"Accounting officer"  includes every officer and servant who is charged with the duty of collecting, receiving, or accounting for, or who in fact collects, receives or accounts for, any money of the Fund, or who is charged with the receipt, custody or disposal of, or the accounting for, any store and property of the Authority or who in fact receives, holds or disposes of such store and property;

  "Authority"  means the Labuan Financial Services Authority established under section 3;

  "Bank"  means the Central Bank of Malaysia established under the Central Bank of Malaysia Act 1958 [Act 519] ;

  "Chairman"  means the Chairman appointed under section 5;

3 PART II THE AUTHORITY-3. The Authority and its objectives.

(1) There is hereby established a body corporate by the name of "Labuan Financial Services Authority " with perpetual succession and a common seal, which may sue and be sued in its name and, subject to and for the purposes of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Authority upon such terms as it deems fit.

[Am. Act A1365] s. 5

(2) The objectives of the Authority are-

(a) to promote and develop Labuan as an international centre for business and financial services;

[Am. Act A1365] s. 5

(b) to develop national objectives, policies and priorities fo

4 PART II THE AUTHORITY-4. Functions and powers of the Authority.

(1) The functions of the Authority shall be-

(a) to administer, enforce, carry out and give effect to the provisions of this Act and the laws specified in the Schedule and anything incidental to such laws and to ensure that such laws are complied with;

[Subs. Act A1365] s. 6

(b) to exercise, discharge and perform such powers, duties and functions under the laws referred to in paragraph (a) ;

(c) to maintain the good repute of Labuan as an international business and financial centre;

[Subs. Act A1365] s. 6

(d) to carry out research and commission studies on financial services in Labuan;

(e) to make recommendations for the creation and improvement of any facility likely to enhance the attraction of Labuan as a centre for financial services;

(f) to co-operate with Labuan f

4A PART II THE AUTHORITY-4A. Power to issue guidelines.

4A. (1) The Authority may, in respect of this Act or the laws specified in the Schedule or any other matter relating to Labuan financial services, issue guidelines to clarify any provision of this Act or the laws specified in the Schedule to facilitate compliance with the law by a Labuan financial institution or any other matters relating to Labuan financial services.

(2) The Authority may amend or revoke any guideline issued under this section.

[Ins. Act A1365] s. 7

4B PART II THE AUTHORITY-4B. Power to issue directions.

(1) Notwithstanding any provision to the contrary in any other law relating to Labuan financial services, when the Authority is satisfied that it is necessary to do so for the purpose of giving effect to the objectives of the Authority, the Authority may issue directions to a Labuan financial institution in respect of all or any of the following matters:

(a) the policy to be followed by the Labuan financial institution relating to the conduct of the institution's business in Labuan;

(b) the supervision and regulation of the Labuan financial institution pursuant to the laws relating to Labuan financial services;

(c) the monetary policy to be given effect to by the Labuan financial institution; and

(d) the action to be taken by the Labuan financial institution relating to its members or servants.

(2) Any Labuan financial institution who fails to comply with any direction issued u

4C PART II THE AUTHORITY-4C. Power to publish information.

(1) The Authority may publish any information with respect to any matter relating to Labuan financial services or any other information deemed by the Authority to be of public interest.

(2) Without prejudice to the generality of subsection (1), the Authority may publish any information relating to any action taken by the Authority against any Labuan financial institution.

[Ins. Act A1365] s. 7

5 PART II THE AUTHORITY-5. Membership of the Authority.

(1) The Authority shall consist of the following members who shall be appointed by the Minister:

(a) a Chairman;

(b) the Director-General; and

(c) not less than three and not more than seven other persons,two of whom shall be from the public sector.

(2) The members appointed under paragraph (1) (c) shall be from amongst persons who possess relevant experience in financial, commercial or legal matters.

(3) The Director-General shall be the chief executive officer of the Authority and shall be entrusted with the day-to-day administration of the Authority.

(4) In the event of the Director-General being absent or unable to act due to illness or any other cause, the Chairman shall appoint any member of the Authority to carry out the functions of the Director-General.

6 PART II THE AUTHORITY-6. Tenure of office.

Subject to such conditions as may be specified in his instrument of appointment, a member of the Authority shall, unless he sooner resigns or vacates his office or his appointment is sooner revoked, hold office for a term not exceeding three years and is eligible for reappointment.

7 PART II THE AUTHORITY-7. Resignation and revocation.

(1) The appointment of any member may at any time be revoked by the Minister.

(2) A member may at any time resign his office by a written notice addressed to the Minister.

8 PART II THE AUTHORITY-8. Vacation of office.

The office of a member of the Authority shall be vacated -

(a) if he dies;

(b) if he has been convicted of any offence under any law;

(c) if he becomes a bankrupt;

(d) if he is of unsound mind or is otherwise incapable of discharging his duties; or

(e) if he absents himself from three consecutive meetings of the Authority without leave of the Chairman or in the case of the Chairman, without leave of the Minister.

9 PART II THE AUTHORITY-9. Power of the Minister to give directions and require information.

(1) The Minister may, from time to time, give to the Authority directions of a general character not inconsistent with the provisions of this Act and such directions shall be binding on the Authority.

