MONEYLENDERS ACT 1951 (REVISED - 1989)
(1) This Act may be cited as the Moneylenders Act 1951 .
(2) This Act shall apply to the whole of Malaysia.
[(2) Am. by Act A1390]
NOTE: [REVOKED BY ACT A1390]
(1) The Moneylenders Act 1951 [Act 400], which is referred to as the "extended Act" in this Order, is extended to the Federal Territory of Labuan.
In its application to the Federal Territory of Labuan, the extended Act is modified in the manner set out below:
(2) Substitute for the word "only" the words "and the Federal Territory of Labuan".
See Federal Territory of Labuan (Extension and Modification of the Moneylenders Act 1951) Order 2007 - P.U.(A) 413/2007. cif 01-01-2008
NOTE:[REVOKED BY ACT A1390]
In its application to the State of Sabah, the extended Act is modified in the manner as set out below:
(2)
In this Act, unless the context otherwise requires-
"Authority" has the same meaning assigned to it in the Local Government Ordinance 1961 [Sabah Ord. 11/1961] ; ["Authority" Ins. by Act A1390]
"authorized name" and "authorized address" mean respectively the name under which and the address at which a moneylender is authorized by a licence granted under this Act to carry on business as a moneylender;
"borrower" means a person to whom money is lent by a moneylender;
"company" means any body corporate being a moneylender;
"Deputy Registrar" means the Deputy Registrar of Moneylenders appointed under section 4;
"firm" 2A PART I PRELIMINARY-2A. Non-application of Act and exemption therefrom.
(1) This Act shall not apply to a person specified in the First Schedule, and such person shall be subject to any written law governing his business or activity.
[(1) Subs. by Act A1390]
(2) The Minister may-
(a) in consideration of the special circumstances relating to the nature of the business of any company, or the objects of any society, and its financial standing; and
(b) if he is satisfied that it would not be contrary to the public interest to do so,
by notification in the Gazette exempt such company or society from all or any of the provisions of this Act, and such exemption shall be granted for such duration as may be specified in the notification, and may be made subject to such limitations, restrictions or conditions as the Minister may specify in the notification.
(3) The Minister may at any time revoke any exemption
3 PART I PRELIMINARY-3. [Deleted by Act A1193] .
4 PART I PRELIMINARY-4. Appointment of Registrar, Deputy Registrar, Inspector, and other officers and servants.
(1) For the purposes of this Act, the Minister may appoint a Registrar of Moneylenders and such number of Deputy Registrars of Moneylenders, Inspectors of Moneylenders and other officers and servants as the Minister may deem fit from amongst members of the public service, officer of Perbadanan Labuan in the Federal Territory of Labuan, officer of the Authority in the State of Sabah and officer of the local authority in the State of Sarawak.
[(1) Am. by Act A1390]
(2) The Registrar and Deputy Registrars shall have and may exercise any of the powers conferred on an Inspector by or under this Act.
NOTE: [REVOKED BY ACT A1390]
( 1) The Moneylenders Act 1951 [Act 400], which is referred to as the "extended Act" in this Order, is extended to the Federal Territory of Labuan.
In its application to the Federal Territory of Labuan, the extended Act is modified in the manner
4A PART I PRELIMINARY-4A. Delegation of powers of Registrar.
(1) The Registrar may, in writing, delegate all or any of his powers or functions under this Act, except his power of delegation, to any Deputy Registrar or Inspector appointed under section 4.
(2) Without prejudice to subsection (1), the Registrar may, in writing, delegate any of his powers or functions under this Act in respect of the investigation of offences under this Act and the enforcement of the provisions of this Act to any public officer, officer of Perbadanan Labuan in the Federal Territory of Labuan, officer of the Authority in the State of Sabah and officer of the local authority in the State of Sarawak.
[(2) Am. by Act A1390]
(3) Any delegation under subsection (1) or (2) may be revoked at any time by the Registrar and does not prohibit the Registrar from himself exercising the powers or performing the functions so delegated.
NOTE: [REVOKED BY ACT A1390]
(1)
5 PART II LICENSING OF MONEYLENDERS-5. Licences to be taken out by moneylender.
(1) No person shall carry on or advertise or announce himself or hold himself out in any way as carrying on the business of moneylending unless he is licensed under this Act.
[(1) Am. by Act A1390]
(2) Any person who carry on or advertise or announce himself or hold himself out in any way as carrying on the business of moneylending without a valid licence, or who continues to carry on such business after his licence has expired or been suspended or revoked shall be guilty of an offence under this Act and shall be liable to a fine of not less than two hundred and fifty thousand ringgit but not more than one million ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a second or subsequent offence shall also be liable to whipping in addition to such punishment.
[(2) Am. by Act A1390]
5A PART II LICENSING OF MONEYLENDERS-5A. Application for licence.
(1) An application for a licence to carry on business as a moneylender shall be made in writing to the Registrar in a prescribed form, and accompanied by such documents or information as may be prescribed.
(2) The Registrar may in writing, at any time after receiving the application but before it is determined, require the applicant to provide within a specified time or any extension of time granted by the Registrar, such additional documents or information as may be considered necessary by the Registrar for the purpose of determining the suitability of the applicant for the licence.
(3) Where any additional documents or information required under subsection (2) is not provided by the applicant within the time specified in the requirement or any extension of time granted by the Registrar, the application shall be deemed to be withdrawn and shall not be further proceeded with.
(4) Without prejudice to subsection (3), the applican
5B PART II LICENSING OF MONEYLENDERS-5B. Grant of a licence.
(1) Notwithstanding subsection 5A(2) or (3), the Registrar may, upon receiving an application for a licence under subsection 5A(1), grant or refuse to grant the licence to the applicant, and the Registrar shall inform the applicant of his decision.
(2) The licence shall be in such form as may be prescribed.
