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mylaw.myby aturio
In forceUpdated to 31 Dec 2025Read it in Bahasa Malaysia
Contents

Part X · General Provisions

122. Power to make regulations

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(1)

Regulations may be made as may be necessary or expedient for carrying out the purposes or provisions of this Act including any supplemental, incidental or consequential matters in relation to this Act.

(2)

Without prejudice to the generality of subsection (1), regulations may be made to prescribe for—

(a)

the control by a Regulatory and Supervisory Authority by supervision, regulation, restriction, prohibition or otherwise howsoever, with respect to the provision of credit, credit business and credit service business;

(b)

on Shariah matters—

(i)

in respect of the carrying on of any Islamic credit business, affair or activity by an Islamic credit provider which require the ascertainment of

Islamic law by the Shariah Advisory Council;

and

(ii)

to give effect to the advice or ruling of the Shariah

Advisory Council;

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(c)

the following matters which do not require the ascertainment of Islamic law:

(i)

Shariah governance including—

(A)

functions, powers and duties of the board of directors, partners and senior management of an Islamic credit provider in relation to compliance with Shariah;

(B)

internal Shariah compliance functions; and

(C)

the appointment of a person to advise an Islamic credit provider in ensuring its

Islamic credit business, affairs and activities comply with Shariah;

(ii)

the appointment of an independent person to carry out an audit of Shariah compliance by the Islamic credit provider; and

(iii)

any other matter in relation to the Islamic credit business, affairs and activities of an Islamic credit provider for the purposes of compliance with Shariah;

(d)

the business conduct and credit consumer protection matters including matters set out in section 85;

(e)

the forms or manner in respect of any matter under this Act;

(f)

any fees to be paid in respect of any matter under this Act or under any regulations made under this section, including for the amount and manner of payment of such fees; and

(g)

any other matters required by this Act to be prescribed.

(3)

The regulations made under this Act may prescribe an act or omission in contravention of the regulations to be an offence and may prescribe penalties of a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both.

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(4)

Regulations made under paragraph (2)(b) shall be in accordance with the advice or ruling of the Shariah Advisory

Council.

(5)

Notwithstanding subsection (3), any Islamic credit provider who fails to comply with the regulations made under paragraph (2)(b)

commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding four years or to both.

(6)

For the purposes of this section, the following persons may make such regulations:

(a)

the Minister, on the recommendation of the Commission in respect of a credit business or credit service business which is carried on by a person regulated by the Commission and any other matters as set out under this Act;

(b)

the Minister of Domestic Trade and Cost of Living in respect of a credit business or credit service business which is carried on by a person regulated by the Ministry of Domestic Trade and Cost of Living;

(c)

the Minister of Housing and Local Government in respect of a credit business which is carried on by a person regulated by the Ministry of Housing and Local

Government;

(d)

the Minister charged with the responsibility for co-operative development in respect of a credit business which is carried on by a co-operative society registered under the Co-operative Societies Act 1993;

(e)

the Minister, on the recommendation of the Central Bank of Malaysia, in respect of a credit business which is carried on by—

(i)

a person authorized under the Financial Services

Act 2013 or Islamic Financial Services Act 2013;

and

(ii)

a development financial institution prescribed under the Development Financial Institutions

Act 2002; and

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(f)

the Minister, on the recommendation of the Securities

Commission Malaysia, in respect of a credit business or credit service business which is carried on by a person licensed, registered or recognized under the Capital

Markets and Services Act 2007.

(7)

Regulations made under this section may relate to all or any class, category or description of persons, and different provisions for different classes, categories or descriptions of persons.

Report

Read on from s 123

Schedules