Section 98
Prohibition of certain accounts
of Labuan Financial Services and Securities Act 2010
No bank licensee shall accept any money on deposit or loan which is repayable on demand by cheque, draft, order or any other instrument drawn by the depositor on the bank licensee.
(2)
Every bank licensee shall conduct proper due diligence enquiries prior to opening any account for a customer.
(3)
Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a continuing offence, shall, in addition, be liable to a daily fine not exceeding ten thousand ringgit for each day the offence continues to be committed.