Malaysia legislation
Section 77
Section 77
Bank may not—
(a)
transactions between residents, non-residents or residents and non-residents, in ringgit or foreign currency, or involving gold, other precious metals, securities or other financial instruments including derivatives; or
(b)
the receipt, surrender or retention of foreign currency, gold or other precious metals:
Provided that any direction given or requirement imposed shall not affect the enforcement by the parties of their rights under a qualified financial agreement.
(2)
For the purposes of this section—
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“foreign currency” shall have the meaning as in subsection 2(1) and in addition includes any document of a kind intended to enable the person to whom the document is issued to obtain foreign currency from some other person on the credit of the person issuing it, and in particular to any traveller’s cheque or other draft or letter of credit so intended;
“non-resident” means—
(a)
any person other than a resident;
(b)
an overseas branch, subsidiary, regional office, sales office or representative office of a resident company;
(c)
Embassies, Consulates, High Commissions, supranational or international organizations;
(d)
a Malaysian citizen who has obtained permanent resident status of a country or territory outside Malaysia and is residing outside Malaysia; or
(e)
any other person as may be specified by the Bank to be a non-resident;
“person” means a natural person, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership or any other body, organization, association or group of persons, whether corporate or unincorporated and in addition includes the
Government, any State Government or any other government;
“resident” means—
(a)
a citizen of Malaysia, excluding a citizen who has obtained permanent resident status in a country or territory outside
Malaysia and is residing outside Malaysia;
(b)
a non-citizen of Malaysia who has obtained permanent resident status in Malaysia and is ordinarily residing in
Malaysia;
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(c)
a body corporate incorporated or established, or registered with or approved by any authority, in Malaysia;
(d)
an unincorporated body registered with or approved by any authority in Malaysia;
(e)
the Government or any State Government; or
(f)
any other person as may be specified by the Bank to be a resident;
“securities” means shares, stock, bonds, notes (other than promissory notes), debentures, debenture stock, units under a unit trust scheme, shares in an oil royalty, a secondary security and coupons whether in scripless form or in bearer certificates, including certificates of title to securities or any letter of allotment which may be renounced, any letter of rights, any warrants conferring an option to acquire a security, any deposit certificate in respect of securities and such other documents conferring, or containing evidence of, rights to securities as the Bank may prescribe;
“transactions” include—
(a)
buying or selling;
(b)
borrowing or lending;
(c)
payment, transfer or settlement;
(d)
issuance, transfer or substitution of securities;
(e)
giving or obtaining financial guarantee, indemnity or similar undertaking in respect of any debt, obligation or liability;
(f)
any act which involves, is in association with, or is preparatory to, the matters in paragraphs (a), (b), (c), (d),
(e)
and (g); or
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(g)
issuance of publication of advertisement of the matters in paragraphs (a), (b), (c), (d) and (e).
(3)
Any person who fails to comply with the directions or requirements of the Board under subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding ten years or to both.
Record of international accounts