What is MONEYLENDERS ACT 1951?

*MONEYLENDERS ACT 1951 is Malaysia Act, cited as Act 400 1951, currently marked in force and first recorded in 1951.

Is MONEYLENDERS ACT 1951 still in force?

Yes — MONEYLENDERS ACT 1951 is currently in force.

When did MONEYLENDERS ACT 1951 take effect?

MONEYLENDERS ACT 1951 was first recorded in 1951.

How many sections does MONEYLENDERS ACT 1951 have?

MONEYLENDERS ACT 1951 contains 108 sections.

Where can I read the official version of MONEYLENDERS ACT 1951?

The official text of MONEYLENDERS ACT 1951 is published at lom.agc.gov.my.

MONEYLENDERS ACT 1951 (No. 400)

(A)

204/2017 which came into operation on

… … …

1 August 2017

… … … …

2001

… … … …

2006

3

Act 400

PRELIMINARY

Short title and application

Section 1

(2)

This Act shall apply to the whole of Malaysia.

Interpretation

Section 2

In this Act, unless the context otherwise requires—

“Authority” has the same meaning assigned to it in the Local

Government Ordinance 1961 [Sabah Ord. 11/1961];

“authorized name” and “authorized address” mean respectively the name under which and the address at which a moneylender is authorized by a licence granted under this Act to carry on business as a moneylender;

10 Laws of Malaysia ACT 400

“borrower” means a person to whom money is lent by a moneylender;

“company” means any body corporate being a moneylender;

“Deputy Registrar” means the Deputy Registrar of Moneylenders appointed under section 4;

“firm” means an unincorporated body of two or more individuals or one or more individuals and one or more corporations or two or more corporations who have entered into partnership with one another with a view to carrying on business for profit;

“Inspector” means an Inspector of Moneylenders appointed under section 4;

“interest” does not include any sum lawfully charged in accordance with this Act by a moneylender for or on account of stamp duties, fees payable by law and legal costs but, save as aforesaid, includes any amount by whatsoever name called in excess of the principal paid or payable to a moneylender in consideration of or otherwise in respect of a loan;

“licence” means a moneylender’s licence issued under this Act;

“licensee” means any moneylender to whom a licence has been issued under section 5B;

“local authority” has the same meaning assigned to it in the Local

Authorities Ordinance 1996 [Sarawak Ord. 20/1996];

“Minister” means the Minister charged with the responsibility for local government;

“moneylender” means any person who carries on or advertises or announces himself or holds himself out in any way as carrying on the business of moneylending, whether or not he carries on any other business;

Moneylenders 11

“moneylending” means the lending of money at interest, with or without security, by a moneylender to a borrower;

“moneylending agreement” means an agreement made in writing between a moneylender and a borrower for the repayment, in lump sum or instalments, of money borrowed by the borrower from the moneylender;

“Perbadanan Labuan” has the same meaning assigned to it in the

Perbadanan Labuan Act 2001 [Act 609];

“police officer” means a police officer as defined in the Police Act 1967 [Act 344];

“prescribed” means prescribed by regulations made under this Act;

“principal” means, in relation to a loan, the amount actually lent to and received by the borrower;

“Registrar” means the Registrar of Moneylenders appointed under this Act.

“senior police officer” means a senior police officer as defined in the Police Act 1967.

Section 2A

Non-application of Act and exemption therefrom

(2)

The Minister may—

(a)

in consideration of the special circumstances relating to the nature of the business of any company, or the objects of any society, and its financial standing; and

12 Laws of Malaysia ACT 400

(b)

if he is satisfied that it would not be contrary to the public interest to do so, by notification in the Gazette exempt such company or society from all or any of the provisions of this Act, and such exemption shall be granted for such duration as may be specified in the notification, and may be made subject to such limitations, restrictions or conditions as the Minister may specify in the notification.

(3)

The Minister may at any time revoke any exemption granted by him under subsection (2) if he is satisfied, after giving the company or society concerned an opportunity to be heard, that the company or the society, as the case may be, has failed to observe any limitation, restriction or condition subject to which the exemption was granted, or that it is otherwise no longer suitable to continue to be granted exemption.

Section 3

(Deleted by Act A1193).

Appointment of Registrar, Deputy Registrar, Inspector, and other officers and servants

*4.

(1)

For the purposes of this Act, the Minister may appoint a

Registrar of Moneylenders and such number of Deputy Registrars of

Moneylenders, Inspectors of Moneylenders and other officers and servants as the Minister may deem fit from amongst members of the public service, officer of Perbadanan Labuan in the Federal Territory of Labuan, officer of the Authority in the State of Sabah and officer of the local authority in the State of Sarawak.

(2)

The Registrar and Deputy Registrars shall have and may exercise any of the powers conferred on an Inspector by or under this

Act.

*NOTE—For saving and transitional provision of this section–see subsection 46(1), (8) and (9) of Act

A1193.

Moneylenders 13

Delegation of powers of Registrar

Section 4A

(2)

Without prejudice to subsection (1), the Registrar may, in writing, delegate any of his powers or functions under this Act in respect of the investigation of offences under this Act and the enforcement of the provisions of this Act to any public officer, officer of Perbadanan Labuan in the Federal Territory of Labuan, officer of the Authority in the State of Sabah and officer of the local authority in the State of Sarawak.

(3)

Any delegation under subsection (1) or (2) may be revoked at any time by the Registrar and does not prohibit the Registrar from himself exercising the powers or performing the functions so delegated.

LICENSING OF MONEYLENDERS

Licences to be taken out by moneylender

Section 5

(2)

Any person who carries on or advertises or announces himself or holds himself out in any way as carrying on the business of moneylending without a valid licence, or who continues to carry on such business after his licence has expired or been suspended or revoked shall be guilty of an offence under this Act and shall be liable to a fine of not less than two hundred and fifty thousand ringgit but not more than one million ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a second or

14 Laws of Malaysia ACT 400

subsequent offence shall also be liable to whipping in addition to such punishment.

Application for licence

*5A. (1) An application for a licence to carry on business as a moneylender shall be made in writing to the Registrar in a prescribed form, and accompanied by such documents or information as may be prescribed.

(2)

The Registrar may in writing, at any time after receiving the application but before it is determined, require the applicant to provide within a specified time or any extension of time granted by the Registrar, such additional documents or information as may be considered necessary by the Registrar for the purpose of determining the suitability of the applicant for the licence.

(3)

Where any additional documents or information required under subsection (2) is not provided by the applicant within the time specified in the requirement or any extension of time granted by the

Registrar, the application shall be deemed to be withdrawn and shall not be further proceeded with.

(4)

Without prejudice to subsection (3), the applicant may submit a fresh application for a licence to the Registrar, but such application shall not be made while his application for a licence is still pending before the Registrar.

Grant of a licence

Section 5B

(2)

The licence shall be in such form as may be prescribed.

 (3) The applicant shall pay the prescribed application fee for the licence to the Registrar upon being informed by the Registrar of the approval of his application for the licence.

Duration of licence

Section 5C

Moneylenders 15

(2)

Where a licence is granted, the Registrar shall specify in the licence the date on which the licence is to come into force and the date of its expiry.

(3)

Where on the date of expiry of the licence, an application for the renewal of the licence under section 5E is pending before the

Registrar, that licence shall remain in force until the application is disposed of, or sixty days after the date of expiry of the licence, whichever is the earlier.

Conditions attached to licence

Section 5D

(2)

Any person who fails to comply with any of the conditions of the licence shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

 NOTE—For saving and transitional provisions of this section – see subsection 46(4) of Act A1193.

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Renewal of licence

Section 5E

(2)

Notwithstanding subsection (1), the Registrar may, subject to the payment of a penalty not exceeding three hundred ringgit imposed on the licensee, allow an application for the renewal of a licence made after the time specified in subsection (1), but no application for such renewal shall be allowed where the application is made after the date of expiry of the licence.

(3)

Where the licensee fails to renew the licence before the date of expiry of the licence, he shall not be entitled to make a new application for a licence within a period of two years from the date of expiry of the licence.

