Banking and Financial Institutions Act 1989 · As enacted · Part VI · Restrictions on Dealings of Licensed Institutions
33. Unless the Minister, on the recommendation of the Bank, otherwise prescribes—
Official textFrom Laws of Malaysia Online, unchanged
a licensed finance company, licensed merchant bank or licensed discount house shall not—
licensed finance company
"licensed finance company" means a finance company licensed or deemed to be licensed under section 6 (4);
accept money on deposit which is repayable on demand by cheques, drafts, orders or any other instrument drawn by the depositor on the institution; or
deposit
"deposit" means a sum of money received or paid on terms— (a) under which it will be repaid, with or without interest or at a premium or discount; or (b) under which it is repayable, either wholly or in part, with any consideration in money or money's worth, and such repayment being either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it, regardless whether the transaction is described as a loan, an advance, an investment, a saving, a sale or a sale and repurchase, but does not include money paid bona fide- (A) by way of an advance or a part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is not or are not in fact sold, hired or otherwise provided; (B) by way of security for the performance of a contract or by way of security in respect of any loss which may result from the non-performance of a contract; (C) without prejudice to paragraph (B), by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise; and (D) in such other circumstances, or to or by such other person, as specified in the First Schedule;
deal in foreign currency; and
a licensed finance company, a licensed merchant bank, a licensed discount house or a licensed money-broker shall not engage in any business other than its licensed business.
licensed merchant bank
"licensed merchant bank" means a merchant bank licensed or deemed to be licensed under section 6 (4);
Terms defined in s 2
deposit
Defined · s 2"deposit" means a sum of money received or paid on terms— (a) under which it will be repaid, with or without interest or at a premium or discount; or (b) under which it is repayable, either wholly or in part, with any consideration in money or money's worth, and such repayment being either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it, regardless whether the transaction is described as a loan, an advance, an investment, a saving, a sale or a sale and repurchase, but does not include money paid bona fide- (A) by way of an advance or a part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is not or are not in fact sold, hired or otherwise provided; (B) by way of security for the performance of a contract or by way of security in respect of any loss which may result from the non-performance of a contract; (C) without prejudice to paragraph (B), by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise; and (D) in such other circumstances, or to or by such other person, as specified in the First Schedule;
depositor
Defined · s 2"depositor" means a person entitled to repayment of a deposit, whether made by him or any other person; derivative
foreign currency
Defined · s 2"foreign currency" means any currency other than Malaysian currency;
licensed business
Defined · s 2"licensed business" means a business licensed or deemed to be licensed under section 6 (4);
licensed discount house
Defined · s 2"licensed discount house" means a discount house licensed under section 6 (4);
licensed finance company
Defined · s 2"licensed finance company" means a finance company licensed or deemed to be licensed under section 6 (4);
licensed merchant bank
Defined · s 2"licensed merchant bank" means a merchant bank licensed or deemed to be licensed under section 6 (4);
licensed money-broker
Defined · s 2"licensed money-broker" means a money-broker licensed under section 6 (4);
Minister
Defined · s 2"Minister" means the Minister for the time being charged with the responsibility for finance;
Part VII
Financial Requirements and Duties of Licensed Institutions
Part VIII
Ownership, Control and Management of Licensed Institutions
Part IX
Restrictions on Business of Licensed Institutions
Part X
Powers of Supervision and Control Over Licensed Institutions
Part XI
Investigation, Search and Seizure
Part XII
Application of Parts X and XI to Non-Scheduled Institutions Engaged in Provision of Finance
Part XIII
Information and Secrecy
Part XIV
Offences
Part XV