousand ringgit.
(5) after disclosure has been made and recorded, the Director shall, in respect of the matter — (a) does not participate or not present in any penimbangtelitian or decision of the Board; and (b) are not taken into account for the purpose of forming a quorum of the Board.
(6) any person who contravenes subsection (5) commits an offence and shall on conviction be liable to a fine not exceeding two hundred and fifty thousand dollars and, in the case of a continuing offence, a further fine not exceeding two hundred fifty dollars for each day the offence continues after convictions.
(7) no action or proceeding of the Board it may be void on the ground that any member of the Board has violated the provisions of this section.
Acquisition of shares 12. (1) unless otherwise approved by the Minister, no person shall acquire, together with any interest on the shares of an institution that has been held by him, or by him and by the concert, an interest of agregatnya shares is five per cent or more of the prescribed institution shares, or such other percentage as may be prescribed by the Minister.
(2) No person who has obtained approval from the Minister under subsection (1) may acquire any interest in the shares of the specified institutions without obtaining the approval of the Minister and subsection (1) shall apply to an application for approval under this subsection.
(3) any person who contravenes subsection (1) or (2) commits an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a period of development financial institutions 23 not exceeding three years or to both and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
report of the acquisition to the bank 13. (1) if the knowledge of an institution stipulated that any acquisition as mentioned in subsection 12 (1) have been implemented or will be implemented in respect of the institution itself, the institution shall report the same to the specified bank within thirty days from the date specified institutions aware of the acquisition.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars.
Changes in consolidation and merger control, 14. (1) unless otherwise approved by the Minister, no person shall — (a) subject to subsection 12(1), control of an institution and its parent company; or (b) make the consolidation or merger with any prescribed institutions.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding ten years or both.
Transfer business 15. (1) unless otherwise approved by the Minister, an institution set can not sell, dispose of, or transfer of all or any part of its business, including all of the property obtained from, or used in or for the purposes of that business.
Laws of Malaysia Act 618 24 (2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding ten years or both.
Application to the High Court for the transfer of business 16. (1) an institution stipulated that moves its business under paragraph 14 (1) (b) or subsection 15 (1) to another person can make a joint application to the High Court through in ex parte originating summons for all or any of the following order: (a) the date on and from when the transfer shall have effect, that is to say a date earlier or later than the date of the application;
(b) the vesting of any property held by the institution specified, either alone or in association with any other person, in others it whether alone or, as the case may be, in association with any other person, on and from the date of transfer, on the same property, upon trust, and with and subject to the authority, provisions and liabilities;
(c) so that any existing instrument, whether in the form of a deed, a will or otherwise, or order of any court, under which or according to the currency of any property to be vested in the institutions that set, construed and have effect as if for any reference to an institution that has replaced the reference to others;
(d) so that any existing agreement to which the institutions may be required, to become a party in force as if the other person has become a party thereto in lieu of the specified institutions;
(e) that any account between the institutions may be required, with any clients be account between the others with the customers and that account deemed for all purposes as a single continuing account;
Development financial institutions 25 (f) so that any instruction, order, direction, mandate, power of Attorney, authority, undertaking or consent in place, whether or not in relation to an account, which is given to an institution that is determined, either alone or together with others, will take effect, in respect of anything to be done, as if given to others that either alone or , as the case may be, together with the other person;
(g) so that any negotiable instrument or order for payment of money were told to pay out, or provided to, or is received or endorsed by, institutions and payable at the place of business specified institution, either were told to pay, given, accepted or endorsed before, on, or after, the date of the transfer, shall have the same effect on or from the date of the transfer as if it were were told to pay , or given to, or accepted or endorsed by, any other person or payable at the place of business of that other person;
(h) to the custody of any document, goods or thing held by institutions designated as baili immediately before the date of transfer switch to others and the rights and obligations of the institution which may be prescribed under any bailmen contract relating to any such document, goods or the thing is transferred to the other person;
(i) that any backup held immediately before the date of transfer with the specified, or by a nominee, recipient or trustee, for institutions that set, as a backup for the payment or settlement of any liabilities of any person, shall be held by any other person or, as the case may be, held by a nominee or recipient of the trustee as a nominee, recipient or trustee , for other people, and the extent of the liability, available to the other as a backup for the payment or settlement of the liability and if any such backup cover future advances or liabilities for the future, held by, and available to, others such as backup for advance laws of Malaysia Act 618 26 future by, and future liabilities to the others, according to the same way of all in terms of as future advances by , or future liability to, the prescribed institution backed up immediately before the date of the transfer;
(j) if any rights or liabilities of the institution that set is transferred to the other person, so that other people have the rights, powers and remedies and in particular the same rights and powers as to taking or opposition proceedings or manufactured or opposition application to any authorities to determine, protect or enforce the rights or against liability that seem right or liability has been at all times be rights or liabilities of any other person , including the right or liability with respect to any legal proceedings or application to any authority that is pending immediately before the date of the transfer by or against an institution of the set;

(k) so that any judgment or award obtained by or against the institution and not cashed in full before the date of the transfer can be effected by or, as the case may be, against the others; and (l) for all orders incidental, consequential and supplementary as may be necessary to ensure that the transfer is carried out completely and effectively.
(2) upon hearing an application under subsection (1), the High Court may grant an order as requested, or with such modifications as it deems fair or should the Court according to the circumstances of the case.
(3) where an order of the High Court under subsection (1) provide for the transfer of any business that vested in or held by the institution that is determined, either alone or jointly with any other person, then, by virtue of the order, the business shall, on and from the date of the transfer, be vested in or held by others that either alone or Development Financial Institutions, 27, as the case may be, together with others, and such order shall become effective as conditions notwithstanding anything in any law or any of the tenets of the law, and shall be binding on any person that ter l ibat with it, t not that people involved in such not a party in the proceedings under this section or in any proceedings in relation to the other , or who don't know about the proceedings under this section or of other related proceedings.
(4) High Court Order made under subsection (1) shall, subject to the directions of the High Court, published by the person who acquired the business in not less than two daily newspapers published in malaysia and approved by the bank, one of which shall be in the national language and one in English.
(5) the prescribed institution shall lodge, within thirty days from the date of order of the High Court made under subsection (1), a certified copy of the order together with a certified copy of the agreement or arrangement for the transfer approved by the Minister under subsection 19 (5), and a certified copy of the approval of the Minister, by — (a) the Registrar of companies or the Registrar General cooperative , as the case may be; and (b) the relevant authorities, if any, involved in the managing of recording or registration of any movable property, or any interest of the movable property, transferred in accordance with the order.
(6) any person who contravenes subsection (4) or (5) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
(7) an order of the High Court under subsection (1) may be in respect of any property or business specified institutions outside malaysia and, if order laws of Malaysia Act 618 28 such respect, effect may be given to him either by any reciprocal arrangements relating to the enforcement of judgments that exist between malaysia and the country, territory or place outside malaysia free property or business is located , or if there are no such arrangements, in accordance with the laws applicable in the country, territory or place it.
Transfer of immovable property 17. j if an order of the High Court under subsection 16 (2) vest the land give possession or any share or interest on any land title, give to others — (a) the High Court shall, if the land give the owned located in Peninsular malaysia, pursuant to subsection 420 (2) national land code [Act 56/1965], cause a copy of the order is delivered to the Registrar of titles or land administrator , as the case may be, immediately after the order is made so that the Registrar of titles or land administrator, as the case may be, to implement the provisions of subsection 420 (2), (3) and (4) of the code;
(b) if the land give-owned is located in Sabah, the transferee shall, as soon as practicable after the order is made, submit a certified copy of the order to the Registrar for the registration of land give the vesting date or part-owned or interest on the land that belongs to the berries as provided under the Sabah Land Ordinance [Sabah Cap. 68];
(c) if the land give the owned located in Sarawak, the transferee shall, as soon as practicable after the order is made, submit a certified copy of the order to the Registrar for the registration of land give the vesting date or part-owned or interest on the land that belongs to the berries as provided under section 171 of the Sarawak land code [Sarawak Cap. 81]; or (d) if the land give possession is located in federal territory of labuan, the transferee shall, as soon as practicable after the order is made, the financial institutions Development 29 to submit a certified copy of the order to the Registrar for the registration of land give the vesting date or part-owned or interest on the land that belongs to the berries as provided under subsection 114 (2) of the Sabah Land Ordinance as modified by order in federal territory of labuan (Modification of the Land Ordinance) 1984 [P.U. (A) 291/1984].
own shares or shares of the parent company as a backup 18. (1) unless the bank approves otherwise in writing, no person shall provide a credit facility to any person based on shares or property of the institution or its holding company if the shares or property provided as a backup for the proposed credit line, whether the property or shares only, or with the purchase of shares or other property institutions stipulated that already held as a backup for any other credit facilities granted by him , shall be a five percent or more of shares or property specified institution or its holding company.
(2) unless the bank approves otherwise, there are no prescribed institution can provide any credit facilities, or make any other arrangement, with its own property or share-backed or shares or property of its parent company.
(3) any person who contravenes subsection (1) or any prescribed institution who contravenes subsection (2) commits an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both.
Application to the bank 19. (1) an application for approval of the Minister under subsection 12 (1), 14 (1) or 15 (1) shall be made to the bank together with such information and documents as may be determined by the bank.
(2) if any of the information or documents required by the bank is not given within the time prescribed or laws of Malaysia Act 618 30 any more time granted by the bank, the application shall, without prejudice to the new application is made, be deemed to have been withdrawn.
(3) the bank shall consider an application under subsection (1) and make recommendations to the Minister as to whether the application should be approved or rejected.
(4) a recommendation that an approval of the application may not be made if the bank is satisfied that are contrary to the public interest to do so.
(5) upon receipt of an application and recommendation of the bank under this section, the Minister may approve the application with or without any modifications or conditions, or reject the application.
(6) any person who fails to comply with any modifications or conditions imposed by the Minister under subsection (5) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence can be fined further does not exceed one thousand dollars for each day the offence continues after convictions.
(7) if the Minister rejects an application, the bank shall inform the applicant in writing of the rejection.
(8) a person submit or provide any information or document under subsection (1) which he knows, or has reason to believe, is false or misleading commits an offence and shall on conviction be liable to a fine not exceeding one million dollars.
Pleadings relating to infringement of 20. It shall be a defence to a charge of offences relating to infringement under section 12, 13, 14, 15 or 18 if the accused proves that he did not know about the Act, omission, facts or circumstances be a violation of the conditions that he has reported the violation to the bank within seven days from the time he realized the Act, omission, facts or circumstances be a violation of that.
Development financial institutions 31 effect of breach of 21. (1) if the bank is satisfied that any person has violated subsection 12(1) no matter whether or not prosecution made against any person for infringement of that, then the bank can make an initial order in writing — (a) prohibits the transfer of, or performance of the agreement