(4)

The licensee shall pay the prescribed renewal fee for the licence to the Registrar upon being informed by the Registrar of the approval of his application for the renewal of the licence.

Requirement to display licence

Section 5F

(2)

Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding six months or to both.

Particulars to be shown on licences

Section 6

(a)

his true name;

(b)

the name of a firm in which he is a partner; or

(c)

a business name, whether of an individual or of a firm in which he is a partner, under which he or the firm has been registered—

(i)

in the case of Peninsular Malaysia and the

Federal Territory of Labuan, under the

Registration of Businesses Act 1956 [Act 197];

(ii)

in the case of the State of Sabah, under the

Trade Licensing Ordinance [Sabah Cap. 144];

and

(iii)

in the case of the State of Sarawak, the

Businesses, Professions and Trade Licensing

Ordinance [Sarawak Cap. 33] and the Business

Names Ordinance [Sarawak Cap. 64]; and

(2)

Any licence taken out in a name other than the licensee’s true name shall be void.

Section 7

(Deleted by Act A1193).

Section 8

Offences

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(a)

takes out a licence in any name other than his true name;

(b)

being licensed as a moneylender, carries on business as such in any name other than his authorized name or at any other place than his authorized address or addresses;

(c)

in the course of business as a moneylender enters into any moneylending agreement with respect to any advance or repayment of money or takes any security for money otherwise than in his authorized name; or

(d)

lends money to a person under the age of eighteen years, he shall be guilty of an offence under this Act and shall be liable to a fine not exceeding *fifty thousand ringgit and for a second or subsequent offence shall be liable to the fine aforesaid or to imprisonment for a term not exceeding twelve months and an offender being a company, society, firm or other body of persons shall for a second or subsequent offence be liable to a fine not exceeding **one hundred thousand ringgit.

Circumstances under which licence shall not be issued

Section 9

(a)

if—

(i)

an applicant;

(ii)

a director, general manager, manager or secretary of an applicant or any other person holding a similar office or position, where the applicant is a company;

*NOTE—Previously “one thousand ringgit” –see Act A1193.

**NOTE—Previously “five thousand ringgit”–see Act A1193.

Moneylenders 19

(iii)

a president, vice-president, secretary or treasurer of an applicant or any other person holding a similar office or position, where the applicant is a society; or

(iv)

a partner or any member of an applicant or any other person holding a similar office or position, where the applicant is a firm or other body of persons, is a person convicted of an offence involving fraud or dishonesty, or an offence relating to Chapter XVI or XVII of the Penal Code

[Act 574], or is an undischarged bankrupt;

(b)

where at the time the application is made—

(i)

an applicant;

(ii)

a director, general manager, manager or secretary of an applicant, where the applicant is a company;

(iii)

a president, vice-president, secretary or treasurer of an applicant, where the applicant is a society;

or

(iv)

a partner or any member of an applicant, where the applicant is a firm or other body of persons, has, due to a conviction for an offence under this Act, been sentenced to a fine exceeding ten thousand ringgit or to imprisonment (other than imprisonment in default of a fine not exceeding ten thousand ringgit);

(c)

where at the time the application is made, a person who—

(i)

had been a director of a company carrying on the business of moneylending or had been directly

20 Laws of Malaysia ACT 400

concerned in the management of the business of the company;

(ii)

had been a president, vice-president, secretary or treasurer of a society carrying on the business of moneylending, or had been directly concerned in the management of the business of the society;

or

(iii)

had been a partner or any member of a firm or other body of persons carrying on the business of moneylending, or had been directly concerned in the management of the business of the firm or other body of persons, which has been wound up or dissolved by a court, is a director, president, vice-president, secretary, treasurer, partner or member, or is directly concerned in the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons, respectively;

(d)

where the applicant is responsible for the management of his business as a moneylender, and the licence for that business has been revoked;

(e)

where satisfactory evidence has been produced regarding the bad character of the applicant, or of the director, president, vice-president, secretary, treasurer, partner or member, or any person responsible for the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons; or

(f)

where satisfactory evidence has been produced that the applicant, or the director, president, vice-president, secretary, treasurer, partner or member, or any person responsible for the management of the business of the applicant, where the applicant is a company, society,

Moneylenders 21

firm or other body of persons, is not a fit and proper person to hold a licence.

(2)

Any person aggrieved by the refusal of the Registrar to issue a licence may appeal to the Minister in the prescribed manner and the decision of the Minister shall be final.

Revocation or suspension of licence

Section 9A

(a)

has been carrying on his business, in the opinion of the

Registrar, in a manner detrimental to the interest of the borrower or to any member of the public;

(b)

has contravened any of the provisions of this Act or any regulations or rules made under this Act;

(c)

has been licensed as a result of a fraud, mistake or misrepresentation in any material particular; or

(d)

has failed to comply with any of the conditions of the licence, the Registrar may, subject to section 9B, revoke the licence issued to the licensee or suspend the licence for such period as the Registrar thinks fit.

(2)

A revocation or suspension of a licence under this section shall not affect any moneylending agreement entered into before such revocation or suspension, other than that in respect of which such revocation or suspension is made.

(3)

Where a licence has been revoked or suspended, the licence shall have no effect from the date of revocation of the licence or during the period of suspension of the licence, as the case may be.

22 Laws of Malaysia ACT 400

Opportunity of being heard

Section 9B

If a licensee—

(2)

After considering the reasons submitted by the licensee, the

Registrar shall decide whether to revoke or suspend the licence, or to take no further action, and the Registrar shall notify the licensee of his decision.

Appeal to Minister

Section 9C

Any person aggrieved by any decision taken by the Registrar under section 9A may, within fourteen days after having been notified of the decision under subsection 9B(2), appeal against that decision to the Minister whose decision is final and shall not be questioned in any court.

Section 9D

Validity of licence extended in successful appeal

Where the Minister allows an appeal against the revocation or suspension of a licence under this Act, the validity of the licence shall be extended by a period corresponding to that during which the licence had no effect and such extended period shall be inserted in the licence.

Section 9E

Prohibition of subsequent application pending appeal on earlier application

(2)

In the event that any licence is issued as a result of a subsequent application made in the circumstances specified in subsection (1), the licence so granted shall be void and shall have no effect.

(3)

Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three months or to both.

Surrender of licence

Section 9F

Moneylenders 23

(2)

Any licensee who fails to surrender his licence as required under subsection (1) shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

(3)

A licensee may surrender his licence on his own initiative by forwarding the licence to the Registrar with a written notice of the surrender of the licence.

(4)

The surrender of the licence shall take effect fourteen days from the date the Registrar receives the licence and the written notice or such other date as may be specified by the Registrar.

(5)

Upon the surrender of the licence under this section, the

Registrar shall not refund any fees paid by the licensee under subsections 5B(3) and 5E(4).

24 Laws of Malaysia ACT 400

Transfer or assignment of licence prohibited

Section 9G

(2)

Except with the prior written consent of the Registrar, the licensee shall not appoint any person for the purpose of exercising any of the rights conferred on him under the licence, or cause or permit any such person to exercise any such right.

(3)

The Registrar may authorize the transfer of a licence where—

(a)

the licensee—

(i)

being a company, is liquidated and a receiver or manager is appointed in relation to the moneylending business of the company; or

(ii)

being a society, firm or other body of persons is dissolved and a receiver or manager is appointed in relation to the moneylending business of the society, firm or other body of persons; or

(b)

for any reason the Registrar is satisfied that it would be just to do so.

(4)

Except where the Registrar has given his consent or authorization under subsection (2) or (3), the licensee who purports to transfer or assign his licence to any other person, or causes or permits any other person to use his licence or to provide the services authorized in the licence, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Moneylenders 25

Approval and notification of change of profile

Section 9H

(a)

before changing his business name;

(b)

before the employment, appointment or admission of any person who will be responsible for the management of the licensee’s business of moneylending; or

(c)

before any person becomes a director or partner of the licensee.

(2)

Every licensee shall notify the Registrar, in writing, as soon as practicable—

(a)

of any person becoming a substantial shareholder of the licensee; or

(b)

of any substantial shareholder of the licensee increasing or reducing his substantial shareholding in the licensee.

