Malaysia legislation
Section 134
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 134
(2)
An internal auditor appointed by an Islamic bank licensee or a takaful licensee to carry out an internal audit of its books and operations under subsection (1) shall, for the purposes of this Part be deemed to be an officer of an Islamic bank licensee or the takaful licensee respectively and shall, at all times, be subjected to the requirements of section 139.
(3)
An internal audit may be carried on by any persons except an external auditor of the Islamic bank licensee or takaful licensee, as the case may be, under section 135.
(4)
An internal auditor shall immediately report to the Authority if, in the course of his duties as an internal auditor of an Islamic bank licensee or takaful licensee, he is satisfied that—
(a)
there has been a contravention of the provisions of this
Act or that an offence under any written laws has been committed by the Islamic bank licensee or takaful licensee or any of its officers or employees; or
(b)
any irregularity which jeopardizes the interests of the creditors of the Islamic bank licensee or the takaful licensee, or, in the case of the takaful licensee, the interests of the policy owners, or any other serious irregularity, has occurred.
(5)
Any persons who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding five years or to both.
External auditor