(3) The applicant shall pay the prescribed application fee for the licence to the Registrar upon being informed by the Registrar of the approval of his application for the licence.
5C PART II LICENSING OF MONEYLENDERS-5C. Duration of licence.
(1) Subject to section 9D and subsection (3), a licence shall, unless sooner revoked, be valid for a period not exceeding two years.
(2) Where a licence is granted, the Registrar shall specify in the licence the date on which the licence is to come into force and the date of its expiry.
(3) Where on the date of expiry of the licence, an application for the renewal of the licence under section 5E is pending before the Registrar, that licence shall remain in force until the application is disposed of, or sixty days after the date of expiry of the licence, whichever is the earlier.
5D PART II LICENSING OF MONEYLENDERS-5D. Conditions attached to licence.
(1) The Registrar may stipulate in the licence such conditions as he may think fit and he may, at any time during the duration of the licence, add to, revoke or vary any of the conditions.
(2) Any person who fails to comply with any of the conditions of the licence shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
5E PART II LICENSING OF MONEYLENDERS-5E. Renewal of licence.
(1) An application for the renewal of a licence shall be made by the holder of the licence at least sixty days before the date of expiry of the licence, and the application shall be accompanied by such documents and information as may be required by the Registrar.
(2) Notwithstanding subsection (1), the Registrar may, subject to the payment of a penalty not exceeding three hundred ringgit imposed on the holder of the licence, allow an application for the renewal of a licence made after the time specified in subsection (1), but no application for such renewal shall be allowed where the application is made after the date of expiry of the licence.
(3) Where the holder of the licence fails to renew the licence before the date of expiry of the licence, he shall not be entitled to make a new application for a licence within a period of two years from the date of expiry of the licence.
(4) The holder of the licence shall pay the prescr
5F PART II LICENSING OF MONEYLENDERS-5F. Requirement to display licence.
(1) A licensee shall at all times display his original licence in a conspicuous place at the premise where he carries out or operates his business.
[(1) Am. by Act A1390]
(2) Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding six months or to both.
6 PART II LICENSING OF MONEYLENDERS-6. Particulars to be shown on licences.
(1) Every licence granted to a licensee shall show his true name and the name under which, and the address at which, he is authorized by the licence to carry on business as such. A licence than one address or under more than one name or under any name which includes the word "bank" or otherwise implies that he carries on the business of banking, and no licence shall authorize a licensee to carry on business under any name except-
(a) his true name;
(b) the name of a firm in which he is a partner; or
(c) a business name, whether of an individual or of a firm in which he is a partner, under which he or the firm has been registered-
(i) in the case of Peninsular Malaysia and the Federal Territory of Labuan, under the Registration of Businesses Act 1956 [Act 197] ;
(ii) in the case of the State of Sabah, under the Trade Licensing Ordinance [Sabah Cap. 1
7 PART II LICENSING OF MONEYLENDERS-7. [Deleted by Act A1193] .
8 PART II LICENSING OF MONEYLENDERS-8. Offences.
If a licensee-
[Am. by Act A1390]
(a) takes out a licence in any name other than his true name;
(b) being licensed as a moneylender, carries on business as such in any name other than his authorized name or at any other place than his authorized address or addresses;
(c) in the course of business as a moneylender enters into any moneylending agreement with respect to any advance or repayment of money or takes any security for money otherwise than in his authorized name; or
(d) lends money to a person under the age of eighteen years,
he shall be guilty of an offence under this Act and shall be liable to a fine not exceeding* fifty thousand ringgit and for a second or subsequent offence shall be liable to the fine aforesaid or to imprisonment for a term not exceeding twelve months and an offender being a company, society,
9 PART II LICENSING OF MONEYLENDERS-9. Circumstances under which licence shall not be issued.
(1) The licence applied for under section 5A shall not be issued-
(a) if-
(i) an applicant;
(ii) a director, general manager, manager or secretary of an applicant or any other person holding a similar office or position, where the applicant is a company;
(iii) a president, vice-president, secretary or treasurer of an applicant or any other person holding a similar office or position, where the applicant is a society; or
(iv) a partner or any member of an applicant or any other person holding a similar office or position, where the applicant is a firm or other body of persons,
is a person convicted of an offence involving fraud or dishonesty, or an offence relating to Chapter XVI or XVII of the Penal Code [Act 574] , or is an undischarged bankrupt;
(b) where at the time the application is made-
(i) an applicant;<
9A PART II LICENSING OF MONEYLENDERS-9A. Revocation or suspension of licence.
(1) If a licensee-
[Am. by Act A1390]
(a) has been carrying on his business, in the opinion of the Registrar, in a manner detrimental to the interest of the borrower or to any member of the public;
(b) has contravened any of the provisions of this Act or any regulations or rules made under this Act;
(c) has been licensed as a result of a fraud, mistake or misrepresentation in any material particular; or
(d) has failed to comply with any of the conditions of the licence, the Registrar may, subject to section 9B, revoke the licence issued to the licensee or suspend the licence for such period as the Registrar thinks fit.
[(d) Am. by Act A1390]
(2) A revocation or suspension of a licence under this section shall not affect any moneylending agreement entered into before such revocation or suspe
9B PART II LICENSING OF MONEYLENDERS-9B. Opportunity of being heard.
(1) Before revoking or suspending a licence under section 9A, the Registrar shall give the licensee a notice in writing of his intention to do so and require the licensee to submit reasons why the licence should not be revoked or suspended.
(2) After considering the reasons submitted by the licensee, the Registrar shall decide whether to revoke or suspend the licence, or to take no further action, and the Registrar shall notify the licensee of his decision.
[Am. by Act A1390]
9C PART II LICENSING OF MONEYLENDERS-9C. Appeal to Minister.