to transfer the shares, or, in the case of unquoted shares issued, banning the transfer of, or performance of the agreement to transfer, the right to the shares issued to them;
(b) prohibit the use of any voting rights in respect of the shares;
(c) to prohibit the issuance of any additional shares as rights arising from the shares or pursuant to any offer made to holders of the shares; or (d) except in the case of pelikuidasian, prohibits the payment of any sum of money payable by institution be based on the shares, whether in respect of capital or otherwise.
(2) any person who fails to comply with an order under subsection (1) 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.
(3) if the bank is satisfied that any person has violated subsection 18 (1), the bank may make an initial order in writing, prohibit the use of any right under any backup, or the right to transfer any share or property forming the security no matter whether or not prosecution made against that person because of the violation.
(4) any person who fails to comply with an order under subsection (3) 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.
Laws of Malaysia Act 618 32 (5) any business, including any agreement or arrangement in respect of any share, or interest on the shares, or collateral, which violated an order beginning, or an order certified under subsection 23 (1), or any direction of the bank under subsection 24 (1), is void and has no effect.
(6) No person shall be entitled to be given the opportunity to be heard before the bank makes an initial order under subsection (1) against whom or which criminate him in any other manner.
The initial order by bank 22. (1) an initial order under section 21 shall be conveyed to the person in default as soon as reasonably practicable, and may be announced in such manner as it thinks fit by the bank, if, in the opinion of the bank, the order should be announced.
(2) a preliminary order shall be binding on — (a) the person in default;
(b) any person for the time being holding any shares to which the order applies; and (c) any other person specified in the order or to whom the order is directed.
(3) any person who holds any shares for which an order of commencement required within seven days of delivery of the order to the person who defaults, or within such longer period as may be permitted by the bank, surrender the shares to the bank.
(4) any person who contravenes subsection (3) 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 and, in the case of a continuing offence, a fine further development financial institutions 33 not exceeding five hundred dollars for each day the offence continues after convictions.
(5) any person against whom an order of default initial has been made, or any other person affected by the order, may, within fourteen days from the delivery of the order to the disbelievers, make representations in writing to the bank seeking to revoke the the order on the ground that she did not violate the provisions related to it that order was made , or to adapt the order on the ground that a modification of the order is just and fit on the ground that the representation of it.
Confirmation of the starting order 23. (1) the bank may, after considering the representations made under subsection 22 (5), either confirm the initial order, or cancel it, or change it in such manner as it thinks fit.
(2) if the bank confirming an order beginning, then the bank can dispose of shares given to them under subsection 22 (3) to any person and to such extent as the bank.
(3) the result of disposal of shares under subsection (2) shall be paid to the High Court, and any person claiming that he is entitled beneficially to all or any part of the revenue may, within thirty days from the date of such payment to the High Court, apply to the judge of the High Court in chambers so that the revenue paid to him.
instructions so that order 24. (1) the bank may direct the Director or officer may be required, in order to implement an order the start of the bank under subsection 22 (1) or an order of the bank under subsection 23 (1), or to take any action that is contiguous or incidental damages, arising with the order.
Laws of Malaysia Act 618 34 (2) any person who is not in compliance with the instructions t under subsection (1) 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 and, in the case of a continuing offence, a further fine not exceeding five hundred dollars for each day the offence continues after convictions.
Part iii restriction on Business control over the establishment or acquisition of subsidiary 25. (1) unless the bank approves otherwise in writing, there are no prescribed institutions may establish or acquire any subsidiary within or outside malaysia.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
(3) the bank may approve applications to establish or acquire a subsidiary under subsection (1), with or without conditions, or reject the application.
(4) any inst i tusi prescribed t not complying with the terms and conditions imposed under subsection (3) commits an offence and shall on conviction be liable to a fine not exceeding five hundred thousand dollars and, in the case of a continuing offence, a further fine not exceeding five hundred dollars for each day the offence continues after convictions.
instructions with respect to subsidiary 26. (1) Notwithstanding any approval under subsection 25 (1), the bank may, in the interest of an institution may be prescribed, direct that the prescribed institution — (a) rationalise the business of any of its subsidiaries;
Development financial institutions 35 (b) transfer the business of any of its subsidiaries to other corporations, including specified institution or any other subsidiaries; or (c) wind up any of its subsidiaries.
(2) for the purposes of subsection (1), the member institution shall comply with the directions of the bank in any period as determined by the bank.
(3) any inst i tusi prescribed t not complying with the instructions under this section commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
restriction or prohibition business 27. (1) except with the prior written approval of the bank, an institution prescribed cannot be run, either for her own or to earn commissions, and whether alone or with others, any activity in or outside malaysia other than in connection with or for the purposes of running its business.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
(3) the bank may, to promote proper development in any economic sector — (a) prohibit or restrict an insti tusi set from running any type of business as determined by the bank; or (b) direct an institution prescribed so that running any kind of business as determined by the bank.
Laws of Malaysia Act 618 36 (4) any institution that fails to comply with prohibition, instructions or restrictions under subsection (3) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
prohibition of the credit line 28. (1) no prescribed institution can give any person any credit facilities, either from its own or any trust fund under management under section 43, except for any purpose or on any backup as determined by the bank.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars.

(3) no prescribed institution can give any credit to — (a) any Member, Director or officer or any other person who receives remuneration from it (other accountants, solicitors, architects, real estate agent, doctor or any other person who receives remuneration from it with respect to his professional services);
(b) any body incorporated or unincorporated, or any sole proprietorship, which any Member, Director or officer of an institution that set the position of Director or Manager, or for which any Member, Director or officer of an institution that set the surety or agent;
(c) any Corporation about the share of any Member, Director or officer of an institution that set would have any interest which the lesser, at agregatnya, more than any percentage specified by the bank; and (d) any person to whom any Member, Director or officer of an institution that set the development financial institutions 37 provide any guarantee or other undertaking involving financial liabilities.
(4) Notwithstanding subsection (3), an institution set may, subject to any terms and conditions imposed by it, giving any of his officers or its Executive Director — (a) any credit facilities provided under the scheme services; or (b) If no such provision and institutional set is satisfied that special circumstances exist or compassion, a loan not exceeding at any one time — (i) his remuneration for six months; or (ii) his remuneration for such longer period as may be approved by the bank.
(5) for the purposes of this section, "Director" or "officer" includes a spouse, child or parent of a person the Director or officer.
restrictions on credit to single person 29. (1) subject to subsection 28 (1), there are no prescribed institution can give any single person of any credit facilities, either from a group of its own or any trust fund under management under section 43 the lesser, at agregatnya exceeds the percentage specified by the bank.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars.
(3) Notwithstanding subsection (1), an institution set can make any arrangements, and with any person, as institutions set is directed by the Minister, on the recommendation of the bank.
(4) in computing the amount of credit facilities granted to a single person, any line of credit laws of Malaysia Act 618 38 given to the following person shall be deemed to be a line of credit given to the single person that: (a) If a single person is an individual, the wife or her husband, his son or his family Corporation; (b) If a single person is a corporation, a related corporation or its affiliates; (c) If a single person is a body registered under any written law relating to co-operative societies, its subsidiaries as defined in section 2 of the co-operative Societies Act 1993 [Act 502], and a related corporation or an affiliate for the subsidiary; or (d) persons acting in concert with that person.
(5) for the purposes of paragraph (4) (a), "family Corporation" means a corporation in which — (a) the person is; (b) the person's spouse; or (c) the individual child, holding, or any two or more persons than those referred to in paragraph (a), (b) and (c) holding, independently or in association, interest on the shares in excess of fifty percent of the shares of the Corporation.
(6) Notwithstanding subsection (4), the bank may decide that all or any of the persons referred to in paragraph (4) (a), (b), (c) or (d) shall be excluded in the application of that subsection in relation to any person to whom a particular credit given, and at the same time determine the criteria or basis of which such person is excluded.
restrictions on the granting of credit facilities 30. An institution may be prescribed may, either of its own or any trust fund under management under section 43, and notwithstanding paragraph 28 (3) (a), provide credit facilities to the wife 39 development financial institutions or a husband, child or parent of any of the directors or officers to make buying a House, if — (a) the person to whom the credit facility granted has creditworthiness of not less than creditworthiness usually required by specified institutions from the other credit facilities granted to him;
(b) the terms of the credit facility not less favorably to the set of commonly offered to others;
(c) provision of credit facility that was in the interest of the institution as prescribed; and (d) the credit facility approved by all other directors specified institutions at a meeting of Directors comprising accordingly which was attended by not less than three quarters of all the directors of the institutions may be required, and the approval was noted in the minutes of the meeting.
Disclosure of Directors ' 31. (1) every Director of an institution that has in any way, whether directly or indirectly, any interest of a proposed credit facility, whether of money the institution itself or any trust fund under management under section 43, which will be given to any person by the prescribed institution shall as soon as practicable declare in writing the type of significance to the meeting of the directors duly made up , and the prescribed institution Secretary, or other officer appointed by the institution specified in that behalf, shall cause to be a copy of such declaration circulated immediately to every Director no matter whether he is present or not at the meeting.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
Laws of Malaysia Act 618 40 (3) for the purposes of subsection (1), a general notice in writing delivered to each Director of institutions specified by individual directors which means that she is a Director, officer or employee of the body incorporated or unincorporated, or a Director or officer of a sole proprietorship to her credit is intended given shall be deemed to be a sufficient Declaration of interest in relation to the proposed credit facility if the general notice — (a) state the type and extent of interest the Director in the body or sole proprietorship, as the case may be; and (b) d. ikemukakan and d. ibacakan at mesyua ra t Director institution specified in the notice served or, if not presented at the meeting of Directors, at a meeting of the Directors following the communicated to each Director.
(4) every Director of an institution that holds any Office, or possession of any property, which, directly or indirectly, the duty or interest may be created which is inconsistent with the duty or interest as a Director of institution specified, shall declare at Board meetings of institutions set the fact of holding the position or possession of the property by it and type, the nature and extent of the conflict.
(5) the Declaration referred to in subsection (4) shall be made at the first meeting of Directors held — (a) after he became the Director of the institution specified; or (b) if he or she is a Director, after he assumed the Office or own the property.
(6) the Secretary of the institution or other officer referred to in subsection (1) shall be recorded any declaration made under this section in the minutes of the meeting on the Declaration made or to which it is submitted and read.
Development financial institutions 41 (7) any person who contravenes subsection (6) commits an offence and shall on conviction be liable to a fine not exceeding ten thousand ringgit.
Control of the credit limit of 32. (1) a Director or officer of an institution set can't provide any credit facilities beyond the limit, or outside the scope of any of the terms and conditions, imposed on it by the specified institutions, or who contravenes any direction given to him, or any agreement made with it, by the prescribed institution.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or both.
(3) subsection (1) apply to the money institutions prescribed and any trust fund under management under section 43.