(3)

Every licensee shall notify the Registrar, in writing—

(a)

of any person ceasing to be a director, partner or substantial shareholder of the licensee; or

(b)

of any person ceasing to be responsible for the management of the business of moneylending of the licensee, not later than fourteen days after the cessation.

(4)

Every licensee shall notify the Registrar, in writing, of a bankruptcy order against the licensee, or any director, partner or substantial shareholder of the licensee, not later than fourteen days after the bankruptcy order is made.

26 Laws of Malaysia ACT 400

(5)

Any licensee who contravenes subsection (1), (2), (3) or (4)

shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Section 10

(Deleted by Act A1193).

INVESTIGATION, SEARCH, SEIZURE AND ARREST

Powers of Inspector or police officer in investigation

Section 10A

(2)

Any person who, on being required by an Inspector or police officer to give information under this section, refuses to comply with such requirement or furnishes as true any information which he knows or has reason to believe to be false, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

(3)

Where any information furnished by a person to an Inspector or police officer is proved to be untrue or incorrect in whole or in part, it shall be no defence to allege that the information or any part of the information was misinterpreted, or furnished inadvertently or without criminal or fraudulent intent.

Moneylenders 27

Power to investigate complaints and inquire into information

Section 10B

(2)

Where a complaint is made orally, it shall be reduced into writing and read over to the person making the complaint.

(3)

Every complaint, whether in writing or reduced into writing, shall be signed by the person making the complaint.

(4)

Every complaint, whether in writing or reduced into writing, shall be entered in a book kept at the office of the Registrar or in a book to be kept by an officer in charge of a police station and there shall be appended to such entry the date and hour on which such complaint was made.

(4A)

A copy, which is certified to be a true copy by the Registrar or an officer in charge of a police district, of an entry under subsection

(4)

shall be admissible as evidence of the contents of the original and of the time, place and manner in which the complaint was recorded.

(5)

Where an Inspector or police officer not below the rank of

Sergeant has reason to suspect the commission of an offence under this Act following a complaint made under subsection (1) or information otherwise received by him, he shall cause an investigation to be made and for such purpose may exercise all the powers of investigation provided for under this Act.

Power to examine persons

Section 10C

(a)

order any person to attend before him for the purpose of being examined orally in relation to any matter which

28 Laws of Malaysia ACT 400

may, in his opinion, assist in the investigation into the offence;

(b)

order any person to produce before him any book, document or any certified copy of such book or document, or any other article which may, in his opinion, assist in the investigation into the offence; or

(c)

by written notice require any person to furnish a statement in writing made on oath or affirmation, setting out in the notice all such information which may be required, being information which, in the opinion of the

Inspector or police officer, would be of assistance in the investigation into the offence.

(2)

A person to whom an order under paragraph (1)(a) has been given shall—

(a)

attend in accordance with the terms of the order to be examined, and shall continue to attend from day to day as directed by the Inspector or police officer until the examination is completed; and

(b)

during such examination, disclose all information which is within his knowledge, or which is available to him, or which is capable of being obtained by him, in respect of the matter in relation to which he is being examined, whether or not any question is put to him with regard to such matter, and where any question is put to him he shall answer the question truthfully and to the best of his knowledge and belief.

(3)

A person to whom an order has been given under paragraph (1)(b) shall not conceal, destroy, alter, remove from or send out of Malaysia, or deal with, expend, or dispose of, any book, document or article specified in the order, or alter or deface any entry in any such book or document, or cause such act to be done, or assist or conspire to do such act.

Moneylenders 29

(4)

A person to whom a written notice has been given under paragraph (1)(c) shall, in his written statement made on oath or affirmation, furnish and disclose truthfully all information required under the notice which is within his knowledge, or which is available to him, or which is capable of being obtained by him.

(5)

A person to whom an order or a notice is given under subsection (1) shall comply with such order or notice and with the provisions of subsection (2), (3) or (4) in relation to the order or notice, but nothing contained in subsection (2), (3) or (4) shall be construed as compelling the person who is being examined under this section to disclose any information, book, document or article which may incriminate him for any offence under this Act or any other written law.

(6)

An Inspector or police officer examining a person under paragraph (1)(a) shall record in writing any statement made by the person and the statement so recorded shall be signed by the person being examined or affixed with his thumbprint as the case may be, after it has been read to him in the language in which he made it and after he has been given an opportunity to make any corrections he may wish, and if such person refuses to sign the record, the Inspector or police officer shall endorse on the record under his hand the fact of such refusal and the reasons for such refusal, if any, stated by the person being examined.

(7)

The record of an examination under paragraph (1)(a), or a written statement on oath or affirmation made pursuant to paragraph (1)(c), or any book, document or article produced under paragraph (1)(b) or in the course of an examination under paragraph (1)(a) or under a written statement on oath or affirmation made pursuant to paragraph (1)(c) shall, notwithstanding any written law or rule of law to the contrary, be admissible in evidence in any proceedings in any court for an offence under this Act, regardless whether such proceedings are against the person who was examined, or who produced the book, document or article, or who made the written statement on oath or affirmation, or against any other person.

30 Laws of Malaysia ACT 400

(8)

Any person who contravenes this section shall be guilty of an offence under this Act and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding fifteen months or to both.

Search by warrant

Section 10D

(2)

An Inspector or a senior police officer may, in the premises entered under subsection (1), inspect—

(a)

any book, account or document, including computerized data, which contains or is reasonably suspected to contain any information regarding any offence suspected to have been committed under this Act; and

(b)

any mark, signboard, card, letter, pamphlet, item, thing, article or goods that are reasonably believed to furnish evidence regarding the commission of such offence, and may seize such book, account, document or data or any copy or extract of such book, account, document or data, or such mark, signboard, card, letter, pamphlet, item, thing, article or goods.

(3)

An Inspector or a senior police officer conducting a search under subsection (1) may, if in his opinion it is reasonably necessary to do so for the purpose of investigating the offence, search any person who is in, or on, such premises and detain such person and

Moneylenders 31

remove him to such place as may be necessary to facilitate such search.

(4)

An Inspector or a senior police officer making a search of a person under subsection (3) may seize or take possession of any book, account, document, card, letter, pamphlet, item, thing, article or goods found on the person for the purpose of the investigation being carried out by the Inspector or a senior police officer.

(5)

Where, by reason of their nature, size or amount, it is not practicable to remove any book, account, document, mark, signboard, card, letter, pamphlet, item, thing, article or goods seized under this section, the Inspector or a senior police officer making the seizure shall, by any means, seal such book, account, document, mark, signboard, card, letter, pamphlet, item, thing, article or goods in the premises or container in which they are found.

(6)

A person who, without lawful authority, breaks, tampers with or damages the seal referred to in subsection (5) or removes any book, account, document, mark, signboard, card, letter, pamphlet, item, thing, article or goods under seal, or attempts to do so shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding fifteen months or to both.

(7)

Whenever it is necessary so to do, an Inspector or a senior police officer exercising any power under subsection (1) may—

(a)

break open any outer or inner door or window of any premises and enter into the premises, or otherwise forcibly enter into the premises and every part of the premises;

(b)

remove by force any obstruction to such entry, search, seizure, detention or removal as he is empowered to effect; or

(c)

detain any person found on any premises searched under subsection (1) until such premises have been searched.

32 Laws of Malaysia ACT 400

(8)

No person shall be searched under this section except by an

Inspector or a senior police officer who is of the same gender as the person to be searched.

Power of arrest

Section 10E

(2)

Where any person is arrested under subsection (1), he shall thereafter be dealt with as provided by the Criminal Procedure Code

[Act 593].

Search without warrant

Section 10F

If the Inspector or senior police officer in any of the circumstances referred to in section 10D has reasonable cause to believe that by reason of delay in obtaining a search warrant under that section the investigation would be adversely affected or the evidence of the commission of the offence is likely to be tampered with, removed, damaged or destroyed, the Inspector or senior police officer may enter the premises and exercise in, and in respect of the premises, all the powers referred to in section 10D in as full and ample a manner as if he were authorized to do so by a warrant issued under that section.

