CENTRAL BANK OF MALAYSIA ACT 2009

1 PART I PRELIMINARY-1. Short title and commencement.

(1) This Act may be cited as the Central Bank of Malaysia Act 2009.

(2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different parts or different provisions of this Act.

2 PART I PRELIMINARY-2. Interpretation.

(1) In this Act, unless the context otherwise requires-

"Bank" means Bank Negara Malaysia or in English, the "Central Bank of Malaysia";

"Board" means the Board of Directors of the Bank;

"Board Audit Committee" means the Board Audit Committee established under paragraph 21(1) (b) ;

"Board Governance Committee" means the Board Governance Committee established under paragraph 21(1) (a) ;

"Board Risk Committee" means the Board Risk Committee established under paragraph 21(1) (c) ;

"capital instruments" means preference shares, loan stocks, subordinated term debts or other instruments approved by the Bank to be eligible as capital
3 PART II THE BANK, ITS OBJECTS AND FUNCTIONS-3. The Bank established under Central Bank of Malaysia Act 1958 .

(1) Notwithstanding the repeal of the Central Bank of Malaysia Act 1958 by section 99, the body corporate established under the repealed Act under the name "Bank Negara Malaysia" or, in English, "Central Bank of Malaysia" shall continue to be in existence under and subject to the provisions of this Act.

(2) The Bank is the same body corporate established under the repealed Act.

(3) The Bank shall continue to have perpetual succession and a common seal and may sue and be sued in its own name.

(4) The Bank shall have its Head Office in Kuala Lumpur and may open branches and appoint agents and correspondents in or outside Malaysia.

(5) The Bank may, by instrument, under its common seal, appoint a person whether in or outside Malaysia to be its attorney, and the person so appointed may, subject to the instrument, do any act or execute any power or function which he is authorized by the instrument to do or execute.
4 PART II THE BANK, ITS OBJECTS AND FUNCTIONS-4. Central bank for Malaysia.

The Bank shall be the central bank for Malaysia.

5 PART II THE BANK, ITS OBJECTS AND FUNCTIONS-5. Principal objects and functions of the Bank.

(1) The principal objects of the Bank shall be to promote monetary stability and financial stability conducive to the sustainable growth of the Malaysian economy.

(2) The primary functions of the Bank are as follows:

(a) to formulate and conduct monetary policy in Malaysia;

(b) to issue currency in Malaysia;

(c) to regulate and supervise financial institutions which are subject to the laws enforced by the Bank;

(d) to provide oversight over money and foreign exchange markets;

(e) to exercise oversight over payment systems;

(f) to promote a sound, progressive and inclusive financial system;

(g) to hold and manage the foreign reserves of Malaysia;

(h) to promote an exchange rate regime consistent with the fundamentals of the economy; and

(i) to act as financial adviser, banker and fi
6 PART III FINANCIAL PROVISIONS-6. Capital.

(1) The capital of the Bank shall be one hundred million ringgit.

(2) The capital may be increased by such amount as the Minister may approve from time to time and the Government shall subscribe and pay the amount of the increase to the Bank.

(3) The payment of the increase in capital referred to in subsection (2) may be made by way of transfer from the General Reserve Fund as the Minister may from time to time approve.

7 PART III FINANCIAL PROVISIONS-7. General Reserve Fund.

(1) There shall be a General Reserve Fund which shall include the amount standing to the credit of the General Reserve Fund established under section 7 of the repealed Act immediately before the coming into operation of this Act and such other amounts as are placed to the credit of the General Reserve Fund under this Act.

(2) At the end of each financial year, the net profit of the Bank for that year shall be determined after allowing for the expenses of operations in giving effect to its objects, carrying out its functions and conducting its business or affairs, including contributions to staff welfare, provident and pension funds, grants or other contributions to such persons as may be provided by this Act or other written law and after provision has been made for bad and doubtful debts, diminution in value of assets and other contingencies as are usually provided for by banks.

(3) The Bank may transfer any amount from the net profit
8 PART III FINANCIAL PROVISIONS-8. Financial year.

The financial year of the Bank shall begin on the first day of January and end on the thirty-first day of December of each year.