Any person aggrieved by any decision taken by the Registrar under section 9A may, within fourteen days after having been notified of the decision under subsection 9B(2), appeal against that decision to the Minister whose decision is final and shall not be questioned in any court.
9D PART II LICENSING OF MONEYLENDERS-9D. Validity of licence extended in successful appeal.
Where the Minister allows an appeal against the revocation or suspension of a licence under this Act, the validity of the licence shall be extended by a period corresponding to that during which the licence had no effect and such extended period shall be inserted in the licence.
9E PART II LICENSING OF MONEYLENDERS-9E. Prohibition of subsequent application pending appeal on earlier application.
(1) Where an applicant appeals against the refusal of the Registrar to issue a licence to him, or a licensee appeals against the revocation of his licence by the Registrar, he shall not subsequently make an application for a licence until the appeal against the Registrar's decision has been determined by the Minister.
[Am. by Act A1390]
(2) In the event that any licence is issued as a result of a subsequent application made in the circumstances specified in subsection (1), the licence so granted shall be void and shall have no effect.
(3) Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three months or to both.
9F PART II LICENSING OF MONEYLENDERS-9F. Surrender of licence.
(1) Upon the revocation of the licence under section 9A, or the rejection of an appeal against the revocation of the licence under section 9C, the licensee shall, within 14 days from the date of the notice of revocation, or the notice of rejection of appeal against revocation, being served on him, surrender his licence to the Registrar.
(2) Any licensee who fails to surrender his licence as required under subsection (1) shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
[Am. by Act A1390]
(3) A licensee may surrender his licence on his own initiative by forwarding the licence to the Registrar with a written notice of the surrender of the licence.
(4) The surrender of the licence shall take effect fourteen days from the date the Registrar receives the licence and the wr
9G PART II LICENSING OF MONEYLENDERS-9G. Transfer or assignment of licence prohibited.
(1) Subject to subsections (2) and (3), the licensee shall not transfer or assign his licence to any other person, or cause or permit any other person to use his licence or provide the services authorized in the licence.
(2) Except with the prior written consent of the Registrar, the licensee shall not appoint any person for the purpose of exercising any of the rights conferred on him under the licence, or cause or permit any such person to exercise any such right.
(3) The Registrar may authorize the transfer of a licence where-
(a) the licensee-
(i) being a company, is liquidated and a receiver or manager is appointed in relation to the moneylending business of the company; or
(ii) being a society, firm or other body of persons is dissolved and a receiver or manager is appointed in relation to the moneylending business of the society, firm or other body of persons; or
9H PART II LICENSING OF MONEYLENDERS-9H. Approval and notification of change of profile.
(1) Every licensee shall obtain the approval of the Registrar-
(a) before changing his business name;
(b) before the employment, appointment or admission of any person who will be responsible for the management of the licensee's business of moneylending; or
(c) before any person becomes a director or partner of the licensee.
(2) Every licensee shall notify the Registrar, in writing, as soon as practicable-
(a) of any person becoming a substantial shareholder of the licensee; or
(b) of any substantial shareholder of the licensee increasing or reducing his substantial shareholding in the licensee.
(3) Every licensee shall notify the Registrar, in writing-
(a) of any person ceasing to be a director, partner or substantial shareholder of the licensee; or
(b)
10 PART II LICENSING OF MONEYLENDERS-10. [Deleted by Act A1193] .
10A PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10A. Powers of Inspector or police officer in investigation.
(1) Every Inspector or police officer making an investigation under this Act shall have the power to require information, whether orally or in writing, from any person acquainted or supposed to be acquainted with the facts and circumstances of the case under investigation.
(2) Any person who, on being required by an Inspector or police officer to give information under this section, refuses to comply with such requirement or furnishes as true any information which he knows or has reason to believe to be false, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
(3) Where any information furnished by a person to an Inspector or police officer is proved to be untrue or incorrect in whole or in part, it shall be no defence to allege that the information or any part of the information was misinterpreted, or furnish
10B PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10B. Power to investigate complaints and inquire into information.
(1) Every complaint relating to the commission of an offence under this Act may be made orally or in writing to an Inspector or police officer.
(2) Where a complaint is made orally, it shall be reduced into writing and read over to the person making the complaint.
(3) Every complaint, whether in writing or reduced into writing, shall be signed by the person making the complaint.
(4) Every complaint, whether in writing or reduced into writing, shall be entered in a book kept at the office of the Registrar or in a book to be kept by an officer in charge of a police station and there shall be appended to such entry the date and hour on which such complaint was made.
[(4) Am. by Act A1390]
(4A) A copy, which is certified to be a true copy by the Registrar or an officer in charge of a police district, of an entry under subsection (4) shall be admissible as evidence of the contents of the origina
10C PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10C. Power to examine persons.
(1) An Inspector or police officer investigating an offence under this Act may-
(a) order any person to attend before him for the purpose of being examined orally in relation to any matter which may, in his opinion, assist in the investigation into the offence;
(b) order any person to produce before him any book, document or any certified copy of such book or document, or any other article which may, in his opinion, assist in the investigation into the offence; or
(c) by written notice require any person to furnish a statement in writing made on oath or affirmation, setting out in the notice all such information which may be required, being information which, in the opinion of the Inspector or police officer, would be of assistance in the investigation into the offence.
(2) A person to whom an order under paragraph (1) (a) has been given shall-
10D PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10D. Search by warrant.
(1) If it appears to a Magistrate, upon written information and after such inquiry as he considers necessary, that there is reasonable cause to believe that an offence under this Act has been committed or is being committed on or in respect of any premises, or any evidence necessary to establish the commission of an offence under this Act the Magistrate may issue a warrant authorizing an Inspector or a senior police officer named in that warrant to enter such premises at any reasonable time by day or night with such assistance as may be required, and if necessary by force.