Section 10G

Seizure of movable property

(2)

The occupant of the place searched or, any person on his behalf, shall in every instance be permitted to attend during the search and a list of all movable property seized pursuant to subsection (1) and of the places in which such property are respectively found shall be prepared by the Inspector or senior police officer effecting the seizure and signed by him.

(3)

A copy of the list referred to in subsection (2) shall be served on the owner of such property or on the person from whom the property was seized as soon as possible and shall be signed by such owner or person.

Additional powers

10GA. (1) Notwithstanding sections 10D and 10F, an Inspector or a senior police officer shall, for the execution of this Act, have power to do all or any of the following:

(a)

to visit, enter, inspect and examine with or without notice any premises where a moneylender is or is believed to be carrying on business;

(b)

to require the production of any information, book, record or other document kept by a moneylender or other person and to inspect, examine, make copies of them and take extracts from them;

(c)

to take photographs of the premises inspected or any part of the premises;

(d)

to seize and remove from the premises any book, record or other document, or any machine or equipment containing any book, record or other document; and

(e)

make such inquiry as may be necessary to ascertain whether the provisions of this Act have been complied with.

34 Laws of Malaysia ACT 400

(2)

Where any book, record or other document, or any machine or equipment containing any book, record or other document is seized under paragraph (1)(d), the seizing officer shall prepare a list of the things seized and immediately deliver a copy signed by him to the moneylender, or to the moneylender’s officer or employee, at the premises.

Access to computerized data

10GB. (1) An Inspector or a senior police officer conducting a search under this Act shall be given access to computerized data whether stored in a computer or otherwise.

(2)

For the purpose of this section, “access”—

(a)

includes being provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of such computerized data; and

(b)

has the same meaning assigned to it by subsections 2(2)

and (5) of the Computer Crimes Act 1997 [Act 563].

Further provisions relating to seizure of movable property

Section 10H

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(2)

Where it is not practicable, or it is otherwise not desirable, to effect the removal of any property under subsection (1), the Inspector or senior police officer may leave it at the premises in which it is seized under the custody of such person as he may determine for the purpose.

Moneylenders 35

Obstruction of inspection and search

Section 10I

(a)

refuses any Inspector or police officer access to any premises or any part of such premises, or fails to submit to a search of his person by a person authorized to search him under this Act;

(b)

assaults, obstructs, hinders or delays an Inspector or police officer in the execution of his duty under this Act;

(c)

fails to comply with any lawful demand, notice, order or requirement of an Inspector or police officer in the execution of his duty under this Act;

(d)

omits, refuses or neglects to give to an Inspector or police officer any information which may reasonably be required of him and which he is empowered to give;

(e)

fails to produce to, or conceals or attempts to conceal from an Inspector or police officer any book, account, document, data, mark, signboard, card, letter, pamphlet, item, thing, article or goods in relation to which such

Inspector or police officer has reasonable grounds for suspecting that an offence under this Act has been or is being committed, or which is liable to seizure under this

Act;

(f)

rescues or endeavours to rescue or causes to be rescued any thing which has been duly seized; or

(g)

destroys any thing to prevent the seizure or the securing of the thing, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

36 Laws of Malaysia ACT 400

(2)

Any person who abets the commission of any offence as specified under subsection (1) shall be guilty of an offence under this

Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

(3)

Any person who, while committing or abetting the commission of any offence under subsection (1) or (2), causes hurt to an Inspector, police officer or any public officer who is carrying out the enforcement of this Act shall be guilty of an offence under this

Act and shall be liable to the punishment as specified in subsection (1) or (2), respectively, and to whipping.

Authority to act

Section 10J

(2)

Whenever an Inspector exercises any of the powers under this

Act, he shall on demand produce to the person against whom the power is being exercised the authority card issued to him under subsection (1).

Release of property seized

Section 10K

(2)

A record in writing shall be made by the officer effecting any release of the property under subsection (1) in respect of such release specifying in detail the circumstances of, and the reasons for such release.

EVIDENCE

Evidence of accomplice and agent provocateur

Section 10L

(a)

no witness shall be regarded as an accomplice by reason only of such witness having—

(i)

accepted, received, obtained, solicited, agreed to accept or receive, or attempted to obtain any sum of money from a moneylender; or

(ii)

been in any manner concerned in the commission of such offence or having knowledge of the commission of the offence;

(b)

no agent provocateur, whether or not he is an Inspector or police officer, shall be presumed to be unworthy of credit by reason only of his having attempted to commit or having abetted the commission of, or having abetted or having been engaged in a criminal conspiracy to commit, such offence if the main purpose of the attempt to commit, abetment in the commission of, or abetment or engagement in the criminal conspiracy to commit, the offence was to secure evidence against such person; and

38 Laws of Malaysia ACT 400

(c)

any statement, whether oral or written, made to an agent provocateur by such person shall be admissible as evidence at his trial.

(2)

Notwithstanding any written law or rule of law to the contrary, a conviction for any offence under this Act solely on the uncorroborated evidence of any accomplice or agent provocateur shall not be illegal and no such conviction shall be set aside merely because the court which tried the case has failed to refer in the grounds of its judgement to the need to warn itself against the danger of convicting on such evidence.

Protection of informers and information

Section 10M

(2)

If any application, particular, return, account, document or written statement which is given in evidence or liable to inspection in any civil or criminal proceedings contains any entry in which any person who gave the information is named or described, or which might lead to his discovery, the court before which the proceedings are held shall cause all such entries to be concealed from view or to be obliterated so far as may be necessary to protect such person from discovery, but no further.

(3)

If in any proceedings relating to any offence under this Act, the court, after full inquiry into the case, is of the opinion that the person who gave the information wilfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true, or is of the opinion that justice cannot be fully done between the parties to the proceedings without the discovery of the person who gave the information, the court may require the

Moneylenders 39

production of the original complaint, if in writing, and permit inquiry and require full disclosure concerning that person.

Admissibility of statements by accused persons

Section 10N

(2)

No statement made under subsection (1) shall be admissible or used as provided for in that subsection if the making of the statement appears to the court to have been caused by any inducement, threat or promise having reference to the charge against the person, proceeding from a person in authority and sufficient in the opinion of the court to give that person grounds which would appear to him reasonable for supposing that by making it he would gain any advantage or avoid any evil of a temporal nature in reference to the proceedings against him.

(3)

Where any person is arrested or is informed that he may be prosecuted for any offence under this Act, he shall be served with a notice in writing, which shall be explained to him, to the following effect:

“You have been arrested/informed that you may be prosecuted for ... (the possible offence under this Act). Do you wish to say any thing? If there is any fact on which you intend to rely in your defence in court, you are advised to mention it now. If you hold it back till you go to court, your evidence may be less likely to be believed and

40 Laws of Malaysia ACT 400

this may have a bad effect on your case in general. If you wish to mention any fact now, and you would like it written down, this will be done.”

(4)

Notwithstanding subsection (3), a statement by any person accused of any offence under this Act made before there is time to serve a written notice under that subsection shall not be rendered inadmissible in evidence merely by reason of no such written notice having been served on him if such written notice has been served on him as soon as is reasonably possible after the statement was made.

(5)

No statement made by an accused person in answer to a written notice served on him pursuant to subsection (3) shall be construed as a statement caused by any inducement, threat or promise as is described in subsection (2), if it is otherwise voluntary.

(6)

Where in any criminal proceedings against a person for an offence under this Act, evidence is given that the accused, on being informed that he might be prosecuted for it, failed to mention any such fact, being a fact which in the circumstances existing at the time he could reasonably have been expected to mention when so informed, the court, in determining whether the prosecution has made out a prima facie case against the accused and in determining whether the accused is guilty of the offence charged, may draw such inferences from the failure as appear proper; and the failure may, on the basis of those inferences, be treated as, or as capable of amounting to, corroboration of any evidence given against the accused in relation to which the failure is material.