9 PART III FINANCIAL PROVISIONS-9. Requirement to keep accounts and other records.

The Bank shall cause proper accounts and other records to be kept in respect of its business, affairs and operations and shall, as soon as practicable, after the end of each financial year, cause to be prepared financial statements for that financial year.

10 PART III FINANCIAL PROVISIONS-10. Accounting standards.

In preparing its financial statements, the Bank shall comply with accounting standards to the extent that it is, in the opinion of the Board, appropriate to do so, having regard to the objects and functions of the Bank.

11 PART III FINANCIAL PROVISIONS-11. External audit.

The Auditor General shall audit the accounts of the Bank.

12 PART III FINANCIAL PROVISIONS-12. Statement of assets and liabilities.

(1) The Bank shall, immediately after the fifteenth day and after the last day of each month, prepare and publish a statement of its assets and liabilities as at the close of business on such days respectively or, if either of those days is a holiday, then at the close of business on the last business day preceding those days.

(2) A copy of the statement made under subsection (1) shall be submitted to the Minister.

13 PART III FINANCIAL PROVISIONS-13. Preparation and publication of financial statements and report.

(1) The Bank shall within three months from the close of its financial year-

(a) submit to the Minister a copy of the financial statements of the Bank prepared under section 9 and certified by the Auditor General, and such statements shall then be published in the Gazette ; and

(b) submit to the Minister a report by the Board on the working of the Bank throughout the year and such report shall be published by the Bank.

(2) The financial statements of the Bank and the report referred to in paragraph (1) (b) shall be laid before the Senate and the House of Representatives or if the Senate and the House of Representatives are not then sitting, at the sitting of the following meeting of the Senate and the House of Representatives.

14 PART IV GOVERNANCE OF THE BANK-14. Board of Directors.

(1) There shall be a Board of Directors of the Bank.

(2) The Board shall-

(a) be responsible for the general administration of the affairs and business of the Bank and the approval of the budget and operating plan of the Bank;

(b) have oversight of the management of the Bank and keep under constant review the performance of the Bank in giving effect to its objects, carrying out its functions and the use of the resources of the Bank; and

(c) be responsible for such other matters as provided under this Act.

(3) The Board shall consist of the following members:

(a) the Governor;

(b) not more than three Deputy Governors; and

(c) not less than five but not more than eight directors appointed under subsection 16(1).

(4) The Board may require the Bank to produce any book or document
15 PART IV GOVERNANCE OF THE BANK-15. Governor and Deputy Governor.

(1) The Governor shall be appointed by the Yang di-Pertuan Agong and the Deputy Governors by the Minister.

(2) The Governor and Deputy Governors shall be persons of impeccable reputation with proven experience and recognized knowledge in monetary or financial matters.

(3) The Governor and Deputy Governors shall be appointed on such terms and conditions as provided for in their respective letters of appointment.

(4) The Governor shall be appointed for a term of five years and the Deputy Governors shall each be appointed for a term of three years.

(5) The Governor and Deputy Governors shall be eligible for reappointment.

(6) The Governor shall manage the Bank and may, unless otherwise provided under this Act or any other written law, exercise all powers and do all acts which may be exercised or done by the Bank under this Act or any written law.

[Am. by Act A1448]

(7) During t
16 PART IV GOVERNANCE OF THE BANK-16. Appointment of director.

(1) The directors referred to in paragraph 14(3) (c) shall be appointed by the Yang di-Pertuan Agong on the advice of the Minister on such terms and conditions as provided for in their respective letters of appointment.

(2) Before giving advice on an appointment of a person to the office of director under subsection (1), the Minister shall have regard to-

(a) that person's probity and standing;

(b) that person's knowledge, skill and experience in banking, economics or finance; and

(c) the likelihood of any conflict between the interests of the Bank and any interest which that person has or represents.

(3) A director shall, at all times, act honestly and in the best interest of the Bank and use reasonable diligence in the discharge of the duties of his office.

(4) A director shall not make improper use of any information acquired or exercise any
17 PART IV GOVERNANCE OF THE BANK-17. Disqualifi cation of Governor, Deputy Governor and director.