(2) The Minister may, from time to time, require the Authority to furnish the Minister with such returns, accounts and information with respect to the performance of any of its functions under this Act and any other law relating to Labuan financial services and the Authority shall comply with such requirement.

[Am. Act A1365] s. 8

10 PART II THE AUTHORITY-10. Authority to determine its own procedure.

Subject to this Act and the approval of the Minister, the Authority shall determine its own procedure.

11 PART II THE AUTHORITY-11. Authority may invite others to meetings.

The Authority may invite any person to attend any meeting or deliberation of the Authority for the purpose of advising it on any matter under discussion, but any person so attending shall have no right to vote at the said meeting or deliberation.

12 PART II THE AUTHORITY-12. Remuneration or allowance.

Members of the Authority or any person invited to attend any meeting or deliberation of the Authority under section 11 may be paid such remuneration or allowance as the Minister may determine.

13 PART II THE AUTHORITY-13. Common seal.

(1) The Authority shall have a common seal and such seal may from time to time be broken, changed, altered and made anew as the Authority thinks fit.

(2) Until a seal is provided by the Authority, a stamp bearing the words "Labuan Financial Services Authority" may be used and shall be deemed to be the common seal of the Authority.

[Am. Act A1365] s. 9

(3) The common seal shall be kept in the custody of the Chairman or such other person as may be authorized by the Authority, and shall be authenticated by either the Chairman or such authorised person or by any officer authorized by the Chairman in writing; and all deeds, documents and other instruments purporting to be sealed with the said seal, authenticated as aforesaid, shall, until the contrary is proven, be deemed to have been validly executed:

Provided that any document or instrument which, if executed by a person not being a body corporate, wo

14 PART II THE AUTHORITY-14. Delegation of Authority's function or powers.

(1) The Authority may delegate any of its functions or powers to-

(a) any member of the Authority;

(b) any committee established by the Authority; or

(c) any officer or servant of the Authority.

(2) A delegation under this section shall not preclude the Authority itself from performing or exercising at any time any of the functions or powers under this Act or the laws specified in the Schedule so delegated.

[Am. Act A1365] s. 10

15 PART II THE AUTHORITY-15. Authority may establish committees.

(1) The Authority may establish such committees as it considers necessary or expedient to assist it in the performance of its functions under this Act or the laws specified in the Schedule.

[Am. Act A1365] s. 11

(2) The Authority may appoint any person to be a member of any committee established under subsection (1).

(3) A committee established under this section may elect any of its members to be chairman and may regulate its own procedure and, in the exercise of its powers under this subsection, such committee shall be subject to and act in accordance with any direction given to the committee by the Authority.

(4) Meetings of a committee established under this section shall be held at such times and places as the chairman of the committee may, subject to subsection (3), determine.

(5) A committee may invite any person, for the purpose of advising it on any matter under discussion, to atte

16 PART II THE AUTHORITY-16. Minutes.

(1) The Authority or a committee shall cause minutes of all their meetings to be maintained and kept in proper form.

(2) Any minutes made of meetings of the Authority or a committee, if duly signed, shall, in any legal proceedings, be admissible as prima facie evidence of the facts stated therein and every meeting of the Authority or a committee in respect of the proceedings of which minutes have been so made shall be deemed to have been duly convened and held and all members thereat to have been duly qualified to act.

17 PART II THE AUTHORITY-17. Disclosure of interest.

(1) Any member of the Authority or a committee who has or acquires, directly or indirectly, by himself, or his spouse or children, or his partner or his agent-

(a) any share or interest in any Labuan financial institution;

[Am. Act A1365] s. 12

(b) any share or interest-

(i) in any contract made with the Authority;

(ii) in any work done for the Authority; or

(iii) in any company or firm with which the Authority proposes to enter into a contract in respect of any undertaking; or

(c) any beneficial interest in land proposed to be acquired, purchased, leased or otherwise dealt with by the Authority, which he knows to be affected or is likely to be affected by any project, scheme or enterprise approved or proposed to be approved by the Authority,

shall declare the nature and extent of his share or interest to the Auth

17A PART II THE AUTHORITY-17A. Preservation of secrecy.

(1) No member, officer, servant, agent or consultant of the Authority or person who has by any means access to any record, book, register, correspondence, document, material or information, relating to the business and affairs of the Authority in the performance of his duties or the exercise of his functions, shall give, divulge, reveal, publish or otherwise disclose to any person such record, book, register, correspondence, document, material or information unless he is lawfully required to do so by any court or under any written law.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding six months or to both.

[Ins. Act A1337] s. 4

18 PART II THE AUTHORITY-18. Appointment of officers and servants of the Authority.

(1) The Authority may, from time to time, employ persons who shall be paid such remuneration and allowances and shall hold their employment on such other terms and conditions as the Authority may determine.

(2) The Authority may make arrangements for the payment to its officers and servants and their dependants of such retirement benefits, gratuities or other allowances as it may determine.

18A PART II THE AUTHORITY-18A. Establishment of staff welfare fund.

