Laws
Banking and Financial Institutions Act 1989
Part XIII
s 96

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Contents

Banking and Financial Institutions Act 1989

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IPreliminary

1This Act may be cited as the Banking and Financial Institutions Act 1989, and shall come into force on such date as the Minister may, by no...
2(1) In this Act, unless the context otherwise requires— "advertisement" means the disseminating or conveying of information, invitation or...
3(1) The Bank shall have all the functions and powers conferred, and the duties imposed, on it by this Act, and the same shall be in additio...

Part II

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4No person shall carry on—
5(1) An application for a licence to carry on any of the businesses referred to in section 4 shall be made in writing to the Minister by sub...
6(1) The Bank shall, on an application having been duly made in accordance with section 5 and after being provided with all such information...
7(1) The Minister may, on the recommendation of the Bank, revoke a licence granted to an institution under section 6 (4) if it appears to th...
8(1) Where it appears to the Minister, on the recommendation of the Bank—
9The Minister may, at any time, on the recommendation of the Bank, impose new conditions on a licence granted under section 6(4), or vary or...
10(1) Subject to section 11, where the Minister proposes—
11(1) No notice need be given under section 10 (1) in respect of—
12(1) A licensed institution may surrender its licence by forwarding it to the Bank with a written notice of its surrender.
13Where the revocation of a licence granted under section 6 (4) has taken effect, or a restriction on its duration under section 8 has expire...
14(1) No institution shall be granted a licence under section 6 (4) nor shall such institution so licensed carry on its licensed business wit...
15(1) Except with the written consent of the Minister—
16Every licensed institution shall at all times affix or paint, and keep affixed or painted, on the outside of each of its offices in a promi...
17(1) Every licensed local institution shall, prior to the making of any amendment or alteration to any of its constituent documents, furnish...
18(1) The Bank shall cause to be published in the Gazette not later than the 31st March in each year a list, in such form as may be determine...

IIIScheduled Businesses and Representative Offices

19(1) No person shall—
20(1) No foreign institution shall—
21(1) A person or a foreign institution referred to in sections 19 (1) and 20 (1) respectively, shall submit to the Bank such documents, stat...
22Every scheduled institution, and every foreign institution which is subject to section 20 (1) shall within three months after the making of...
23No person, not being a person referred to in section 19 (2), shall assume or use the words "building credit", "building society", "charge c...
24(1) Notwithstanding the provisions of any other written law, the Minister may, if he is satisfied that it is necessary to regulate any part...

IVRestrictions Relating to Acceptance and Solicitation of, Advertisement for, and Inducement to Make, Deposits

25(1) No person shall receive, take, or accept deposits except under and in accordance with a valid licence granted under section 6 (4) to ca...
26(1) No person shall, without the written consent of the Bank, make an unsolicited call to—
27No person, other than a licensed bank, a licensed finance company, a licensed merchant bank or a licensed discount house, shall issue or pu...
28No person shall—

VSubsidiaries and Offices of Licensed Institutions

29No licensed institution shall—
30Without the prior written consent of the Bank (a) a licensed local institution shall not open any office in or outside Malaysia; and
31(1) Subject to subsection (2), a licensed bank or a licensed merchant bank may establish a correspondent banking relationship with any bank...

VIRestrictions on Dealings of Licensed Institutions

32(1) Unless the Minister on the recommendation of the Bank otherwise prescribes, no licensed institution shall engage, whether on its own ac...
33Unless the Minister, on the recommendation of the Bank, otherwise prescribes—
34(1) Where a licensed institution which is authorised under its licence to receive deposits, receives any deposit, the deposit shall be repa...
35(1) If the Bank is of the opinion that any statement made in an advertisement issued by a licensed institution is false, deceptive, offensi...

VIIFinancial Requirements and Duties of Licensed Institutions

36(1) Every licensed local institution shall—
37(1) The Bank may specify that—
38(1) The Bank may specify that a licensed institution shall hold such minimum, or minimum average, amount of liquid assets in Malaysia at al...
39(1) The Bank may specify that such licensed institutions, or such class or category of licensed institutions, as may be set out in the spec...
40(1) Notwithstanding anything in any other written law, a licensed institution shall appoint each year before a date to be specified by the...
41(1) Within three months after the close of each financial year of a licensed institution, or such further period as the Bank may approve, t...
42Every licensed institution shall within fourteen days of the laying of its accounts at its annual general meeting, or within such further p...
43(1) Every licensed institution shall submit to the Bank—
44(1) Every licensed institution shall pay—

