Money Services Business Act 2011 · s 73

Suggest a correction

Tell us what is wrong in this text. We check every suggestion against the official version before we change anything.

What is wrong?Wrong or mistyped wordsWrong structure or numberingWrong title or detailsText that appears twice

What should change, and whyUp to 2,000 characters.The text as it should read (optional)

73.
Power of the Bank to issue directives
(1)
Where the Bank is of the opinion that—
(a) a licensee or money services business agent—

72                                          Laws of Malaysia
(i) is carrying on money services business in a manner detrimental to the interests of its customers or the public generally;
(ii) is contravening or has contravened any provision of this Act or any regulations made under this Act;
(iii) has failed to comply with any guidelines, circulars, standards or notices issued by the Bank under section 74, as the case may be; or
(iv) has become or is likely to become unable to meet all or any of its obligations under this Act; or
(b) it is necessary to do so as a result of any examination or investigation under this Act, the Bank may issue a directive in writing to—
(A) prohibit a licensee or money services business agent from carrying on all or such part of its business as may be set out in the directive;
(B) prohibit the licensee or money services business agent from doing or performing any act or function connected with all or such part of its business as may be set out in the directive;
(C) suspend the business of a licensee or money services business agent to such extent and for such period as may be necessary to give effect to the prohibitions under paragraph (A) or (B);
(D) empower the Bank to take into its custody or control, document, property or effects of the licensee or money services business agent of a licensee; or

Money Services Business                                      73
(E) require a licensee or money services business agent to take any step, take any action, do or refrain from doing any act or thing, whatsoever, which in the opinion of the Bank is necessary to remedy the situation, as the case may be.
(2)
In giving any directive under subsection (1), the Bank may include requirements of a consequential, ancillary or incidental nature to be complied with by the licensee or money services business agent and the Bank may impose such terms, conditions and requirements as the Bank deems fit.
(3)
Where the Bank proposes to issue a written directive under subsection (1) to a licensee or money services business agent, the
Bank shall give such person written notice setting out the proposed action and the grounds for such action.
(4)
The licensee or money services business agent shall be given an opportunity to make written representation to the Bank within fourteen days from the date of the written notice.
(5)
Where the Bank considers that any delay in giving the directive to a licensee or money services business agent under this section would be detrimental to the interests of customers or the public, the Bank may give the directive and the opportunity to make representation under subsection (4) shall be given immediately after the decision to give the directive has been made and in consequence of the representation, the Bank, may confirm or revoke the directive.
(6)
Where no written representation is received by the Bank within the period specified under subsection (4), the Bank shall proceed with the proposed action under subsection (3) by written notice.
(7)
Where written representation is received, the Bank shall, after considering the representation, give the licensee or money services business agent written notice of its decision.

74                                          Laws of Malaysia
(8)
A decision to take action under subsection (6) or (7) shall take effect immediately or at any date as the Bank may specify in its written notice, as the case may be.
(9)
Where the Bank decides under subsection (7) not to take any action, the Bank may impose such conditions on the licensee or money services business agent, as the case may be, as it may specify in the directive given under that subsection.
(10) The licensee or money services business agent shall comply with any directive issued under this section within such time as the
Bank may determine.
(11) A licensee or money services business agent shall cease its business where the proposed action or decision taking effect under subsection (8) relates to the suspension of the business, and such suspension shall not operate as to affect—
(a) any agreement, transaction or arrangement relating to the business entered into by the licensee or money services business agent, as the case may be; or
(b) any right, claim, obligation or liability arising under any such agreement, transaction or arrangement, as the case may be, prior to the suspension of the business.
(12) The satisfaction of the Bank under subsection (1) that any of the provisions of this Act or any regulations made under this Act has been contravened or that any guidelines, circulars, standards or notices has not been complied with by a licensee or money services business agent may be arrived at regardless as to whether or not there is any prosecution for the contravention or non-compliance.
(13) A licensee or money services business agent shall not have any claim whatsoever against the Bank or be entitled to compensation from the Bank for any damage or loss suffered by or caused to him by such directives issued by the Bank under subsection (1).

Money Services Business                                      75
(14) Any person who—
(a) fails to comply with any condition imposed under subsection (9) commits an offence; or
(b) contravenes subsection (10) commits an offence and shall, on conviction, be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding ten years or to both.