(1) No person shall be appointed or shall remain as Governor, Deputy Governor or other director of the Bank if he-

(a) is or becomes a member of the Senate or House of Representatives or any Legislative Assembly;

(b) subject to paragraph (2) (a) , is or becomes a public officer;

(c) subject to paragraph (2) (b) , is or becomes an officer or a director of any entity under the supervision of the Bank;

(d) is convicted of a criminal offence involving dishonesty or of any criminal offence for which he has been sentenced to imprisonment;

(e) is or becomes bankrupt or suspends payment or compounds with his creditors;

(f) is or becomes involved in any activity which may interfere with his independence in discharging his duties ; or

(g) is not a Malaysian citizen.

(2) Notwithstanding sub
18 PART IV GOVERNANCE OF THE BANK-18. Vacancies in office of Governor, Deputy Governor or director.

If the office of the Governor or any Deputy Governor or any other director becomes vacant before the expiry of the term for which he has been appointed, another person may be appointed by the Yang di-Pertuan Agong in the case of the Governor or a director appointed under subsection 16(1), or by the Minister in the case of a Deputy Governor, for the unexpired period of the term of office of the person in whose place he is appointed.

19 PART IV GOVERNANCE OF THE BANK-19. Meetings of Board.

(1) The Governor shall be the chairman of the Board and in his absence, the directors present shall elect a chairman among the directors appointed under subsection 16(1) and the person so elected shall preside and have all the powers of the chairman.

(2) The Board may meet as often as necessary but not less than once in each month.

(3) The chairman or any other director may, at any time, call a meeting of the Board.

(4) The person calling a meeting shall ensure that-

(a) each director is given at least three days' notice of the meeting; or

(b) if the meeting is to be convened as a matter of urgency, the directors agree to waive the requirement under paragraph (a) .

(5) At any meeting of the Board, the quorum shall be five directors, the majority of whom shall be directors appointed under subsection 16(1) and decisions shall be adopted by a simple majori
20 PART IV GOVERNANCE OF THE BANK-20. Disclosure of interest.

(1) A director who has any direct or indirect interest in any dealing or business with the Bank or in the exercise or proposed exercise by the Bank of a power shall disclose that interest at the first meeting of the Board at which he is present after the relevant facts have come to his knowledge.

(2) A disclosure under subsection (1) shall be recorded in the minutes of the meeting of the Board and, after the disclosure, the director-

(a) shall not be present at, or take part in, any deliberation or decision of the Board with respect to that dealing or business or the exercise or proposed exercise of the power; and

(b) shall be disregarded for the purpose of constituting a quorum of the Board for any such deliberation or decision.

(3) No act or proceeding of the Board shall be invalidated on the ground of the contravention of subsection (1) by a director.

(4) A director
21 PART IV GOVERNANCE OF THE BANK-21. Board committees.

(1) The Board shall establish the following committees of the Board:

(a) the Board Governance Committee;

(b) the Board Audit Committee; and

(c) the Board Risk Committee.

(2) Each Board Committee shall be responsible for such matters and shall have such functions as provided under this Act.

(3) The Board Governance Committee shall have the following functions:

(a) to recommend members of the Monetary Policy Committee, Assessor Committee and other committees of the Bank as may be appointed or established by the Bank from time to time;

(b) to examine and recommend to the Board the budget and operating plan of the Bank for approval; and

(c) to be responsible for such other matters as provided under this Act.

(4) The functions of the Board Audit Committee shall be to assist the Bo
22 PART V MONETARY FUNCTIONS AND OPERATIONS OF THE BANK-22. Monetary policy.

(1) In promoting monetary stability, the Bank shall pursue a monetary policy which serves the interests of the country with the primary objective of maintaining price stability giving due regard to the developments in the economy.

(2) The monetary policy of the Bank shall be formulated and implemented autonomously by the Bank, without any external influence.

23 PART V MONETARY FUNCTIONS AND OPERATIONS OF THE BANK-23. Monetary Policy Committee.

(1) There shall be a committee of the Bank to be known as the "Monetary Policy Committee" which shall have the responsibility for formulating the monetary policy and the policies for the conduct of monetary policy operations.

