Section 171

commence to operate any payment system in, from or through Labuan; or

where such person has been operating any payment system in, from or through Labuan immediately before the coming into operation of this Act, continue to operate such system, unless he has submitted for the approval of the Authority the scheme of operations of the payment system and the rules, contract, by-laws or other documents relating to the rights, duties and liabilities of the persons participating in the payment system and obtained the authorization in writing of the Authority to operate the payment system.

Before making any decision under subsection (1), the

Authority may require the person seeking authorization to submit to the Authority such other information and particulars relating to the payment system or to the person seeking the authorization, or to the persons who are or will be participating in the payment system, as the Authority may specify, and may also make such inspection of the premises, equipment, machinery, books or other documents, accounts and transactions relating to the payment system as the Authority may consider desirable.

The Authority may approve or reject a scheme submitted under subsection (1) and the rules, contract, by-laws or other documents relating to the scheme and submitted with the scheme or may approve the same subject to such modifications and alterations to the scheme, or to any or all such documents submitted therewith, as it may deem necessary, desirable or expedient, and may in giving any authorization under this section, impose such restrictions, limitations, or conditions as it may deem fit.

Act 704

Notwithstanding anything contained in any authorization given, or in any scheme or document approved, under subsection (3), any person authorized under that subsection shall comply with any regulations made under this Act relating to payment systems, and where there is any conflict or inconsistency between the terms of such authorization or anything in such scheme or in any such document and such regulations, the provisions of the regulations shall prevail and have full force and effect.

While an authorization under subsection (3) is in force, the

Authority may, from time to time, inspect the premises, equipment, machinery, books or other documents, accounts or transactions relating to the payment system.

The Authority may, at any time, after giving the person authorized under subsection (3) a reasonable opportunity to make representations, revoke or suspend, or amend anything contained in, an authorization granted under that subsection.

In making any revocation under subsection (6), the Authority may include requirements of a consequential, ancillary or incidental nature to be complied with by the person whose authorization is being revoked or by any person participating in the system, and in making any suspension under that subsection, the Authority may impose such terms, conditions and requirements as it deems necessary or expedient.

Any person whose authorization is revoked or suspended under subsection (6) shall immediately cease to operate the payment system in respect of which the authorization was revoked or suspended.

No Labuan licensed entity shall be granted an approval to operate any payment system under this section.

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