(4) the bank may by notice in writing direct an institution stipulated that — (a) submit any information relating to policies and tatacaranya about the granting of any credit facilities;
(b) submit a report on the limitation or terms and conditions imposed, instructions, and an agreement is made, in respect of the powers of each Director or officer authorized to provide credit facilities; or (c) modify policy or procedure referred to in paragraph (a), or change item referred to in paragraph (b), as it deems fit and proper by the bank, either generally, or in relation to any class of Director or officer of, or in connection with any Director or officer, and modifications or changes shall be binding on the institution specified and Director and officer.
Laws of Malaysia Act 618 42 (5) of any inst i tusi prescribed t not complying with the instructions under subsection (4) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Investment assets of 33. (1) subject to subsection (2), an institution which should invest any of its assets in such a way, and maintain the asset in any place, which is determined by the bank, with the approval of the Minister.
(2) the bank may direct an institution specified in writing so that — (a) does not make investments in a particular class or description; or (b) realise, before the expiry of a specified period or any further period that may be approved by the bank, all or a part of its investment.
(3) any inst i tusi prescribed t not complying with the instructions under subsection (1) or (2) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
Part iV obligations And financial resources Statement of corporate intent 34. (1) an institution may be prescribed shall, for each financial year, submit to the bank in any period determined by the bank, any statement of corporate intent as approved by the Minister charged with the responsibility for specified institutions.
Development financial institutions 43 (2) a statement of corporate intent under subsection (1) shall be in such form as may be determined by the bank and shall include the strategic plan institutions set the specified institutions and obtain the financial resources for the next financial year.
(3) the bank shall, upon receipt of a statement of corporate intent for approved institution prescribed under subsection (1), agreeing to receive quota with or without modification or condition or decline it.
(4) an institution of the prescribed statement of corporate intent is refused under subsection (3) shall submit a statement of corporate intent to adapt under subsection (1) within the time specified by the bank.
(5) an institution shall perform the prescribed statement of corporate intent accepted by the bank with or without modification or condition under subsection (3) and the bank shall measure the performance of institutions specified by the corporate intention statement.
(6) any institution that contravenes subsection (1), (2), (4) or (5) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
The annual funding 35. (1) an institution may be prescribed shall, for each financial year, submit to the bank an annual funding requirement for the approval of the Minister, within such period, and in any form, as determined by the bank.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Laws of Malaysia Act 618 44 (3) funding needs submitted under subsection (1) shall include a copy of each of the following — (a) an operating plan and financial plan for the next financial year; and (b) any other information as determined by the bank.
(4) Notwithstanding subsection (1), an institution set may — (a) to apply to the Minister for additional funding for her own, a Trust Fund of an existing or a new trust fund; or (b) apply to the bank for approval to borrow from a related corporation or a corporation allies.
(5) the Minister, on the recommendation of the bank, or the bank, as the case may be, may approve an application under this section subject to any purpose, terms and conditions as may be determined by the Minister or, as the case may be.
(6) members i or bank, as the case may be, may refuse an application under this section within three months from the receipt of the application without assigning any reason for such rejection.
restrictions on payment of dividends 36. (1) an inst i tusi di te tapkan t not be paying any dividends on share until all the dipermodalkannya expenditure (including preliminary administrating Commission expenses, sales commissions, brokerage shares, the amount of the loss incurred, and any other expense item that is backed by tangible assets) had been written off.
(2) before an institution set to declare any dividends, the institution shall apply in writing to obtain the approval of the bank in respect of the amount proposed to be declared, and the bank may approve development financial institutions 45 that amount, or such lower amount, or prohibit the payment of any dividend, after taking into account the financial condition of the institutions that set it.
(3) any prescribed institution who contravenes subsection (1) or (2) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
37. The maintenance of liquid assets (1) the bank may determine that an institution prescribed shall hold any minimum amount, or minimum average liquid assets in malaysia, as specified in the determination at any time or for any period, and in accordance with any ratio or formula.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
(3) for the purposes of subsection (1), the minimum amount, or minimum average, liquid assets shall be expressed as a percentage of all or any liability incurred by its Office in malaysia as specified in that determination.
(4) for the purposes of subsection (1), the bank shall determine a period of not less than seven days in the period that an institution may be required, shall comply with that determination.
(5) any prescribed institution who contravenes subsection (4) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
Laws of Malaysia Act 618 46 (6) the bank may prohibit any inst i tusi set from giving any credit facilities to any person within the specified institutions that do not comply with any requirements of determination under this section.
Maintenance of money capital 38. (1) the bank may require an institution stipulated that maintain capital money, which is not tercacat by the loss, in accordance with any ratio compared to all or any of its assets or with all or any liability, including the assets or liabilities of all its Office inside and outside malaysia, as determined by the bank.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Maintenance fund reserves 39. (1) the bank may require an institution stipulated that — (a) to maintain a reserve fund; and (b) before declaring any dividends out of its net profit for each year (after appropriate provisions have been made to tax), its reserve fund transfer from net profit for each year —

(i) an amount of money equal to not less than fifty per cent of the net profit for the year, as long as the amount of the reserve fund less than fifty per cent of its paid-up capital; or (ii) an amount of money equal to not less than twenty-five per cent of the net profit for the year, as long as the amount of the financial institutions Development Fund the reserve 47 fifty percent but less than one hundred per cent of the paid up capital.
(2) Notwithstanding subsection (1), the bank may determine that a different part of net profit for each year shall be transferred to the reserve fund an institution prescribed for the purpose of ensuring that its reserve fund amount is sufficient for the purposes of its business and sufficient in respect of its liability.
(3) Notwithstanding subsection (1), reserve fund an institution prescribed may, with the approval of the bank and subject to any terms and conditions imposed by the bank, used to pay for any shares not published to be distributed to its members as fully paid bonus shares.
(4) no nothing in this section may allow institutions that set the pay dividends from its reserve fund.
(5) any prescribed institution contravenes this section commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
The maintenance of assets in Malaysia 40. (1) unless the bank approves otherwise in writing, an institution prescribed shall hold at all times in malaysia any minimum amount of assets as determined by the bank.
(2) for the purposes of subsection (1), the minimum amount of assets to be held in malaysia shall be expressed as a percentage of all or any liability specified institution as determined by the bank.
Laws of Malaysia Act 618 48 (3) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars.
(4) for the purposes of subsection (1), the bank may specify a period of not less than seven days in the time prescribed institution shall comply with the determination.
other prudential requirements 41. (1) the bank may require an institution stipulated that meet the requirements of prudent, and within such period, as determined by the bank.
(2) any prescribed institution contravenes any requirement under subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
Amendment of constituent documents 42. (1) an institution prescribed shall not make any amendment to document konstituennya, unless the institution has given the bank in writing the details of proposed amendments and have prior approval in writing of the bank.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars.
(3) an institution may be prescribed shall, within thirty days after making any amendment to document konstituennya, giving the bank — (a) in writing of the details of the amendments that have been duly verified by statutory declaration made one of its directors; and (b) a copy of the document konstituennya amended that.
Development financial institutions 49 (4) any prescribed institution who contravenes subsection (3) commits an offence and shall on conviction, be liable to a fine not exceeding one hundred thousand dollars and, in the case of a continuing offence, a further fine not exceeding one hundred dollars for each day the offence continues after convictions.
Part V dealing with money the Government establishment and maintenance Trust Fund 43. An institution may be prescribed may, with the agreement of the Government, establish and maintain a separate trust for any fund allocated by the Government, and manages the Trust Fund for and on behalf of Government separately from the money itself.
The use of the money trust 44. (1) no prescribed institution can use the assets of a trust fund to settle the liabilities or expenses not actually related to the Trust Fund.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
(3) for the purposes of subsection (1), the bank may determine the amount and type of liabilities and expenses chargeable on any trust fund.
(4) the bank may, j if satisfied ha t i that sesua tu prescribed institutions have been using any of the assets of a trust fund to settle the liabilities or expenses not actually related to the Trust Fund, directed the institution specified so that the laws of Malaysia Act 618 50 impose liabilities or expenses of the Trust Fund assets or the assets of the institutions stipulated that.
(5) any prescribed institution contravenes any direction under subsection (4) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Investment trust fund 45. An institution may be required, can invest the money in any trust fund as far as the money is not needed in the meantime to spent or used for the purpose of the Trust Fund was established, in any investment as determined by the bank and all income accrued in respect of investments shall be credited to the Trust Fund.
credit to the Trust Fund 46. (1) an institution shall pay into a trust fund all money received by him in respect of that business with it the related trust fund.
(2) a member institution shall pay into a trust fund all income arising from the investment of the assets of the Trust Fund.
(3) any prescribed institution contravenes this section commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
Development financial institutions 51 Property Trust Fund as a backup 47. (1) no prescribed institution can provide property of a trust fund as a backup for a credit facility provided by any person to the prescribed institutions or to any other person.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
Evaluation of trust fund 48. (1) an institution prescribed can make a valuation of assets and determining the liability of a trust fund in the manner determined by the bank.
(2) any institution who contravenes any determination under subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
Transportation Trust Fund 49. (1) the Minister may, on the recommendation of the bank, ordered an institution stipulated that transfer all assets and liabilities of any trust fund to an other trust fund maintained and managed by the specified institutions.
(2) Notwithstanding subsection (1), the Minister may, on the recommendation of the bank, ordered an institution determined that transfer any trust fund to others, including an institution and section 16 shall apply to the transfer with the necessary modifications.
Laws of Malaysia Act 618 52 (3) of any inst i tusi prescribed t not complying with the instructions under subsection (1) or (2) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
CBT