(2) The Monetary Policy Committee shall consist of the Governor, the Deputy Governors and not less than three but not more than seven other members.

(3) Members of the Monetary Policy Committee may be appointed from amongst directors appointed under subsection 16(1) or officers and such members shall be appointed by the Board on the recommendation of the Board Governance Committee.

(4) In addition to subsection (3), the Minister may appoint any other person as a member of the Monetary Policy Committee on the recommendation of the Board Governance Committee.

(5) The Board Governance Committee, in recommending any person to be a member of the Monetary Policy Committee, shall at all times be satisfied
24 PART V MONETARY FUNCTIONS AND OPERATIONS OF THE BANK-24. Publication of monetary policy statement.

Following each meeting of the Monetary Policy Committee, the Bank shall publish a monetary policy statement on the decision made at the meeting and the rationale for such decision.

25 PART V MONETARY FUNCTIONS AND OPERATIONS OF THE BANK-25. Monetary policy operations.

(1) In this Part, "monetary policy operations" means any transaction undertaken by the Bank to manage liquidity in the financial system.

(2) The Monetary Policy Committee shall establish general principles, guidelines, and terms and conditions for the monetary policy operations carried out by the Bank under this Part.

26 PART V MONETARY FUNCTIONS AND OPERATIONS OF THE BANK-26. Conduct of monetary policy operations.

(1) The Bank shall conduct monetary policy operations to implement the decisions of the Monetary Policy Committee.

(2) For the purpose of conducting monetary policy operations, the Bank-

(a) may issue securities in its own name provided that the total amount of securities issued shall not at any time exceed the amount of the foreign reserves;

(b) may purchase, sell and redeem securities issued by the Bank pursuant to paragraph (a) ;

(c) may require a reserve to be held at the Bank by each financial institution;

(d) shall have the powers set out in section 75, in particular paragraphs (c) , (d) , (e) , (f) , (g) , (h) , (i) and (l) ; and

(e) may undertake such other financial transactions involving currencies, securities, precious metals or other commodities or financial instru
27 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-27. Dual financial system.

The financial system in Malaysia shall consist of the conventional financial system and the Islamic financial system.

28 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-28. Financial stability powers under the laws.

The powers conferred upon the Bank under this Act and the written laws set out in the Second Schedule are for the purposes of promoting financial stability.

29 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-29. Interpretation.

For the purposes of this Chapter, "risk to financial stability" means a risk which in the opinion of the Bank disrupts, or is likely to disrupt, the financial intermediation process including the orderly functioning of the money market and foreign exchange market, or affects, or is likely to affect, public confidence in the financial system or the stability of the financial system.

30 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-30. Information for purposes of financial stability.

(1) In the interest of financial stability, the Bank may request any supervisory authority or Government agency in Malaysia overseeing the following persons to submit to the Bank any information or document relating to the activities, financing, accounts, transactions, customers' accounts or any other information of such persons which the Bank considers necessary for giving effect to the financial stability object under this Act:

(a) any financial institution;

(b) any participant, intermediary, exchange, depository or provider of clearing, settlement or other services in the financial markets;

(c) any other person which in the opinion of the Bank may pose a risk to financial stability; or

(d) any related corporation of a person referred to in paragraph (a) , (b) or (c) .

(2) Where any person referred to in paragraph (1) (a)
31 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-31. Measures for financial stability.

(1) Where the Bank considers it necessary in the interest of financial stability, the Bank may-

(a) specify measures, which in the opinion of the Bank would contribute to the resilience of the financial system or limit the accumulation of any risk to financial stability, to a class, category or description of persons engaging in financial intermediation; or

(b) issue an order in writing requiring any person within a class, category or description of persons, including a class, category or description of persons engaging in financial intermediation, to take such measures as the Bank may consider necessary or appropriate to avert or reduce any risk to financial stability.

(2) Before issuing an order under paragraph (1) (b) , the Bank shall give the person an opportunity to make representation.

(3) Notwithstanding subsection (2), an order under paragraph (1) (b) ma
32 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-32. Power for averting or reducing risk to financial stability.