(1) The Authority may, with the written approval of the Minister, out of the funds of the Authority, create and maintain a trust account to be known as the "Labuan Financial Services Authority Staff Welfare Fund" for the benefits of its officers and employees including their dependants.

(2) The Labuan Financial Services Authority Staff Welfare Fund shall be utilized for such purposes conducive to the welfare of the officers and employees of the Authority, including their dependants, as may from time to time be provided in trust directions to be issued by the Authority with the approval of the Minister, and such directions may provide for the manner and the procedure for the making of the grant, loans or other payments from such Fund.

[Ins. Act A1036; Am. Act A1365; s.13]

19 PART II THE AUTHORITY-19. Power to grant loans and make advances to its officers and servants.

The Authority may grant loans and make advances to its officers and servants on such terms and conditions as the Authority may determine.

20 PART II THE AUTHORITY-20. Disciplinary committees.

(1) The Authority shall have disciplinary authority over all its officers and servants and shall exercise disciplinary control in respect of all such persons in accordance with this Act and any regulations made under section 22.

(2) For the purposes of this section-

(a) there shall be established a disciplinary committee of the Authority in respect of the Director-General consisting of-

(i) the Chairman, who shall be the chairman of the committee; and

(ii) at least two members of the Authority, which shall not include the Director-General, as shall be determined among the members themselves; and

(b) the Authority may, by notification in the Gazette , establish different disciplinary committees for different categories of officers or servants of the Authority.

(3) The following shall apply to any disciplinary committee establis

21 PART II THE AUTHORITY-21. Appeal against decision of disciplinary committee.

(1) A decision of the disciplinary committee under paragraph 20(2) (a) shall be appealable to the Minister.

(2) A decision of the disciplinary committee under paragraph 20(2) (b) shall be appealable to the Disciplinary Appeal Board which shall consist of the following members:

(a) the Chairman of the Authority, who shall be the chairman of the Disciplinary Appeal Board and having a casting vote;and

(b) three members of the Authority, not being members of the disciplinary committee whose decision is the subject matter of the appeal, to be appointed by the chairman of the Disciplinary Appeal Board with the approval of the Authority for the purpose of the appeal.

(3) The Minister or the Disciplinary Appeal Board, as the case may be, may confirm, reverse or vary the decision of the disciplinary committee.

(4) When the Disciplinary Appeal Board considers a

22 PART II THE AUTHORITY-22. Power to make disciplinary regulations.

(1) The Authority may, with the approval of the Minister, make such regulations as it deems necessary or expedient to provide for the discipline of the officers and servants of the Authority.

(2) The disciplinary regulations made under this section-

(a) may create disciplinary offences;

(b) may provide for disciplinary punishments as the Authority may deem appropriate, and the punishments may extend to warning, fine, forfeiture of emoluments, a deferment of salary movement, reduction of salary, reduction in rank and dismissal;

(c) shall provide for an opportunity to the person against whom disciplinary proceedings are taken to make representations against the disciplinary charge laid against him before a decision is arrived at by the disciplinary committee except in the following cases:

(i) where an officer or servant of the Authority is dismissed or reduced in

23 PART II THE AUTHORITY-23. Imposition of surcharge.

(1) A person who is or was in the employment of the Authority may be surcharged if it appears to the Authority that the person-

(a) has failed to collect money owing to the Authority for the collection of which he is or was responsible;

(b) is or was responsible for any improper payment of money from the Authority or for any payment of money which is not duly approved;

(c) is or was responsible, directly or indirectly, for any deficiency in, or for the destruction of, any money, store or other property of the Authority;

(d) being or having been an accounting officer, fails or hasfailed to keep proper accounts or records; or

(e) has failed to make any payment, or is or was responsible for any delay in the payment from the Authority, of money to any person to whom such payment is due under any law or under any contract, agreement or arrangement entered into

24 PART II THE AUTHORITY-24. Notification of surcharge.

The Authority shall notify the person surcharged in respect of any surcharge made under subsection 23(3).

25 PART II THE AUTHORITY-25. Withdrawal of surcharge.

Notwithstanding subsection 23(3) and section 24, the Authority may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and the Authority shall forthwith notify the person surcharged of the withdrawal.

26 PART II THE AUTHORITY-26. Recovery of surcharge.

The amount of any surcharge made under subsection 23(3) and not withdrawn under section 25 shall be a debt due to the Authority from the person surcharged and may be sued for and recovered in any court at the suit of the Authority and may also, if the Authority so directs, be recovered by deduction-

(a) from the salary of the person surcharged; or

(b) from the pension of the person surcharged,

by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension, as the case may be, of that person.

27 PART II THE AUTHORITY-27. Composition of the Authority in special cases.

In any action for surcharge against the Director-General, the composition of the Authority for the purposes of sections 23 to 26 shall not include the Director-General.

28 PART II THE AUTHORITY-28. Public servants.

All members of the Authority or any of its committees or any officer, servant or agent of the Authority while discharging their duties as such member, officer, servant or agent shall be deemed to be public servants within the meaning of the Penal Code [Act 574.] .

28A PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28A. Interpretation in relation to Part IIA.