50. (1) any Director or officer of an institution that, as a person who in any manner entrusted with property in any trust fund or by any power to the property in any trust fund either alone or in association with any other person, with curangnya abusing, or take it for his own use, the property, or by using the curangnya or dispose of such property in contravention of the provisions of this section which sets out the manner in which the trust shall be implemented , or intentionally let any other person to do so, commits criminal breach of trust.
(2) any person who commits criminal breach of trust set out in subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding twice the value of the property is a matter of the CBT or ten million dollars, whichever is higher, or to imprisonment for a term not exceeding ten years or both.
Termination of trust fund 51. A trust fund established under section 43 shall be terminated when the Trust Fund is wound up or dissolved or the completion of the transfer of assets and liabilities to another trust fund under section 49.
The use of the Trust Fund in liquidation 52. (1) The winding up of a specified institution, the assets of a trust fund shall be used for the financial institutions Development 53 settle the liability of the Trust Fund to the extent allocated to the Trust Fund.
(2) unless the Minister approves otherwise, if the assets of a trust fund exceeds its liability, the surplus assets must not be used to settle a liability trust fund other less.
(3) any person who contravenes subsection (1) or (2) commits an offence and shall on conviction be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
Part Vi Regulations those errant inability to perform obligations 53. (1) an institution specified, who argue that it is insolvent, or may be unable to perform all or any of its obligations or that it almost want to suspend payment until such point, shall immediately notify the bank about the fact that.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
action by the bank is 54. (1) if the bank is satisfied either in accordance with the information under subsection 53 (1) or after an inspection under the laws of Malaysia Act 618 54 part Viii, or otherwise, that an institution prescribed — (a) is conducting its business in a manner prejudicial to the interests of stakeholders or the public in General;
(b) insolvency, or has become or may be unable to meet all or any of its obligation, or nearly want to suspend payment until such point; or (c) has violated any provision of this Act or any provision of any written law, no matter that there is no criminal prosecution with respect to a breach, the bank may, by order in writing, exercise any of the powers in subsection (2) or more.
(2) for the purposes of subsection (1), the bank may — (a) requires institutions that set it to take any step, or any act, or to do or not do any act or thing, relating to the institution, or its business, or Director or officer considers necessary by bank and disclosed by the bank in the order, within the time specified in the order;
(b) prohibit an institution prescribed from giving any more credit facilities for any period specified in the order, and make the prohibition subject to any exception, and impose such conditions in relation to the exception, as stated in the order, and, from time to time, by order further made similar manner, extend that period;
(c) Notwithstanding anything in any law, or any limitation contained in document constituent institution that set, because the reasons recorded by it in writing, dismiss from Office, starting from the date stated in the order, any officer specified institutions;
Development financial institutions 55 (d) Notwithstanding anything in any law, or any limitation contained in document constituent institution that set it, and, in particular, notwithstanding any limitation on the maximum or minimum number of Directors, because of the reasons d i logged o lehnya in writing — (i) dismiss from Office, starting from the date stated in the order , where the prescribed institution Director; or (ii) appoint any person as an independent institution that set it, and provide in the order that the person is paid by the institution such remuneration as may be specified in the order; or (e) appoint any person to advise the institution specified in respect of travel should be its business, and provide in the order that the person is paid by the institution specified that such remuneration as may be specified in such order.
(3) any inst i tusi prescribed t not comply with any requirements under paragraph (2) (a) or in breach of any prohibition under paragraph (2) (b) commits an offence and shall on conviction be liable to a fine not exceeding ten million dollars and, in the case of a continuing offence, a further fine not exceeding ten thousand dollars for each day the offence continues after convictions.
(4) Notwithstanding subsection (1) and (2), the bank's power under paragraph (2) (b), (c), (d) and (e) cannot be carried out without the consent of the Minister is obtained in advance.
action by Minister 55. Notwithstanding section 54, the Minister may, on the recommendation of the bank, set a — (a) that the bank took over control of all or part of the property, business and Affairs of the institutions that set, and carry out all the laws of Malaysia Act 618 56 or part of the business and Affairs of the institutions may be required, or so that the bank appoint any person to do so on behalf of the bank, and for the costs and expenses of the bank , or the remuneration of the person appointed to that, due of the money and property of the institution specified that as the first charge thereon;
(b) whether an order has been made or not under paragraph (a), allowing an application made by the bank to the High Court to appoint a receiver or Manager to manage all or part of the business, Affairs and institutional property set, and for getting out of the High Court of all orders or instructions incidental to, contiguous with or arising from the appointment as , in the opinion of the bank, necessary or expedient; or (c) whether an order has been made or not under paragraph (a) or (b), allowing the bank to submit a petition to the High Court to wind up institutions that set it.
Representations concerning the order of 56. (1) subject to subsection (2), no order under subsection 54 (1) or section 55 shall be made unless the institution specified, and in the case of an order under paragraph 54 (1) (c) or subparagraph 54 (2) (d) (i), also an officer or Director to be removed from Office, has been given a reasonable opportunity to make representations against, or otherwise with respect to the , a proposed order.
(2) if in the opinion of the Minister or the bank, as the case may be, any delay will harm the interests of the institution that set, stakeholders or the public generally, the order can be made in advance and the opportunity to make representations against it or otherwise in respect of such order shall be given immediately after the order has been made.
(3) the order of the Minister or the bank may, in consequence of the representations, whether confirmed, with or without modification, or revoked under subsection (4), subject to development financial institutions 57 such conditions, if any, as may be deemed by the bank, with the consent of the Minister, or by the Minister, on the recommendation of the bank, as the case may be should apply.

(4) an order of the Minister or the bank under this section may at any time be revoked by an order made by a similar way by the bank, or the Minister, as the case may be, and any such order may contain all the instructions that contiguous or incidental damages, arising, as it deems necessary or expedient by the bank or the Minister, as the case may be.
(5) any prescribed institution who contravenes subsection (3) or (4) commits an offence and shall on conviction be liable to a fine not exceeding ten million dollars and, in the case of a continuing offence, a further fine not exceeding ten thousand dollars for each day the offence continues after convictions.
Appointment under section 54 57. (1) a person appointed by the bank under subparagraph 54 (2) (d) (ii), paragraph 54 (2) (e), or paragraph 55 (a) shall be appointed subject to such terms and conditions and for such period, as the bank, and shall hold his Office in accordance with the requirements of her appointment to the bank and shall not incur any obligation or liability simply because he holds the posts.
(2) appointing a Director under subparagraph 54 (2) (d) (ii) shall not affect any provision of the document konsti tuen allowing inst i tusi set that has additional directors if the maximum number of directors permitted under constituent documents not yet reaches or exceeds the maximum number of due to the appointment.
(3) where a receiver or Manager has been appointed in respect of an institution set by the High Court under paragraph 55 (b), all costs, charges and expenses that should be, including the remuneration of the receiver or the Manager, shall be payable out of the assets of the institutions that set the precedence of all other claims.
Laws of Malaysia Act 618 58 dismissal under section 54 58. (1) any officer or Director who is dismissed from Office in an institution prescribed under paragraph 54 (2) (c) or subparagraph 54 (2) (d) (i) shall cease to hold office from whom he fired from the date specified in the order, and shall not hold any other position in the specified institutions or, in any way, either directly or indirectly , cut-link with, or take part or engage in any activity, business or Affairs of the institutions may be required, or in respect of specified institutions.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
(3) dismissal of an officer or Director under paragraph 54 (2) (c) or subparagraph 54 (2) (d) (i) is in accordance with the law and valid notwithstanding anything contained in any contract or contract of service or other agreements, whether express or implied, either individually or collectively, and whether or not made or provided under any written law , and someone fired from Office shall be entitled to claim any compensation for loss of or termination of the posts.
Assumption of control 59. (1) where an order made under paragraph 55 (a), the prescribed institution and Director and officer shall deliver the property, business and Affairs of the institution to the control of the bank or the person appointed by the bank and shall give the bank or person so appointed facilities as may be required for conducting the business and Affairs of the institutions that set it.
Development financial institutions 59 (2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
(3) the bank or the person appointed, as the case may be, shall continue to control the property, business and Affairs of the institutions that set, and conduct the business and Affairs of the institution in the name of and on behalf of the institution, until the time the order is cancelled under subsection 56 (4).
(4) All power institutions and its directors under the document konstituennya, or which can be carried out by the institution or its directors under any written law, irrespective of whether such authority can be carried out through a resolution of the special stipulation, or by any other means shall be vested in the bank or on the person appointed, as the case may be, and any inconvenience arising may be resolved by the Minister with written instructions.
(5) during the period of an order under paragraph 55 (a) force, none of the directors of institutions is determined, either directly or indirectly, be involved in any activity in connection with the institutions stipulated that, except as required or permitted by the bank or the person appointed, as the case may be, and no remuneration can be accrued or payable to any Director specified institutions , except in relation to any activity required or allowed by the bank, or the person appointed, as the case may be.
(6) any person who contravenes subsection (5) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a fine not exceeding five thousand dollars for each day the offence continues after convictions.
(7) for the avoidance of doubt, it is hereby declared that an order under paragraph 55 (a) shall not have effect as giving, or vest on, banks, laws of Malaysia Act 618 60 or the person appointed, as the case may be, any title to, or any interest of beneficiaries, any property specified institutions.
Reduction of share capital and cancellation of shares 60. (1) Notwithstanding anything in any law or constituent documents of an institution may be prescribed, if the paid-up capital of the institutions may be required, the loss or not reflected by available assets, the bank or the person appointed, as the case may be can apply to the High Court to get an order to reduce the share capital by cancelling any share paid up capital that has been a loss or not reflected by available assets.
(2) if the High Court makes an order under subsection (1) to reduce the share capital of an institution that is determined, the Court may, if, upon the expiry of thirty days from the date any call made by the institution to its members to pay their respective shares, if payment for any such shares has not yet been made, order that such shares has not made payment is cancelled.
(3) where the share capital of an institution set is reduced under subsection (1), or any of the share has been cancelled under subsection (2), the bank or the person appointed, as the case may be, may cause to be a specified institution constituent document is modified accordingly.
(4) the powers given to the bank and the person appointed under this section shall be in addition to any power exercisable under subsection 64 (1) of the companies Act 1965, and if application is made to the High Court under subsection (1), the High Court may exercise any of the powers conferred upon him under section 64 of the companies Act 1965 relating to an application for confirmation and subsection 64 (9) and 64 (10) of the Act shall apply to the application.
Development financial institutions 61 extension of jurisdiction 61. any reference in this section about an institution prescribed shall be read as including a reference to — (a) a related corporation; and (b) any person controlled by a Director or directors of institutions specified, or by a person acting in concert with someone the Director or directors of the institutions that set it.
Moratorium 62. (1) if the bank or the person appointed, took over the control of an institution that may be prescribed, the Minister may on the recommendation of the bank, if it thinks beneficial interest of the stakeholders specified institution, or the public generally, set for all or any of the following: (a) prohibit the running of institutions set all its business or any part of its business;
(b) prohibit the institutions set the do or perform any act or function in respect of all its business or any part of its business;

