PAWNBROKERS ACT 1972

receives or takes of or from any person whomsoever any article by way of security for the repayment of any sum of money, not exceeding ten thousand ringgit, advanced thereon; or

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purchases or receives or takes in articles and pays or advances or lends thereon any sum of money, not exceeding ten thousand ringgit, with or under an agreement or understanding expressed or implied or to be from the nature and character of the dealing reasonably inferred that those articles may afterwards be redeemed or repurchased on any terms, shall be deemed to be a person carrying on the business of taking articles in pawn, and every such transaction, article, payment, advance and loan shall be deemed a pawning, pledge or loan respectively within this Act.

(Deleted by Act A1209)

PART IA

ADMINISTRATION

Appointment of Registrar, Deputy Registrars, Inspectors and other officers and servants

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

Delegation of powers of Registrar

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 or officer of a local authority.

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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.

PART IB

EXTENSION OF LIABILITY OF PAWNBROKERS AND

RIGHTS OF PAWNERS TO CERTAIN PERSONS

Application of the Act to executors, etc., of pawnbrokers

Every agent or servant employed by any licensee in the course of his business as such shall also be liable in respect of any act, omission, neglect or default of his to every punishment or penalty described for acts, omissions, neglects or defaults contrary to this Act or of any regulations made thereunder as if such agent or servant had been the licensee.

Extensions of rights, etc., of pawners to the assigns, executor, etc.

Any person who carries on business as a pawnbroker without a valid licence, or who continues to carry on such business after his licence has expired or been suspended or revoked commits an offence and shall on conviction be liable to a fine of not less than twenty thousand ringgit but not more than one hundred 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.

Application for licence

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.

Where any additional document 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.

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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.

Circumstances under which licence shall not be granted

if—

where the applicant is an individual person, the applicant;

if at the time the application is made—

where the applicant is an individual person, the applicant;

where the applicant is responsible for the management of any pawnbroking business, and the licence for that business has been revoked;

where satisfactory evidence has been produced that—

where the applicant is an individual person, the applicant;

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.

Grant of a licence

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

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

When 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.

Where on the date of expiry of the licence an application for the renewal of the licence under section 10B 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 may be attached to licence

Any person who fails to comply with any of the conditions of the licence commits an offence and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Renewal of licence

Notwithstanding subsection (1), the Registrar may, subject to the payment by the licensee of a penalty not exceeding three hundred ringgit, allow an application for the renewal of a licence made less than sixty days before the date of expiry of the licence, but no application for such renewal shall be allowed where the application is made after the date of expiry of the licence.

Where the licensee fails to apply for the renewal of 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.

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

Requirement to display licence

Any person who contravenes subsection (1) commits an offence.

Revocation and suspension of licence

has been carrying on his pawnbroking business, in the opinion of the Registrar, in a manner detrimental to the interest of a pawner or to any member of the public;

being—

an individual, has been declared a bankrupt;

has contravened any provision of this Act or any regulation made under this Act;

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

has failed to comply with any of the conditions stipulated by the Registrar, the Registrar may, subject to section 11A, revoke the licence issued to the licensee or suspend the licence for such period as the Registrar thinks fit.

A revocation or suspension of a licence under this section shall not affect any pawning transaction made before such revocation or suspension, other than a transaction in respect of which such revocation or suspension is made.

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.

Opportunity of being heard

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

In the event that any licence is granted 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.

Any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Surrender of licence

Any person who fails to surrender his licence as required under subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

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Transfer or assignment of licence prohibited

A licensee may, with the prior consent of the Registrar, 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.

The Registrar may authorize the transfer of a licence where—

Except where the Registrar has given his consent or authorization under subsection (2) or (3), a 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, commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Duty of pawnbroker on expiry of licence

send a notice to each and every pawner of the fact that his licence has expired; and

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send a report to the Registrar stating the number of pawners whose pledges are still in his custody and particulars of such pledges.

Any person who contravenes this section commits an offence.