[Am. by Act A1390]
(2) An Inspector or a senior police officer may, in the premises entered under subsection (1), inspect-
(a) any book, account or document, including computerized data, which contains or is reasonably suspected to contain any information regarding any offence suspected to have been committed unde
10E PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10E. Power of arrest.
(1) An Inspector or a police officer may arrest without warrant any person who commits or attempts to commit, or whom the Inspector or police officer reasonably suspects of committing or attempting to commit, any offence under this Act.
(2) Where any person is arrested under subsection (1), he shall thereafter be dealt with as provided by the Criminal Procedure Code [Act 593] .
[Subs. by Act A1390]
10F PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10F. Search without warrant.
If the Inspector or senior police officer in any of the circumstances referred to in section 10D has reasonable cause to believe that by reason of delay in obtaining a search warrant under that section the investigation would be adversely affected or the evidence of the commission of the offence is likely to be tampered with, removed, damaged or destroyed, the Inspector or senior police officer may enter the premises and exercise in, and in respect of the premises, all the powers referred to in section 10D in as full and ample a manner as if he were authorized to do so by a warrant issued under that section.
[Am. by Act A1390]
10G PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10G. Seizure of movable property.
(1) In the course of an investigation into an offence under this Act, an Inspector or a senior police officer may seize any movable property which he has reasonable grounds to suspect to be the subject matter of an offence under this Act or evidence relating to the commission of an offence under this Act.
(2) The occupant of the place searched or, any person on his behalf, shall in every instance be permitted to attend during the search and a list of all movable property seized pursuant to subsection (1) and of the places in which such property are respectively found shall be prepared by the Inspector or senior police officer effecting the seizure and signed by him.
[(1) & (2) Am. by Act A1390]
(3) A copy of the list referred to in subsection (2) shall be served on the owner of such property or on the person from whom the property was seized as soon as possible and shall be signed by such owner or person
10GA PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10GA. Additional powers.
(1) Notwithstanding sections 10D and 10F, an Inspector or a senior police officer shall, for the execution of this Act, have power to do all or any of the following:
(a) to visit, enter, inspect and examine with or without notice any premises where a moneylender is or is believed to be carrying on business;
(b) to require the production of any information, book, record or other document kept by a moneylender or other person and to inspect, examine, make copies of them and take extracts from them;
(c) to take photographs of the premises inspected or any part of the premises;
(d) to seize and remove from the premises any book, record or other document, or any machine or equipment containing any book, record or other document; and
(e) make such inquiry as may be necessary to ascertain whether the provisions of this Act have been complied with.
10GB PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10GB. Access to computerized data.
(1) An Inspector or a senior police officer conducting a search under this Act shall be given access to computerized data whether stored in a computer or otherwise.
(2) For the purpose of this section, "access"-
(a) includes being provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of such computerized data; and
(b) has the same meaning assigned to it by subsections 2(2) and (5) of the Computer Crimes Act 1997 [Act 563] .
[Ins. by Act A1390]
10H PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10H. Further provisions relating to seizure of movable property.
(1) Where any movable property is seized under this Act, the seizure shall be effected by removing the movable property from the possession, custody or control of the person from whom it was seized and placing it under the custody of such person or authority and at such place as an Inspector or a senior police officer may determine.
(2) Where it is not practicable, or it is otherwise not desirable, to effect the removal of any property under subsection (1), the Inspector or senior police officer may leave it at the premises in which it is seized under the custody of such person as he may determine for the purpose.
[Am. by Act A1390]
10I PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10I. Obstruction of inspection and search.
(1) Any person who-
(a) refuses any Inspector or police officer access to any premises or any part of such premises, or fails to submit to a search of his person by a person authorized to search him under this Act;
(b) assaults, obstructs, hinders or delays an Inspector or police officer in the execution of his duty under this Act;
(c) fails to comply with any lawful demand, notice, order or requirement of an Inspector or police officer in the execution of his duty under this Act;
(d) omits, refuses or neglects to give to an Inspector or police officer any information which may reasonably be required of him and which he is empowered to give;
(e) fails to produce to, or conceals or attempts to conceal from an Inspector or police officer any book, account, document, data, mark, signboard, card, letter, pamphlet, item, thing, article or goods in relation to w
10J PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10J. Authority to act.
(1) There shall be issued to each Inspector an authority card to be signed by the Minister.
(2) Whenever an Inspector exercises any of the powers under this Act, he shall on demand produce to the person against whom the power is being exercised the authority card issued to him under subsection (1).
[Subs. by Act A1390]
10K PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST-10K. Release of property seized.
(1) Where any property has been seized under this Act, an Inspector or a senior police officer superior in rank to the senior police officer who effected the seizure, may, if there is no prosecution for an offence under this Act, or upon the completion of proceedings for such offence, or if it is not otherwise required for the purpose of any proceedings under this Act, release the property to its owner, or to the person from whose possession, custody or control it was seized, or to such person who may be entitled to the property, and in such event the officer effecting the seizure, the Government, or any person acting on behalf of the Government, shall not be liable to any proceedings by any person if the seizure of the property and the release of the property had been effected in good faith.
[Am. by Act A1390]
(2) A record in writing shall be made by the officer effecting any release of the property under subsec
10L PART IV EVIDENCE-10L. Evidence of accomplice and agent provocateur.
(1) Notwithstanding any written law or rule of law to the contrary, in any proceedings against any person for an offence under this Act-
(a) no witness shall be regarded as an accomplice by reason only of such witness having-
(i) accepted, received, obtained, solicited, agreed to accept or receive, or attempted to obtain any sum of money from a moneylender; or
(ii) been in any manner concerned in the commission of such offence or having knowledge of the commission of the offence;
(b) no agent provocateur, whether or not he is an Inspector or police officer, shall be presumed to be unworthy of credit by reason only of his having attempted to commit or having abetted the commission of, or having abetted or having been engaged in a criminal conspiracy to commit, such offence if the main purpose of the attempt to commit, abetment in the commission of, or abetment or e
10M PART IV EVIDENCE-10M. Protection of informers and information.