(c) allow the bank or person in lant CI, as the case may be, apply to the Court tingg i bag i sua tu pe r in t ah that defer for a period of not more than six months of an initial or continuation of all or any of such acts and nature of civil proceedings by or against the institution specified in respect of all or any of its business;
(d) provide for all matters that incidental, or consequential, or contiguous for which may be necessary or expedient held otherwise provision, to carry out the order includes provision for the bank or the person appointed, as the case may be, to take the property, books, documents or goods specified institution into the custody or control of the bank or the person.
Laws of Malaysia Act 618 62 (2) any prescribed institution who contravenes an order made under subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five million dollars and, in the case of a continuing offence, a further fine not exceeding five thousand dollars for each day the offence continues after convictions.
(3) an order under subsection (1) shall not be made unless specified institutions were given the opportunity to make a reasonable representation of, or in connection with, the proposed order, provided that where any delay will harm the interests of the stakeholders, the order may be issued first, and an opportunity to make representations shall be given immediately after the order is made, and the consequence of the representation , the order may, on the recommendation of the bank, whether confirmed or varied or revoked under subsection (4) by the Minister.
(4) an order made under subsection (1), or by virtue of subsection (3), may at any time be revoked by the Minister by an order made on the recommendation of the bank, and any such order may contain all orders, instructions or contiguous provisions, incidental or consequential as may be deemed necessary by the Minister.
Part Vii Auditors appointment of Auditor and 63. (1) an institution prescribed shall appoint, for each financial year, before a date specified by the bank, an auditor approved by the bank.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Development financial institutions 63 (3) If an institution prescribed not to appoint an auditor before the date specified in subsection (1), the bank may appoint an auditor for the specified institutions and remuneration and expenses of the Auditors as may be determined by the bank shall be paid by the specified institutions.
(4) if the bank is of the view that a more appropriate Auditors should act together with the auditor appointed under subsection (1) or (3), the bank may appoint another auditor, the remuneration and expenses, as determined by the bank, shall be paid by the specified institutions.
loss of qualification of Auditors 64. (1) no prescribed institution can with disedarinya appointed as auditors of a person, and no person shall with disedarinya agree to be appointed as auditors of an institution determined by the specified institutions or by the bank, if the person — (a) is not an approved company auditor; (b) have any interest directly or indirectly on the specified institutions, including interest on the share;
(c) is a Director, controller or employees of institutions specified;
(d) in debt with the prescribed institution or with any related corporation specified institutions;
(e) has been convicted of any offence under this Act or the companies Act 1965, or any offence under any other written law involving fraud or dishonesty.
(2) any institution or person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Laws of Malaysia Act 618 64 (3) Notwithstanding subsection (1), the bank may approve in writing a person who is disqualified pursuant to subsection (1) to be appointed as an auditor if the bank is satisfied that the appointment will not be contrary to the interests of the institution that set it.
(4) for the purposes of subsection (1), a person shall be deemed to be an employee of an institution set — (a) if he is an employee of a corporation in relation to specified institutions; or (b) except for j if the bank, in the circumstances of the case i tu, otherwise directs, if he has, within the period of twelve months prior to that, become an employee or a specified institution sponsors or its related corporation.
(5) unless approved by the bank under subsection (3), an auditor for an institution that is disqualified under subsection (1) or section 9 of the companies Act, 1965 shall immediately stop being a specified institution Auditors.
(6) any person who contravenes subsection (5) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
restrictions on audit firm is 65. (1) a firm shall not in disedarinya agree to be appointed, and shall not be with disedarinya action, as auditors for an institution prescribed unless — (a) all the partners the firm residing in malaysia is an approved company auditor; and (b) subject to subsection 64 (3), no partner is disqualified under paragraph 64 (1) (b) to (e), to act as auditors of the institution that set it.
Development financial institutions 65 (2) any firm who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars.
Consent to act as auditors 66. There are no prescribed institution may appoint any person as an auditor under subsection 63 (1) unless that person, before his appointment, has agreed in writing to act as auditors, and in the case of a firm agreement that must be signed by at least one of his partner.
Appointment of audit firm is 67. The appointment of a firm in the name of the firm as an auditor shall have effect and force as the appointment of a person who is a member of the firm at the time of the appointment.
Auditors shall not be deemed to be employees of 68. for purposes of this part, a person shall not be deemed to be an employee of an institution and its related Corporation solely because he has been appointed as auditors of the institution or its related corporation specified.
Auditors ' report 69. (1) an auditor of an institution may be required, shall submit an audit report to the members of the institution specified and the report — (a) in the case of prescribed institution is a company, shall be made in accordance with section 174 of the companies Act, 1965; and (b) in the case of prescribed institution, other than a company, shall certify whether or not in the opinion of the Auditors — (i) all information and explanations in the opinion of the Auditors necessary for the purposes of the audit has been obtained;
Laws of Malaysia Act 618 66 (ii) according to the best information and explanations given to him, profit and loss account and balance sheet give a true and fair view of the State of affairs of the institutions may be required, for the financial year concerned;
(iii) the books of accounts have been properly kept by the institutions stipulated that as far as real of an audit of the account; and (iv) a statement that should be adequate for the purpose of the audit was received by him from the Office of the institution specified that cannot be reached.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars.
additional requirements to the auditor 70. (1) the bank may require someone auditors so that — (a) submit any additional information in relation to auditing matters as determined by the bank; or (b) extensive a memper t au me lan ju tkan space l ingkup audit of the business and Affairs of institutions specified in such a way, or until such extent as the bank shall, within such time as may be determined by banks and set it shall pay to the auditor the remuneration determined by the bank.

(2) any person who fails to comply with the requirements of subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding five hundred thousand dollars and, in the case of a continuing offence, a further fine not exceeding five hundred dollars for each day the offence continues after convictions.
Development financial institutions 67 Auditors shall report certain matters to the bank 71. (1) an auditor shall immediately report to the bank if, in the course of his duties as auditors of an institution prescribed, he is satisfied that — (a) has occurred a breach or non-compliance with any provision of this Act or any determination or requirement made; or any written order, instruction, directive, or notice given, or any point, terms, conditions or restrictions imposed under this Act;
(b) an offence involving fraud or dishonesty under any other written law was done by the prescribed institution or any of its employees;
(c) loss incurred by institutions that set that reduces its capital to the extent of money that makes the prescribed institution can no longer comply with the determination of the bank under subsection 38 (1);
(d) any harmful ketidakteraturan interest stakeholders institutions prescribed that, or any other serious, ketidakteraturan has occurred; or (e) he could not verify claims stakeholders institutions prescribed it.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars.
(3) Notwithstanding any responsibility about secrecy or other restriction on disclosure of information imposed by any law or otherwise, the Auditors of an institution set is not liable for breach of obligations of confidentiality between the institutions may be required, such as reporting to the bank in good faith pursuant to subsection (1).
Laws of Malaysia Act 618 68 information to Auditor 72. (1) an institution may be prescribed, and the Director, controller or its employees shall be — (a) provide tnya juruaudi any information knowingly required by the Auditors; and (b) ensure that information provided to the Auditor not to be false or misleading or incomplete in any material details.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
annual accounts 73. (1) an institution may be prescribed shall, within ninety days after the end of each financial year, or such further period approved by the bank, submit to the bank, in respect of the whole of its operation both inside and outside of malaysia, a copy of each printed and in the form of records kept or recorded by electronic means on an electronic document the following par in any form as determined by the bank : (a) the audited revenue account accordingly, together with the statement of support; (b) profit and loss account and balance sheet audited accordingly, together with the statement of support; (c) the certificate of the Auditors; (d) report of the Board on its operation in that financial year; and (e) statutory declaration by one of the non-Executive Director and Chief Executive Officer in respect of the matters referred to in paragraph (a), (b) and (d).
Development financial institutions 69 (2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
(3) the accounts of revenue, profit and loss account and balance sheet laid before the general meeting of an institution and submitted to the Registrar of companies or the Registrar General of the cooperative shall be in the form determined by the bank and the amount available in the account revenue, profit and loss account and the balance sheet shall be the same as the amount reported under this section and any limitations in respect of the statement under this section shall also be included in that account.
(4) S e s u a t u i n s t i t u s i y a n g i n t e r k a t a n h e n d a k l a h submit to the bank within sixty days from the date of the report of the Auditors or any further period approved bank — (a) a copy of any report made by the Auditors to its Board of Directors following the annual account auditing; and (b) a report on the actions taken by its Board of Directors about the Auditors ' reports.
(5) any prescribed institution who contravenes subsection (4) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Quarterly statements of 74. (1) Sesua tu ins t i tus i d i te tapkan shall be m e e m u k a k a n k e p a d a b a n k b e r k e n a a n d I n g a n its operation for every quarter of a calendar year two copies for each of the following in such form , and within the time specified by the bank: (a) the return together with the statement of support;
Laws of Malaysia Act 618 70 (b) profit and loss account and the balance sheet together with the statement of support; and (c) the certificate for the documents referred to in paragraph (a) or (b) signed by the Chief Executive Officer and the employee who is responsible for its financial management.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
75. accounting standards (1) Sesua tu ins t i tus i d i te tapkan shall maintain its accounts in compliance with approved accounting standards.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million dollars and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
(3) approved accounting standards referred to in subsection (1) shall have the same meaning assigned to it under section 2 of the financial reporting Act 1997 [Act 558].
annual and quarterly statements to be corrected 76. (1) the bank may, by notice in writing, require that an institution may be required, to submit additional information or clarification in relation to any document or information submitted under section 73 or 74 in any time specified by the bank.
Development financial institutions 71 (2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars.
(3) the bank may require additional information or clarification that is certified by the auditors specified institutions.
(4) the bank may, after considering the explanations referred to in subsection (1), or if the explanation is not provided by or on behalf of the institution specified in the specified time — (a) reject the documents submitted under section 73 or 74; or (b) order the specified institutions so that changes the document or other relevant documents in any time specified in the instructions.
(5) where a direction is given by the bank under paragraph 4 (b), documents related to it shall be deemed to have not submitted until the document is presented again with the changes required by the directive.
(6) the bank, based on the information which can be obtained by him or upon review of a statement filed under section 74, may direct an institution set to seek verification of its compliance with section 73 before — (a) present his account before meeting his great work;
and (b) publish his account under section 78.
(7) any prescribed institution contravenes subsection (6) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars.
Presentation of annual accounts 77. (1) an institution may be prescribed shall, within fourteen days from the presentation of its accounts at its annual general meeting, or within such further period laws of Malaysia Act 618 72 approved by the bank, submit to the bank a copy of each printed and in the form of records kept or recorded by electronic means and in electronic, material par accounts as laid before the annual general meeting together with the minutes of the meeting duly certified by the Secretary of the company.