Pawn premises to keep open after expiration of licence for redemption of pledges

Registrar, enter into a contract with any person to undertake the duties and liabilities imposed and to exercise the rights and privileges conferred upon him by subsection (1) and, with such consent and upon such conditions as the Registrar may see fit to impose for the protection of pawners, may transfer to that person the possession of all pledges held by him in pawn, and that person shall thereafter be deemed to be the pawnbroker in respect thereof.

A notice of every such transfer shall be posted on the premises of the transferor and the transferee and at every court-house, police station and district and land offices in the district in which the premises is situated. Such notice shall also be published in a newspaper to be approved by the Registrar.

The Registrar may authorize the person to whom such transfer has been made to deal with the pledges held in pawn in any specified place other than the licensed premises, and to remove the pledges.

Nothing in this section shall relieve the transferor from any liability under this Act for any act done or omitted to be done before the date of such transfer.

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Registrar may issue order to licensee to deliver pledges, books and accounts on expiration of licenses, etc.

Such officer may take possession of all the pledges, books and accounts and, if necessary, may enter upon the premises used by the licensee and take possession of all the pledges, books and accounts and may remove the same to a place of safety.

Such officer shall hold the pledges subject to redemption in like manner in all respects as if the same were held by the licensee.

Upon redemption of, or the expiration of the period of redemption for, all the pledges in pawn such officer shall, upon payment by the licensee of all reasonable expenses incurred, hand over to the licensee the amount of all sums received from pawners as payment of moneys borrowed and profit due and all the pledges which have not been redeemed within due term and all the books and accounts.

Such officer may, with the written consent of the Registrar, enter into a contract with sureties with any person to hold the pledges upon the terms which he himself is entitled to hold them, as set out in the two preceding subsections, and may, subject to such terms, transfer the possession of the pledges, books and accounts to that person.

Book, account or document to be submitted

any book, account or document, including computerized data, which contains the pawnbroking transactions of the pawnbroker at his principal premises and at each of his other premises within such time as the Registrar may specify; and

such other information as the Registrar may specify.

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Any information received from a pawnbroker under this section shall be treated as secret.

Any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment not exceeding twelve months or to both.

PART IIA

ADVERTISEMENT

Advertisement by licensee

Any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Application for advertisement permit

Any person who contravenes subsection (1) commit an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Pawner to give true information to licensee

Any person who contravenes subsection (1) commit an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

Business hours and restrictions as to receiving articles in pawn and carrying other business

any article between the hours of 6 p.m. and 8 a.m.;

any article from any person who is under the age of eighteen years;

(ba) any article from any person who appears to be intoxicated or of unsound mind;

any article bearing any mark or sign denoting it to be the property of the Government of Malaysia or of any State;

any article which he may have reasonable cause to believe, whether from the nature of the article or from the person of the pawner or from the circumstances of the transaction or otherwise, to be offered for pawning without the consent of the lawful owner thereof.

No licensee shall conduct or transact any part of his business of pawnbroking or keep any pledge in pawn in any place other than the licensed premises.

No licensee shall use the licensed premises for the conduct or transaction of any business other than that of pawnbroking.

Any person who contravenes this section commits an offence.

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Rate of profit

Any person who contravenes subsection (1) commits an offence.

Period for and conditions of redemption

Any person who contravenes subsection (1) commits an offence.

Extension of time for redemption

Any person who contravenes subsection (1) commits an offence.

Procedure when pawn-ticket lost

The pawnbroker shall be responsible for the loss or damage of any pledge, whether such loss or damage be caused by or in consequence of fire, negligence, omission, theft, robbery or otherwise.

In the case of any pledge destroyed or damaged by or in consequence of fire, negligence, omission, theft, robbery or otherwise, the value of the pledge shall for the purposes of the compensation of the pawner, be assumed to be one quarter more than the amount of the loan.

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Upon complaint by any person that any pledge held by a pawnbroker, which the person is entitled to redeem, has not been delivered to him on due demand or has become or been rendered of less value than it was at the time of pawning by or through the default, neglect or misbehaviour of the pawnbroker, a Magistrate may, if he so thinks fit, order reasonable compensation to be paid by the pawnbroker to the person; and any sum so ordered to be paid may, if the Magistrate so directs, be recoverable from the pawnbroker as a fine.