(1) Without prejudice to section 31, the Bank may, for the purpose of averting or reducing any risk to financial stability-

(a) provide liquidity assistance to any financial institution;

(b) enter into arrangements with other central banks to provide liquidity assistance to subsidiaries or branches outside Malaysia of any financial institution established in Malaysia; or

(c) in the case of any financial institution which has ceased to be viable or which the Bank considers likely to become non-viable-

(i) purchase or subscribe to the shares or other capital instruments issued by such financial institution;

(ii) provide financing to any other financial institution or a body corporate established by the Bank under paragraph 48(1) (d) to purchase the whole or part of the business, assets, liabilities, shares or other capital instruments of such financial in
33 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-33. Due diligence.

In relation to a financial institution referred to in paragraph 32(1) (a) or (b) or any of its related corporations, the Bank may conduct due diligence and examine, take possession of or make copies or extracts of any books, documents, accounts and transactions of the financial institution or any of its related corporations or require such institution or any of its related corporations to submit any information or document the Bank requires prior to the tabling of any proposal at a meeting of the Financial Stability Executive Committee under subparagraph 38(1) (a) (ii) or prior to providing any liquidity assistance or during the period where any such assistance is being provided.

34 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-34. Liquidity assistance under paragraph 32(1) (a) or (b) .

Liquidity assistance under paragraph 32(1) (a) or (b) may be provided by way of-

(a) financing against such form of security as the Bank may consider sufficient;

(b) purchase or commitment to purchase assets of the financial institution;

(c) lending or exchanging assets of the Bank against assets of the financial institution;

(d) guarantees or indemnities; or

(e) such other arrangements as the Bank may consider appropriate, upon such terms and conditions as the Bank thinks fit in the circumstances.

35 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-35. Additional provisions relating to subparagraph 32(1) (c) (i).

(1) The Bank may, as it deems necessary, in exercising its powers under subparagraph 32(1) (c) (i) in relation to a financial institution, by order in writing-

(a) remove from office, with effect from such date as may be specified in the order, any director, officer or employee of the financial institution;

(b) vary or terminate the contract of service of any director, officer or employee of the financial institution as may be specified in the order; or

(c) appoint any person as a director, officer or employee of the financial institution subject to such terms and conditions as the Bank may specify.

(2) Before exercising its powers under subsection (1), the Bank shall give the director, officer or employee of the financial institution an opportunity to make representation.

(3) This section shall have full force and effect notwithstanding-

36 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-36. Additional provisions relating to subparagraph 32(1) (c) (iii).

(1) The Third Schedule shall apply in relation to an order of the Bank under subparagraph 32(1) (c) (iii) and such order shall be binding on all persons to whom the order is made or who are affected by the order regardless that such persons had no notice of any circumstances which led to the making of the order, or had no opportunity to be heard by, or make any representation to, the Bank regarding the order.

(2) This section shall have full force and effect notwithstanding-

(a) any conflict or inconsistency between this section and any other provision of this Act;

(b) anything contained in any law including the law by or under which the financial institution is constituted, established, incorporated or registered; or

(c) anything contained in the constituent document of the financial institution or in any contract entered into by or on behalf of the financial institution or
37 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-37. Financial Stability Executive Committee.

(1) For the purposes of section 38, there shall be a committee of the Bank to be known as the "Financial Stability Executive Committee".

(2) The Financial Stability Executive Committee shall consist of the Governor, one Deputy Governor and not less than three but not more than five other members appointed by the Minister on the recommendation of the Board from amongst directors appointed under subsection 16(1) or other persons.

(3) The Board, in recommending any person to be a member of the Financial Stability Executive Committee, shall at all times be satisfied that the person has the expertise and experience relevant to the responsibility and functions of the Financial Stability Executive Committee and be a person of probity, competence and sound judgment.

(4) The Secretary General to the Treasury shall be informed of and be invited to all meetings of the

[Subs. by Act A1448]

(5) When th
38 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-38. Powers and functions of the Financial Stability Executive Committee.

