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In forceUpdated to 31 Dec 2025Read it in Bahasa Malaysia
Contents

Part IX · Enforcement

106. Power of Regulatory and Supervisory Authority to take action

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(1)

A person has committed a breach under this Act if the person fails to comply with or give effect to—

(a)

any provision of this Act;

(b)

any regulations made under this Act; or

(c)

any order, direction, standards or guidelines, condition, restriction, specification or requirement under this Act.

(2)

A Regulatory and Supervisory Authority shall have regard to the following matters in determining the appropriate action to be taken in each case:

(a)

the effectiveness of the action to be taken under this Act;

(b)

the proportionality of the action to be taken with the breach committed;

(c)

the deterrence of future breaches of similar nature by other persons; and

(d)

any other matter that is considered as relevant in the opinion of the Regulatory and Supervisory Authority.

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(3)

If the Regulatory and Supervisory Authority is of the opinion that a person has committed a breach and it is appropriate to take action against that person, the Regulatory and Supervisory

Authority may, subject to section 131, take any one or more of the following actions:

(a)

make an order in writing requiring the person in breach—

(i)

to comply with or give effect to; or

(ii)

to do or not to do any act in order to ensure compliance with, such provisions, regulations, order, direction, standards or guidelines, condition, restriction, specification or requirement referred to in subsection (1);

(b)

except for a breach of any provision as set out in

Schedule 7, impose a monetary penalty in such amount as the Regulatory and Supervisory Authority considers appropriate, but in any event not exceeding five hundred thousand ringgit;

(c)

reprimand in writing the person in breach or require the person in breach to issue a public statement in relation to such breach, if it is in the opinion of the Regulatory and Supervisory Authority that such breach is relevant for the information of the general public;

(d)

make an order in writing requiring—

(i)

the person in breach to take such steps as may be directed by the Regulatory and Supervisory

Authority to mitigate the effect of such breach;

or

(ii)

a credit provider or credit service provider to remedy the breach including making restitution to any other person aggrieved by such breach;

or

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(e)

make an order in writing to remove the person in breach from office or that the person in breach be barred from becoming a chief executive, director, partner or be involved directly or indirectly in the management of a credit provider or credit service provider, for such period of time as may be specified by the Regulatory and Supervisory Authority which shall not exceed a period of five years.

(4)

If a breach is committed by a body corporate or unincorporate, any action under subsection (3) may be taken against—

(a)

a person who is its director, controller, officer or partner, or was purporting to act in any such capacity; or

(b)

a person who is concerned in the management of its affairs, at the time of the breach unless that person demonstrates that the breach was committed without his consent or connivance and that he exercised all such diligence to prevent the breach as he ought to have exercised, having regard to the nature of his function in that capacity and to the circumstances.

(5)

Action under subsection (3) may be taken against the body corporate or unincorporate if a breach is committed by—

(a)

a person who is a director, controller, officer or partner of the body corporate or unincorporate, or was purporting to act in any such capacity; or

(b)

a person who is concerned in the management of the affairs of the body corporate or unincorporate.

(6)

For the purposes of subparagraph (3)(d)(ii), in determining whether or not any amount is to be paid by the credit provider or credit service provider, as the case may be, the Regulatory and Supervisory Authority shall have regard to—

(a)

whether or not one or more persons have suffered loss or been otherwise adversely affected as a result of the breach; or

(b)

the profits that have accrued to such person in breach.

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(7)

Any monetary penalty paid by a person in accordance with paragraph (3)(b) shall be paid into and form part of—

(a)

the operating fund of the Malaysia Co-operative Societies

Commission where the monetary penalty is imposed by the Malaysia Co-operative Societies Commission;

(b)

the Fund established under section 26 where the monetary penalty is imposed by the Commission; or

(c)

the Federal Consolidated Fund where the monetary penalty is imposed by other Regulatory and Supervisory

Authorities.

(8)

Where a person fails to pay a monetary penalty imposed under paragraph (3)(b) within the period specified by the Regulatory and Supervisory Authorities—

(a)

the penalty imposed may be sued for and recovered by the Malaysia Co-operative Societies Commission as a civil debt due to the Malaysia Co-operative Societies

Commission;

(b)

the penalty imposed may be sued for and recovered by the Commission as a civil debt due to the Commission;

or

(c)

the penalty imposed by other Regulatory and Supervisory

Authorities may be sued for and recovered by the Government as a civil debt due to the Government.

(9)

Where a person fails to remedy the breach including making restitution to any other person aggrieved by the breach under paragraph (3)(d), notwithstanding any other written law, the Regulatory and Supervisory Authority may sue for and recover such sum as a civil debt due to the person aggrieved by the breach.

(10)

Nothing in this section shall preclude the Regulatory and

Supervisory Authority from taking any of the actions that it is empowered to take under this Act against the person in breach.

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Report

Read on from s 107

Part X

General Provisions

Read on from Part X

Schedules