(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
action in relation to the annual accounts 78. (1) an institution may be prescribed shall, within fourteen days from the presentation of its accounts at its annual general meeting, or within such further period approved bank — (a) publish in not less than two daily newspapers published in malaysia and approved by the bank, one in the national language and one in English; and (b) display in a significant in each of its branches in malaysia, one copy for each report of its Board of Directors, revenue account, account ruginya profit and its balance sheet as laid before meeting his great work and any other documents as determined by the bank.
(2) any prescribed institution who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Development financial institutions admissibility 73 79. In any proceedings, a certificate signed by an officer authorised bank stating that a document has been submitted by an institution prescribed under section 73 or 74 or a document accompanied by the documents submitted as such, shall be admissible in court as evidence of the facts so certified.
liability if proper accounting records were not saved 80. (1) if accounting records necessary to show and explain the business and the real financial situation of an institution set is not stored, former employees and employees now prescribed institution is responsible for keeping proper accounting commits an offence unless he proves that the offence was done without the consent or pembiarannya and that he was doing all the due diligence to prevent the Commission of the offence as he ought to be done by him , having taken into account the type of functions on the nature and circumstances.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
Application for trust fund 81. for the avoidance of doubt, it is hereby declared that in preparing the documents relating to the conduct of an institution prescribed under this section, section 69 to 80 shall apply with the necessary modifications for the operation of each trust fund managed by the institutions specified under part v. laws of Malaysia Act 618 74 part Viii Inspections and investigations Inspections by the bank 82. the Bank may, from time to time, examine, with or without any prior notice, books or other documents, accounts and Affairs of an institution and any of its Office within or outside malaysia.
Minister's power to order the inspection of 83. the Minister may at any time instruct the bank to examine books, accounts or other document and any institution and any of its Office in or outside malaysia if he suspected that institutions that set is currently conducts business in a way that is prejudicial to, or that may prejudice the interests of stakeholders or does not have enough assets to cover its liability to the public , or is violating any of the provisions of this Act or any other written law.
obligation to produce and provide access to documents and information 84. (1) an institution that is being inspected and directors, employees and agents of — (a) shall give the Inspector access to dokumennya; (b) shall provide facilities to the inspectors to carry out the examination; and (c) shall give to the Inspector, orally or in writing, any information required relating to the Affairs of that person, or his agent, in any time specified by the Inspector.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
Development financial institutions 75 (3) An inspector may take possession of a document or cash to which he has access under subsection (1) if in its opinion — (a) the taking of possession is necessary for the purposes of the inspection, including making copies or make extracts; (b) the documents or cash that may be interrupted, destroyed, hidden or moved unless he takes his possession; or (c) a document or cash that may be required as evidence in any legal proceedings, whether civil or criminal, which may be initiated under this Act, the central bank of malaysia Act 1958 or any other written law.
Examination of a person other than the appointed institutions 85. (1) the Inspector may search — (a) a person who is, or ever at any time become, a Director or employee of an institution and its agents;
(b) a person who is, or ever at any time become, customers, or otherwise have dealings with, the specified institutions; or (c) any person he knew about the facts and circumstances of the case, including auditors of an institution specified, and such person shall provide any documents or information required by the Inspector within such period as it may specify.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
(3) an auditor shall not be liable for breach of a contract relating to, or an obligation of confidentiality, because present or information to the inspectors.
Laws of Malaysia Act 618 76 presence in front of Inspector 86. (1) a person examined under section 82 or 83 or subsection 85 (1) shall appear before the Inspector in his Office at the time specified by him.
(2) any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
An investigation by the bank 87. If the bank has reason to suspect that an offence has been committed under this Act, the bank shall cause an investigation is carried out.
The appointment of the investigating officer 88. (1) for the purposes of an investigation under this section, the bank may appoint employees or any other person be the investigating officer.
(2) the bank may direct any person to take such steps as are necessary to facilitate an investigation under subsection (1).
(3) an investigating officer who are not employees of the bank shall be subject to, and enjoy any of the rights, protection and indemnity as may be specified in this Act, the central bank of malaysia Act 1958 or any other written law applicable to employees of the bank.
(4) the investigator shall be subject to the direction and control of the bank which has empowered him to act on his behalf.
Development financial institutions investigating officer 77 89. (1) an investigator appointed under subsection 88 (1) may, without a search warrant — (a) enter any premises owned by or in the possession or control of the institution or holding company, subsidiaries or employees;
(b) search the premises to search any property, records, reports or documents and seize and hold any property, records, reports or documents that are necessary in the opinion of the investigating officer that, for the purposes of the investigation of an offence under this Act;
(c) examine, make copies of, or take extracts from, any records, reports or documents seized and remanded;
(d) take possession of, and remove from the premises, of any property, records, reports or documents seized and remanded and hold it for such period as he may deem necessary;

(e) examine any person within the premises or, if the investigating officer has reason to suspect that the person themselves have any property, reports, records or documents, including private documents, which should, in the opinion of the investigating officer that, for the purposes of the investigation of an offence under this Act;
(f) break open, inspect, and search, any goods, container or container; or (g) stop, detain or check any vehicle.
(2) an investigating officer may if required to do so — (a) break open any door or gate in a premises that and enter the premises;
(b) delete the forcible any barriers to the entry, search, seizure, removal or detention which he is empowered to carry it out; or laws of Malaysia Act 618 78 (c) detain any person found in such premises until the search is completed.
(3) an officer b iasa t bo. you ne i t a, take possession of, and hold for such period of time as it considers necessary, of any property, records, reports or documents submitted to it in the course of its inquiry into or found on the person who is being examined by him.
(4) an investigating officer, while performing its inspection, investigation or shall — (a) prepare and sign a list of every property, records, reports or documents seized; and (b) State in the list the location where, or people who are on it, property, records, report or document is found.
(5) the occupant of the premises being entered into in the investigation, or any person on his behalf, shall be present during the search, and a copy of the list prepared under subsection (4) shall be given to that person upon his request.
the authority to examine people 90. (1) Notwithstanding any written law, or oath, undertaking or requirement of secrecy or keeping secret the contrary, or an obligation under an agreement or arrangement, express or implied, to the contrary, an investigating officer conducting an investigation shall have the power to handle the oath or pledge to those who inspected it.
(2) an investigating officer may order, orally or in writing, so that any person that he knows the facts and circumstances of the case — (a) to appear before it for examination; (b) submit before it any property, records, reports or documents; or (c) give him a written statement made by oath or pledge stating any information required.
Development financial institutions 79 (3) any person who contravenes subsection (2) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
(4) the person examined under subsection (2) be legally bound to answer all questions relating to the case addressed to him by the investigating officer, but he can refuse to answer any questions that have a tendency to expose him to a criminal charge or penalty or forfeiture.
(5) the person making the statement under paragraph (2) (c) legally bound to state the truth, whether or not the statement was made in whole or in part in answering the questions of the investigating officer.
(6) an investigating officer examining a person under subsection (2) shall notify that person in advance of the provisions of subsection (4) and (5).
(7) a statement made by any person under paragraph (2) (c) shall, where possible, reduced to writing and signed by the person making it or affixed with cap head jarinya — (a) after the statement was read out to him in a language he made it; and (b) after he was given the opportunity to make any corrections he wanted.
(8) any person who — (a) shall not appear before an officer investigating as required under paragraph (2) (a);
(b) refuses to answer any questions directed to him by an investigator under subsection (4); or laws of Malaysia Act 618 80 (c) give an officer investigating any information or statement which is false or misleading in any material details, commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
91. the admissibility of evidence record of an inspection under paragraph 90 (2) (a), of any property, records, reports or documents submitted under paragraph 90 (2) (b) or any statement under paragraph 90 (2) (c) shall, notwithstanding any law or pillars of law to the contrary, admissible in evidence in any court proceedings for, or in relation to, an offence under this Act , or any other written law irrespective of whether the proceedings against the person to be examined, or producing the property, records, reports or documents, or making a written statement with the vow or pledge or to any other person.
Examination of person 92. (1) any investigating officer examining a person under paragraph 89 (1) (e) may hold that person for such period as may be necessary to carry out the inspection, which shall not in any case exceed twenty-four hours without the permission of a magistrate, and may, if necessary, transfer of people in custody to any other places to facilitate the examination.
(2) No person shall be searched under this section except by an investigating officer of the same gender was with the person who inspected it and the examination shall be carried out by giving careful attention to modesty.
Development financial institutions against the exercise of the power of 81 Obstruction by investigating officers 93. any person who — (a) refuses to give any investigating officer access to any premises or refuses to allow himself to be examined;
(b) mengamang preventing menggalang or slow down-delay an officer investigating check-in while he has the right to enter;
(c) fails to comply with any lawful demand any investigating officer in discharging its duties under this part;
(d) refuses to give an officer investigating any property, document or information that may reasonably be required from him and that he has the power to give it away;
(e) not submit to, or hide or attempt to hide from, an investigating officer, of any property, records, reports or documents required by an investigating officer;
(f) release or try to free any thing seized accordingly;
(g) give an officer investigating as correct any information which he knows or he has reason to believe is false; or (h) before or after any search or seizure, break or otherwise destroy any article to prevent its seizure, or taking of property, record, report or document, commits an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both and, in the case of a continuing offence, a further fine not exceeding three thousand dollars for each day the offence continues after convictions.
needs to prepare translations 94. (1) where an officer investigating the find, seize, detain, or take possession of any property, records, reports or documents, in whole or in part, in the laws of Malaysia Act 618 82 a languages other than the national language or in English, or in any signal or code, the investigating officer may, orally or in writing, require the person in possession, care or control of the property, records, reports or documents that the investigating officer to provide a translation in the national language or English in any specified period by the investigating officer.
(2) No person shall with disedarinya can submit translations under subsection (1) which is not a translation of the document is accurate, true and correct.
(3) any person who fails to comply with the requirements in subsection (1) or contravenes subsection (2) 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 and, in the case of a continuing offence, a further fine not exceeding five hundred dollars for each day the offence continues after convictions.
(4) where the person required to provide a translation under subsection (1) not the person suspected to have committed offences, the bank may pay reasonable fees and reimburse that person for any reasonable expenses which have been made by him at provide the translation.
Surrender of property, records, reports or documents