(7)

Nothing in subsection (6) shall in any criminal proceedings—

(a)

prejudice the admissibility in evidence of the silence or other reaction of the accused in the face of any thing said in his presence relating to the offence in respect of which he is charged, in so far as evidence thereof would be admissible apart from that subsection; or

Moneylenders 41

(b)

be taken to preclude the drawing of any inference from any silence or other reaction of the accused which could be drawn from that subsection.

Provisions as to evidence

Section 10O

(2)

When in any proceedings for an offence under this Act it is necessary to prove that a person was, or was not, the licensee, a certificate purporting to be signed by the Registrar and certifying that the person was or was not, the licensee, shall be admissible as evidence and shall constitute prima facie proof of the facts certified in such certificate, without proof of the signature or the authority of the Registrar to issue the certificate.

Presumption as to the business of moneylending

10OA. Where in any proceedings against any person, it is alleged that such person is a moneylender, the proof of a single loan at interest made by such person shall raise a presumption that such person is carrying on the business of moneylending, until the contrary is proved.

Evidence and records of previous conviction

10OB. (1) For the purposes of sentencing under this Act, when it is necessary to prove in any court that the offence for which a person is being convicted is a second or subsequent offence, a certificate purporting to be a record of his previous conviction, signed by—

42 Laws of Malaysia ACT 400

(a)

the Registrar; or

(b)

any police officer authorized in writing in that behalf by the Chief Police Officer or Commissioner of Police, having custody of the records in which such conviction is kept, shall be admissible as evidence and shall constitute prima facie proof of any fact stated therein.

(2)

The certificate under subsection (1) shall only be admissible if it is a record in respect of the same offence and the conviction is obtained within five years from the date of the present conviction.

Diary of proceedings in investigation

10OC. (1) Every Inspector or police officer making an investigation under this Act shall day by day enter his proceedings in the investigation in a diary setting forth—

(a)

the time at which the order to investigate, if any, reached him;

(b)

the time at which he began and closed the investigation;

(c)

the place or places visited by him; and

(d)

a statement of the circumstances ascertained through his investigation.

(2)

Notwithstanding anything contained in the Evidence Act 1950

[Act 56], an accused person shall not be entitled, either before or in the course of any proceedings under this Act, to call for or inspect any such diary:

Provided that if the Inspector or police officer who has made the investigation refers to the diary for the purposes of section 159 or 160

of the Evidence Act 1950, only such entries as the officer has referred to shall be shown to the accused, and the court shall at the request of

Moneylenders 43

the Inspector or police officer cause any other entries to be concealed from view or obliterated.

CONDUCT OF MONEYLENDING BUSINESS

Licensee and borrower must enter into a moneylending agreement

Section 10P

(2)

Any licensee who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine of not less than ten thousand ringgit but not more than fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a second or subsequent offence shall also be liable to whipping in addition to such punishment.

(3)

Any moneylending agreement which does not comply with the prescribed form shall be void and have no effect and shall not be enforceable.

Advertisement by licensee

*11. (1) No advertisement regarding the business of moneylending carried on by a licensee shall be issued or published or caused to be issued or published by the licensee unless an advertisement permit in respect of that advertisement has been granted by the Registrar.

(2)

Any licensee who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten

*NOTE—For saving and transitional provisions of this section – see subsection 46(2) of Act A1193.

44 Laws of Malaysia ACT 400

thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Application for advertisement permit

Section 11A

An application for an advertisement permit by a licensee shall be made in writing to the Registrar in the prescribed form and accompanied by such particulars and documents as may be prescribed.

Section 12

No circular implying a banking business to be issued

If a moneylender for the purpose of the business carried on by him as such issues or publishes or causes to be issued or published any advertisement, circular or document of any kind whatsoever containing expressions which might reasonably be held to imply that he carries on the business of banking he shall be liable to a fine not exceeding *ten thousand ringgit and on a second or subsequent offence shall be liable to the fine aforesaid or to imprisonment for a term not exceeding twelve months or to both and an offender being a company, society, firm or other body of persons shall for a second or subsequent offence be liable to a fine not exceeding **fifteen thousand ringgit.

Section 13

(Deleted by Act A1193).

Section 14

(Deleted by Act A1193).

Section 15

Contract by unlicensed moneylender unenforceable

No moneylending agreement in respect of money lent after the coming into force of this Act by an unlicensed moneylender shall be enforceable.

*NOTE—Previously “one thousand ringgit” – see Act A1193.

**NOTE—Previously “five thousand ringgit”– see Act A1193.

Moneylenders 45

Section 16

Moneylending agreement to be given to the borrower

(2)

A licensee who executes a moneylending agreement which does not comply with this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Prohibition of compound interest

Section 17

(2)

This section shall not apply to transactions known as

Thavannai transactions, between one licensee and another licensee, provided that any such transaction is evidenced by a written document duly stamped.

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(3)

(Deleted by Act A1193).

Interest for secured and unsecured loans

Section 17A

(2)

Notwithstanding subsection (1), interest shall not at any time be recoverable by a licensee of an amount in excess of the sum then due as principal unless a Court, having regard to all the circumstances, otherwise decrees.

(3)

Where in a moneylending agreement the interest charged for a secured loan or an unsecured loan, as the case may be, is more than that specified in subsection (1), that agreement shall be void and have no effect and shall not be enforceable.

(4)

Any licensee who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding eighteen months or to both.

Duty to keep original copy of moneylending agreement and accounts in permanent books

Section 18

(a)

such original copy of the moneylending agreement for each loan in which he is or has been concerned;

and

(b)

such regular accounts of each loan made clearly stating in plain words and in English numerals with or without the numerals of the script otherwise used the terms and transactions incidental to the account entered in a book

Moneylenders 47

paged and bound in such manner as not to facilitate the elimination of pages or the interpolation or substitution of pages, for a period of not less than seven years from the end of the year in which the loan is made.

(2)

If any licensee subject to the obligations of this section fails to comply with any of the requirements thereof, he shall not be entitled to enforce any claim in respect of any transaction in relation to which default shall have been made. He shall also be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit, or in the case of a continuing offence, to a fine not exceeding one thousand ringgit for each day or part of a day during which such offence continues.

Obligation to supply information as to state of loan and copies of documents relating thereto

Section 19

(a)

the date on which the loan was made, the amount of the principal of the loan and the rate per centum per annum or the amount of interest charged; and

(b)

the amount of any payment already received by the licensee in respect of the loan and the date on which it was made; and

48 Laws of Malaysia ACT 400

(c)

the amount of all sums due to the licensee for principal but unpaid and the dates upon which they became due and the amount of interest due and unpaid in respect of each such sum; and

(d)

the amount of every sum not yet due which remains outstanding and the date upon which it will become due.

A statement of account given in the form in the First Schedule A shall be deemed to comply with the requirements of this subsection.

(2)

A licensee shall, on any reasonable demand in writing by the borrower and on tender of the sum of five ringgit, supply a copy of any document relating to a loan made by him or any security therefor to the borrower or if the borrower so requires, to any person specified in that behalf in the demand.

(3)

If a licensee to whom a demand has been made under this section fails without reasonable excuse to comply therewith within one month after the demand has been made he shall not, so long as the default continues, be entitled to sue for or recover any sum due under the moneylending agreement on account either of principal or interest, and interest shall not be chargeable in respect of the period of the default and, if such default is made or continued after proceedings have ceased to lie in respect of the loan, the licensee shall be liable to a fine not exceeding fifty ringgit for every day on which the default continues.

(4)

A licensee receiving any payment of money from a borrower under a moneylending agreement for the repayment of money lent shall give, upon receiving the payment, a receipt to the borrower and any person acting in contravention of this subsection shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding ten months or to both.

Provisions as to bankruptcy proceedings for licensees’ loans

Section 20

(2)

No proof of a debt due to a licensee in respect of a loan made by him shall be admitted for any of the purposes of the Bankruptcy

Act 1967 unless the affidavit verifying the debt has exhibited thereto a statement which complies with section 19 and shows, where the amount of interest included in the unpaid balance represents a rate per centum per annum exceeding eight per centum, the amount of interest which would be so included if it were calculated at the rate of eight per centum per annum.

