Lawyerment Homepage – Malaysian Financial Law – Banking Law – Bank Negara – BAFIA(banking and financial institutions act) Bank Negara Malaysia (BNM) is empowered to act as the regulator of banking institutions under the Financial Services Act (FSA), the. THE BANKING AND FINANCIAL INSTITUTIONS ACT, Introduction The in relation to deposit taking.e. from any person in Malaysia or outside Malaysia In.

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Where a licensed institution becomes unable to meet all or any of its obligations, suspends payment to any extent or is wound up, the Malaysia Deposit Insurance Corporation Bbafiathe Financial Services Act FSA and the Islamic Financial Services Act IFSA require the assets of the relevant bank or Islamic bank in Malaysia to be available to meet all its liabilities in respect of deposits in Malaysia in priority over all other unsecured liabilities of that baffia.

Objection to life policy. Division 4 Information and secrecy. Outline Index Book Category Portal. Exerting undue pressure, influence or using or threatening to use harassment, coercion, or physical force in relation to the provision of any financial service or product to a financial consumer, or the payment for any financial service or product by a financial consumer.

The person to be authorized will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of the person to be authorized.


Savings in respect of financial holding company. BNM relies on an institution’s internal oversight and risk management control functions to anticipate and respond to emerging risks and to ensure that identified weaknesses are addressed. Bank to be party to proceedings. Conforms to generally accepted standards of international banking practices. Business of financial holding company. Requirements on minimum capital funds or surplus of assets over liabilities.


Decision of Minister to be final. Requirements for representative office. Bafja the establishment of co-operation mechanisms between BNM and its overseas counterparts. Non-recognition of insolvency order by foreign court. Offences by officers of institution.

Nature and sufficiency of jalaysia financial resources of the applicant as a source of continuing financial support for the person to be authorised. M in corporate and commercial law, University of London. Lying dormant, the service charge and interest on the account accumulated to RM Where a person is liable under this Act to a penalty for any act, omission, neglect or default, such person shall be liable to the same penalty for the act, omission, neglect or default of malayisa employee, director, controller or agent if the act, omission, neglect or default was committed by—.

Since malaysiia s, banks in Malaysia except international Islamic banks and Labuan banks have had to carry on banking business through a company locally incorporated under the Companies Act CA or corresponding prior statutes. Division 2 Requirements for operation of payment systems and issuance of designated payment instruments.

The Bank may at its own initiative, or on the request of a public officer—. Money paid to any person, other than a licensed bank or licensed investment bank, by—.

Supporting information that is required includes, among others, detailed information on the applicant’s shareholders or in the case of bafiw proposed branch the applicant’s corporate group such as:.


Banking regulation in Malaysia: overview

Information to be provided to appointed actuary. Finality of payment and netting arrangement. Division 1 Interest in shares of licensed person. Power of bank to specify standards for payment systems. Compliance mlaaysia approved accounting standards.

Establishment and maintenance of insurance funds. The deposit liabilities take priority over all other unsecured liabilities.

Bank Negara Malaysia – Wikipedia

This will be at a cost of 0. Duty to take reasonable care. Short title and commencement. A deposit insurance system was established under the MDICA to protect depositors against loss of their deposits in the event of a failure of their bank and to preserve confidence in the financial system.

Remedies for deliberate or reckless misrepresentation. Lodgment of amount not distributed with Registrar of Unclaimed Moneys Act Power to examine persons. Insofar as applicants for a Labuan banking licence are concerned, in assessing the merits of the applications by foreign banking institutions for a licence, BNM also considers the extent to which the applicant is regulated and supervised by a competent home regulatory authority and whether the applicant’s home country legislation allows for the exchange of information for cross-border establishments.

Click here to register your Interest. Savings in respect of licences granted under repealed Acts.