Islamic Financial Services Act 2013 · s 225

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225.
Measures relating to international and domestic transactions
(1) The Bank is empowered under this section to safeguard the balance of payments position and the value of the currency of
Malaysia.
(2) No person shall undertake or engage in any transaction set out in Schedule 14 except with the written approval of the Bank.
(3) Subject to any direction issued by the Bank under paragraph (6)(e), the prohibition in subsection (2) in respect of the transactions in paragraph 1 of Schedule 14 shall not apply to any licensed Islamic bank.
(4) Unless otherwise expressly provided in this section and
Schedule 14, subsection (2) shall apply to—
(a) all persons, classes, categories or descriptions of persons including their nominees or any person acting on their behalf  notwithstanding that they are not in Malaysia; and
(b) all acts that are committed in or outside Malaysia including any act which involves, is in association with, or is preparatory to, the transactions set out in Schedule 14.
(5) The Bank in granting any written approval under subsection (2) may impose any requirement, restriction or condition in respect of the transactions in Schedule 14.
(6) The Bank may issue direction to—
(a) declare that a person is to be treated as a resident or a non-resident notwithstanding the definition of “resident” or
“non-resident” in section 224;

Islamic Financial Services                              203
(b) require any person to submit any document or information to the Bank or any person as may be specified by the
Bank;
(c) require any payment to be made into a designated account and direct the use of such fund in the designated account as may be specified by the Bank;
(d) require any person who is entitled to sell, or to procure the sale of, any foreign currency, gold or other precious metals, to offer it, or cause it to be offered, for sale to a licensed Islamic bank or any person as may be specified by the Bank;
(e) require a licensed Islamic bank to undertake or engage in the transactions in paragraph 1 of Schedule 14 on such terms as may be specified by the Bank;
(f) require a licensed Islamic bank, or any other person to administer or ensure compliance with this section on such terms as may be specified by the Bank; or
(g) require any person to do or refrain from doing any act for the purpose of securing compliance with this section.
(7) Any written approval granted under subsection (2) and any direction issued under subsection (6) shall apply to such persons, classes, categories or descriptions of persons as may be specified by the Bank in that written approval and direction, as the case may be.
(8) Subsection (2) shall not affect the enforcement by the parties of their rights under a qualified financial agreement.
(9) Except for paragraph 7 in Schedule 14, any person who contravenes subsection (2) or fails to comply with any requirement, restriction or condition imposed under a written approval granted under subsection (2) or any direction issued under subsection (6)
commits an offence under this Act 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.

204
(10) Any ringgit, foreign currency, gold, other precious metals,
Islamic security or Islamic financial instrument or any other article which is subject to a prohibition under subsection (2) in respect of the transactions in paragraph 7 of Schedule 14 shall be deemed to be prohibited goods under the Customs Act 1967 [Act 235] and any person who fails to comply with such prohibition or any requirement, restriction or condition imposed under a written approval granted under subsection (2) commits an offence under that Act and shall, on conviction, be liable to the penalty provided in that Act.

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s 225Measures relating to international and domestic transactions

(1)

The Bank is empowered under this section to safeguard the balance of payments position and the value of the currency of

Malaysia.

(2)

No person shall undertake or engage in any transaction set out in Schedule 14 except with the written approval of the Bank.

(3)

Subject to any direction issued by the Bank under paragraph (6)(e), the prohibition in subsection (2) in respect of the transactions in paragraph 1 of Schedule 14 shall not apply to any licensed Islamic bank.

(4)

Unless otherwise expressly provided in this section and

Schedule 14, subsection (2) shall apply to—

(a)

all persons, classes, categories or descriptions of persons including their nominees or any person acting on their behalf notwithstanding that they are not in Malaysia; and

(b)

all acts that are committed in or outside Malaysia including any act which involves, is in association with, or is preparatory to, the transactions set out in Schedule 14.

(5)

The Bank in granting any written approval under subsection (2) may impose any requirement, restriction or condition in respect of the transactions in Schedule 14.

(6)

The Bank may issue direction to—

(a)

declare that a person is to be treated as a resident or a non-resident notwithstanding the definition of “resident” or

“non-resident” in section 224;

Islamic Financial Services 203

(b)

require any person to submit any document or information to the Bank or any person as may be specified by the

Bank;

(c)

require any payment to be made into a designated account and direct the use of such fund in the designated account as may be specified by the Bank;

(d)

require any person who is entitled to sell, or to procure the sale of, any foreign currency, gold or other precious metals, to offer it, or cause it to be offered, for sale to a licensed Islamic bank or any person as may be specified by the Bank;

(e)

require a licensed Islamic bank to undertake or engage in the transactions in paragraph 1 of Schedule 14 on such terms as may be specified by the Bank;

(f)

require a licensed Islamic bank, or any other person to administer or ensure compliance with this section on such terms as may be specified by the Bank; or

(g)

require any person to do or refrain from doing any act for the purpose of securing compliance with this section.

(7)

Any written approval granted under subsection (2) and any direction issued under subsection (6) shall apply to such persons, classes, categories or descriptions of persons as may be specified by the Bank in that written approval and direction, as the case may be.

(8)

Subsection (2) shall not affect the enforcement by the parties of their rights under a qualified financial agreement.

(9)

Except for paragraph 7 in Schedule 14, any person who contravenes subsection (2) or fails to comply with any requirement, restriction or condition imposed under a written approval granted under subsection (2) or any direction issued under subsection (6)

commits an offence under this Act 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.

204

(10)

Any ringgit, foreign currency, gold, other precious metals,

Islamic security or Islamic financial instrument or any other article which is subject to a prohibition under subsection (2) in respect of the transactions in paragraph 7 of Schedule 14 shall be deemed to be prohibited goods under the Customs Act 1967 [Act 235] and any person who fails to comply with such prohibition or any requirement, restriction or condition imposed under a written approval granted under subsection (2) commits an offence under that Act and shall, on conviction, be liable to the penalty provided in that Act.