Banking and Financial Institutions Act 1989 · As enacted · Part XV · General Provisions
Section 119
Official textFrom Laws of Malaysia Online, unchanged
No person shall—
person
"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;
commence to operate any electronic fund transfer system; or
electronic fund transfer
"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;
where such person has been operating any electronic fund transfer system immediately before the effective date, continue to operate such system for a period exceeding ninety days after the effective date, or such further period as the Bank may specify, unless he has submitted for the approval of the Bank the scheme of operations of the system, and the rules, contract, by-laws or other documents relating to the rights, duties and liabilities of the persons participating in the system, and obtained the authorisation in writing of the Bank to operate the system.
effective date
"effective date" means the relevant date or dates, as the case may be, notified by the Minister under section 1;
Before making any decision under subsection (1), the Bank may require the person seeking authorisation to submit to the Bank such other information and particulars relating to the system or to the person seeking the authorisation, or to the persons who are or will be participating in the system, as the Bank may specify, and may also make such inspection of the premises, equipment, machineries, books or other documents, or accounts and transactions, relating to the system, as the Bank may consider desirable.
The Bank may approve or reject a scheme submitted under subsection (1) and the rules, contract, by-laws or other documents relating thereto and submitted therewith, or may approve the same subject to such modifications and alterations to the scheme, or to any or all of the documents as aforesaid submitted therewith, as it may deem necessary, desirable or expedient, and may in giving any authorisation under this section, impose such restrictions, limitations, or conditions as it may deem fit.
Notwithstanding anything contained in any authorisation given, or in any scheme or document approved, under subsection (3), any person authorised under that subsection shall comply with any regulations made under section 116 relating to electronic fund transfers, and where there is any conflict or inconsistency between the terms of such authorisation or anything in such scheme or in any such document and such regulations, the provisions of the regulations shall prevail and have full force and effect.
document
"document" includes— (a) any letters, figures, marks, symbols, signals, inscriptions, writing, sign, caricature, picture, drawing, or other representation whatsoever in any form; and (b) any visual recording (whether of still or moving images), any sound recording, or any electronic, magnetic, mechanical or other recording whatsoever, and howsoever made, on any substance, material, thing or article;
While an authorisation under subsection (3) is in force, the Bank may, from time to time, inspect the premises, equipment, machineries, books or other documents, accounts or transactions relating to the system.
The Bank may at any time, after giving the person authorised under subsection (3) a reasonable opportunity to make representations, revoke or suspend, or amend anything contained in, an authorisation granted under that subsection.
In making any revocation under subsection (6), the Bank may include requirements of a consequential, ancillary or incidental nature to be complied with by the person whose authorisation is being revoked or by any person participating in the system, and in making any suspension under that subsection, the Bank may impose such terms, conditions and requirements as it deems necessary or expedient.
Any person whose authorisation is revoked or suspended under subsection (6) shall immediately thereupon cease to operate the electronic fund transfer system in respect of which the authorisation was revoked or suspended.
Where the person authorised under subsection (3) is a licensed institution, or a scheduled institution, or a non-scheduled institution in respect of which the Minister has made an order under section 93(1), nothing contained in this section shall in any manner or to any extent derogate from the powers of the Bank, or the liabilities and obligations of the institution, under any other provision of this Act in relation to its activities under such authorisation or otherwise howsoever.
licensed institution
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
Terms defined in s 2
document
Defined · s 2"document" includes— (a) any letters, figures, marks, symbols, signals, inscriptions, writing, sign, caricature, picture, drawing, or other representation whatsoever in any form; and (b) any visual recording (whether of still or moving images), any sound recording, or any electronic, magnetic, mechanical or other recording whatsoever, and howsoever made, on any substance, material, thing or article;
effective date
Defined · s 2"effective date" means the relevant date or dates, as the case may be, notified by the Minister under section 1;
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;
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);
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;
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;
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;
specify
Defined · s 2"specify", where no mode is mentioned, means specify from time to time in writing, and a power to specify includes the power to specify differently for different persons or different classes, categories or descriptions of persons;