Section 2

statute;

charter;

memorandum of association;

articles of association;

constitution;

rules or by-laws; and

partnership agreement;

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“Deputy Governor” means a Deputy Governor of the Bank;

“derivative” means any agreement, including an option, a swap, futures or forward contract, whose market price, value, delivery or payment obligations is derived from, referenced to or based on, but not limited to, securities, commodities, assets, rates (including interest rates, profit rates or exchange rates) or indices;

“director” means a director of the Bank appointed under subsection 16(1), and includes the Governor and the Deputy Governors;

“financial collateral” means any of the following that is subject to an interest or a right that secures payment or performance of an obligation in respect of a qualified financial agreement or that is subject to a title transfer credit support agreement:

cash or cash equivalents, including negotiable instruments and demand deposits;

security, a securities account or a right to acquire securities;

or

futures agreement or futures account;

“financial institution” means a person carrying on a financial business regulated under the laws enforced by the Bank and in addition includes any—

person who operates any payment system or issues any payment instrument; and

person carrying on any other financial business as the

Minister may prescribe;

“financial markets” includes the money market, the foreign exchange market, the capital market and the derivatives market;

“Financial Stability Executive Committee” means the Financial

Stability Executive Committee established under section 37;

14 Laws of Malaysia ACT 701

“financing” means the giving of any advance, loan, credit or other facility in whatever form or by whatever name called, including the giving of a guarantee or undertaking of any surety obligations for another person and where such financing is extended in accordance with the Shariah shall include, and may be in the form of, without limitation, any sale or purchase arrangement, joint venture arrangement, deferred payment sale, return sharing arrangement or any other financing arrangement made in accordance with the Shariah;

“foreign currency” means currency notes or coins which are legal tender in any country, territory or place outside Malaysia and any reference to foreign currency in this Act includes a reference to any right to receive foreign currency in respect of any credit or balance at a bank or any other similar institution in or outside Malaysia;

“Governor” means the Governor of the Bank;

“international financial institution” means any institution which is established in or outside Malaysia by more than one country, central bank or monetary authority in relation to financial or monetary matters and includes the Asian Development Bank, the Bank for International

Settlements, the International Bank for Reconstruction and

Development, the International Monetary Fund, the Islamic

Development Bank and the Islamic Financial Services Board;

“Islamic financial business” means any financial business in ringgit or other currency which is subject to the laws enforced by the Bank and consistent with the Shariah;

“Islamic financial institution” means a financial institution carrying on Islamic financial business;

“Minister” means the Minister charged with the responsibility for finance;

“Monetary Policy Committee” means the Monetary Policy

Committee established under section 23;

“officer” means any officer of the Bank appointed under section 83;

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“payment systems” means any system or arrangement for the transfer, clearing or settlement of funds or securities;

“prescribed” means prescribed under the Act from time to time by order published in the Gazette;

“qualified financial agreement” means—

a master agreement in respect of one or more qualified financial transactions under which if certain events specified by the parties to the agreement occur—

the transactions referred to in the agreement terminate or may be terminated;

an agreement relating to financial collateral, including a title transfer credit support agreement, with respect to one or more qualified financial transactions under a master agreement referred to in paragraph (a); or

any other agreement in respect of a financial transaction that may be entered into by parties in the financial markets that is prescribed as a qualified financial agreement by the Bank, other than a standardized derivative or an agreement in respect of securities transactions entered into under the rules

16 Laws of Malaysia ACT 701

of a stock exchange and approved clearing house as defined in subsection 2(1) of the Capital Markets and Services Act 2007 [Act 671];

“qualified financial transaction” means—

a derivative, whether to be settled by payment or delivery;

or

a repurchase, reverse repurchase or buy-sell back agreement with respect to securities;

“related corporation”, in relation to a corporation, means a corporation which is deemed to be related to the first-mentioned corporation under section 6 of the *Companies Act 1965 [Act 125];

“repealed Act” means the Central Bank of Malaysia Act 1958

[Act 519];

“return” includes any form of rental, profit, dividend or benefit, including any fee or gift, payable or to be given in relation to financing extended in accordance with the Shariah;

“Shariah Advisory Council” means the Shariah Advisory Council on

Islamic Finance established under section 51;

“specified” means specified under the Act from time to time in writing;

“supervisory authority” means any authority, body or agency in or outside Malaysia other than the Bank which is responsible for the supervision or oversight of any financial institution, financial market, capital market intermediary or participant or payment system;

“title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing

*NOTE—The Companies Act 1965 [Act 125] has since been repealed by the Companies Act 2016

[Act 777] which come into operation on 31 January 2017–see subsection 620(1) of Act 777.

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the payment or performance of an obligation in respect of a qualified financial agreement.

For the purposes of this Act—

“Board Committees” refers collectively to the committees of the

Board established under section 21;

“financial business” refers collectively to conventional financial business and Islamic financial business;

“financial system” refers collectively to financial institutions, capital market intermediaries or participants, financial markets and payment systems in Malaysia.

For the purposes of this Act—

A reference to a financial institution or person includes a reference to a class, category or description of such institution or person.

Where under this Act, power is given to the Bank to require any person, or where any person is required under this Act, to submit to the

Bank any data, information or document—