Section 15
of Financial Services Act 2013
Section 15
Upon an application to the Bank and where the Bank has granted its written approval—
(a)
a licensed bank or licensed investment bank may carry on
Islamic banking business;
(b)
an approved insurance broker may carry on takaful broking business;
(c)
an approved financial adviser may carry on Islamic financial advisory business;
(d)
an operator of a designated payment system or approved operator of a payment system may facilitate participants
58 Laws of Malaysia engaged in Islamic financial business to transfer, clear or settle funds or securities; or
(e)
an approved issuer of a designated payment instrument may issue a designated Islamic payment instrument.
(2)
A person approved under subsection (1) shall be subject to—
(a)
the provisions of the Islamic Financial Services Act 2013, in particular the provisions of Parts IV, VI, IX, X and XIII of the Act, in so far as those provisions relate to the business such person is approved to carry on under that subsection;
and
(b)
any standards, notices, directions, conditions, specifications or requirements specified or made under that Act relating to the business such person is approved to carry on under that subsection.
(3)
Without limiting the generality of subsection (2), a licensed bank or licensed investment bank approved under subsection (1) shall, for the purposes of carrying on Islamic banking business—
(a)
establish and maintain at all times an Islamic banking fund with such minimum amount as may be specified by the Bank to fund the operations of its Islamic banking business; and
(b)
keep all assets and liabilities of its Islamic banking business separate from its other assets and liabilities in such manner as may be specified by the Bank.
(4)
The Islamic banking fund established under paragraph (3)(a)
shall—
(a)
be funded from the capital funds of the licensed bank or licensed investment bank and other sources of funds as may be specified by the Bank; and
Financial Services 59
(b)
be segregated from the capital funds of the licensed bank or licensed investment bank for the operations of its licensed business under this Act.
(5)
Unless otherwise specified by the Bank, the assets of a licensed bank or licensed investment bank in relation to its Islamic banking business shall not be—
(a)
used to fund the operations of its licensed business under this
Act; and
(b)
subject to the debts or other obligations of the licensed bank or licensed investment bank in relation to its licensed business under this Act.
(6)
An operator of a designated payment system or approved operator of a payment system who has obtained the approval of the
Bank under subsection (1) shall—
(a)
put in place operational arrangements of the payment system, including liquidity facilities which are; or
(b)
ensure its business conduct is, not contrary to Shariah in so far as the operational arrangements and the business conduct relate to the business which such operator is approved to carry on under subsection (1).
(7)
The board of directors of—
(a)
a licensed bank or licensed investment bank; or
(b)
an approved person or operator of a designated payment system which is required by the Bank under subsection 30(3)
of the Islamic Financial Services Act 2013 to establish a
Shariah committee, shall, without prejudice to section 56, have due regard to the advice of its Shariah committee in respect of the Islamic financial business carried on by the person.
60 Laws of Malaysia
(8)
For the purposes of this section—
“designated Islamic payment instrument”, “Islamic banking business”, “Islamic financial advisory business”, “Shariah committee”
and “takaful broking business” have the same meaning as defined in subsection 2(1) of the Islamic Financial Services Act 2013;
“Islamic financial business” has the same meaning as defined in subsection 2(1) of the Central Bank of Malaysia Act 2009.
(9)
Any person who fails to obtain the approval of the Bank to carry on any business referred to under subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.