In this Part, unless the context otherwise requires-

  "authority"  means any authority vested with supervisory and regulatory or enforcement powers situated within or outside Malaysia;

[Am. Act A1365; s.15]

  "criminal offence"  means any offence under-

(a) any law in Malaysia relating to offshore financial services;

(b) the Penal Code [ Act 574 ];

(c) the Dangerous Drugs Act 1952 [ Act 234 ];

(d) the Dangerous Drugs (Forfeiture of Property) Act 1988 [ Act 340 ];

(e) the Kidnapping Act 1961 [ Act 365 ] or ;

(f) any other written law in Malaysia that is punishable with imprisonment;

[Ins. Act A1337] s. 5

  "dep

28B PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28B. Submission of information.

(1) The Authority may, in the exercise of its supervisory functions under this Act or the laws specified in the Schedule, require any offshore financial institution or any corporation related to the offshore financial institution to submit to the Authority any

information-

(a) relating to the identity, affairs, account or particulars of any person who is a customer of the offshore financial institution or any corporation related to the offshore financial institution, or his nominee or beneficiary;

(b) relating to the identity, affairs or particulars of a beneficial owner of an account opened with the offshore financial institution or any corporation related to the offshore financial institution, or relating to such account; or

(c) which the Authority deems necessary or expedient for the performance of such supervisory functions.

[Subs. Act A1337; Am. Act A1365] <

28BA PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28BA. Power to report suspected offence and adverse conditions.

(1) Where the Authority in the course of the exercise of any of its powers, or the discharge of any of its duties, or the performance of any of its functions, under this Act or the laws specified in the Schedule, suspects any person to have committed any offence under this Act or under the laws specified in the Schedule, it shall be lawful for the Authority to give information of such commission to a police officer in charge of a police station or to any other police officer, or to convey any information in relation to such offence to any banking institution, or to any other financial institution or other person affected by such offence, or to any authority or person having power to investigate under, or enforce, the provision of the law under which the offence is suspected by the Authority to have been committed.

(2) The Authority may inform the home supervisory authority, under condition of secrecy, of any adverse conditions in a Labuan finan

28C PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28C. Examination.

28C. (1) The Director General or any person authorized by the Authority shall, for the purposes of administering, enforcing, carrying out and giving effect to the provisions of this Act or the laws specified in the Schedule, have the power-

(a) to request, inquire, examine and inspect; or

(b) to make copies of or take extracts from,

any record, report or document from any Labuan financial institution or any corporation related to any Labuan financial institution.

(2) Any Labuan financial institution who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.".

[Ins. Act A1036; Subs. Act A1365]

28D PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28D. Appointment of investigating officer, powers, functions and duties.

(1) For the purposes of carrying out investigation of any offence under this Act or under the laws specified in the Schedule, the Authority may appoint, by an instrument in writing, any officer or employee of the Authority or any other suitable person to be an investigating officer.

[Am. Act A1365]

(2) Subject to subsection (3), an investigating officer appointed under subsection (1) shall have all the powers, functions, and duties conferred on an investigating officer under this Act or the laws specified in the Schedule, and where such investigating officer is not an officer or employee of the Authority, he shall, in relation to such powers, functions and duties-

[Am. Act A1365]

(a) be subject to; and

(b) enjoy such rights, privileges, protections, immunities and indemnities as may be specified in,

the provisions o

28E PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28E. Powers of entry, search and seizure.

(1) Where an investigating officer is satisfied, or has reason to suspect, that a person has committed any offence under this Act or the laws specified in the Schedule, he may, if in his opinion it is reasonably necessary to do so for the purpose of investigating into such offence-

(a) enter any premises of a Labuan financial institution or any corporation related to any Labuan financial institution;

(b) search the premises for any property, record, report, object, article, material, thing, book, minute book, account, register or document;

(c) inspect, make copies of or take extracts from any record, report, object, article, material, thing, book, minute book, account, register or document so seized and detained;

(d) take possession of and remove from the premises, any property, record, report, object, article, material, thing, book, minute book, account, register or document so seized

28F PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28F. Power to examine persons.

(1) Notwithstanding any written law, or oath, undertaking or requirement of secrecy or confidentiality to the contrary, or an obligation under an agreement or arrangement, express or implied, to the contrary, an investigating officer conducting an investigation shall have the power to administer an oath or affirmation to the person being examined.

(2) An investigation officer investigating an offence 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 property, record, report, object, article, material, thing, book, minute book, account, register or document or any certified copy thereof, or any other article which may, in his opinion assist in the investigation into the offence; or

(c) by written notice require any

28G PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28G. Search of a person.

(1) An investigating officer searching any person under subsection 28E(1) may detain the person for such period as may be necessary to have the search carried out, which shall not in any case exceed twenty-four hours without the authorization of a Magistrate, and may, if necessary, remove the person in custody to another place to facilitate such search.

(2) No person shall be searched under this Part except by an investigating officer of the same gender and such search shall be carried out with strict regard to decency.

[Ins. Act A1365] s. 20

28H PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28H. Obstruction to exercise of powers by an investigating officer.