(3)

General rules may be made under the Bankruptcy Act 1967

for the purpose of carrying into effect the objects of this section.

Accounts under section 19 to be produced when suing in Court

Section 21

(2)

Where there is evidence which satisfies the Court that the interest charged in respect of the sum actually lent is excessive and that the transaction is harsh and unconscionable or substantially unfair, the Court shall reopen the transaction and take an account between the licensee and the person sued and shall, notwithstanding any statement or settlement of account or any agreement purporting to close previous dealings and create a new obligation, reopen any account already taken between them and relieve the person sued from

50 Laws of Malaysia ACT 400

payment of any sum in excess of the sum adjudged by the Court to be fairly due in respect of such principal, interest and legal costs as the

Court, having regard to the risk and all the facts and circumstances

(including facts and circumstances arising or coming to the knowledge of the parties after the date of the transaction) may adjudge to be reasonable, and, if any such excess has been paid or allowed in account by the debtor, may order the creditor to repay it and may set aside either wholly or in part or revise or alter any security given or moneylending agreement made in respect of money lent by the licensee and, if the licensee has parted with the security, may order him to indemnify the borrower or other person sued:

Provided that nothing in this subsection shall prevent any further or other relief being given in circumstances in which a Court of equity would give such relief.

(3)

Any court in which proceedings might be taken for the recovery of money lent by a licensee shall have and may, at the instance of the borrower or surety or other person liable or of the trustee in bankruptcy, exercise the like powers as may be exercised under this section where proceedings are taken for the recovery of money lent, and the Court shall have power, notwithstanding any provision or agreement to the contrary, to entertain any application under this Act by the borrower or surety or other person liable notwithstanding that the time for repayment of the loan or any instalment thereof may not have arrived.

(4)

On any application relating to the admission or amount of a proof by a licensee in any bankruptcy proceedings the Director

General of Insolvency shall exercise the like powers as may be exercised by the Court under this section when proceedings are taken for the recovery of money:

Provided that if the licensee is dissatisfied with the decision of the

Director General of Insolvency the Court may, on the application of the licensee made under the Bankruptcy Act 1967 reverse or vary that decision.

Moneylenders 51

(5)

The foregoing provisions of this section shall apply to any transaction whatever its form may be that is substantially one of moneylending by a licensee.

(6)

Nothing in the foregoing provisions of this section shall affect the rights of any bona fide assignee or holder for value without notice.

(7)

Nothing in this section shall be construed as derogating from the existing powers or jurisdiction of any court.

(8)

For the purposes of this section, interest charged in respect of money lent by a licensee is excessive when the rate of that interest exceeds the maximum rate of interest permitted under this Act.

Section 22

(Deleted by Act A1193).

Section 23

Prohibition of charge for expenses on loans by licensee

Any moneylending agreement between a licensee and a borrower or intending borrower for the payment by the borrower or intending borrower to the licensee of any sum on account of costs, charges or expenses other than stamp duties, fees payable by law and legal costs incidental to or relating to the negotiations for or the granting of the loan or proposed loan shall be illegal, and if any sum is paid to a licensee by a borrower or intending borrower as, for or on account of any such costs, charges or expenses other than as aforesaid that sum shall be recoverable as a debt due to the borrower or intending borrower, or in the event of the loan being completed, shall, if not so recovered, be set off against the amount actually lent and that amount shall be deemed to be reduced accordingly.

Section 24

(Deleted by Act A1193).

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Section 25

Notice and information to be given on assignment of licensee’s debts

(a)

give to the assignee notice in writing that the debt, moneylending agreement or security is affected by the operation of this Act; and

(b)

supply to the assignee all information necessary to enable him to comply with this Act relating to the obligation to supply information as to the state of loans and copies of documents relating thereto, and any person acting in contravention of this section shall be liable to indemnify any other person who is prejudiced by the contravention and shall also be guilty of an offence against this Act and shall in respect of each offence be liable to imprisonment for a term not exceeding one year or to a fine not exceeding five thousand ringgit or to both:

Provided that an offender being a company, society, firm or other body of persons shall in respect of each offence be liable to a fine of ten thousand ringgit.

(2)

In this section the expression “assigned” means assigned by any assignment inter vivos other than an assignment by operation of law, and the expressions “assignee” and “assignor” have corresponding meanings.

Moneylenders 53

Application of Act as respects assignees

Section 26

(2)

Notwithstanding anything in this Act—

(a)

any moneylending agreement with or security taken by a licensee in respect of money lent by him after the commencement of this Act shall be valid in favour of any bona fide assignee or holder for value without notice of any defect due to the operation of this Act and of any person deriving title under him; and

(b)

any payment or transfer of money or property made bona fide by any person, whether acting in a fiduciary capacity or otherwise, on the faith of the validity of any such moneylending agreement or security without notice of any such defect shall, in favour of that person, be as valid as it would have been if the moneylending agreement or security had been valid:

Provided that in every such case the licensee shall be liable to indemnify the borrower or any other person who is prejudiced by virtue of this section and nothing in this subsection shall render valid a moneylending agreement or security in favour of or apply to proceedings commenced by an assignee or holder for value who is himself a licensee.

(3)

Notwithstanding anything contained in this Act, for the purpose of this section an assignee or holder for value or person

54 Laws of Malaysia ACT 400

making any such payment or transfer as aforesaid shall not be prejudicially affected by notice of any such defect as aforesaid unless—

(i)

it is within his own knowledge, or would have come to his knowledge if such inquiries and inspections had been made as ought reasonably to have been made by him; or

(ii)

in the same transaction, with respect to which a question of notice to such assignee or holder for value or person arises, it has come to the knowledge of his counsel as such or of his solicitor or other agent as such, or would have come to the knowledge of his solicitor or other agent as such if such inquiries and inspections had been made as ought reasonably to have been made by the solicitor or other agent.

(4)

Nothing in this section shall render valid for any purpose any moneylending agreement, security or other transaction which would, apart from this Act, have been void or unenforceable.

MISCELLANEOUS

Attestation of moneylending agreement

Section 27

(2)

The attestor shall explain the terms of the moneylending agreement to the borrower, and shall certify on the agreement that the borrower appears to understand the meaning of the terms of the agreement.

Moneylenders 55

(3)

Any moneylending agreement which is not attested in accordance with this section shall be void and have no effect and shall not be enforceable.

Prohibition of employing an agent or canvasser

Section 27A

(2)

No person shall act as agent or canvasser, or demand or receive directly or indirectly any sum or other value consideration by way of commission or otherwise for introducing or undertaking to introduce to a moneylender any person desiring to borrow money.

(3)

Any person who contravenes subsections (1) and (2) shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding fifty thousand ringgit or to both.

Moneylending agreement in which amount is not truly stated or left blank

Section 27B

Any licensee who prepares any moneylending agreement under section 16 in which the principal or rate of interest is not truly stated or is left blank to be filled after the execution of the moneylending agreement shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand ringgit or to both.

Section 28

(Deleted by Act A1193).

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Section 29

False statements or representations to induce borrowing an offence

(a)

a moneylender or employee of the moneylender;

(b)

any person being a director, general manager, manager or other officer of a company, being a moneylender;

(c)

any person being a president, vice-president, secretary, treasurer or other officer of a society, being a moneylender; or

(d)

any person being a partner or member, or other officer of a firm or other body of persons, being a moneylender, by any false, misleading or deceptive statement, representation or promise or, by any dishonest concealment of material facts fraudulently induces or attempts to induce any person to borrow money or to agree to the terms on which money is or is to be borrowed, he shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand ringgit or to both.