(1) Except as hereinafter provided, no complaint as to an offence under this Act shall be admitted in evidence in any civil or criminal proceedings, and no witness shall be obliged or permitted to disclose the name or address of any person who gave the information, or the substance and nature of the information received from him, or state any matter which might lead to his discovery.
(2) If any application, particular, return, account, document or written statement which is given in evidence or liable to inspection in any civil or criminal proceedings contains any entry in which any person who gave the information is named or described, or which might lead to his discovery, the court before which the proceedings are held shall cause all such entries to be concealed from view or to be obliterated so far as may be necessary to protect such person from discovery, but no further.
(3) If in any proceedings relating to any offence under this
10N PART IV EVIDENCE-10N. Admissibility of statements by accused persons.
(1) In any trial or inquiry by a court into an offence under this Act, any statement, whether the statement amounts to a confession or not or is oral or in writing, made at any time, whether before or after the person is charged and whether in the course of an investigation or not and whether or not wholly or partly in answer to questions, by an accused person to or in the hearing of any Inspector or police officer, whether or not interpreted to him by any other Inspector or police officer or any other person, whether concerned or not in the arrest of that person, shall, notwithstanding any written law or rule of law to the contrary, be admissible at his trial in evidence and, if that person tenders himself as a witness, any such statement may be used in cross-examination and for the purpose of impeaching his credit.
(2) No statement made under subsection (1) shall be admissible or used as provided for in that subsection if the making of the st
10O PART IV EVIDENCE-10O. Provisions as to evidence.
(1) A copy of a licence, certified by the Registrar to be a true copy of such licence, shall be admissible as evidence for all purposes for which the original of such copy would have been admissible had such original been produced and admitted as evidence, without proof of the signature or authority of the person signing the licence or the copy of the licence.
(2) When in any proceedings for an offence under this Act it is necessary to prove that a person was, or was not, the holder of a licence, a certificate purporting to be signed by the Registrar and certifying that the person was or was not, the holder of a licence, shall be admissible as evidence and shall constitute prima facie proof of the facts certified in such certificate, without proof of the signature or the authority of the Registrar to issue the certificate.
10OA PART IV EVIDENCE-10OA. Presumption as to the business of moneylending.
Where in any proceedings against any person, it is alleged that such person is a moneylender, the proof of a single loan at interest made by such person shall raise a presumption that such person is carrying on the business of moneylending, until the contrary is proved.
[Ins. by Act A1390]
10OB PART IV EVIDENCE-10OB. Evidence and records of previous conviction.
(1) For the purposes of sentencing under this Act, when it is necessary to prove in any court that the offence for which a person is being convicted is a second or subsequent offence, a certificate purporting to be a record of his previous conviction, signed by-
(a) the Registrar; or
(b) any police officer authorized in writing in that behalf by the Chief Police Officer or Commissioner of Police,
having custody of the records in which such conviction is kept, shall be admissible as evidence and shall constitute prima facie proof of any fact stated therein.
(2) The certificate under subsection (1) shall only be admissible if it is a record in respect of the same offence and the conviction is obtained within five years from the date of the present conviction.
[Ins. by Act A1390]
10OC PART IV EVIDENCE-10OC. Diary of proceedings in investigation.
(1) Every Inspector or police officer making an investigation under this Act shall day by day enter his proceedings in the investigation in a diary setting forth-
(a) the time at which the order to investigate, if any, reached him;
(b) the time at which he began and closed the investigation;
(c) the place or places visited by him; and
(d) a statement of the circumstances ascertained through his investigation.
(2) Notwithstanding anything contained in the Evidence Act 1950 [Act 56], an accused person shall not be entitled, either before or in the course of any proceedings under this Act, to call for or inspect any such diary:
Provided that if the Inspector or police officer who has made the investigation refers to the diary for the purposes of section 159 or 160 of the Evidence Act 1950, only such entries as the officer has referred to shall be
10P PART V CONDUCT OF MONEYLENDING BUSINESS-10P. Moneylender and borrower must enter into a moneylending agreement.
(1) A licensee who intends to lend money to a borrower shall enter into a moneylending agreement with the borrower, and that agreement shall be in the prescribed form.
(2) Any licensee who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine of not less than ten thousand ringgit but not more than fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a second or subsequent offence shall also be liable to whipping in addition to such punishment.
[Am. by Act A1390]
(3) Any moneylending agreement which does not comply with the prescribed form shall be void and have no effect and shall not be enforceable.
11 PART V CONDUCT OF MONEYLENDING BUSINESS-11. Advertisement by licensee.
(1) No advertisement regarding the business of moneylending carried on by a licensee shall be issued or published or caused to be issued or published by the licensee, unless an advertisement permit in respect of that advertisement has been granted by the Registrar.
(2) Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
[Am. by Act A1390]
11A PART V CONDUCT OF MONEYLENDING BUSINESS-11A. Application for advertisement permit.
An application for an advertisement permit by a licensee shall be made in writing to the Registrar in the prescribed form and accompanied by such particulars and documents as may be prescribed.
[Am. by Act A1390]
12 PART V CONDUCT OF MONEYLENDING BUSINESS-12. No circular implying a banking business to be issued.
If a moneylender for the purpose of the business carried on by him as such issues or publishes or causes to be issued or published any advertisement, circular or document of any kind whatsoever containing expressions which might reasonably be held to imply that he carries on the business of banking he shall be liable to a fine not exceeding **ten thousand ringgit and on a second or subsequent offence shall be liable to the fine aforesaid or to imprisonment for a term not exceeding twelve months or to both and an offender being a company, society, firm or other body of persons shall for a second or subsequent offence be liable to a fine not exceeding ***fifteen thousand ringgit.