VIIIOwnership, Control and Management of Licensed Institutions

45(1) Without prejudice to sections 49 and 50, and subject to section 46, no person shall enter into an agreement or arrangement to acquire o...
46(1) No person shall hold more than the following percentages of interests in shares of a licensed local institution:
47A licensed institution shall not hold any interest in the shares—
48(1) Subject to subsection (2), nothing contained in sections 45, 46 and 47 shall render invalid any acquisition or disposal of any interest...
49(1) No person shall enter into an agreement or arrangement—
50(1) Where the Minister has granted his approval under section 49 (7) to an application in respect of an agreement or arrangement under sect...
51Where it comes to the knowledge of a licensed local institution that any agreement or arrangement as is referred to in section 45 has been...
52(1) Where any person proposes to give any credit facility to any person on the security of any property of any licensed institution, he sha...
53It shall be a defence to a charge for an offence relating to a contravention of section 45, 46, 47, 49 or 52 for the accused to prove that...
54(1) Where the Bank is satisfied that any person has contravened the provisions of section 45, 46, 47, 49 or 52 (in this section referred to...
55(1) No person shall accept appointment or election as a director of a licensed local institution unless he has, prior to such acceptance, o...
56(1) No person shall be appointed or elected, or accept appointment or election, as a director, manager, secretary, or other officer concern...
57(1) Subject to subsection (2), every licensed institution shall appoint a chief executive of the institution who shall be—

IXRestrictions on Business of Licensed Institutions

58(1) A licensed local institution shall not pay any dividend on its shares until all its capitalised expenditure (including preliminary expe...
59A licensed institution shall not give any credit facility, or enter into any other transaction, against the security of its own shares or t...
60(1) Subject to an order made by the Bank under subsection (2), no licensed institution shall give to any person any credit facility without...
61(1) No licensed bank, licensed merchant bank or licensed finance company shall give to any single person any credit facility, or incur any...
62(1) Unless exempted by the Bank in writing with or without conditions, or except as provided under subsection (2) or (3), no licensed insti...
63No licensed institution shall give any credit facility under any exemption by the Bank referred to in section 62 (1), or give any credit fa...
64(1) Every director of a licensed local institution who has in any manner whatsoever, whether directly or indirectly, any interest in a prop...
65(1) A director or officer of a licensed institution shall not give any credit facility in excess of the limit, or outside the scope of any...
66(1) Except as may be provided in any regulations made under section 116 (2), no licensed institution shall acquire or hold—
67Subject to anything prescribed under section 60 (9), the Bank may specify limitations, terms and conditions in respect of the giving of any...
68(1) Any licensed institution shall, if at any time called upon in writing by the Bank to do so, produce to the Bank all such evidence and p...

XPowers of Supervision and Control Over Licensed Institutions

69The Bank shall from time to time, examine, without any prior notice, the books or other documents, accounts and transactions of each licens...
70The Minister may at any time direct the Bank to make an examination of the books or other documents, accounts and transactions of any licen...
71(1) For the purposes of an examination under section 69 or 70, the licensed institution under examination and its directors and officers sh...
72Any licensed institution which considers that it is insolvent, or is likely to become unable to meet all or any of its obligations, or, tha...
73(1) Where— Licensed institution unable to meet obligations to inform Bank.
74(1) A person appointed by the Bank under section 73 (1) (D) (ii), (E), or (2) (a) shall be appointed for such period as may be determined b...
75(1) Any officer or director removed from office in a licensed institution under section 73 (1) (C) or (D) (i) shall cease to hold the offic...
76(1) Where control of a licensed institution has been assumed in pursuance of an order under section 73 (2) (a), the institution and its dir...
77(1) Notwithstanding anything in any written law or the constituent documents of a licensed institution, where the Bank, or an appointed per...
78(1) Where the Bank considers that a licensed institution—
79Any reference in this Part to a licensed institution shall be read as including a reference to—
80(1) The Minister may, on the recommendation of the Bank, if he considers it to be in the interest of the depositors of a licensed instituti...
81(1) Where a licensed institution becomes unable to meet all or any of its obligations, or suspends payment to any extent, the properties of...

XIInvestigation, Search and Seizure

82(1) For the purposes of this Part, the Bank may appoint any officer or employee of the Bank or any person appointed under section 3 (3) to...
83(1) Where an investigating officer is satisfied, or has any reason to believe, that any person has committed an offence under this Act, he...
84(1) An investigating officer may search any person whom he has reason to believe has on his person any property, book or other document, or...
85No person shall—
86(1) Where an investigating officer finds, seizes, detains, or takes possession of, any book or other document in the exercise of any power...
87(1) Where an investigating officer suspects any person to have committed an offence under this Act, he may, if in his opinion it is reasona...
88Without prejudice to the generality of other powers of investigation conferred on an investigating officer under this Part, such powers may...
89The Bank may at its own initiative, or on the request of a public officer—
90An investigating officer shall be deemed to be a public servant for the purposes of the Penal Code, and to be a public officer for the purp...

XIIApplication of Parts X and XI to Non-Scheduled Institutions Engaged in Provision of Finance

91Where—
92(1) Where the Minister receives a report and recommendation under section 91, he may, after considering the same and making such inquiries...
93(1) Where the Minister decides that it is necessary to investigate and control the business and affairs of a non-scheduled institution unde...
94(1) Where an order has been made under section 93 (1) in respect of a non-scheduled institution referred to in paragraph (b) of the definit...
95The provisions of this Part shall have full force and effect notwithstanding—

XIIIInformation and Secrecy

96Except as provided in section 43 (2), and without prejudice to the powers of inspection, examination, investigation or inquiry conferred on...
97(1) No director or officer of any licensed institution, whether during his tenure of office, or during his employment, or thereafter, and n...
98(1) The provisions of section 97 shall not apply to the disclosure of any information or document—
99(1) The provisions of section 97 shall not apply to the disclosure of any information or document—
100Nothing in this Part shall limit any powers conferred upon the High Court or a judge thereof by the Banker's Books (Evidence) Act 1949 or t...
101(1) The relevant supervisory authority of a country, territory or place outside Malaysia may, with the approval of the Bank, examine the bo...
102Notwithstanding anything to the contrary contained in this Act, the Bank may upon request by the relevant supervisory authority of a countr...

