*TREASURY BILLS (LOCAL) ACT 1946

any licensed bank, licensed merchant bank, licensed finance company, or licensed discount house, as those terms are defined in the Banking and Financial Institutions Act 1989

[Act 372];

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any State Government;

any statutory body; or

any fund, scheme, organization, body corporate or unincorporate, or any other person, as may be specified in writing by the Minister of Finance;

“participating investing institution” means a financial institution authorized by the Bank under subsection 7(1);

“primary investing institution” means a participating investing institution appointed by the Bank under subsection 7(2);

“statutory acknowledgement receipt” means an acknowledgement receipt in the form in Schedule A issued under subsection 8(6);

“statutory body” means any body or authority established, appointed or constituted by any written law, and includes any local authority;

“statutory monthly statement” means a monthly statement in the form in Schedule B issued under subsection 9(2);

“Treasury Bill” means a Treasury Bill issued under sections 2 and 4

or a Treasury Bill held by any person pursuant to a transfer thereof, or of a part of it, under this Act;

“Treasury Bill customer” means a person who makes a transfer or takes a transfer of a Treasury Bill under subsection 8(2).

Where any record or account is required to be maintained under this Act by the Bank or by any participating investing institution, whether acting in its capacity as a primary investing institution or a depository institution or otherwise, the same shall be maintained in such manner or such means as the Bank may determine or specify, including its maintenance in writing or by means of any visual recording (of still or moving images), or any sound recording or any electronic, magnetic, mechanical, or other recording whatsoever, on any substance, material, thing or article.

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The functions, powers and duties conferred upon the Bank under this Act shall be performed, exercised and discharged by the

Bank on behalf of the Minister of Finance.

Power to borrow by the issue of Treasury Bills

The Yang di-Pertuan Agong may, from time to time, by order, alter the amount specified in subsection (1); and every such order shall, as soon as possible after its publication in the Gazette, be laid by the Minister of Finance before the Dewan Rakyat.

The moneys received for Treasury Bills issued under this Act shall be applied, and are hereby appropriated, to the following purposes:

The proceeds of such Bills shall be paid into the Consolidated

Fund.

Terms and payment of Treasury Bills

The Bank shall, before each issue of Treasury Bills aforesaid, fix and determine the time at which the Treasury Bills are to be issued and, subject to subsection (3), the time at which such Bills shall become payable.

Every Treasury Bill shall be payable not later than one year from the date of its issue.

Transfers of Treasury Bills

The Bank may appoint in writing any participating investing institution to be a primary investing institution.

The Bank may issue only to a primary investing institution a

Treasury Bill under section 4, and the Bank shall maintain an entry in its records of every such treasury Bill.

A participating investing institution shall maintain a single account with the Bank—

, there shall be included in such single account mentioned in paragraph (a) an account of all the Treasury

Bills issued to it under subsection (3).

The Bank shall repay to the participating investing institution the principal moneys represented by each Treasury Bill standing in its account under subsection (4) on the date the Treasury Bill falls due, by such means and in such manner as may be determined by the

Bank.

The Bank shall maintain records of the account of a participating investing institution, and such records shall be the sole and conclusive evidence of the state of such account, and of all the particulars and details thereof, and the same shall be binding on the

Bank, the participating investing institution and on any other person having any interest therein.

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Depository institutions

Any person, other than a participating investing institution, desiring either to make a transfer or take a transfer of a Treasury Bill shall do so only through a depository institution.

A depository institution shall maintain with the Bank, in addition to the account maintained by it under subsection 7(4) a separate single account in respect of all transfers effected through it under subsection (2).

The Bank shall repay to a depository institution the principal moneys represented by each Treasury Bill standing in the depository institution’s account under subsection (3) on the date the Treasury

Bill falls due, by such means and in such manner as may be determined by the Bank.

A depository institution shall maintain a customer’s account in respect of every transferor and transferee who is a party to any transfer effected through the depository institution under subsection

, except where a customer’s account in respect of a transferee is maintained by another depository institution, in which case the first mentioned depository institution shall have the Treasury Bill transferred into the transferee’s account with the second mentioned depository institution.

Where a transfer of a Treasury Bill is made by any person under subsection (2), the following procedure shall be complied with by the respective depository institutions:

A statutory acknowledgement receipt shall not be capable of being negotiated or dealt with in any manner whatsoever, and shall be used solely between the depository institution which issued it and the

Treasury Bill customer to whom it was issued as evidence of the transfer of a Treasury Bill under subsection (2) to which it relates.

Where the amount in the account maintained by a depository institution with the Bank under subsection (3) is affected by a transfer effected through it under subsection (2), the depository institution shall communicate forthwith to the Bank information of any change in such amount caused by the transfer.

