CURRENCY ACT 2020

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different Parts or provisions of this Act.

Interpretation

the sorting of currency note or currency coin by authenticity or quality; or

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the packing of currency note or currency coin by quality, quantity or denomination;

“Bank” has the same meaning assigned to it in subsection 2(1)

of the Central Bank of Malaysia Act 2009 [Act 701];

“Governor” means the Governor of the Bank;

“financial institution” means—

a licensed bank under the Financial Services Act 2013

[Act 758], a licensed Islamic bank under the Islamic

Financial Services Act 2013 [Act 759] and a prescribed institution under the Development Financial Institutions

Act 2002 [Act 618]; or

any person declared as a financial institution in the

First Schedule;

“instruments and materials” includes—

relating to currency note, origination film, progressive, plate, proof, and unprinted, semi-printed or finished currency note;

relating to currency coin, design, mould, lettering wheel, punch, collar, die, working tool, rimming and lettering block, coin blank and finished currency coin; and

any apparatus, equipment and machinery which are related to the issuance, printing or minting of currency note or currency coin;

“Monetary Penalty Review Committee” means the Monetary

Penalty Review Committee established under section 238 of the

Financial Services Act 2013;

“computer” has the same meaning assigned to it in section 3

of the Evidence Act 1950 [Act 56];

“currency note” means a note issued by the Bank including a commemorative note issued by the Bank for, or to commemorate, a particular event or purpose;

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“currency coin” means a coin issued by the Bank including a commemorative coin issued by the Bank for, or to commemorate, a particular event or purpose;

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

“person” means any natural person, corporation, statutory body, local authority, society, trade union, co-operative society, partnership or any other body, organisation, association or group of persons, whether corporate or unincorporated and includes the

Government and any State Government;

“computer output” means a statement or representation, whether in written, printed, pictorial, film, graphical, acoustic or other form—

produced by a computer;

displayed on the screen of a computer; or

accurately translated from a statement or representation so produced;

“registered currency processor” means a person registered under subsection 26(1) to carry on a currency processing business and for the purpose of Division 3 of Part IV includes any financial institution carrying on currency processing activities;

“currency processing business” means—

the business of—

collecting currency note or currency coin;

any activity declared as a currency processing business under section 23.

A currency note shall be deemed defaced—

A currency coin shall be deemed tampered with—

The Governor shall exercise such powers and perform such functions of the Bank under this Act on behalf of the Bank.

The Bank may, either generally or in a particular case, appoint any person, including an officer of the Bank, whether in or outside Malaysia—

The Bank shall arrange for the printing of currency note and the minting of currency coin.

Issuance, reissuance and exchange of currency at office, etc., established by Bank

shall be in such denomination of ringgit or sen; and

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shall be of such form, characteristics or design, or bear such feature or device, as approved by the Minister, on the recommendation of the

Bank.

The standard weight and composition of currency coin issued by the Bank and the amount of remedy and variation shall be as approved by the Minister, on the recommendation of the

Bank.

Legal tender

The currency note and currency coin referred to in subsection (1)

shall be legal tender at its face value for a payment not exceeding the maximum aggregate quantity or value of currency note or currency coin as specified in the Second Schedule.

Sale of currency

Any proceeds from the sale of currency note or currency coin pursuant to subsection (1) shall be considered as an income to the Bank.

Safe custody of unissued currency, etc.

arrange for the safe custody of unissued currency note or currency coin; and

prepare and keep instruments and materials used for the issuance, printing or minting of currency note or currency coin.

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Power to call in currency

Upon the expiration of the notice, the currency note or currency coin to which the notice applies shall cease to be legal tender.

Notwithstanding subsection (2), the Bank shall be liable for the face value of any currency note or currency coin upon presentation at the office of the Bank or at any agency as the

Bank may establish or appoint for such purpose.

Withdrawal of currency

any currency note including currency note which is defaced or unfit for circulation;

any currency coin including currency coin which is worn or tampered with; and

any currency note and currency coin which have been called in pursuant to section 13.

Disposal of currency or printing and minting instruments

The Bank shall arrange for the destruction of instruments and materials used for the issuance, printing or minting of currency note or currency coin in such manner as the Bank deems fit.

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Refund of lost, stolen or imperfect currency

of any currency note and currency coin which is lost, stolen or imperfect;

of any currency note which is defaced; or

of any currency coin which has been tampered with.

Notwithstanding subsection (1), the Bank may, at its discretion, refund the value—

enter into a contract or other arrangement with a financial institution or a registered currency processor; or

take any measures or facilitate any actions as the Bank deems fit.

For the purpose of subsection (1)—

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty million ringgit or imprisonment for a term not exceeding ten years or to both.

Restriction on use of photograph, drawing or design of currency in publication, etc.

use any photograph of or any drawing or design resembling a currency note or currency coin or any part thereof, in any publication in any size, scale or colour; or

import, manufacture, sell, circulate or otherwise distribute any merchandise or product containing a photograph, drawing or design resembling a currency note or currency coin or any part thereof in any size, scale or colour.

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Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit.

Prohibition from melting down of currency coin

The Bank may, in granting any authorization under subsection (1), impose any condition or restriction as the Bank deems fit.

Any person who contravenes subsection (1) or (2), commits an offence and shall, on conviction—

For the purpose of subsection (1)—

No person shall undertake or structure, or assist or participate in the structuring of, any transaction with the intention to avoid the application of subsection (1).

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Any person who contravenes subsection (1) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding three times the aggregate sum or value of the transaction at the time the offence was committed.

