Banking and Financial Institutions Act 1989 · As enacted · Part II
Section 8
Official textFrom Laws of Malaysia Online, unchanged
Where it appears to the Minister, on the recommendation of the Bank—
Minister
"Minister" means the Minister for the time being charged with the responsibility for finance;
that there are grounds on which the Minister's power to revoke a licence are exerciseable under section 7 (1); but
licence
"licence" means a licence granted or deemed to be granted under section 6 (4);
that the circumstances are not such as to justify revocation, the Minister may, on the recommendation of the Bank, restrict the licence by—
imposing such limits on its duration as the Minister thinks fit;
imposing such conditions as the Minister thinks desirable for the protection of the institution's depositors and other customers, or potential depositors and other customers, or its creditors or other persons dealing with it, or likely to become its creditors or deal with it; or
the imposition of both such limits and conditions.
A limit on the duration of a licence shall not be such as to allow the licence to continue in force for more than three years from the date on which it is imposed; and such a limit may in particular be imposed in a case where the Bank considers that the institution should be allowed to repay its depositors, other customers, or creditors in an orderly manner.
The conditions imposed under this section may, in particular—
require the institution to take certain steps or to refrain from adopting or pursuing a particular course of action or to restrict the scope of its business in a particular way;
impose limitations on the acceptance of deposits, the giving of credit facilities, or the making of investments;
prohibit the institution from soliciting deposits, either generally or from persons who are not already depositors;
prohibit it from entering into any other transaction or class of transactions, or to enter into it subject to such restrictions or conditions as may be specified;
require the removal of any director, controller or manager;
specify the requirements to be fulfilled otherwise than by action taken by the institution; or
specify any other condition, whether similar or not to the conditions mentioned in the foregoing paragraphs, which the Minister considers desirable or expedient to impose.
Any conditions imposed under this section may be varied or revoked by the Minister on the recommendation of the Bank, and any limit imposed under this section on the duration of the licence may be varied but not so as to allow the licence to continue in force for longer than the period mentioned in subsection (2) from the date on which the limit was first imposed.
Failure to comply with any condition imposed under this section shall be a ground for the revocation of the licence but shall not invalidate any transaction.
An institution whose licence is restricted by the imposition of a limit on its duration may apply for a new licence under section 5, and if a new licence is granted under section 6(4), the restricted licence shall cease to have effect.
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;
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;
licence
Defined · s 2"licence" means a licence granted or deemed to be granted 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;
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;
Part III
Scheduled Businesses and Representative Offices
Part IV
Restrictions Relating to Acceptance and Solicitation of, Advertisement for, and Inducement to Make, Deposits
Part V
Subsidiaries and Offices of Licensed Institutions
Part VI
Restrictions on Dealings of Licensed Institutions
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