13 PART V CONDUCT OF MONEYLENDING BUSINESS-13. [Deleted by Act A1193] .
14 PART V CONDUCT OF MONEYLENDING BUSINESS-14. [Deleted by Act A1193] .
15 PART V CONDUCT OF MONEYLENDING BUSINESS-15. Contract by unlicensed moneylender unenforceable.
No moneylending agreement in respect of money lent after the coming into force of this Act by an unlicensed moneylender shall be enforceable.
16 PART V CONDUCT OF MONEYLENDING BUSINESS-16. Moneylending agreement to be given to the borrower.
(1) No moneylending agreement shall be enforceable unless the agreement has been signed by all the parties to the agreement and a copy of the agreement duly stamped is delivered to the borrower by the licensee before the money is lent.
(2) A licensee who executes a moneylending agreement which does not comply with this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
[Am. by Act A1390]
17 PART V CONDUCT OF MONEYLENDING BUSINESS-17. Prohibition of compound interest.
(1) Any moneylending agreement made on or after the commencement of this Act, for the loan of money by a licensee shall be illegal in so far as it provides, directly or indirectly, for the payment of compound interest, or for the rate or amount of interest to be increased by reason of any default in the payment of sums due under the moneylending agreement:
Provided that provision may be made in any such moneylending agreement that if default is made in the payment upon the due date of any sum or instalment payable to the licensee under the moneylending agreement, whether in respect of principal or interest, the licensee shall be entitled to charge simple interest on the unpaid sum or instalment which shall be calculated at the rate of eight per centum per annum from day to day from the date of default in payment of the sum or instalment until that sum or instalment is paid, and any interest so charged shall not be reckoned for the purposes of t
17A PART V CONDUCT OF MONEYLENDING BUSINESS-17A. Interest for secured and unsecured loans.
(1) For the purposes of this Act, the interest for a secured loan shall not exceed twelve per centum per annum and the interest for an unsecured loan shall not exceed eighteen per centum per annum.
(2) Notwithstanding subsection (1), interest shall not at any time be recoverable by a licensee of an amount in excess of the sum then due as principal unless a Court, having regard to all the circumstances, otherwise decrees.
[(2) Am. by Act A1390]
(3) Where in a moneylending agreement the interest charged for a secured loan or an unsecured loan, as the case may be, is more than that specified in subsection (1), that agreement shall be void and have no effect and shall not be enforceable.
(4) Any licensee who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding eighteen months
18 PART V CONDUCT OF MONEYLENDING BUSINESS-18. Duty to keep original copy of moneylending agreement and accounts in permanent books.
(1) Every licensee shall keep or cause to be kept and maintained-
(a) such original copy of the moneylending agreement for each loan in which he is or has been concerned; and
(b) such regular accounts of each loan made clearly stating in plain words and in English numerals with or without the numerals of the script otherwise used the terms and transactions incidental to the account entered in a book paged and bound in such manner as not to facilitate the elimination of pages or the interpolation or substitution of pages,
for a period of not less than seven years from the end of the year in which the loan is made.
[(1) Subs. by Act A1390]
(2) If any licensee subject to the obligations of this section fails to comply with any of the requirements thereof, he shall not be entitled to enforce any claim in respect of any transaction in relation to whic
19 PART V CONDUCT OF MONEYLENDING BUSINESS-19. Obligation to supply information as to state of loan and copies of documents relating thereto.
(1) In respect of every moneylending agreement with regard to money lent by a licensee whether made before or after the commencement of this Act the licensee shall, on any reasonable demand in writing being made by the borrower at any time during the continuance of the moneylending agreement and on tender by the borrower of the sum of three ringgit for expenses, supply to the borrower or, if the borrower so requires, to any person specified in that behalf in the demand, a statement of account in English figures signed by the licensee showing-
(a) the date on which the loan was made, the amount of the principal of the loan and the rate per centum per annum or the amount of interest charged; and
(b) the amount of any payment already received by the licensee in respect of the loan and the date on which it was made; and
(c) the amount of all sums due to the licensee for principal but unpaid an
20 PART V CONDUCT OF MONEYLENDING BUSINESS-20. Provisions as to bankruptcy proceedings for licensees' loans.
(1) Where a debt due to a licensee in respect of a loan made by him after the commencement of this Act includes interest, that interest shall, for the purposes of the Bankruptcy Act 1967 [Act 360] relating to the presentation of a bankruptcy petition, voting at meetings, compositions and schemes of arrangement and dividend, be calculated at a rate not exceeding eight per centum per annum, but nothing in the foregoing provision shall prejudice the right of the creditor to receive out of the estate, after all the debts proved in the estate have been paid in full, any higher rate of interest to which he may be entitled.
(2) No proof of a debt due to a licensee in respect of a loan made by him shall be admitted for any of the purposes of the Bankruptcy Act 1967 unless the affidavit verifying the debt has exhibited thereto a statement which complies with section 19 and shows, where the amount of interest included in the unpaid balance represents a r
21 PART V CONDUCT OF MONEYLENDING BUSINESS-21. Accounts under section 19 to be produced when suing in Court.
(1) Where proceedings are taken in any Court by a licensee for the recovery of any money lent after the commencement of this Act or the enforcement of any moneylending agreement or security made or taken after the commencement of this Act in respect of money lent either before or after the commencement of this Act, he shall produce a statement of his account as prescribed in section 19.
