Banking and Financial Institutions Act 1989 · As enacted · Part XV · General Provisions
Section 116
Official textFrom Laws of Malaysia Online, unchanged
The Bank may, with the approval of the Minister, from time to time, make such regulations as may be necessary or expedient for giving full effect to the provisions of this Act, for carrying out or achieving the objects and purposes of this Act or any provisions thereof, or for the further, better or more convenient implementation of the provisions of this Act.
Without prejudice to the generality of subsection (1), regulations may be made—
to provide for control by the Bank by supervision, regulation, restriction, prohibition, or otherwise howsoever, with respect to—
the acquisition or holding of any interest in the shares of any corporation, or the acquisition or development of any immovable property, or the acquisition of any interest in immovable property or in its development, by a licensed institution; or
the giving of any credit facility by a licensed institution to any person by way of consumer credit, or for the financing of commodity future contracts, the acquisition or holding of immovable property or any interest therein, or the acquisition or holding of any shares or any interest in shares;
to provide for a declaration to be made, from time to time, by every director, controller, officer, or other person responsible for the business or affairs, of a licensed institution, or a scheduled institution, or a foreign institution or a non-scheduled institution in respect of which the Minister has made an order under section 93(1), to such body of persons or such person, being a body or person related to such institution, as may be specified in the regulations—
of any interest in shares, or other interest or right whatsoever, held by, or on behalf of, or in trust for, such director, controller, officer, or other person, or any relative of his, in any corporation, or in any partnership, firm or other body unincorporate, other than that institution;
of any office of director or manager, or interest as agent, held by him in any body, whether corporate or unincorporate, or in any sole-proprietorship, or in any statutory body, other than that institution; or
of any other category, class or description of property, assets, interest, office, or position, held by him;
to provide for returns or information, periodical or otherwise, to be supplied by licensed institutions, or scheduled institutions or foreign institutions or non-scheduled institutions in respect of which the Minister has made an order under section 93 (1);
to provide for the-control of advertisements by licensed institutions, or scheduled institutions or foreign institutions or non-scheduled institutions in respect of which the Minister has made an order under section 93 (1);
to provide for the imposition of duties, liabilities, responsibilities, restrictions, limitations, prohibitions or sanctions, or the conferment of rights, privileges, benefits or indemnities, on the parties to any electronic fund transfer system set up, or operating, in Malaysia;
to provide for the setting-up, operation, or administration of, or any other matter whatsoever relating to, electronic fund transfer systems;
to provide for forms in respect of any matter under this Act, or under any regulations made under this section;
to provide for fees to be paid to the Bank in respect of any matter under this Act, or under any regulations made under this section;
to provide for any other matter which is required by any provision of this Act to be provided for by regulations.
Regulations made under this section may relate to all, or any class, category, or description of persons, and may make different provisions for different classes, categories or descriptions of persons.
References to "this Act" in this section shall not include any regulations, order or other subsidiary legislation made under this Act.
subsidiary
"subsidiary" has the meaning assigned thereto under section 5 of the Companies Act 1965.
