Central Bank of Malaysia Act 2009 · Updated to 1 Nov 2020 · Chapter 3
46. Clearing houses and settlement of balances between financial institutions
Feedback & supportIn order to facilitate the clearing of cheques and other credit or payment instruments for financial institutions or any person approved by the Bank, the Bank or any body corporate established or acquired under paragraph 48(1)(c) may, at an appropriate time and in conjunction with such institutions or person, establish a clearing house in Kuala Lumpur and in such other place as the Bank or the body corporate may consider necessary.
Bank
“Bank” means Bank Negara Malaysia or in English, the “Central Bank of Malaysia”;
A financial institution or any person approved by the Bank shall settle, in such manner as the Bank or the body corporate may from time to time specify by notice in writing, all balances between itself and any other financial institution or any person approved by the Bank arising out of the general clearances effected in Kuala Lumpur and such other
financial institution
“financial institution” means a person carrying on a financial business regulated under the laws enforced by the Bank and in addition includes any— (a) person who operates any payment system or issues any payment instrument; and (b) person carrying on any other financial business as the Minister may prescribe;
56 Laws of Malaysia ACT 701
places as the Bank or a body corporate established or acquired under paragraph 48(1)(c) may specify.