(1) Any person who-

(a) refuses any investigating officer access to any premises, or fails to submit to the search of his person;

(b) assaults, obstructs, hinders or delays an investigating officer in effecting any entrance which he is entitled to effect;

(c) fails to comply with any lawful demands of any investigating officer in the execution of his duties under this Part;

(d) refuses to give to an investigating officer any property, document or information which may reasonably be required of him and which he has in his power to give;

(e) fails to produce to, or conceal or attempt to conceal from, an investigating officer, any property, record, report or document, which the investigating officer requires;

(f) rescues or attempts to rescue any thing which has been duly seized;

(g) furnishes to an investigating officer as true any infor

28I PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28I. Tipping off.

(1) Any person who-

(a) knows or has reason to suspect that an investigating officer is acting, or is proposing to act, in connection with an investigation which is being, or is about to be, conducted under or for the purposes of this Act or the laws specified in the Schedule and discloses to any other person information or any other matter which is likely to prejudice that investigation or proposed investigation; or

(b) knows or has reason to suspect that a disclosure has been made to an investigating officer under this Act or the laws specified in the Schedule and discloses to any other person information or any other matter which is likely to prejudice any investigation which might be conducted following the disclosure, commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.

(2) Nothing in subsection

28J PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28J. Admissibility of statements by accused persons.

(1) In any trial or inquiry by a court into a criminal offence under this Act or under the laws specified in the Schedule, 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 investigating officer of the Authority, whether or not interpreted to him by any officer of the Authority 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 p

28K PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28K. Admissibility of statements and documents of persons who are dead or cannot be traced.

Notwithstanding any written law to the contrary, in any proceedings against any person for an offence under this Act or the laws specified in the Schedule- (a) any statement made by any person to an investigating officer in the course of an investigation into any offence under this Act or the laws specified in the Schedule; and

(b) any document, or copy of any document, seized from any person by an investigating officer of the Authority in exercise of his powers under this Act or the laws specified in the Schedule, shall be admissible in evidence in any proceedings in Malaysia before any court, where the person who made the statement or the document or the copy of the document is dead, or cannot be traced or found, or has become incapable of giving evidence, or whose attendance cannot be procured without an amount of delay or expense which appears to the court unreasonable.

[Ins. Act A1365] s. 20

28L PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28L. Admissibility of translation of documents.

(1) Where any document which is to be used in any proceedings against any person is in a language other than the national language or English language, a translation of such document into the national language or English language shall be admissible in evidence where the translation is accompanied by a certificate of the person who translated the document setting out that it is an accurate, faithful and true translation and the translation had been done by such person at the instance of the officer authorized by the Authority, the Public Prosecutor or an officer of any domestic law enforcement agency.

(2) Subsection (1) shall apply to a document which is translated, regardless whether the document was made in or outside Malaysia, or whether the translation was done in or outside Malaysia, or whether possession of such document was obtained by the authorized officer of the Authority, the Public Prosecutor or an officer of any domestic law enforc

28M PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28M. Evidence taken in foreign states.

(1) Where any evidence is obtained by the Authority in any Malaysian embassy, such evidence shall be admissible for any legal proceedings in Malaysia and such evidence shall be deemed to be obtained in Malaysia, notwithstanding anything to the contrary in any written law.

(2) For the purposes of this section, "Malaysian embassy" means such embassy established by the Malaysian Government in any foreign state.

[Ins. Act A1365] s. 20

28N PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28N. Admissibility of statements.

The record of an examination, any property, record, report or document produced, or any statement recorded by the Authority under this Act shall, notwithstanding any written law or rule of law to the contrary, be admissible as evidence in any proceedings in any court for, or in relation to, an offence or any other matter under this Act or any offence under any other written law, regardless whether such proceedings are against the person who was examined, or who produced the property, record, report or document, or who made the written statement on oath or affirmation, or against any other person.

[Ins. Act A1365] s. 20

28O PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28O. Protection of informers.

(1) Subject to subsection (2), where any complaint made by an officer of the Authority states that the complaint is made in consequence of information received by the officer making the complaint, the identity of the person from whom such information is received shall be secret between the officer who made the complaint and the person who gave the information, and everything contained in such information relating to the identity of the person who gave the information, shall not be disclosed or be ordered or required to be disclosed in any civil, criminal or other proceedings in any court, tribunal or other authority.

(2) If any book, paper or other document, or any visual or sound recording, or other matter or material which is given in evidence or liable to inspection in any civil, criminal or other proceedings in any court, tribunal or other authority as are referred to in subsection (1) contains any entry or other matter in which any person

28P PART IIA ENFORCEMENT POWERS AND PRESERVATION OF INFORMATION-28P. Assistance to other authority.

(1) The Authority may on its own initiative, or upon the lawful request of any authority-

(a) supply to the requesting authority a copy of any property, record, report, object, article, material, thing, book, minute book, account, register or document seized, detained or taken possession of under section 28E or produced under paragraph 28F(2) (b) , or of any written statement on oath or affirmation made under paragraph 28F(2) (c) , or any record of examination made under subsection 28F(9), or otherwise in the course of any examination under section 28F, and such requesting authority may make use of such copy of such property, record, report, object, article, material, thing, book, minute book, account, register or document, statement or examination record as may be necessary or expedient in relation to the exercise of his powers, the performance of his functions, or the discharge of his duties, in respect of any person; o

29 PART III FINANCE-29. The Fund.

(1) There is hereby established, for the purposes of this Act, a fund to be administered and controlled by the Authority.

