Money Services Business Act 2011 · Updated to 1 Oct 2015 · Part IV · Remittance Business
37. Customers’ funds to be kept separately
Official textFrom Laws of Malaysia Online, unchanged
A licensee who carries on remittance business shall maintain a designated account at a licensed bank for the purpose of remittance business with its customers.
licensed bank
“licensed bank” means— (a) a licensed bank with the same meaning as assigned to it in *section 2 of the Banking and Financial Institutions Act 1989; or (b) an Islamic bank with the same meaning as assigned to it in **section 2 of the Islamic Banking Act 1983;
A licensee who is carrying on remittance business shall deposit all moneys received from its customers for the purpose of remittance business into the account referred to in subsection (1) and such deposits shall be made no later than the next business day following the business day on which the moneys were received by the licensee.
A licensee shall not withdraw or utilise moneys from an account maintained under subsection (1) except—
money that has been paid into the account by the licensee for the purposes of opening or maintaining the account;
money properly required for making remittance to or on behalf of a customer;
money properly required for payment of the fees or charges of a licensee for rendering remittance services to a customer and the customer has been notified that any moneys held for him will be applied towards or in satisfaction of such fees and charges;
to provide refunds to customers of the remittance business of the licensee; or
any interest accruing, if applicable.
No money shall be paid into a designated account of a licensee maintained under subsection (1) except—
money
“fund” or “money” includes any unit of account or unit of value that facilitates the purchase of goods or services;
42 Laws of Malaysia
money which a licensee has paid into such an account for the purpose of opening or maintaining the account; or
money required by subsection (2) to be paid into such an account.
It shall be the duty of a licensee to withdraw any money wrongly deposited into its designated account maintained under subsection (1) in contravention of subsection (4) immediately upon discovery of the mistake.
The moneys in an account maintained under subsection (1)
shall not be liable to be attached, sequestered or levied upon for or in respect of any debt of a licensee or any claim whatsoever against a licensee.
Where a licensee is declared insolvent or is wound up by an order of a court, the moneys in an account maintained under subsection (1) shall not be deemed to form part of the property of the licensee.
A licensee who contravenes subsection (1), (2), (3), (4), (5) or
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.
Terms defined in s 2
licensed bank
Defined · s 2“licensed bank” means— (a) a licensed bank with the same meaning as assigned to it in *section 2 of the Banking and Financial Institutions Act 1989; or (b) an Islamic bank with the same meaning as assigned to it in **section 2 of the Islamic Banking Act 1983;
money
Defined · s 2“fund” or “money” includes any unit of account or unit of value that facilitates the purchase of goods or services;
Part V
Money Services Business Agents
Part VI
Examination
Part VII
Investigation and Enforcement
Part VIII
Other Powers of the Bank
Part IX
Miscellaneous
Part X