Malaysia legislation
Section 33A
Section 33A
(a)
accepting Islamic deposits on current account, deposit account, savings account or other similar accounts, with or without the business of paying or collecting cheques drawn by or paid in by customers; and
(b)
accepting money under an investment account.
(2)
In Division 2 to Division 4 of this Part, “prescribed institution”
refers to a prescribed institution which has obtained an approval of the
Bank under subsection 33B(1) to carry on Islamic financial business.
(3)
In the case of a prescribed institution which has obtained the approval of the Bank under paragraph 33B(1)(b), Division 2 to
Division 4 of this Part shall apply only to the business or activity which the prescribed institution is approved to carry on under that paragraph.
Prescribed institution permitted to carry on business or activity in accordance with Shariah
*33B. (1) Nothing in this Act or the Islamic Financial Services Act 2013 shall prohibit or restrict any prescribed institution from—
(a)
carrying on its entire business or activity in accordance with
Shariah; or
(b)
carrying on business or activity in accordance with Shariah in addition to its existing conventional business, provided that the prescribed institution obtains the prior written approval of the Bank.
*NOTE—Savings in respect of prescribed institution carrying on Islamic financial business–see subsection 112(1) of the Development Financial Institutions (Amendment) Act 2015 [Act A1502] which comes into operation on 31 January 2016.
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(2)
The Bank may impose any condition on the approval granted by the Bank under subsection (1).
(3)
A prescribed institution which has obtained an approval of the
Bank under paragraph (1)(b) shall not carry on its entire business or activity in accordance with Shariah unless such prescribed institution obtains the prior written approval of the Bank under paragraph (1)(a).
(4)
Any prescribed institution that contravenes subsection (1)
or (3) commits an offence and shall on conviction be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.
Requirement on prescribed institution approved under paragraph 33B(1)(b)
*33C. (1) A prescribed institution which has obtained the approval of the Bank under paragraph 33B(1)(b) shall—
(a)
establish and maintain at all times a fund with such minimum amount as may be specified by the Bank to fund the operations of its Islamic financial business; and
(b)
keep all assets and liabilities of its Islamic financial business separate from its other assets and liabilities in such manner as may be specified by the Bank.
(2)
The fund established under paragraph (1)(a) shall—
(a)
be funded from the capital funds of the prescribed institution and other sources of funds as may be specified by the Bank; and
(b)
be segregated from the capital funds of the prescribed institution for the operations of its business or activity other than the Islamic financial business.
*NOTE—Savings in respect of prescribed institution carrying on Islamic financial business–see subsection 112(2) of the Development Financial Institutions (Amendment) Act 2015 [Act A1502] which comes into operation on 31 January 2016.
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(3)
Unless otherwise specified by the Bank, the assets of a prescribed institution which has obtained the approval of the Bank under paragraph 33B(1)(b) relating to its Islamic financial business shall not be—
(a)
used to fund the operations of its conventional business; and
(b)
subject to the debts or other obligations of the prescribed institution in relation to its conventional business.