General offences

Section 29A

(1)

Any person who—

(a)

for the purpose of the issuance of a licence to himself or to any other person, or for preventing the imposition of any condition in relation to such licence, makes any statement or declaration which to his knowledge is false or incorrect, either in whole or in part, or is misleading in any material respect;

(b)

furnishes any particulars or documents in relation to an application for the issuance of a licence which to his

Moneylenders 57

knowledge are false or incorrect or misleading in any material respect;

(c)

makes any entry in a register, record, return, account or any other document required to be kept, maintained or furnished under this Act, which is false or incorrect or misleading in any material respect;

(d)

alters, tampers with, defaces or mutilates any licence or other document which is required to be exhibited on a moneylender’s premises, or lends or allows such licence or document to be used by any other person;

(e)

forges, or has in his possession with intent to deceive a document that so closely resembles a licence, record, return, account or any other document that is required to be kept, maintained, or furnished under this Act;

(f)

alters any entry made in a register, licence, record, return, account or any other document that is required to be kept, maintained or furnished under this Act;

(g)

exhibits on a moneylender’s premises a licence or any other document that is required to be exhibited on those premises, where such licence or document has been altered, tampered with, defaced or mutilated;

(h)

exhibits on a moneylender’s premises an imitation of a licence or other document that is required to be exhibited on those premises;

(i)

prepares, maintains or authorizes the preparation or maintenance of false records, returns, accounts or any other documents that are required to be furnished under this Act;

(j)

falsifies or authorizes the falsification of records, returns, accounts or any other documents that are required to be furnished under this Act; or

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(k)

demands or accepts security for a loan in any form prohibited by the regulations made under section 29H, shall be guilty of an offence and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

(2)

In any prosecution under this section, when it has been proved that any application, statement, declaration, particular, return, account, record or other document is false or incorrect in whole or in part, or is misleading in any material respect, it shall be presumed, until the contrary is proved, that such application, statement, declaration, particular, return, account, record or other document was false or incorrect, or misleading in any material respect, to the knowledge of the person making, preparing, maintaining, signing, delivering or supplying it.

(3)

Notwithstanding paragraph (1)(g) or (h), a person shall not be found guilty of an offence if he proves that he had acted in good faith and had no reasonable grounds for supposing that the licence or any other document exhibited on his premises had been altered, tampered with, defaced, or mutilated, or that such licence or document was an imitation.

(4)

If an Inspector or police officer has reasonable cause to believe that a licence or any other document exhibited on a moneylender’s premises, or a licence, record, account, return or any other document produced to him in pursuance of this Act by the person in charge of those premises is a licence, record, account, return or document in relation to which an offence under this section has been committed, he may seize the licence, record, account, return or document.

Prohibition of assisting unlicensed moneylending

29AA. (1) Any person who assists a moneylender in contravention of subsection 5(1) shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or

Moneylenders 59

to a fine not exceeding twenty thousand ringgit or to both.

(2)

For the purpose of subsection (1), where the bank account, passbook, automated teller machine card, credit card or charge card of any person, or the post-dated cheque issued by any person, is proved to the satisfaction of the court to have been used to facilitate the carrying on of the business of a moneylender in contravention of subsection 5(1), that person shall be presumed, until the contrary is proved, to have assisted the moneylender in the contravention of subsection 5(1).

Harassment or intimidation, etc. of borrower

Section 29B

(2)

Any person who, acting on behalf of the moneylender, commits or attempts to commit any of the acts specified in subsection (1), shall be guilty of an offence under this Act and shall be liable to a fine of not less than ten thousand ringgit but not more than fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.

(3)

Any person who, while committing, or attempting to commit any offence under subsection (1) or (2), causes hurt to a person, shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years and whipping.

60 Laws of Malaysia ACT 400

(4)

For the purposes of subsection (1), the doing of an act of harassment or intimidation upon another person includes the making of statements, sounds or gestures, or exhibiting of any object intending that such word or sound shall be heard or that such gesture or object shall be seen by such person or intruding upon the privacy of such person.

(5)

For the purposes of this section and subsection 10I(3)—

(a)

“causes hurt” means doing any act with the intention of thereby causing hurt to any person, or with the knowledge that he is likely thereby to cause hurt to any person, and does thereby cause hurt to any person;

(b)

“harassment”

includes aggravation, annoyance, badgering, bedevilment, bother, hassle, irritation, molestation, nuisance, persecution, pestering, torment, trouble or vexation in circumstances in which a reasonable person, having regard to all or any of the circumstances would be offended, humiliated or intimidated; and

(c)

“intimidation” shall have the meaning as assigned to

“criminal intimidation” in section 503 of the Penal

Code.

Offences by companies, societies, firms or other body of persons

Section 29C

(a)

being a company, any person who at the time of the commission of the offence was a director, general manager, manager, secretary or other similar officer of the company, or was purporting to act in any such capacity;

Moneylenders 61

(b)

being a society, any person who at the time of the commission of the offence was a president, vice-president, secretary, treasurer or other similar officer of the society, or was purporting to act in any such capacity;

(c)

being a firm or other body of persons, any person who at the time of the commission of the offence was a partner or member or other similar officer of the firm or other body of persons, or was purporting to act in any such capacity, shall be deemed to have committed the offence, unless he proves that the offence was committed without his knowledge, consent or connivance, and that he took reasonable precautions and had exercised due diligence to prevent the commission of the offence.

(2)

The prosecution of any person under subsection (1) for an offence shall not prevent the prosecution of the company, society, firm or other body of persons for that offence.

(3)

Unless expressly provided otherwise, any act or omission by an employee of a moneylender shall, for the purpose of any prosecution or proceeding under this Act, be deemed to be the act or omission of the moneylender, unless the court is satisfied that the act or omission was committed without the moneylender’s knowledge, or that all reasonable steps and precautions had been taken to prevent the commission of such act or omission.

(4)

In the event of any act or omission by an employee of a moneylender which would have been an offence under this Act if committed by the moneylender, the employee of the moneylender shall also be guilty of that offence.

Prosecution

Section 29D

No prosecution for an offence under this Act shall be instituted except by or with the written consent of the Public Prosecutor.

62 Laws of Malaysia ACT 400

Section 29E

Service of notification or document

(2)

Where a notification or document is given or served in accordance with subsection (1), it shall be deemed to have been given or served on the person to whom it is addressed on the day succeeding the day on which the notification or document would have been received in the ordinary course of post, if the notification or document is addressed to the authorized address of the person to whom the notification or document is intended to be sent to.

Power to compound

Section 29F

(2)

An offer to compound under subsection (1) may be made at any time after the offence has been committed but before any prosecution for it has been instituted.

(3)

Where the amount specified in the offer to compound is not paid within the time specified in the offer, or within such extended period as may be granted by the Registrar or an Inspector specifically authorized under subsection (1), prosecution for that offence may be instituted at any time after such period against the person to whom the offer to compound was made.

Moneylenders 63

(4)

Where an offence has been compounded under subsection (1), no prosecution shall, within the time specified in subsection (3), be instituted in respect of the offence against the person to whom the offer to compound was made.

(5)

All monies paid to the Registrar or to an Inspector specifically authorized under subsection (1) shall be paid into and form part of—

(a)

in the case of Peninsular Malaysia and the Federal

Territory of Labuan, the Federal Consolidated Fund; and

(b)

in the case of the States of Sabah and Sarawak, the State

Consolidated Fund of the State respectively.

Jurisdiction

Section 29G

Notwithstanding any written law to the contrary, a Court of a

Magistrate of the First Class shall have jurisdiction to try any offence under this Act, and to impose the full punishment for any such offence.

Section 29H

Power to make regulations

(2)

Without prejudice to the generality of subsection (1), the

Minister may make regulations for or in respect of all or any of the following matters:

(a)

the procedure to be followed in making an application for a licence, including the forms to be used, conditions to be complied with, and documents and information to be furnished in respect of such an application;

64 Laws of Malaysia ACT 400

(b)

the matters to be considered in respect of the granting of a licence to a person;

(c)

the procedure regarding the surrender, suspension and revocation of licences;

(d)

the procedure for the issuance of copies of a licence, where the licence is lost or destroyed;

(e)

the offences which may be compounded and the procedure for compounding such offences;

(f)

the fees to be paid, the manner for the payment of fees and the persons liable to pay the fees, the exemption of any person or classes of persons from payment of such fees, or the reduction of such fees;

(g)

the form of register and other records to be kept and maintained by the Registrar, the procedure and other matters relating to the opening, maintenance and closure of the register, the inspection and taking of extracts from the register or records, the supply of copies of the register or records and the fees to be paid for such inspection, extracts and copies;

(h)

the form of moneylending agreements to be used by a licensee and a borrower and other matters relating to such agreements; or

(i)

the form of security for the repayment of a loan which shall not be demanded or accepted by the licensee;

(j)

the annual statement, in such form and containing such information, to be sent to the Registrar.