95. (1) Someone investigating officer may, by notice in writing, require any person so as to deliver to him any property, records, reports or documents which he has reason to suspect that was used in the Commission of an offence under this Act or to assist in the investigation of an offence under this Act which is in the possession or custody of, or under the control of, the person or that the person has authority to give him.
(2) an investigating officer may authorize any person to inspect the property, records, reports or documents are detained and taken possession of under subsection (1) if that person is entitled to inspect the property, records, reporting or document under this Act.
Development financial institutions 83 (3) a person who — (a) does not deliver any property, records, reports or documents required by an investigating officer; or (b) prevent or menggalang someone investigating officers while exercising any of its powers under subsection (1), commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
Seizure of property, records, reports or documents 96. An officer investigators can seize, take possession and keep for a period that it considers necessary of any property, records, reports or documents produced before it in the inspection under paragraph 90 (2) (a) or (b), or examining a person under subsection 92 (1), to see whether anything related to the investigation, hidden or otherwise, at the person's self.
Divestment, records, reports or documents seized 97. (1) an investigator shall, unless ordered otherwise by any court — (a) at the end of an investigation or any proceedings arising from the investigation; or (b) with the prior written consent of the bank or any investigating officer rank higher thereof, at any time before the investigation is complete, let go of any property, records, reports or documents seized, detained or diverted by him or any other investigating officer, to any person specified by him entitled the laws of Malaysia Act 618 84 in law to property, records, reporting or document if he is satisfied that property , record, report or document is not needed for the purposes of any prosecution or proceeding under this Act, or for the purpose of any prosecution under any other written law.
(2) the investigating officer performing release under subsection (1) shall record in writing the circumstances of, and the reason for the release.
(3) if the investigating officer is unable to determine those legally entitled to property, records, reports or the document or if more than one person claiming the property, records, report or document, or if the investigating officer is unable to detect the person under subsection (1) who is entitled in law to property, records, report or document, the investigating officer shall report the matter to a magistrate who shall then deal with property , record, report or document as provided in subsection 413 (2), (3) and (4) and section 414, 415 and 416 criminal procedure code [Act 593].
The investigating officer can arrest without warrant 98. An officer investigator appointed under section 88 can arrest without warrant a person reasonably suspected by him has committed or is committing any offence under this Act.
The person arrested shall be handed over to the police officer 99. Investigating an officer who made the arrest under section 98 shall deliver the person arrested to the police officer without delay and the person arrested shall be dealt with according to the law relating to criminal procedure in force as if he was arrested by a police officer.
Development financial institutions 85 the police officer or other public officer 100. Notwithstanding any other written law, the bank may at its own initiatives, or on demand by a police officer or public officer while he was conducting an investigation of an offence under any written law, allowing the officer to gain access to — (a) a copy of the documents seized, detained or taken possession; (b) a record of the inspection; or (c) a written statement by oath or pledge.
Investigating officers are deemed to be public servants and public officers 101. Investigating an officer shall be deemed to be a public servants for the purposes of the Penal Code [Act 574], and as a public officer for the purposes of criminal procedure.
report to Minister 102. (1) the Minister charged with the responsibility for the development financial institutions or with the responsibility for the subject or matter relating to any business or activities undertaken by any development financial institutions may submit a report to the Minister with recommendations that examined the Affairs of development financial institutions under section 84 to 86.
(2) the State authorities, in the case of — (a) an inst i tusi development financial is a statutory body established by the laws of the State or by any subsidiary legislation made under any of the laws of the State; or (b) any other development financial institutions under the responsibility, authority, control or jurisdiction of the State authorities, the laws of Malaysia Act 618 86 may submit a report to the Minister with recommendations that examined the business and Affairs of the development of financial institutions under section 84 to 86.
Minister's power 103. (1) if the Minister receives a report and recommendation under section 102, then he may be decided, on the recommendation of the bank — (a) not to take any action in the matter, and told the Minister referred to in subsection 102 (1) or the State authority referred to in subsection 102 (2) submitting the report accordingly; or (b) that should be researched the business and Affairs of the development financial institutions to protect the interests of its stakeholders.
(2) for the avoidance of doubt, it is hereby declared that — (a) before the Minister makes a decision under paragraph (1) (b); or (b) before the Minister referred to in subsection 102 (1) or the State authority referred to in subsection 102 (2), submit a report and recommendations under section 102 to the Minister, it is not necessary for the Minister, or a Minister referred to in subsection 102 (1) or the State authority referred to in subsection 102 (2), giving the opportunity to the development financial institutions to make such representations to the Minister , or to the Minister referred to in paragraph 102 (1), or to the State authority referred to in subsection 102 (2), as the case may be.
Application of section 84 to 86 104. (1) if the Minister decides that should be investigated the business and Affairs of a financial institution development under paragraph 103 (1) (b), the provisions of section 84 to 86 development financial institutions this 87 shall apply to development financial institutions that the institutions seem to have been set in such a way, so any point, and with all the amendments prescribed by the Minister, on the recommendation of the bank.
(2) an order of the Minister under subsection (1) shall be deemed to be an integral part of this Act and read as part of this Act, and shall have effect and affect wholly notwithstanding anything which is not in accordance with, or inconsistent with this Act.
Application of section 89 to 101 105. If any of the development financial institutions for which an order has been made under subsection 104 (1) contravenes subsection 84 (1), 85 (1) or 86 (1), the provisions of section 89 to 101 shall apply to the development financial institutions.
The provisions of this section shall apply 106. The provisions of this part shall have effect and full effect notwithstanding anything contained in any other written law.
Part iX Miscellaneous offences am 107. any person who contravenes or fails to comply with — (a) any provision of this Act or regulations made thereunder; or (b) any determination or requirement made, or any written order, directions, instructions or notice to be given, or any limitations, terms, conditions or restrictions imposed, in exercise of any power conferred under or pursuant to any provision of this Act or regulations made thereunder, the laws of Malaysia Act 618 88 commits an offence and on conviction, if no penalty expressly provided for that offence under this Act or the regulations , a fine not exceeding five hundred thousand dollars or to imprisonment for a term not exceeding six months or to both.
Fraud, concealment and destruction of documents

108. Any person, with intent to deceive, in respect of a document are required to be submitted or delivered under any provision of this Act, which makes or causes to be made a false entry, leaving from make, or cause to be omitted, any entry, or change, making the draw, hide or destroy, or cause to be modified, made the draw, concealed or destroyed, any entry, falsify a document , or use or hold in his possession a false document, purporting to be a legal document, amend any entries you have made in any document, or remove or use a document that is false or incorrect, in whole or in part, or misleading commits an offence and shall on conviction be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both and , in the case of an offence continues, further can be fined not more than one thousand dollars for each day the offence continues after convictions.
offences by body corporate 109. (1) where an offence committed by a body corporate or an Association of persons, any person — (a) who is a Director, officer or pengawalnya, his partner; or (b) that cut-across in the management of its affairs, at the time of the offence committed, be deemed to have committed such offence unless that person proves that the offence was done without his consent or pembiarannya and that he has made every effort to prevent the offence from being done as should development financial institutions 89 foolishness, taking into account the type of functions on the nature and circumstances.
(2) an individual may be prosecuted for an offence under subsection (1) even if the body corporate or Association of such person is not convicted of the offence.
(3) subsection (1) does not affect criminal liability of bodies corporate or Association of such person for the offence referred to in that subsection.
(4) any person who will do the sua tu offence if any act was done or omitted from committed by itself is guilty of an offence and shall on conviction be liable to the same penalty if the Act was done or omitted than done by the agent or on behalf of the agent in the course of business or in the course of employment of the officer, as the case may be , unless he proves that it was committed without his consent or knowledge and that he took all reasonable precautions to prevent the Commission or omission of the Act.
offences by individuals 110. If a person may be imposed under this Act of a penalty for any act, omission, neglect or default, he shall be liable to the same penalty for the Act, omission, neglect or default of the employee, Director, controller, or agents if the Act, omission, neglect or default is done by — (a) its employees while performing his work;
(b) its directors while performing its function as a Director;
(c) pengawalnya while performing its function as a controller; or (d) its agent when acting in his stead.
Laws of Malaysia Act 618 90 Mergers error 111. Notwithstanding anything contained in any other written law, if a person was charged with more than one offence under this Act, he may be charged with and tried in a trial for any number of such offences committed within any time frame.
offence may be arrested 112. every offence punishable under this Act is an offence can capture.
the power of the Governor to compound offences 113. (1) the Governor may, with the consent of the Prosecutor, offers in writing to compound any offence under this Act, or under regulations made under this Act, by agreeing to receive from the person reasonably suspected to have committed the offence any amount not exceeding fifty per cent of the amount of the maximum fine for the offence, including daily fines, if any , in the case of a continuing offence, which may be imposed on that person if he or she has been convicted of that offence, within such period as may be specified in the written offer.
(2) any money paid to the Governor pursuant to subsection (1) shall be paid into and shall form part of the Federal Consolidated Fund.
(3) an offer under subsection (1) may be made at any time after the offence, but before any prosecution for him started, and if the amount specified in the offer is not paid within the time stated in the offer, or any extended period granted by the bank, 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 has been compounded under subsection (1), no prosecution shall be instituted in respect of the offence against a person to whom an offer to compound the offence has been made.
Development financial institutions 91 Attempts, preparation, abetment and conspiracy is punishable as an offence of 114. (1) any person who — (a) try to commit an offence under this Act; (b) commits an act in preparation for, or to implement, the Commission of an offence under this Act; or (c) colluding or engaging in a criminal conspiracy to do (as the term is defined in the Penal Code) of an offence under this Act, whether or not the offence is done as a result of it, commits an offence and shall be liable to the penalty for the offence.
(2) a provision of this Act which mentions an offence under certain provisions of an Act are to be read as including a reference to an offence under subsection (1) in relation to an offence under certain provisions of it.
annual report 115. the Bank shall include in its annual report and annual accounts made under subsection 48 (1) bank of malaysia Act 1958 an annual report about the journey of this Act in the preceding calendar year before the end of January each year and the report shall include a summary of the documents lodged with it.
Production of information and statistics, 116. (1) an insti tusi and an ins t i tus i financial development for which an order has been made under subsection 104 (1) shall submit to the bank or any person as the bank, any document or information required by a notice in writing within such period as the laws of Malaysia Act 618 92 may specify and institutions and the development financial institutions , as the case may be, cannot produce any documents which are known, or having reason to believe, is false or misleading.
(2) any prescribed institutions or any other development financial institutions who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding one million dollars and, in the case of a continuing offence, a further fine not exceeding one thousand dollars for each day the offence continues after convictions.
(3) an institution that is a scheduled institution under the banking and financial institutions Act 1989 [Act 372] shall submit to the bank under subsection (1) such documents, statements or information that are required to be submitted under subsection 21 (1) of the Act, the prescribed institution and shall be deemed to have complied with that subsection.
(4) the bank may require the documents or information submitted under subsection (1) is properly certified by the Auditors of the institution and development financial institutions, as the case may be.
indemnity 117. no action, suit, prosecution or other proceedings may be taken or transported, into, or maintained in any court or before any authority to the Minister, the bank, the directors, officers or employees, or any person acting on his behalf, whether in private or on the official nature of, for, or by reason of, or in respect of an act done or statement made or left than done or made , or purporting to be made or made to or left than done or made, pursuant to or in furtherance of, or intended for pursuant to this Act or perform, or any written order, directions, instructions, or other thing that is issued under this Act if the Act or the statement is made or to be made, or left than done or made in good faith.
Development financial institutions 93 prohibition on acceptance of gifts, commissions, etc.

