Malaysia legislation

Section 62

of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010

Section 62

Islamic banking business other than the Labuan Islamic investment banking business unless—

(a)

it is a Labuan company or a foreign Labuan company, established or registered for the sole and exclusive purpose of carrying on Labuan Islamic investment banking business only in any location permitted by the

Authority; or

(b)

it is a Malaysian bank, and holds a valid licence to carry on such business.

(2)

Subsection (1) shall not apply to a bank licensee unless the bank licensee obtains the prior approval of the Authority to carry on Labuan Islamic investment banking business.

(3)

Any person who contravenes subsection (1) commits and offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a continuing offence, shall, in addition, be liable to a daily fine not exceeding ten thousand ringgit for each day the offence continues to be committed.

Application for licence to carry on Labuan Islamic banking business

Section 62 — LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010