Duties and obligations of depository institutions in relation to transfers effected under subsection 8(2)

A depository institution shall issue to each of its Treasury Bill customers a statutory monthly statement of his Treasury Bills in the form in Schedule B on or before the tenth day of the month succeeding the month in respect of which the statutory monthly statement is issued.

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A statutory monthly statement shall be the sole evidence of the

Treasury Bills held by a Treasury Bill customer at the close of the month in respect of which it is issued.

A depository institution shall repay the Treasury Bill customer the principal moneys represented by each of the Treasury Bills which stand in such Treasury Bill customer’s account, and such repayment shall be made on the date the Treasury Bill falls due.

The Treasury Bills dealt with by a depository institution in respect of any transfer effected through it under subsection 8(2) shall be dealt with solely and exclusively in the manner, and for the purpose, provided under section 8, and shall not be dealt with or utilized by the depository institution in any other manner whatsoever, or for any other purpose whatsoever.

A depository institution shall furnish to the Bank such returns, details, particulars or information in relation to the accounts maintained by it under subsection (1) in respect of each Treasury Bill customer, or its Treasury Bill customers generally, as may be specified by the Bank, or as the Bank may from time to time require in writing.

The Bank may, through any of its officers authorized in writing by the Governor or the Deputy Governor of the Bank, inspect and take copies of accounts maintained by a depository institution under this section, including the accounts in respect of any particular

Treasury Bill customer or any other record or account relating to or affecting Treasury Bills under this Act, and the depository institution, and every director, officer, employee, servant or agent of the depository institution shall furnish to such officer of the Bank all such books, records, correspondence, or any other document as may be required by the officer, and shall provide him all such assistance as he may require.

The account of a Treasury Bill customer maintained by a depository institution under subsection (1) shall be secret as between the institution and the Treasury Bill customer and shall not be disclosed to any person by the depository institution except to the

Bank, including the officers of the Bank referred to in subsection (7),

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unless such disclosure is authorized in writing by the Treasury Bill customer.

A depository institution shall be absolutely and wholly responsible and liable to its Treasury Bill customer in respect of all transfers taken or made by the Treasury Bill customer through it under subsection 8(2).

A depository institution shall not require a Treasury Bill customer to pay any charge, fee, or any other payment in respect of any matter dealt with by it in relation to a Treasury Bill customer under this Act, except as may be provided by rules made under section 15.

Bank’s power to require information, inspect and take copies

The Bank may, through any of its officers authorized in writing by the Governor or Deputy Governor of the Bank, inspect or take copies of any account, record, book, or any other document, maintained by a participating investing institution under this Act.

Maintenance of secrecy by the Bank

make or cause to be made a false entry;

omit to make, or cause to be omitted, an entry; or

alter, abstract, conceal or destroy, or cause to be altered, abstracted, concealed or destroyed, any entry, in any book or record, or in any report, slip, statement or other document whatsoever, relating to the business, affairs, transactions, conditions, property, assets, liabilities or accounts of any participating investing institution, or any primary investing institution, or any depository institution, or of the Bank.

Contravention of Act, penalty therefore and criminal liability of institutions, directors, etc.

ten million ringgit; or

where an amount of money is the subject matter of the offence, ten times such amount, whichever is the greater, or to imprisonment for a term not exceeding fifteen years, or to both such fine and imprisonment:

Provided that where the person found guilty of such offence is a body corporate, the abovementioned punishment of imprisonment shall not apply to it.

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Where any offence against any provision of this Act has been committed by any institution mentioned in subsection (1), any person who at the time of the commission of the offence was a director, officer, or controller of the institution or was purporting to act in any such capacity, or was in any manner or to any extent responsible for the management of any of the affairs of such institution, or was assisting in such management, shall be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.

Where any person (hereinafter in this subsection referred to as the “principal”) would be liable under this Act to any punishment or penalty for any act, omission, neglect or default, he shall be liable to the same punishment or penalty for every such act, omission, neglect or default of any clerk, servant or agent of his, or of the clerk or servant of such agent:

Provided that such act, omission, neglect or default was committed by the principal’s clerk or servant in the course of his employment, or by the agent when acting on behalf of the principal, or by the clerk or servant of such agent in the course of his employment by such agent or otherwise on behalf of the agent.

Without prejudice to subsection (2), where an institution referred to in subsection (1) is a financial institution under paragraph

Nothing in this Act contained shall be deemed to prevent the prosecution, conviction and punishment of any person according to the provisions of any other written law; but so that no person shall be punished more than once for the same offence.

For the purposes of this section, “director”, “officer” and

“controller” shall have the meaning respectively assigned thereto

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under subsection 2(1) of the Banking and Financial Institutions Act 1989.

Civil liability not affected by prosecution or non-prosecution, etc.

Without prejudice to the generality of subsection (1), rules may be made to provide for—

For the purposes of subsection (1), “default” includes—