(2) The Fund shall consist of -

(a) such sums as may be provided from time to time for the purposes of this Act by Parliament;

(b) sums borrowed by the Authority for the purposes of meeting any of its obligations or discharging any of its duties;

(c) levies payable under section 32;

(d) fees, costs or other charges imposed by the Authority under this Act or other laws relating to offshore financial services;

[Am. Act A1036]

(e) any compound paid under this Act or other laws relating to offshore financial services;

[Am. Act A1036]

(ea) all monies collected by the Authority for any administrative penalties under section 36G or under the laws specified i

30 PART III FINANCE-30. Expenditure to be charged on the Fund.

The Fund shall be expended for the purpose of -

(a) paying any expenditure lawfully incurred by the Authority, including legal fees and costs and other fees and costs, and the remuneration of officers and servants of the Authority, including the granting of loans, superannuation allowances or gratuities;

(b) paying any other expenses, costs or expenditure properly incurred or accepted by the Authority in the performance of its functions or the exercise of its powers under this Act;

(c) purchasing or hiring equipment, machinery and any other materials, acquiring land and erecting buildings, and carrying out any other works and undertakings in the performance of its functions or the exercise of its powers under this Act;

(d) repaying any moneys borrowed under this Act and the interest due thereon; and

(e) generally, paying any expenses for carrying into effe

31 PART III FINANCE-31. Conservation of Fund.

It shall be the duty of the Authority to conserve the Fund by so performing its functions and exercising its powers under this Act as to secure that the total revenues of the Authority are sufficient to meet all sums properly chargeable to its revenue account including depreciation and interest on capital taking one year with another.

32 PART III FINANCE-32. Levies.

(1) An Labuan financial institution shall be liable, in the case of any Lanuan financial service provided by it, to pay a levy to the Authority.

(2) For the purpose of subsection (1), the Minister may, by order published in the Gazette , specify such rates of levy as is necessary to meet the administrative and operating costs of the Authority; and different rates may be specified in respect of different classes of Labuan financial services.

(3) The amount of any levy payable under this section shall be recoverable as a civil debt due to the Authority.

(4) The Minister may make regulations providing for -

(a) the payment of levies under this section;

(b) subject to the provisions relating to secrecy under any written law relating to Labuan financial institutions, the keeping, examination and audit of the accounts of the Labuan financial institutions relating to the collection

32A PART III FINANCE-32A. Power to impose and collect fee.

Notwithstanding any provision under any other law relating to Labuan financial services, the Authority may, with the approval of the Minister, by order published in the Gazette , impose and collect any fee for any service provided by or on behalf of the Authority under this Act or any other law relating to Labuan financial services and for the grant or issuance of any licence, permit, registration, approval or exemption which the Authority may grant or issue under any law.

[Ins. Act A1036; Am. Act A1365: s.22]

33 PART III FINANCE-33. Accounts and reports.

(1) The Authority shall cause proper accounts of the Fund and proper reports of its activities to be kept and shall, as soon as practicable after the end of each financial year, cause to be prepared -

(a) a statement of accounts of the Authority which shall include a balance sheet and an account of income and expenditure; and

(b) a statement of its activities,

for that financial year.

(2) The Authority shall as soon as possible send a copy of the statement of accounts certified by the auditors and a copy of the auditor's report to the Minister who shall cause them to be laid before both Houses of Parliament.

(3) The Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240] shall apply to the Authority.

34 PART III FINANCE-34. Power to borrow.

The Authority may from time to time, with the approval of the Minister, borrow, at such rate of interest and for such period and upon such terms as to the time and method of repayment and otherwise as the Minister may approve, any sums required by the Authority for meeting any of its obligations or performing any of its functions under this Act.

35 PART III FINANCE-35. Investment.

The moneys of the Authority shall, in so far as they are not required to be expended by the Authority under this Act, be invested in such manner as the Authority deems fit.

36 PART IV GENERAL-36. Protection against suit and legal proceedings.

(1) No action, suit, prosecution or other proceedings shall lie or be brought, instituted or maintained in any court or before any other authority against-

(a) the Minister;

(b) the Authority;

(c) any member, officer, committee, servant, agent of

the Authority; or

(d) any other person lawfully acting on behalf of, or in compliance with instructions of the Authority,

for or on account of, or in respect of, any act done or statement made or omitted to be done or made, or purporting to be done or made or omitted to be done or made, in pursuance or in execution of, or intended pursuance of or execution of, this Act or the laws specified in the Schedule, or any guideline, direction, information or other thing issued under this Act or the laws specified in the Schedule if such act or statement was done or made, or was omitted to be done or made, in good faith.

(2) For

36A PART IV GENERAL-36A. Representation in civil proceedings.