(3)

Any regulations made under this section may provide that any contravention of the provisions of such regulations shall be an offence and may provide for the imposition of a fine not exceeding

Moneylenders 65

ten thousand ringgit or a term of imprisonment not exceeding twelve months or to both.

Reward to informer

Section 29I

(2)

The reward made under subsection (1) shall be paid from—

(a)

in the case of Peninsular Malaysia and the Federal

Territory of Labuan, the Federal Consolidated Fund; and

(b)

in the case of the States of Sabah and Sarawak, the State

Consolidated Fund of the State respectively.

Assignment of proceeds to the States of Sabah and Sarawak

Section 29J

The following proceeds are assigned to the States of Sabah and

Sarawak:

(a)

penalties for late renewal of licence under section 5E;

and

(b)

fees for advertisement permits as prescribed under the

Moneylenders (Control and Licensing) Regulations 2003 [P.U. (A) 400/2003].

Power to amend First Schedule

Section 29K

The Minister may, by order published in the Gazette, amend the

First Schedule.

Section 30

(Deleted by Act A1193).

66 Laws of Malaysia ACT 400

30A. (Deleted by Act A1193).

Section 31

(Omitted).

FIRST SCHEDULE

[Subsection 2A(1)]

Section 1

Any authority or body established, appointed or constituted by any written law, including any local authority.

Section 2

Any co-operative society registered under the Co-operative Societies

Act 1993 [Act 502].

Section 3

Any authorized person as defined in section 2 of the Financial

Services Act 2013 [Act 758].

Section 4

Any authorized person as defined in section 2 of the Islamic Financial

Services Act 2013 [Act 759].

Section 5

Any pawnbroker licensed under the Pawnbroker Act 1972 [Act 81].

Section 6

Any prescribed institution as defined in section 3 of the Development

Financial Institutions Act 2002 [Act 618].

Section 7

Any company who lends money to its related corporation as defined in section 2 of the Companies Act 2016 [Act 777].

Section 8

Any company who lends money to its director, officer or employee as a benefit accorded to such person under his terms of employment.

Section 9

Any person who subscribes or purchases debt securities which include—

(a)

stocks issued under the Loan (Local) Act 1959 [Act 637];

(b)

Treasury Bills issued under the Treasury Bills (Local) Act 1946

[Act 188];

 NOTE—For saving and transitional provisions of this section – see subsection 46(10) of Act A1193.

Moneylenders 67

(c)

investments under the Government Funding Act 1983 [Act 275];

and

(d)

debentures as defined in section 2 of the Capital Markets and

Services Act 2007 [Act 671].

Section 10

Any person licensed, registered or regulated under the Capital

Markets and Services Act 2007.

Section 11

Any person prescribed as a prescribed financial institution under section 212 of the Financial Services Act 2013.

Section 12

Any person prescribed as a prescribed Islamic financial institution under section 223 of the Islamic Financial Services Act 2013.

Section 13

Any Labuan bank as defined in section 2 of the Labuan Financial

Services and Securities Act 2010 [Act 704].

Section 14

Any insurance licensee as defined in section 2 of the Labuan

Financial Services and Securities Act 2010.

68 Laws of Malaysia ACT 400

FIRST SCHEDULE A

[Section 19]

TABLE 1

PRINCIPAL AND INTEREST

Principal

Date on which loan was made

Rate per centum per annum or the Amount of interest

TABLE 2

REPAYMENT

Amounts repaid

Date

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Moneylenders 69

TABLE 3

AMOUNT OF ARREARS

Principal

Date Due

Interest

Date Due

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

TABLE 4

SUMS NOT YET DUE

Principal

Date Due

Interest

Date Due

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

Laws of Malaysia ACT 400

SECOND SCHEDULE

[Section 24]

(Deleted by Act A1193).

THIRD SCHEDULE

(Omitted)

71

Act 400

LIST OF AMENDMENTS

Amending law

Short title

In force from

Ord. 51/53

Moneylenders

(Amendment)

Ordinance 1953 15-10-1953

L.N. 655/53

Member for Home Affairs Order 1953 05-11-1953

L.N. 481/55

Ministers (Transfer of Functions)

Order 1955 09-08-1955

L.N. 273/56

Minister for Natural Resources and Local Government (Transfer of Functions) Order 1956 02-04-1956

L.N. 332/58

Federal

Constitution

(Modification of

Laws)

(Ordinances and Proclamations)

Order 1958 13-11-1958

Act 91

Courts of Judicature Act 1964 16-03-1964

P.U. (A) 186/79

Ministers of the

Federal

Government Order 1979 28-07-1978

Act A671

Subordinate Courts (Amendment)

Act 1987 22-05-1987

Act A688

Moneylenders (Amendment) Act 1988 19-02-1988

P.U. (A) 290/1990

Revision of Laws (Moneylenders

Act), Order 1990 14-12-1989

72 Laws of Malaysia ACT 400

Amending law

Short title

In force from

P.U. (A) 406/1991

Revision of Laws (Rectification)

Order,1991 14-12-1989

Act A1193

Moneylenders (Amendment) Act 2003 01-11-2003

Act A1390

Moneylenders (Amendment) Act 2011 15-04-2011

P.U. (A) 204/2017

Moneylenders

(Amendment of

First Schedule) Order 2017 01-08-2017

73

Act 400

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

Long title

Act A688 19-02-1988

2A

Act A688 19-02-1988

3

4

4A

Ord. 51/1953 15-10-1953

L.N. 655/1953 05-11-1953

L.N. 481/1955 09-08-1955

L.N. 273/1956 02-04-1956

5A

5B

74 Laws of Malaysia ACT 400

Section

Amending authority

In force from

5C

5D

5E

5F

6

Ord. 51/1953 15-10-1953

7

8

Ord. 51/1953 15-10-1953

L.N. 332/1958

Act A1193 13-11-1958 01-11-2003

9

Ord. 51/1953 15-10-1953

9A

9B

9C

9D

9E

9F

9G

9H

10

10A

10B

10C

Moneylenders 75

Section

Amending authority

In force from

10D

10E

10F

10G

10GA

10GB

10H

10I

10J

10K

10L

10M

10N

10O

10OA

10OB

10OC

10P

11

Ord. 51/1953 15-11-1953

11A

76 Laws of Malaysia ACT 400

Section

Amending authority

In force from

12

Ord. 51/1953 15-11-1953

13

14

15

Ord. 15/1953 15-11-1953

16

17

17A

18

19

20

21

22

23

24

25

26

Ord. 51/1953 15-10-1953

Act A671 22-05-1987

Moneylenders 77

Section

Amending authority

In force from

27A

27B

28

29

29A

29AA

29B

29C

29D

29E

29F

29G

29H

29I

29J

29K

30

30A

Ord. 51/1953 15-10-1953

First Schedule

Act A1390

P.U. (A) 204/2017 15-04-2011 01-08-2017

First Schedule A

Second Schedule

*MONEYLENDERS ACT 1951

About this act

(A)

PART I

(2)

(2)

(a)

(b)

(3)

(1)

(2)

(2)

(3)

PART II

(2)

(2)

(3)

(4)

(2)

(2)

(3)

(2)

(2)

(3)

(4)

(2)

(a)

(b)

(c)

(i)

(ii)

(iii)

(2)

(a)

(b)

(c)

(d)

(a)

(i)

(ii)

(iii)

(iv)

(b)

(i)

(ii)

(iii)

(iv)

(c)

(i)

(ii)

(iii)

(d)

(e)

(f)

(2)

(a)

(b)

(c)

(d)

(2)

(3)

(2)

(2)

(3)

(2)

(3)

(4)

(5)

(2)

(3)

(a)

(i)

(ii)

(b)

(4)

(a)

(b)

(c)

(2)

(a)