Non-application of section 21

made by a person with or through the Bank or a financial institution; or

approved by the Minister, on the recommendation of the Bank, in any exigent circumstances including the following:

humanitarian aid; or

carry on a currency processing business; or

hold itself out to be a registered currency processor, unless the person is registered under section 26.

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Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five million ringgit.

Application for registration

fulfill all requirements as prescribed by the Bank;

submit an application in such form and manner, together with any information and document as may be specified by the Bank; and

pay the processing fees as may be prescribed by the

Minister under section 60.

No person shall apply for registration to carry on a currency processing business unless the person is a company.

For the purpose of paragraph (1)(a), “prescribed” means to be prescribed by an order published in the Gazette, and the power to prescribe includes the power to prescribe differently for different persons or different classes, categories or descriptions of persons, and to amend any prescription.

Registration

An applicant shall not commence its currency processing business until the applicant is notified by the Bank of its registration under this Act.

Any person who contravenes subsection (2) commits an offence and shall, on conviction, be liable to a fine not exceeding five million ringgit.

Non-registration

The Bank shall, upon receipt of a notice under subsection (1), deregister a registered currency processor in accordance with the proposed effective date stated in the notice, if any, or such later date as the Bank deems fit.

The Bank shall notify a registered currency processor of the effective date of its voluntary deregistration under this section.

Deregistration by Bank

if the registered currency processor provided the Bank with false, misleading, inaccurate or incomplete information for the purpose of subsection 25(1);

if the registered currency processor has ceased from carrying on currency processing business;

if the registered currency processor commits a breach regardless no action has been taken in respect of the breach;

if the registered currency processor contravenes any provision of—

the Central Bank of Malaysia Act 2009;

the Islamic Financial Services Act 2013, regardless no prosecution or other action has been taken in respect of such contravention;

the director, chief executive officer or any person concerned with the operation or management of the registered currency processor is convicted of an offence under this

Act or an offence involving fraud or dishonesty under any other written law;

the registered currency processor has been wound-up or otherwise dissolved; or

a receiver or manager of the property of the registered currency processor has been appointed.

Opportunity to make representation for action under section 30

A registered currency processor who has received a notice under subsection (1) shall be given an opportunity to make a representation to the Bank within fourteen days from the date of the notice.

If at the end of the period set out in subsection (2)—

A deregistration under subsection (3) shall take effect on the date as may be specified by the Bank in its notice under subsection (3).

Where the Bank decides under paragraph (3)(b) to not deregister the registered currency processor, the Bank may impose any requirements on the registered currency processor as the Bank deems fit.

Effect of deregistration

A deregistration shall not affect any right, obligation or liability arising under, any agreement, arrangement or transaction entered into by the registered currency processor with any person prior to the deregistration.

A registered currency processor and a financial institution carrying on currency processing activities shall comply and ensure that its internal policies and procedures are consistent with any standards specified by the Bank under section 61, including standards on prudential practice, integrity, professionalism and expertise in the conduct of its business, affairs and activities.

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Duties of director and chief executive officer

No registered currency processor shall be entitled to a refund of any fees paid under subsection (1).

The Bank may sue any person to recover any unpaid fees under this Act as a civil debt due to the Government and the court may award the cost of recovering the unpaid fees to the

Bank.

Preservation of secrecy

No person, who for any reason, has by any means access to any information or document relating to the business or affairs of a customer of a registered currency processor, shall disclose to any person, such information or document unless approved by the Bank.

Subsections (1) and (2) shall not apply to any disclosure—

Any person who contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit or imprisonment for a term not exceeding three years or to both.

Detention of currency suspected to be counterfeit

the personal information of its legal or beneficial owner;

and

the personal information of its carrier or any person having in his possession the detained currency note or currency coin prior to the detention.

The person from whom the currency note or currency coin is detained under section 37 shall provide the information required under subsection (1) to the Bank, registered currency processor and financial institution.

Any person who contravenes subsection (2) commits an offence and shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit.

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Currency to be surrendered and information to be furnished, to police

No person shall be entitled to recover any compensation for any loss suffered by him due to the detention of currency note or currency coin under section 37.

Submission of document or information

The Bank may require any person to submit any document or information as specified by the Bank relating to—

Where any person is required to submit any document or information under subsection (1) or (2), the person shall submit document or information that is correct, accurate, complete and not misleading.

Any person who contravenes subsection (1), (2) or (3)

commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit.

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document, account or transaction;

computer, machinery, equipment or infrastructure; and

premises or office, relating to the currency processing business or currency processing activities of a registered currency processor or its agent.

For the purpose of subsection (1), the power to examine includes the power to—

allow access to any document, account, transaction, property, apparatus, equipment, machinery, computer, computer output, system, infrastructure, premises and office; and

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produce any document, account, transaction, property, apparatus, equipment, machinery, computer, computer output and system, to the Bank in the manner and within the time as specified by the Bank.

For the purpose of subsection (1), the person under an examination shall provide the Bank with the necessary key, password, encryption code, decryption code, software or hardware or any other means to enable the comprehension of any computer output, machinery, equipment or infrastructure.

Any person who contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit.

Appearance before Bank

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit.

any provision of this Act; or

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any regulations, standards, specifications, directions or requirements made under this Act.

Power to issue direction

it is necessary to do so as a result of any examination under this Act; or

the registered currency processor or the financial institution, or its director or chief executive officer, or any person concerned with its operation or management—

is carrying or has carried on currency processing business or currency processing activities in a manner detrimental to the interests of its customers or members of the public; or

For the purpose of subsection (1), the Bank may issue a direction to the registered currency processor or the financial institution relating to one or more of the following purposes:

reprimand the person in breach;

require the person in breach to issue a public statement in relation to such breach, if the Bank thinks that such breach is relevant for the information of members of the public;