(1) Notwithstanding any other written law-

(a) in any civil proceedings by or against the Authority;

or

(b) in any other civil proceedings in which the Authority is required or permitted by the court to be represented or to be heard, or is otherwise entitled to be represented or to be heard,

any person authorized in writing by the Authority for such purpose may, on behalf of the Authority, institute such proceedings or appear in such proceedings and may make all appearances and applications and do all acts in respect of such proceedings on behalf of the Authority.

(2) For the purposes of this section, any person shall include-

(a) any director, officer or employee of the Authority who has been admitted as an advocate and solicitor under the Legal Profession Act 1976 [ Act 166 ];

(b) any advocate and solicitor of the High Court of Malaya or the High Court

36AA PART IV GENERAL-36AA. Additional powers of the Authority.

(1) Without prejudice to any provision under any written law, the Authority shall have the locus standi or legal right-

(a) to appear, institute and conduct proceedings (whether civil or criminal) in any court in respect of any matter relating to its functions and powers under this Act or any laws specified in the Schedule;

(b) to apply and obtain such relief available to any civil litigant including but not limited to the relief under the Specific Relief Act 1950 [ Act 137 ];

(c) to seek guidance and directions from the High Court on any point of law or as to the interpretation or implementation of any provisions of this Act or the laws specified in the Schedule; and

(d) to intervene in any proceedings in which a Labuan financial institution is a party.

(2) Notwithstanding subsection (1), the Authority may claim for the recovery of fees, sum of money payable un

36B PART IV GENERAL-36B. Compounding of offences.

(1) The Authority may, with the written consent of the Public Prosecutor, in a case where he deems it fit and proper so to do, compound any offence committed by any person which is punishable under this Act by making a written offer to such person to compound the offence on payment to the Authority, within such time as may be specified in the offer, of an amount which shall not exceed fifty per centum of the amount of the maximum fine to which that person would have been liable if he had been convicted of the offence.

(2) An offer 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 under subsection (1) is not paid within the time specified in the offer, or within such extended period as the Authority may grant, prosecution of the offence may be instituted at any time after that against the person to whom the

36C PART IV GENERAL-36C. Liability of director, officer, controller, etc.

Where any offence against any provision of this Act has been committed by any Labuan financial institution, any person who at the time of the commission of the offence was a director, officer, or controller, of the Labuan financial institution or was purporting to act in any such capacity, or was in any manner or to any extent responsible for the management of any of the affairs of such Labuan financial institution, or was assisting in such management, shall be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.

[Ins. Act A1036; Am. Act A1365; s.27]

36D PART IV GENERAL-36D. Power to prosecute offences.

(1) Any person authorized by the Authority may, with the written authorization of the Public Prosecutor, prosecute in any court any case in respect of any offence committed under this Act or any offences committed under the laws specified in the Schedule.

(2) For the purposes of section 380 of the Criminal Procedure Code [ Act 593 ], an officer or employee of the Authority authorized under subsection (1) shall be deemed to be a public officer.

(3) For the purposes of this section, any person shall include-

(a) any director, officer or employee of the Authority who has been admitted as an advocate and solicitor under the Legal Profession Act 1976; or

(b) any advocate and solicitor of the High Court of Malaya or the High Court of Sabah and Sarawak, as the case may be.

[Ins. Act A1365] s. 28

36E PART IV GENERAL-36E. Application for winding up.

(1) Notwithstanding the provisions of the Companies Act 1965 or the laws specified in the Schedule, any corporation registered under the Labuan Companies Act 1990 [ Act 441 ], whether or not the corporation is being wound up voluntarily, may be wound up under an order of the court on the petition of the Authority, in accordance with the provisions of the Labuan Companies Act 1990.

(2) The court may order the winding up on a petition made under subsection (1) if the corporation referred to in subsection (1)-

(a) has been registered under the Labuan Companies Act 1990, and that registration has been revoked or surrendered; or

(b) has contravened any provisions of this Act or the laws specified in the Schedule, whether or not the corporation has been charged with an offence in respect of the contravention, or whether or not the contravention has been proved in a prosecution.

[Ins.

36F PART IV GENERAL-36F. Additional monetary punishment.

Where a person has been convicted of an offence under this Act or the laws specified in the Schedule, the court may, where it is satisfied that as a result of the commission of the offence the convicted person acquired a monetary benefit or that monetary benefit accrued to the benefit of such person, order the convicted person to pay, notwithstanding the maximum amount of any fine that may otherwise be imposed under this Act or the laws specified in the Schedule, an additional fine in an amount equal to the court's estimation of the amount of the monetary benefit.

[Ins. Act A1365] s. 28

36G PART IV GENERAL-36G. Power to impose administrative penalties.

(1) The Authority may impose an administrative penalty on any person who fails to comply with any provision of this Act or the laws specified in the Schedule.

(2) The Authority shall, before making a decision to impose an administrative penalty on a person, serve on him a written notice calling on him to show cause why the administrative penalty should not be imposed upon him.

(3) If a satisfactory explanation is not received within such period as may be specified in the written notice, the Authority may impose an administrative penalty in an amount not exceeding five hundred ringgit for each day of the non-compliance and such amount shall not in total exceed the sum of ten thousand ringgit.