(2) Where there is evidence which satisfies the Court that the interest charged in respect of the sum actually lent is excessive and that the transaction is harsh and unconscionable or substantially unfair, the Court shall reopen the transaction and take an account between the moneylender and the person sued and shall, notwithstanding any statement or settlement of account or any agreement purporting to close previous dealings and create a new obligation, reopen any account already taken between them and relieve the person sued from payment of any sum in excess
22 PART V CONDUCT OF MONEYLENDING BUSINESS-22. [Deleted by Act A1193] .
23 PART V CONDUCT OF MONEYLENDING BUSINESS-23. Prohibition of charge for expenses on loans by moneylender.
Any moneylending agreement between a licensee and a borrower or intending borrower for the payment by the borrower or intending borrower to the licensee of any sum on account of costs, charges or expenses other than stamp duties, fees payable by law and legal costs incidental to or relating to the negotiations for or the granting of the loan or proposed loan shall be illegal, and if any sum is paid to a licensee by a borrower or intending borrower as, for or on account of any such costs, charges or expenses other than as aforesaid that sum shall be recoverable as a debt due to the borrower or intending borrower, or in the event of the loan being completed, shall, if not so recovered, be set off against the amount actually lent and that amount shall be deemed to be reduced accordingly.
[Am. by Act A1390]
24 PART V CONDUCT OF MONEYLENDING BUSINESS-24. [Deleted by Act A1193] .
25 PART V CONDUCT OF MONEYLENDING BUSINESS-25. Notice and information to be given on assignment of moneylender's debts.
(1) Where any debt in respect of money lent by a licensee, whether before or after the commencement of this Act or in respect of interest on any such debt, or the benefit of any moneylending agreement made or security taken in respect of any such debt or interest, is assigned to any assignee, the assignor (whether he is the licensee by whom the money was lent or any person to whom the debt has been previously assigned) shall, before the assignment is made-
[Am. by Act A1390]
(a) give to the assignee notice in writing that the debt, moneylending agreement or security is affected by the operation of this Act; and
(b) supply to the assignee all information necessary to enable him to comply with this Act relating to the obligation to supply information as to the state of loans and copies of documents relating thereto,
and any person acting in contravention o
26 PART V CONDUCT OF MONEYLENDING BUSINESS-26. Application of Act as respects assignees.
(1) Subject as hereinafter provided this Act shall continue to apply as respects any debt to a licensee in respect of money lent by him after the commencement of this Act or in respect of interest on money so lent or of the benefit of any moneylending agreement made or security taken in respect of any such debt or interest notwithstanding that the debt or the benefit of the moneylending agreement or security may have been assigned to any assignee and, except where the context otherwise requires, references in this Act to a licensee shall accordingly be construed as including any such assignee as aforesaid.
[Am. by Act A1390]
(2) Notwithstanding anything in this Act-
(a) any moneylending agreement with or security taken by a licensee in respect of money lent by him after the commencement of this Act shall be valid in favour of any bona fide assignee or holder for value without notice
27 PART VI MISCELLANEOUS-27. Attestation of moneylending agreement.
(1) A moneylending agreement shall be attested by an Advocate and Solicitor of the High Court, an officer of the Judicial and Legal Service, a Commissioner for Oaths, District Officer, Justice of the Peace or such other person as may be appointed by the Minister generally for such purpose.
(2) The attestor shall explain the terms of the moneylending agreement to the borrower, and shall certify on the agreement that the borrower appears to understand the meaning of the terms of the agreement.
(3) Any moneylending agreement which is not attested in accordance with this section shall be void and have no effect and shall not be enforceable.
NOTE: [REVOKED BY ACT A1390]
(1) The Moneylenders Act 1951 [Act 400], which is referred to as the "extended Act" in this Order, is extended to the Federal Territory of Labuan.
In its application to the Federal Territory of Labuan, the extended Act is mo
27A PART VI MISCELLANEOUS-27A. Prohibition of employing an agent or canvasser.
(1) No moneylender shall employ any agent or canvasser for the purpose of inviting any person to borrow money or to enter into any transaction involving the borrowing of money from a moneylender.
(2) No person shall act as agent or canvasser, or demand or receive directly or indirectly any sum or other value consideration by way of commission or otherwise for introducing or undertaking to introduce to a moneylender any person desiring to borrow money.
(2) Any person who contravenes subsections (1) and (2) shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding fifty thousand ringgit or to both.
[Editor's note: There is a typo error. There are two (2)]
[Ins. by Act A1390]
27B PART VI MISCELLANEOUS-27B. Moneylending agreement in which amount is not truly stated or left blank.
Any licensee who prepares any moneylending agreement under section 16 in which the principal or rate of interest is not truly stated or is left blank to be filled after the execution of the moneylending agreement shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand ringgit or to both.
[Ins. by Act A1390]
28 PART VI MISCELLANEOUS-28. [Deleted by Act A1193] .
29 PART VI MISCELLANEOUS-29. False statements or representations to induce borrowing an offence.
If-
(a) a moneylender or employee of the moneylender;
(b) any person being a director, general manager, manager or other officer of a company, being a moneylender;
(c) any person being a president, vice-president, secretary, treasurer or other officer of a society, being a moneylender; or
(d) any person being a partner or member, or other officer of a firm or other body of persons, being a moneylender,
by any false, misleading or deceptive statement, representation or promise or, by any dishonest concealment of material facts fraudulently induces or attempts to induce any person to borrow money or to agree to the terms on which money is or is to be borrowed, he shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand ringgit or to both.
29A PART VI MISCELLANEOUS-29A. General offences.
(1) Any person who-
(a) for the purpose of the issuance of a licence to himself or to any other person, or for preventing the imposition of any condition in relation to such licence, makes any statement or declaration which to his knowledge is false or incorrect, either in whole or in part, or is misleading in any material respect;
(b) furnishes any particulars or documents in relation to an application for the issuance of a licence which to his knowledge are false or incorrect or misleading in any material respect;
(c) makes any entry in a register, record, return, account or any other document required to be kept, maintained or furnished under this Act, which is false or incorrect or misleading in any material respect;
(d) alters, tampers with, defaces or mutilates any licence or other document which is required to be exhibited on a moneylender's premises, or lends or a
29AA PART VI MISCELLANEOUS-29AA. Prohibition of assisting unlicensed moneylending.