Edit the text above. Up to 20,000 characters.Where you checked it (optional)A link to the official version, if you have one.

The text as we hold it

Open the official text

s 73Power of the Bank to issue directives

(1)

Where the Bank is of the opinion that—

(a)

a licensee or money services business agent—

72 Laws of Malaysia

(i)

is carrying on money services business in a manner detrimental to the interests of its customers or the public generally;

(ii)

is contravening or has contravened any provision of this Act or any regulations made under this Act;

(iii)

has failed to comply with any guidelines, circulars, standards or notices issued by the Bank under section 74, as the case may be; or

(iv)

has become or is likely to become unable to meet all or any of its obligations under this Act; or

(b)

it is necessary to do so as a result of any examination or investigation under this Act, the Bank may issue a directive in writing to—

(A)

prohibit a licensee or money services business agent from carrying on all or such part of its business as may be set out in the directive;

(B)

prohibit the licensee or money services business agent from doing or performing any act or function connected with all or such part of its business as may be set out in the directive;

(C)

suspend the business of a licensee or money services business agent to such extent and for such period as may be necessary to give effect to the prohibitions under paragraph (A) or (B);

(D)

empower the Bank to take into its custody or control, document, property or effects of the licensee or money services business agent of a licensee; or

Money Services Business 73

(E)

require a licensee or money services business agent to take any step, take any action, do or refrain from doing any act or thing, whatsoever, which in the opinion of the Bank is necessary to remedy the situation, as the case may be.

(2)

In giving any directive under subsection (1), the Bank may include requirements of a consequential, ancillary or incidental nature to be complied with by the licensee or money services business agent and the Bank may impose such terms, conditions and requirements as the Bank deems fit.

(3)

Where the Bank proposes to issue a written directive under subsection (1) to a licensee or money services business agent, the

Bank shall give such person written notice setting out the proposed action and the grounds for such action.

(4)

The licensee or money services business agent shall be given an opportunity to make written representation to the Bank within fourteen days from the date of the written notice.

(5)

Where the Bank considers that any delay in giving the directive to a licensee or money services business agent under this section would be detrimental to the interests of customers or the public, the Bank may give the directive and the opportunity to make representation under subsection (4) shall be given immediately after the decision to give the directive has been made and in consequence of the representation, the Bank, may confirm or revoke the directive.

(6)

Where no written representation is received by the Bank within the period specified under subsection (4), the Bank shall proceed with the proposed action under subsection (3) by written notice.

(7)

Where written representation is received, the Bank shall, after considering the representation, give the licensee or money services business agent written notice of its decision.

74 Laws of Malaysia

(8)

A decision to take action under subsection (6) or (7) shall take effect immediately or at any date as the Bank may specify in its written notice, as the case may be.

(9)

Where the Bank decides under subsection (7) not to take any action, the Bank may impose such conditions on the licensee or money services business agent, as the case may be, as it may specify in the directive given under that subsection.

(10)

The licensee or money services business agent shall comply with any directive issued under this section within such time as the

Bank may determine.

(11)

A licensee or money services business agent shall cease its business where the proposed action or decision taking effect under subsection (8) relates to the suspension of the business, and such suspension shall not operate as to affect—

(a)

any agreement, transaction or arrangement relating to the business entered into by the licensee or money services business agent, as the case may be; or

(b)

any right, claim, obligation or liability arising under any such agreement, transaction or arrangement, as the case may be, prior to the suspension of the business.

(12)

The satisfaction of the Bank under subsection (1) that any of the provisions of this Act or any regulations made under this Act has been contravened or that any guidelines, circulars, standards or notices has not been complied with by a licensee or money services business agent may be arrived at regardless as to whether or not there is any prosecution for the contravention or non-compliance.

(13)

A licensee or money services business agent shall not have any claim whatsoever against the Bank or be entitled to compensation from the Bank for any damage or loss suffered by or caused to him by such directives issued by the Bank under subsection (1).

Money Services Business 75

(14)

Any person who—

(a)

fails to comply with any condition imposed under subsection (9) commits an offence; or

(b)

contravenes subsection (10) commits an offence and shall, on conviction, be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding ten years or to both.