Section 106A — DEVELOPMENT FINANCIAL INSTITUTIONS ACT 2002

(a)

any provision of this Act;

(b)

any regulations made under this Act;

(c)

any order made or any direction issued under this Act by the Bank; or

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(d)

any standards, condition, restriction, specification or requirement under this Act.

(2)

The Bank shall have regard to the following matters in determining the appropriate action to be taken in each case:

(a)

the effectiveness of the enforcement action to be taken under this Act;

(b)

the proportionality of the action to be taken with the breach committed;

(c)

deterrence of future breaches of similar nature by other persons; and

(d)

any other matter that is considered as relevant in the opinion of the Bank.

(3)

If the Bank is of the opinion that a person has committed a breach and it is appropriate to take action against that person, the Bank may, subject to section 123B, take any one or more of the following actions:

(a)

make an order in writing requiring the person in breach—

(i)

to comply with or give effect to; or

(ii)

to do or not to do any act in order to ensure compliance with, such provisions, regulations, order, direction, standards, condition, restriction, specification or requirement referred to in subsection (1);

(b)

subject to subsection (4), impose a monetary penalty—

(i)

in accordance with the order published in the Gazette made under section 106C or if no such order has been made, in accordance with such amount as the Bank

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considers appropriate, but in any event not exceeding five million ringgit in the case of a breach that is committed by a body corporate or unincorporate or one million ringgit in the case of a breach that is committed by any individual;

(ii)

which shall not exceed three times the gross amount of pecuniary gain made or loss avoided by such person as a result of the breach; or

(iii)

which shall not exceed three times the amount of money which is the subject matter of the breach, whichever is greater for each breach or non-compliance;

(c)

reprimand in writing the person in breach or require the person in breach to issue a public statement in relation to such breach, if it is in the opinion of the Bank that such breach is relevant for the information of the general public;

(d)

make an order in writing requiring the person in breach to take such steps as the Bank may direct to mitigate the effect of such breach; or

(e)

make an order in writing requiring the prescribed institution to remedy the breach including making restitution to any other person aggrieved by such breach.

(4)

The

Bank may impose a monetary penalty under paragraph (3)(b) only in respect of the following:

(a)

breach of any provision set out in the Third Schedule;

(b)

breach of any requirement under any other provision of this

Act where no offence is provided for non-compliance of that requirement;

(c)

failure to comply with any requirement imposed under regulations made under this Act where no provision for

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imposition of penalty is provided for in accordance with paragraph 123(2)(b); or

(d)

failure to comply with any standards, order, direction, requirement, condition, specification, restriction or otherwise made or imposed pursuant to any provision set out in the Third Schedule.

(5)

If a breach is committed by a body corporate or unincorporate, any action under subsection (3) can be taken against a person—

(a)

who is its director, controller, officer or partner, or was purporting to act in any such capacity; or

(b)

who is concerned in the management of its affairs, at the time of the breach unless that person demonstrates that the breach was committed without his consent or connivance and that he exercised such diligence to prevent the breach as he ought to have exercised, having regard to the nature of his function in that capacity and to the circumstances.

(6)

If a breach is committed by a person—

(a)

who is a director, controller, officer or partner of a body corporate or unincorporate, or was purporting to act in any such capacity; or

(b)

who is concerned in the management of the affairs of a body corporate or unincorporate, an action under subsection (3) can be taken against the body corporate or unincorporate.

(7)

For the purposes of paragraph (3)(e), in determining whether or not any amount is to be paid by a person in breach, the Bank shall have regard to—

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(a)

whether or not one or more persons have suffered loss or been otherwise adversely affected as a result of the breach;

or

(b)

the profits that have accrued to such person in breach.

(8)

Any monetary penalty paid by a person in accordance with paragraph (3)(b) shall be paid into and form part of the Federal

Consolidated Fund.

(9)

Where a person fails to pay a monetary penalty imposed by the

Bank under paragraph (3)(b) within the period specified by the Bank, the penalty imposed by the Bank may be sued for and recovered as a civil debt due to the Government.

(10)

Where a person fails to remedy the breach including making restitution to any other person aggrieved by the breach under paragraph (3)(e), notwithstanding any other written law, the Bank may sue for and recover such sum as a civil debt due to the person aggrieved by the breach.

(11)

Nothing in this section shall preclude the Bank from taking any of the actions that it is empowered to take under this Act or any written law.

Lodgement of amount not distributed with Registrar of Unclaimed

Moneys