Terms defined in s 2
controller
Defined · s 2"controller", in relation to an institution, means a person who— (a) has an interest in more than fifty per centum of the shares of the institution; (b) has the power to appoint or cause to be appointed a majority of the directors of the institution; or (c) has the power to make or cause to be made, decisions in respect of the business or administration of the institution, and to give effect to such decisions or cause them to be given effect to, and the word "control" shall be construed accordingly;
corporation
Defined · s 2"corporation" has the meaning assigned thereto by the Companies Act 1965;
credit facility
Defined · s 2"credit facility" means— (a) the giving of any advance, loan or other facility in whatever form or by whatever name called whereby the person to whom the same is given has access, directly or indirectly, to the funds of the person giving the same; (b) the giving of a guarantee in relation to the obligations of any person; or (c) any other dealing or transaction as may be prescribed by the Bank;
development
Defined · s 2"development" includes the commencement of any new industrial, agricultural, commercial or other economic venture or the expansion or improvement of any such existing venture; or (b) such other business as the Bank, with the approval of the Minister, may prescribe;
director
Defined · s 2"director" includes any person who occupies the position of a director, by whatever name called and, in particular, without prejudice to the foregoing, in the case of— (a) a corporation, has the meaning assigned thereto by the Companies Act 1965; (b) a co-operative society, means a member of the board, or other governing body howsoever called, of the co-operative society; (c) a statutory body, means a member of the board, committee, council or other governing body, howsoever called, of the statutory body; (d) a partnership, means a partner; (e) a sole proprietorship, means the sole proprietor; and (f) any other body, association or group of persons, whether corporate or unincorporate, means any person having the direction and control of the management of its affairs or business;
electronic fund transfer
Defined · s 2"electronic fund transfer" means any transfer of funds (other than a transaction originated by cheque, draft or similar instrument) which is initiated, activated or commenced, regardless at which stage it was initiated, activated or commenced, through an electronic terminal, telephonic instrument or computer or magnetic tape or other storage device so as to order, instruct or authorise any person to debit or credit an amount, and includes point-of-sale transfers, direct deposits or withdrawals of funds, automated teller machine transactions, and transfers initiated, activated, commenced or transmitted by telephone;
foreign institution
Defined · s 2"foreign institution" means a person, not being a licensed institution or a scheduled institution, which carries on any business outside Malaysia which corresponds, or is similar, to the business of any licensed or scheduled institution whether or not such person has a representative office;
liabilities
Defined · s 2"liabilities" includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
licensed institution
Defined · s 2"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
manager
Defined · s 2"manager", in relation to an institution, means an officer of the institution by whatever name called, responsible for an office of the institution, or for a department or a division of such institution or of its office;
Minister
Defined · s 2"Minister" means the Minister for the time being charged with the responsibility for finance;
non-scheduled institution
Defined · s 2"non-scheduled institution" means— (a) any statutory body; or (b) any person, being an individual, or a body or organization, not being a statutory body, whether corporate or unincorporate, whether or not licensed, registered or authorised under any written law, who or which is neither liable to be licensed under this Act, nor subject to the provisions of Part III;
office
Defined · s 2"office" includes the principal place of business, a branch, an agency, a mobile place of business, a place of business set up and maintained for a limited period only, an electronic terminal and any other place of business;
officer
Defined · s 2"officer", in relation to an institution, includes any employee and the chief executive of the institution;
person
Defined · s 2"person" includes an individual, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership and any other body, organization, association or group of persons, whether corporate or unincorporate;
property
Defined · s 2"property" means any movable or immovable property and includes— (a) any right, interest, title, claim, chose in action, power or privilege, whether present or future, or whether vested or contingent, in relation to any property, or which is otherwise of value; (b) any conveyance executed for conveying assigning, appointing, surrendering, or otherwise transferring or disposing of immovable property whereof the person executing the conveyance is proprietor or possessed or wherein he is entitled to a contingent right, either for the whole interest or for any less interest; (c) any security, including any stock, share, debenture and fund; (d) any negotiable instrument, including any bank note, bearer note, Treasury bill, dividend warrant, bill of exchange, promissory note, cheque and negotiable certificate of deposit; (e) any mortgage or charge, whether legal or equitable, guarantee, lien or pledge, whether actual or constructive, letter of hypothecation or trust receipt, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent; and (f) any other tangible or intangible property;
related
Defined · s 2"related", in relation to a corporation, means related within the meaning of section 6 of the Companies Act 1965;
relative
Defined · s 2"relative", in relation to a person, means— (a) the spouse of the person; (b) the brother or sister of the person; (c) the brother or sister of the spouse of the person; (d) any lineal ascendant or descendant of the person; (e) any lineal ascendant or descendant of the spouse of the person; (f) the spouse of any person referred to in paragraph (b), (c), (d) or (e); (g) any lineal descendant of a person referred to in paragraph (b), (c) or (f); (h) any uncle, aunt or cousin of the person, or of the spouse of the person; or (i) any spouse, or any lineal ascendant or descendant, of a person referred to in paragraph (h);
scheduled institution
Defined · s 2"scheduled institution" means a person which carries on a scheduled business but does not include a cooperative society, a statutory body, a local authority, a licensed bank, a licensed finance company, or a licensed merchant bank, carrying on a scheduled business;
statutory body
Defined · s 2"statutory body" means any authority or body, whether corporate or unincorporate, established, appointed or constituted by any written law, but does not include any local authority;
subsidiary
Defined · s 2"subsidiary" has the meaning assigned thereto under section 5 of the Companies Act 1965.