(4) Where a person has failed to pay an administrative penalty imposed by the Authority under subsection (3), the penalty imposed by the Authority may be sued for and recovered as a debt due to the Authority.

[Ins.

36H PART IV GENERAL-36H. Injunctions or other relief.

(1) The Authority may apply to the Judge in Chambers or to any court of competent jurisdiction for an order in respect of any matter relating to its functions under section 4.

(2) Without prejudice to subsection (1), an order under that subsection may direct the person to do any specified act or refrain from doing any specified act, for the purposes of-

(a) preventing or desisting any contravention of the provisions of this Act or the laws specified in the Schedule;

(b) compelling any person to comply with any directions issued under section 4B;

(c) remedying the effects of any contravention of the provisions of this Act or the laws specified in the Schedule;

(d) preservation of assets; or

(e) compensating persons who have suffered loss as a result of a contravention.

(3) Where the Authority makes an application to the court for the grant of an injuncti

36I PART IV GENERAL-36I. Special audit.

(1) Where there is a failure on the part of any Labuan financial institution or any person to comply with the provisions of this Act or the laws specified in the Schedule, the Authority may issue a direction under section 4B to compel such Labuan financial institution to appoint a special auditor to carry out a special audit of the Labuan financial institution.

(2) The special auditor appointed under this section shall submit his report to the Authority within such time as the Authority may determine.

(3) A special auditor under this section shall include an "approved auditor" defined under section 2 of the Labuan Companies Act 1990.

[Ins. Act A1365] s. 28

37 PART IV GENERAL-37. Power to make regulations.

(1) The Minister may, on the recommendation of the Authority, make such regulations as may be expedient or necessary for carrying out or giving effect to the provisions of this Act.

[Am. Act A1365] s. 29

(2) Regulations made under this section -

(a) may provide that any contravention of any provision thereof shall be an offence; and

(b) may provide for the imposition of penalties which shall not exceed twenty-five thousand ringgit for any offence thereunder.

38 PART IV GENERAL-38. Power of the Minister to make modifications.

(1) Subject to subsection (2), the Minister may, whenever it appears to him necessary or expedient so to do whether for the purpose of removing difficulties or in consequence of the passing of this Act, by order make such modifications to any provision in any law relating to offshore financial services as he may think fit.

(2) The Minister shall not exercise the power conferred under subsection (1) after the expiration of two years from the commencement of this Act.

38A PART IV GENERAL-38A. Power to amend Schedule.

The Minister may, on the recommendation of the Authority, by order published in the Gazette , amend the Schedule.

[Ins. Act A1365] s. 30

38B PART IV GENERAL-38B. Service of documents on Labuan financial institutions.

(1) Any document or notice required to be served by the Authority on a Labuan financial institution may be effected by-

(a) leaving it at the registered office of the Labuan financial institution; or

(b) sending it by post to the registered office of the Labuan financial institution.

(2) Where a document or notice has been served in accordance with subsection (1), the document or notice is deemed to have been properly served on the Labuan financial institution.

[Ins. Act A1365] s. 30

38C PART IV GENERAL-38C. Public Authorities Protection Act 1948.

(1) The Public Authorities Protection Act 1948 shall apply to any action, suit, prosecution or proceedings against the Authority or against any member of the Authority, any member of a committee, or any officer, servant or agent of the Authority in respect of any act, or omission done or omitted by it or him in such capacity.

(2) The person referred to in subsection (1) shall for the purposes of the application of the Public Authorities Protection Act 1948, be deemed to be a public officer or a person engaged or employed in the performance of a public duty.

[Ins. Act A1365] s. 30

38D PART IV GENERAL-38D. Conflict between laws.

Where there is a conflict between the provisions of this Act and the provisions of any other law relating to Labuan financial services, the provisions of this Act shall prevail.

[Ins. Act A1365] s. 30

38E PART IV GENERAL-38E. Procedure where none laid down.

In the event that any act or step is required or permitted to be done or taken under this Act or the laws specified in the Schedule and no form is prescribed or procedure laid down either in this Act or the regulations, application may be made to the Authority for directions as to the manner in which the same may be done or taken, and any act or step done or taken in accordance with the directions of the Authority shall be a valid performance of such act or step.".

[Ins. Act A1365] s. 30

39 PART IV GENERAL-39. Savings and transitional.

(1) All regulations, instructions, directions, orders or decisions made by the Registrar or the Bank, as the case may be, under any law relating to offshore financial services existing before the commencement of this Act shall be deemed to have been made by the Authority unless amended or revoked or until the date upon which they expire.

(2) All regulations, instructions, directions, orders or decisions made by the Minister responsible for the Offshore Companies Act 1990 [Act 441] and the Labuan Trust Companies Act 1990 [Act 442] under those Acts existing before the commencement of this Act shall be deemed to have been made by the Minister charged with the responsibility for finance unless amended or revoked or until the date upon which they expire.

(3) All applications, approvals or decisions pending before the Registrar or the Bank, as the case may be, under any law relating to offshore financial services shall, upon