Islamic Financial Services Act 2013 · s 153

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153.
Prohibited conduct in Islamic money market and Islamic foreign exchange market
(1) No person shall—

Islamic Financial Services                              149
(a) engage in any conduct or activities in the Islamic money market or the Islamic foreign exchange market which is contrary to Shariah;
(b) take part in or carry out a transaction that has or is likely to have the effect of creating a rate which is an off-market rate which results in an artificial rate for dealing in Islamic financial instruments in the Islamic money market or
Islamic foreign exchange market;
(c) create, or cause to be created, or do anything that is calculated to create, a false or misleading appearance of active dealing in Islamic financial instruments in the
Islamic money market or Islamic foreign exchange market;
(d) make a statement, or disseminate information that is false or misleading in a material particular and is likely to induce another person to deal in Islamic financial instruments or is likely to have the effect of raising, lowering, maintaining or stabilising the market rate of such Islamic financial instruments in the Islamic money market or Islamic foreign exchange market and when the person makes the statement, or disseminates the information—
(i) the person does not exercise due care whether the statement or information is true or false; or
(ii) the person knows, or ought reasonably to have known, the statement or information is false or is materially misleading;
(e) take part in or carry out a transaction based on information that is not generally available to persons who regularly deals in the Islamic money market or Islamic foreign exchange market that would, or would tend to, have a material effect on the price or value of Islamic financial instruments; or
(f) engage in any other conduct relating to Islamic money market or Islamic foreign exchange market as may be

150
prescribed by the Minister, on the recommendation of the
Bank.
(2) Without limiting the generality of section 277, the Bank may issue guidance in writing on—
(a) descriptions of conduct which amount to; or
(b) factors that are to be taken into account in determining whether a person has engaged in, any conduct set out in subsection (1).
(3) Any person who contravenes 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.

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s 153Prohibited conduct in Islamic money market and Islamic foreign exchange market

(1)

No person shall—

Islamic Financial Services 149

(a)

engage in any conduct or activities in the Islamic money market or the Islamic foreign exchange market which is contrary to Shariah;

(b)

take part in or carry out a transaction that has or is likely to have the effect of creating a rate which is an off-market rate which results in an artificial rate for dealing in Islamic financial instruments in the Islamic money market or

Islamic foreign exchange market;

(c)

create, or cause to be created, or do anything that is calculated to create, a false or misleading appearance of active dealing in Islamic financial instruments in the

Islamic money market or Islamic foreign exchange market;

(d)

make a statement, or disseminate information that is false or misleading in a material particular and is likely to induce another person to deal in Islamic financial instruments or is likely to have the effect of raising, lowering, maintaining or stabilising the market rate of such Islamic financial instruments in the Islamic money market or Islamic foreign exchange market and when the person makes the statement, or disseminates the information—

(i)

the person does not exercise due care whether the statement or information is true or false; or

(ii)

the person knows, or ought reasonably to have known, the statement or information is false or is materially misleading;

(e)

take part in or carry out a transaction based on information that is not generally available to persons who regularly deals in the Islamic money market or Islamic foreign exchange market that would, or would tend to, have a material effect on the price or value of Islamic financial instruments; or

(f)

engage in any other conduct relating to Islamic money market or Islamic foreign exchange market as may be

150

prescribed by the Minister, on the recommendation of the

Bank.

(2)

Without limiting the generality of section 277, the Bank may issue guidance in writing on—

(a)

descriptions of conduct which amount to; or

(b)

factors that are to be taken into account in determining whether a person has engaged in, any conduct set out in subsection (1).

(3)

Any person who contravenes 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.