(1) Any person who assists a moneylender in contravention of subsection 5(1) shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand ringgit or to both.
(2) For the purpose of subsection (1), where the bank account, passbook, automated teller machine card, credit card or charge card of any person, or the post-dated cheque issued by any person, is proved to the satisfaction of the court to have been used to facilitate the carrying on of the business of a moneylender in contravention of subsection 5(1), that person shall be presumed, until the contrary is proved, to have assisted the moneylender in the contravention of subsection 5(1).
[Ins. by Act A1390]
29B PART VI MISCELLANEOUS-29B. Harassment or intimidation, etc , of borrower.
(1) Any moneylender who, either personally or by any person acting on his behalf, harasses or intimidates a borrower or any member of the borrower's family or any other person connected with the borrower at, or watches or besets, the residence or place of business or employment of the borrower, or any place at which the borrower receives his wages or any other sum periodically due to him, shall be guilty of an offence under this Act and shall be liable to a fine of not less than fifty thousand ringgit but not more than two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both, and in the case of a second or subsequent offence shall also be liable to whipping in addition to such punishment.
[Am. by Act A1390]
(2) Any person who, acting on behalf of the moneylender, commits or attempts to commit any of the acts specified in subsection (1), shall be guilty of an offence
29C PART VI MISCELLANEOUS-29C. Offences by companies, societies, firms or other body of persons.
(1) Where an offence under this Act has been committed by a moneylender-
(a) being a company, any person who at the time of the commission of the offence was a director, general manager, manager, secretary or other similar officer of the company, or was purporting to act in any such capacity;
(b) being a society, any person who at the time of the commission of the offence was a president, vice-president, secretary, treasurer or other similar officer of the society, or was purporting to act in any such capacity;
(c) being a firm or other body of persons, any person who at the time of the commission of the offence was a partner or member or other similar officer of the firm or other body of persons, or was purporting to act in any such capacity,
shall be deemed to have committed the offence, unless he proves that the offence was committed without his knowledge, consent
29D PART VI MISCELLANEOUS-29D. Prosecution.
No prosecution for an offence under this Act shall be instituted except by or with the written consent of the Public Prosecutor.
29E PART VI MISCELLANEOUS-29E. Service of notification or document.
(1) Any notification or document required to be given or served under this Act shall be sent by prepaid registered post to the person to or upon whom the notification or document is required to be given or served.
(2) Where a notification or document is given or served in accordance with subsection (1), it shall be deemed to have been given or served on the person to whom it is addressed on the day succeeding the day on which the notification or document would have been received in the ordinary course of post, if the notification or document is addressed to the authorized address of the person to whom the notification or document is intended to be sent to.
29F PART VI MISCELLANEOUS-29F. Power to compound.
(1) The Registrar or any Inspector specifically authorized in writing by name or by office in that behalf by the Registrar may, with the consent of the Public Prosecutor in writing, compound any offence under this Act which is prescribed to be a compoundable offence by accepting from the person reasonably suspected of having committed the offence and to whom an offer to compound has been made, a sum of money not exceeding fifty per centum of the amount of the maximum fine for that offence.
[Am. by Act A1390]
(2) An offer to compound under subsection (1) may be made at any time after the offence has been committed but before any prosecution for it has been instituted.
(3) Where the amount specified in the offer to compound is not paid within the time specified in the offer, or within such extended period as may be granted by the Registrar or an Inspector specifically authorized under subsection (1), prosecu
29G PART VI MISCELLANEOUS-29G. Jurisdiction.
Notwithstanding any written law to the contrary, a Court of a Magistrate of the First Class shall have jurisdiction to try any offence under this Act, and to impose the full punishment for any such offence.
29H PART VI MISCELLANEOUS-29H. Power to make regulations.
(1) The Minister may make such regulations as may be expedient or necessary for the purpose of giving full effect to the provisions of this Act, or for carrying out or achieving the objects and purposes of this Act.
(2) Without prejudice to the generality of subsection (1), the Minister may make regulations for or in respect of all or any of the following matters:
(a) the procedure to be followed in making an application for a licence, including the forms to be used, conditions to be complied with, and documents and information to be furnished in respect of such an application;
(b) the matters to be considered in respect of the granting of a licence to a person;
(c) the procedure regarding the surrender, suspension and revocation of licences;
(d) the procedure for the issuance of copies of a licence, where the licence is lost or destroyed;
(e) the
29I PART VI MISCELLANEOUS-29I. Reward to informer.
(1) The Registrar may reward such amount of money to any informer whose information leads to the conviction of any person for an offence under this Act.
(2) The reward made under subsection (1) shall be paid from-
(a) in the case of Peninsular Malaysia and the Federal Territory of Labuan, the Federal Consolidated Fund; and
(b) in the case of the States of Sabah and Sarawak, the State Consolidated Fund of the State respectively.
[Ins. by Act A1390]
29J PART VI MISCELLANEOUS-29J. Assignment of proceeds to the States of Sabah and Sarawak.
The following proceeds are assigned to the States of Sabah and Sarawak:
(a) penalties for late renewal of licence under section 5E; and
(b) fees for advertisement permits as prescribed under the Moneylenders (Control and Licensing) Regulations 2003 [P.U.(A) 400/2003] .
[Ins. by Act A1390]
29K PART VI MISCELLANEOUS-29K. Power to amend First Schedule.
The Minister may, by order published in the Gazette , amend the First Schedule.
[Ins. by Act A1390]
30 PART VI MISCELLANEOUS-30. [Deleted by Act A1193] .
30A PART VI MISCELLANEOUS-30A. [Deleted by Act A1193] .
31 PART VI MISCELLANEOUS-31. (Omitted) .
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