Islamic Financial Services Act 2013 · s 168

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168.
Power to issue directions to institution
(1) Subject to section 273, the Bank may issue a direction in writing to the institution, its director, chief executive officer or senior officer, to cease or refrain from committing an act or pursuing a course of conduct or to do any act, in relation to its business, affairs or property if the Bank is of the opinion that it is necessary to remedy any of the circumstances in section 167.
(2) Without limiting the generality of subsection (1), the direction under subsection (1) may include—
(a) with respect to any institution, any one or more of the following directions:
(i) to vary or terminate any agreement or arrangement other than any qualified financial agreement entered into by the institution with any person in relation to its business, affairs or property;
(ii) to dispose of all or any of the investments or assets held by the institution in any body corporate;
(iii) to prohibit the institution from carrying on any part of its business including, imposing any limitation on or prohibiting the giving of financing facilities, the

162
making of investments, or in the case of a licensed
Islamic bank, the acceptance of Islamic deposits or acceptance of money under investment accounts, or in the case of licensed takaful operators, the entering into contracts of takaful;
(iv) to prohibit the institution from entering into any other transaction or class of transactions, or to enter into it subject to such restrictions or conditions as may be specified by the Bank; or
(v) to derecognize any income derived from any business or activity which is contrary to Shariah;
(b) with respect to an institution which is a licensed person, to increase its capital to such amount as may be specified by the Bank;
(c) with respect to an institution which is an approved operator of a payment system, approved issuer of a designated
Islamic payment instrument or operator of a designated payment system, any one or more of the following directions:
(i) to make any modification to such payment system or
Islamic payment instrument, as the case may be, including any operational arrangements;
(ii) cease to issue the designated Islamic payment instrument; or
(iii) cease to operate the designated payment system or a payment system set out in Part 1 of Schedule 1; and
(d) with respect to an institution which is a licensed takaful operator, to transfer from its shareholders’ fund to any takaful fund managed by it, such amount and in such form or manner as may be specified by the Bank.

Islamic Financial Services                              163

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s 168Power to issue directions to institution

(1)

Subject to section 273, the Bank may issue a direction in writing to the institution, its director, chief executive officer or senior officer, to cease or refrain from committing an act or pursuing a course of conduct or to do any act, in relation to its business, affairs or property if the Bank is of the opinion that it is necessary to remedy any of the circumstances in section 167.

(2)

Without limiting the generality of subsection (1), the direction under subsection (1) may include—

(a)

with respect to any institution, any one or more of the following directions:

(i)

to vary or terminate any agreement or arrangement other than any qualified financial agreement entered into by the institution with any person in relation to its business, affairs or property;

(ii)

to dispose of all or any of the investments or assets held by the institution in any body corporate;

(iii)

to prohibit the institution from carrying on any part of its business including, imposing any limitation on or prohibiting the giving of financing facilities, the

162

making of investments, or in the case of a licensed

Islamic bank, the acceptance of Islamic deposits or acceptance of money under investment accounts, or in the case of licensed takaful operators, the entering into contracts of takaful;

(iv)

to prohibit the institution from entering into any other transaction or class of transactions, or to enter into it subject to such restrictions or conditions as may be specified by the Bank; or

(v)

to derecognize any income derived from any business or activity which is contrary to Shariah;

(b)

with respect to an institution which is a licensed person, to increase its capital to such amount as may be specified by the Bank;

(c)

with respect to an institution which is an approved operator of a payment system, approved issuer of a designated

Islamic payment instrument or operator of a designated payment system, any one or more of the following directions:

(i)

to make any modification to such payment system or

Islamic payment instrument, as the case may be, including any operational arrangements;

(ii)

cease to issue the designated Islamic payment instrument; or

(iii)

cease to operate the designated payment system or a payment system set out in Part 1 of Schedule 1; and

(d)

with respect to an institution which is a licensed takaful operator, to transfer from its shareholders’ fund to any takaful fund managed by it, such amount and in such form or manner as may be specified by the Bank.

Islamic Financial Services 163