118. (1) no Director, officer or agent of an institution set, or any other person is a person who receives any payment or remuneration of any nature, professional or otherwise, of the institution specified, may, either directly or indirectly, request or receive, or allow or agree to accept, any gift, commissions, emoluments, rewards, money, property, a gift shop or anything down , more than one hundred dollars or any services, facilities or benefits that are intangible, whether for its own benefit or benefit or for the benefit or the benefit of any other person, of any person other than the appointed institutions that, to obtain or attempt to obtain any person — (a) any credit facilities from the set; or (b) any other thing relating to the business or Affairs of the institutions that set it.
(2) the provisions of subsection (1) shall not in any other manner reduce, and not affect, any other written law relating to corruption or illegal feed.
confidentiality of 119. (1) except for the purposes of this Act, there is nothing in the Act allows the Minister to direct the bank's or the bank so as to specifically investigate the Affairs of any individual customers that an institution or a financial institution development.
(2) no Director or officer of any institution and any external Bureau established, or any of its agents duly appointed, by the specified institutions to operate any part of its business, either during or after the term of his Office, or during or after the period of her employment, and none for any reason whatsoever have any means of access to any records, books , express, correspondence, or other document, or, in relation to the affairs or, in particular, the account of any customer specific institution specified, can provide, submit, open, laws of Malaysia Act 618 94 disclose, publish or otherwise disclose to any person, or make a record for any person, any information or document relating to the affairs or the customer's account.
(3) this section shall not apply to the information at the time of the disclosure already available, or has been made available, in accordance with the law for people from any source or for information which is in the form of a summary or information if the information relates to an institution and development of an institution or financial stakeholders not clearly stated.
(4) no one who has information that as far as he knows was disclosed in contravention of subsection (1) may disclose the information to others.
Allowable disclosure 120. (1) Section 119 does not apply to the disclosure of information or documents — (a) to the Minister, the bank, its directors or employees, a person appointed under subsection 4(3) or someone the person appointed, if the disclosure takes place in the implementation of functions;
(b) to a person who provides services to the bank in respect of a matter requires professional knowledge;
(c) that its customers, or the personal representatives of the customers, has given permission in writing to disclosed;
(d) in case if the client is declared bankrupt, or, if the client is a corporation, the Corporation is being or has been wound up, in malaysia or in any country, territory or place outside malaysia;
(e) if the information required by a party to a commercial arrangement in good faith, or to a commercial arrangement in good faith in the future, which to the customer that is also a party, to assess the creditworthiness of the customer in respect of development financial institutions 95 with it, provided that the required information of a general and not allow details of the account or the customer Affairs be ensured;
(f) for the purposes of any criminal proceedings or in connection with any legal proceedings — (i) between an institution prescribed by its customers or the guarantor in connection with managing the customers with prescribed it; or (ii) between the institutions laid down by two or more parties make claims contrary to the money in a customer's account if specified institutions that want to obtain relief by way of interplider;
(g) if the specified institutions was presented an order garnisi that hold monies in the customer's account;
(h) to an external Bureau established, or to an agent appointed by the institution established by prior written consent of the bank;
(i) if the disclosure is required or permitted under any other provisions of this Act;
(j) if the disclosure is permitted under any federal law to be made to a police officer who is investigating any offence under the law and the disclosure to the police officer, however, limited to the accounts and Affairs of the person suspected of having committed the offence; or (k) the disclosure is with the written permission of the bank.
(2) in any civil proceedings under paragraph (1) (d) or (f) if any information or document may be disclosed in connection with a client account, the proceedings may, if the Court, upon the will of itself, or upon the application of a party in the proceedings, order such, held in closed and, in the case of such information or documents shall be secret between the Court and the parties in the proceedings , and there are no such parties can disclose the information or document to any of the others.
Laws of Malaysia Act 618 96 (3) unless otherwise ordered by the Court, no person shall publish the name, address or photograph any party to such legal proceedings as referred to in subsection (2), or any information that may lead to the identification of the parties to the proceedings, whether during the continuance of the proceedings or at any time after the proceedings has expired.
decision of the Minister is final 121. except as otherwise provided in this Act, any decision made by the Minister under this Act, whether an original decision by him or a decision on an appeal to him against the decision of the bank shall be final.
Exemption from 122. the Minister may, on the recommendation of the bank, if he deems consistent with the purposes of this Act or of public interest, by order published in the Gazette, exempt any institution prescribed by any provision of this Act for such period and subject to such conditions as the Minister may determine.
Rule 123. (1) the Minister may, on the recommendation of the bank, make such regulations as are necessary or expedient to give effect to that or to carry out the provisions of this Act.
(2) without prejudice to the generality of subsection (1), regulations may be made — (a) to provide that any act or omission that contravenes any of the provisions of such regulations to be an offence;
(b) to provide for the imposition of penalties for the offence that does not exceed a fine of one million ringgit or to imprisonment for a term not exceeding one year or to both; Development Financial Institutions and 97 (c) to provide about the imposition of penalties for offences that shall not exceed one thousand dollars for each day the offence continues after convictions.
Amendment 124 Schedule. the Minister may, by order published in the Gazette, amend the schedule.
Another application of the law 125. (1) if there is a discrepancy or inconsistency between the provisions of this Act with the provisions — (a) of the banking and financial institutions Act 1989; (b) the Act of bank kerjasama rakyat malaysia berhad (special provisions) 1978 [Act 202]; (c) of the companies Act, 1965; (d) the co-operative Societies Act 1993; or (e) constituent documents of an institution that is determined, the provisions of this Act shall overcome them.
(2) if any kesuli tonnes or doubts arising from the application of subsection (1) in relation to any prescribed institution specific, or any matter or thing under certain circumstances, or in General, the Minister may, when difficulties or doubts that referred to it by the bank, resolve it through an instruction in writing.
(3) a reference to "this Act" in this section shall not include any regulations, orders or other subsidiary legislation made under this Act.
the power to issue guidelines, etc.
126. the bank may issue any guidelines, circulars or notices with respect to this Act with respect to the conduct and Affairs of an institution may be required, as may be necessary or expedient to give effect to the provisions of this Act.
Laws of Malaysia Act 618 98 application of Exchange Control Act 1953

127. no anything contained in this Act shall be dealt with any other manner touches, or reduce, the provisions of the Exchange Control Act 1953 [Act 17], and the application of any provision of this Act for any person, then such provisions shall apply subject to the provisions of the Act and, therefore, if there is any conflict or ket idakselarasan between any of the provisions of this Act with the Act the provisions of the Act, must be overcome.
Violations of the no contract, agreement or arrangement 128. (1) except as otherwise provided in this Act, or pursuant to any provision of this Act, no contract, agreement or arrangement made who contravenes any of the provisions of this Act may be void merely by reason of the infringement.
(2) subsection (1) shall not affect any criminal liability of any person for an offence under this Act in respect of the infringement.
Islamic banking or Islamic finance business 129. (1) Nothing contained in this Act or the Islamic Banking Act 1983 [Act 276] may prohibit or restrict any institution prescribed Islamic banking business from running or Islamic finance business in addition to the existing business, provided the institution specified must first get approval from the bank before they do business Islamic banking or business Islamic finance.
(2) for the avoidance of doubt, it is hereby declared that an institution may be prescribed shall, in respect of Islamic banking business or Islamic finance business undertook, subject to the provisions of this Act.
Development financial institutions 99 (3) the bank may, after consultation with the Shariah Advisory Council established under the banking and financial institutions Act 1989, issue instructions to an institution set about matters relating to Islamic banking business or any other Islamic finance business and set it shall comply with the written directions.
(4) the prescribed institution may, in carrying out its Islamic banking business or Islamic finance business, seek advice from the Shariah Advisory Council about the conduct of the business to ensure that it does not involve any elements that are not allowed by islam.
(5) for the purposes of this section — (a) "Islamic banking business" have the same meaning assigned to it by the Islamic Banking Act 1983; and (b) "Islamic finance business" means any business Islamic finance, whose purpose and its operation does not involve any elements that are not allowed by islam.
exclusion of 130. (1) any requirements so that the approval of the Minister or the bank, as the case may be, be obtained under this Act shall be deemed to have been granted in accordance with the provisions of this Act and shall remain in force and effect in respect of persons to whom the requirements applicable until modified, deleted or revoked in accordance with the provisions of this Act.
(2) the Chief Executive Officer or Director of an institution prescribed shall, at the date of commencement, be deemed to have complied with the minimum criteria for the appointment of the schedule and notwithstanding any disqualification under section 7 of this Act, shall continue to hold office until the expiry of his appointment.
Laws of Malaysia Act 618 100 Table [Subsection 6 (2)] the minimum criteria for the appointment of the Chief Executive Officer and Director must be a person who "fit and proper" 1. (1) pursuant to subsection 6 (2) of this Act, an institution may be prescribed, in determining whether a person is a person who "fit and proper person" to hold or will hold the position of Chief Executive Officer or Director, shall take into account — (a) honesty, efficiency and wisdom of its consideration to fulfil the posts;
(b) efforts to it she is fulfilling or likely to perform the obligation; and (c) whether the interests of stakeholders and the public is, or ought to be, with any other manner threatened due to the posts.
(2) without prejudice to the generality of the foregoing, attention may be given to the exercise of the business activity and the earlier the person concerned and, in particular, to any evidence that he or she — (a) has compounded or conviction or as the Chief Executive Officer or Director, has caused is compounded or conviction, an offense punishable by — (i) imprisonment for one year or more, whether imprisonment only , or in lieu of, or in addition to, a fine; or (ii) a fine of twenty thousand dollars or more;
(b) contravenes any provision made by or under any written law obtained by the bank meant to protect people from financial loss due to dishonesty, incompetence or wrong practices by persons engaged in the provision of banking services, insurance, investment or other financial services or the management company or from financial losses caused by the behavior of si bankrupt released or is not discharged;
(c) engaging in or is associated with, any business practice, or otherwise behave with such way up to give rise to doubts about its efficiency and wisdom.
Development financial institutions 101 additional criteria for Chief Executive Officer 2. A person who is being, or will be, Chief Executive Officer of an institution set — (a) shall have the qualifications education and experience that will enable it to perform its duties satisfactorily;
(b) cannot be held responsible in the management of a post of a company that has been convicted of an offence under any written law during the period of his office unless he proves that it was committed without his consent or knowledge and he was unable to prevent the offence;
(c) cannot be held responsible positions in the management of a company that during the period of his Office — (i) have defaults in payment of any sum of money judgment against him;
(ii) has suspended payments or have made solution with pemiutang-pemiutangnya; or (iii) has been appointed in respect of property of a receiver or Manager;
(d) shall be ready for full-time employment, and should not be able to conduct any business or vokasion, other than as a shareholder of another company;
(e) not to be actively involved in any political activity;
(f) may not result in a situation of conflict of interest with the specified exists, whether by himself or by his brother;
(g) cannot act in a way that raises doubts about their suitability to hold office as the Chief Executive Officer, or acts of outright without taking into account the appropriate professional behavior, especially in business dealings with stakeholders and the public; and (h) cannot be used to be party to any action or decision of the management of an institution that can be harmful to the interests of the institution in the stipulated time, stakeholders, and the public.
additional criteria for an Director 3. A person who is being, or will be, a Director of an institution set — (a) shall have the qualifications education and experience that will enable them to perform and carry out its work;
Laws of Malaysia Act 618 102 (b) can't ever act in a way that raises doubts about their suitability to hold office as a Director; and (c) (struck by P.U. (A) 285/2007);
(d) cannot ever take part in any act or decision of the Board or management of an institution that is prejudicial to the interests of the institution is established.
other criteria as may be prescribed the bank 4. the Bank may, with the agreement of the Minister, prescribing any other additional criteria which in his opinion expedient for the purpose of protecting the interests of the institution that is determined, its stakeholders and the public.
at the discretion of the bank 5. the Bank shall have full discretion to determine whether a person has complied with this table.
Development financial institutions 103 laws of Malaysia Act 618 development financial institutions Act 2002 List Amendment law short title force amend from P.u. (a) 285/2007 Order financial institutions 31-08-2007 development (Amendment to schedule) 2007 laws of Malaysia Act 618 104 laws of Malaysia Act 618 development financial institutions Act 2002 amended Section List Section power amend with effect from table P.u. (a) 285/2007 31-08-2007