Pledges not redeemed within time

if pawned for a sum not exceeding two hundred ringgit shall become the property of the pawnbroker; or

if pawned for a sum exceeding two hundred ringgit shall when disposed of by the pawnbroker be disposed of by sale by auction to be conducted by a licensed auctioneer.

A pawnbroker may bid for and purchase at a sale by auction under this section a pledge pawned with him; and on such purchase he shall be deemed the absolute owner of the pledge purchased.

A pawnbroker shall send to the Registrar on the first day of every calendar month a list in the prescribed form together with such number of copies as the Registrar may require showing the result of the sales of the pledges during the preceding month. The

Registrar shall keep the list affixed at his office and such public places as he may deem necessary for three months.

Any person who contravenes subsection (3) commits an offence.

Right of holder of pawn-ticket to inspect sale book

The pawnbroker shall pay the surplus to the pawner if a claim is made by the pawner within the period of four months as specified in subsection (1).

Any person who contravenes this section commits an offence.

Disposal of unclaimed surplus

The Accountant General shall pay the amount paid under subsection (1) to the Consolidated Trust Account.

Any unclaimed surplus paid to the Consolidated Trust Account

(to the extent to which it has under section 27 not been paid out of the Consolidated Trust Account) shall on the lapse of six years from the date of payment thereof to the Consolidated Trust Account, be paid into the Consolidated Revenue Account.

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Any pawnbroker who fails to pay any unclaimed surplus to the Accountant General commits an offence and shall on conviction be liable to a fine not exceeding five thousand ringgit and shall also be liable to a further fine of not less than one hundred ringgit and not more than two hundred ringgit for every day during which that failure continues after conviction.

Treasury to pay lawful claimant

Where any unclaimed surplus paid to any claimant is afterwards claimed by any other person, that other person shall not be entitled to the payment thereof but may have recourse against the claimant to whom the surplus has been paid.

Any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.

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Duty of licensee to enquire when proposed transaction is suspicious

Any person who contravenes subsection (1) commits an offence.

Presumption on possession of pawn-ticket

If any property answering the lists and description is in the possession of any pawnbroker or is thereafter offered to or shown to any pawnbroker, he shall without unnecessary delay give information to that effect at the nearest police station or to any police officer, with the name and address of the person in whose possession the property was seen.

Any person who contravenes subsection (2) commits an offence.

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Police officer may arrest persons under suspicious circumstances

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

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

Every complaint, whether in writing or reduced into writing, shall be entered in a book kept at the office of the Registrar or recorded on any other medium so long as the information recorded on that other medium capable of being reproduced in legible form.

There shall be appended to every complaint entered or record under subsection (4) the date and hour on which such complaint was made.

Where an Inspector or police officer 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.

Powers of Inspector or police officer in investigation

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 commits an offence.

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.

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Power to examine persons

order any person to attend before him for the purpose of being examined orally in relation to any matter which may, in his opinion, assist in the investigation into the offence;

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

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.

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

A person to whom an order has been given under paragraph

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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.

A person to whom an order or a notice is given under subsection (1) shall comply with such order or notice and with 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.

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.

The record of an examination under paragraph (1)(a), or a written statement on oath or affirmation made pursuant to paragraph

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.

Any person who contravenes subsection (2), (3), (4) or (5)

commits an offence and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.

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Search by warrant

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

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

An Inspector or 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 police officer.

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 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.

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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 and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.

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

No person shall be searched under this section except by an

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

Search without warrant

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

and of the places in which such property are respectively found shall be prepared by the Inspector or police officer effecting the seizure and signed by him.

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.

Further provisions relating to seizure of movable property

Where it is not practicable, or it is otherwise not desirable, to effect the removal of any property under subsection (1), the

Inspector or 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.

Release of property seized

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.

Obstruction of inspection and search

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;

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