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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Service of orders or notices generally, etc.

Subdivision 3 – Power to appoint receiver and manager. Power to remove director, chief executive officer or senior officer. BNM relies heavily on the work of external auditors and actuaries appointed by financial institutions for supervisory purposes. Provisions in relation to appointment of receiver and manager.

Provisions relating to removal. Duty to disclose interests in material transaction or material arrangement. Authorized person to carry on authorized business only. Further information, including the list of information to be submitted by affected shareholders are available on Bank Negara Malaysia website: An interest in shares is not to be disregarded only because of—. Appointment of auditor baia Bank.

Banking regulation in Malaysia: overview

If consent is given by the customer either impliedly or expressly; 5. Food, Drugs, Healthcare, Life Sciences. What are the regulatory developments and recent trends in bank regulation? Bafi to be financial holding company.

Factoring, leasing, hire-purchase, and financial intermediation including, among others, the acceptance of deposits and the giving of advances, loans or other facilities businesses require neither approval nor registration with BNM, but are subject to the regulatory oversight of BNM under the FSA.


Examination of other persons. A licensed person or an approved insurance broker under this Act. State-owned banks While there are no state-owned banks in Malaysia, there are government-linked investment companies which control significant stakes in large domestic financial groups.

Bank Negara Malaysia

Any office of a bank or financial holding company. Notwithstanding any law or rule of law to the contrary, in any proceedings against any person for an offence under this Act—. For the purpose of determining whether a person holds an interest in shares, it is immaterial that the interest cannot be related to adt particular share. Forms of banks 6.


List of central banks Central bzfia and currencies of Africa Central banks and currencies of Asia-Pacific Central banks and currencies of the Caribbean Central banks and currencies of Europe Central banks and currencies of Central America and South America.

The Bank may require a licensed person to hold at all times all or such part of its assets, as may be specified by the Bank, in Malaysia. Disclosure of information by Bank to relevant overseas supervisory authority.

The character and integrity of the applicant or, if the applicant is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good governance and integrity. Consolidated level, which includes entities covered under the entity level requirement, and the consolidation of all its subsidiaries except for insurance and takaful subsidiaries.


Deposits not payable in Malaysia, money market deposits, negotiable instruments of deposit, other bearer deposits, repurchase agreements and any other liability or financial instrument as may be specified by MDIC are not protected by MDIC. A licensed insurer shall not make any withdrawal from an insurance fund, whether from the surplus or otherwise of that insurance fund, unless—.

This imposes a criminal penalty. Bank to be party to proceedings. Payment of policy moneys under life policy and personal accident policy Act Power to take intervention and remedial action. Various incentives are accessible to financial institutions participating in the MIFC initiative, including new licences for conducting foreign currency businesses, attractive tax incentives and facilitative immigration policies. A scheme for members under which assistance for an accident to or breakdown of a vehicle is provided whereby such assistance is in the form of—.

In a nutshell, the author opines that such right of secrecy and confidentiality of a customer has been diluted by the abovementioned exceptions. Priority of payments in winding up of licensed investment bank carrying on Islamic banking business. The Minister may, on the recommendation of the Bank, prescribe—. International co-ordination and co-operation.