XIVOffences

103(1) Any person who contravenes—
104Any person who contravenes—
105No person shall, with intent to deceive—
106(1) Where any offence against any provision of this Act has been committed by any institution, any person who at the time of the commission...
107Notwithstanding anything contained in any other written law, where a person is accused of more than one offence under this Act, he may be c...
108(1) The Governor, with the concurrence of the Minister, may, in a case where he deems it fit and proper to do so, compound any offence comm...
109(1) Any officer or employee of the Bank authorised in writing by the Governor may, with the consent of the Public Prosecutor in writing, pr...
110Every offence punishable under section 103 or 104 shall be a seizable offence, and a police officer not below the rank of Inspector, or an...
111An investigating officer appointed under section 82 (1) making an arrest under section 110 shall without unnecessary delay make over the pe...
112(1) Any person who—

XVGeneral Provisions

113(1) If, for the purpose of the exercise of any of its powers, the performance of any of its functions, or the discharge of any of its dutie...
114(1) No action, suit, prosecution or other proceeding whatsoever shall lie or be brought, instituted, or maintained in any court or before a...
115(1) No director, officer or agent of a licensed institution, a scheduled institution, or a foreign institution or any non-scheduled institu...
116(1) The Bank may, with the approval of the Minister, from time to time, make such regulations as may be necessary or expedient for giving f...
117Except as otherwise provided in this Act, any decision made by the Minister under this Act, whether an original decision by him or a decisi...
118(1) The Minister may, on the recommendation of the Bank—
119(1) No person shall—
120(1) The Minister may, on the recommendation of the Bank, at any time by notice in the Gazette, declare any day or days to be a holiday or h...
121(1) Where any person—
122(1) Where a licensed institution or a scheduled institution or non-scheduled institution in respect of which the Minister has made an order...
123Nothing contained in this Act shall in any manner affect, or derogate from, the provisions of the Exchange Control Act 1953, and in the app...
124This Act shall not apply to an Islamic bank.
125Except as otherwise provided in this Act, or in pursuance of any provision of this Act, no contract, agreement or arrangement, entered into...
126The Bank or the Minister may generally in respect of this Act, or in respect of any particular provision of this Act, or generally in respe...

Part XVI

127(1) The Finance Companies Act 1969, hereinafter referred to in this section as "the Act", is amended in the manner specified in subsections...
128(1) The Finance Companies Act 1969 and the Banking Act 1973 are repealed with effect from the effective date.
129(1) Subject to the provisions of this section, any licence granted to—
130Where in any written law, any reference is made to—
131The Companies Act 1965 is amended—

Schedules

FIRST SCHEDULE (Section 2. (1), paragraph (D) of the definition of "deposit") Part I Money paid by any person to— (a) the Government of Mal...
SECOND SCHEDULE Part 111... (Section 6 (1)) Minimum Criteria Directors etc. to be fit and proper persons 1. (1) Every person who is, or is...
THIRD SCHEDULE (Section 2 (1), definition of "scheduled business") 1. Building credit business. 2. Credit token business. 3. Development fi...

Banking and Financial Institutions Act 1989 · As enacted · Part XIII · Information and Secrecy

Section 96

No plain-English summary for s 96 yet. See the rest of this law

Official textFrom Laws of Malaysia Online, unchanged

Except as provided in section 43 (2), and without prejudice to the powers of inspection, examination, investigation or inquiry conferred on the Bank or on an investigating officer under this Act, nothing in this Act shall-

Bank

Defined · s 2

"Bank" means the Central Bank of Malaysia established by the Ordinance;

Open s 2

(a)

authorise the Minister to direct the Bank; or

Minister

Defined · s 2

"Minister" means the Minister for the time being charged with the responsibility for finance;

Open s 2

(b)

authorise the Bank, to inquire specifically into the affairs of any individual customer of any licensed institution.

licensed institution

Defined · s 2

"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);

Open s 2

118

Terms defined in s 2

Bank
Defined · s 2
"Bank" means the Central Bank of Malaysia established by the Ordinance;
Open s 2
licensed institution
Defined · s 2
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
Open s 2
Minister
Defined · s 2
"Minister" means the Minister for the time being charged with the responsibility for finance;
Open s 2
officer
Defined · s 2
"officer", in relation to an institution, includes any employee and the chief executive of the institution;
Open s 2

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Part XIV

Offences

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Part XV

General Provisions

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Part XVI

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Schedules

Details

Banking and Financial Institutions Act 1989 · s 96

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Laws of Malaysia Online · Banking and Financial Institutions Act 1989, As enacted. Reader record updated on 2 Oct 2026.

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