(1) The Bank shall table the following proposals at a meeting of the Financial Stability Executive Committee:

(a) a proposal in respect of a person or financial institution, as the case may be, which is under the supervision or oversight of any other supervisory authority, or is not under the supervision or oversight of the Bank or any other supervisory authority-

(i) under paragraph 31(1) (a) for a measure to be specified to a class, category or description of persons engaging in financial intermediation or under paragraph 31(1) (b) for an order to be issued to such person within a class, category or description of persons; or

[Subs. by Act A1448]

(ii) under paragraph 32(1) (a) for the provision of liquidity assistance to such financial institution;

(b) a proposal under paragraph 32(1) (b) to enter in
39 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-39. Nature of relief.

(1) In any civil proceedings before any court in relation to any order issued by the Bank under subsection 31(1) or subparagraph 32(1) (c) (iii) or any other action, arrangement, scheme or measures of the Bank in connection with financial stability related or consequent to any such order or in relation to any other matter under this Chapter, the court shall, subject to subsection (2) and the provisions of this Act, have power to make all such orders as it has power to make in proceedings between parties, and otherwise to give such appropriate relief as the case may require.

(2) In any civil proceedings against the Bank, in relation to any order issued by the Bank under subsection 31(1) or subparagraph 32(1) (c) (iii) or any other action, arrangement, scheme or measures of the Bank in connection with financial stability related or consequent to any such order or in relation to any other matter under this Chapter-

<
40 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-40. Arrangements with other supervisory authorities.

(1) For the purposes of promoting financial stability, the Bank may-

(a) enter into arrangements to co-operate with other supervisory authorities and co-ordinate financial stability measures with such supervisory authorities; and

(b) obtain any information or document from, or share any information or document with, any other supervisory authority if the Bank considers it necessary that such information or document be so obtained or shared.

(2) Where the Bank shares any information or document under paragraph (1) (b) -

(a) with any supervisory authority in Malaysia, such information or document shall not be disclosed to any person except with the written consent of the Bank; or

(b) with any supervisory authority outside Malaysia, such supervisory authority shall give an appropriate undertaking for protecting the confidentiality of such info
41 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-41. Advice or recommendations on financial stability to supervisory authorities.

The Bank may, in the interest of financial stability advise, or make recommendations to any supervisory authority in Malaysia on-

(a) the implications of any written law, policies or measures proposed by such authority which may affect financial stability; and

(b) appropriate measures or safeguards to take for purposes of promoting financial stability.

42 PART VI FINANCIAL STABILITY FUNCTIONS AND POWERS OF THE BANK Chapter 1 Powers for promoting financial stability-42. Confidentiality.

(1) Except as provided in paragraph 40(1) (b) and section 86, any information or document submitted by any person under section 30 shall be confidential as between the person and the Bank.

(2) Any person who is required to submit any information or document under section 30 and any supervisory authority in Malaysia from which information or document is to be obtained by the Bank under paragraph 40(1) (b) shall provide such information or document, notwithstanding the provisions of any written law whether enacted before or after the commencement of this Act or any oath, undertaking, or requirement of secrecy to the contrary or of any obligation under any contract, agreement or arrangement whether express or implied to the contrary.

(3) Any person shall not, in complying with the requirement to submit any information or document under subsection (2), be treated as being in breach of any such contract, agreement or arrangem
43 Chapter 2 Money market and foreign exchange market-43. Rules, guidelines, etc. , for money market, etc.

(1) The Bank may issue rules, codes, standards, principles or guidelines for the purposes of regulating, developing, or maintaining orderly conditions or the integrity of, the money market, the foreign exchange market or the market for the derivatives related to the currencies, securities and other financial instruments traded in these markets.

(2) Without prejudice to the generality of subsection (1), rules, codes, standards, principles or guidelines may be issued in respect of the money market, the foreign exchange market or the market for the derivatives related to the currencies, securities and other financial instruments traded in these markets-

(a) to ensure orderly dealings in such markets;

(b) to impose obligations and duties on participants of such markets or any system established or operated, including those pursuant to subsection 44(1); and

(c) on the issuance or acquis
44 Chapter 2 Money market and foreign exchange market-44. The Bank may establish system for funds, debt securities, etc .

(1) The Bank or any body corporate established or acquired by the Bank under paragraph 48(1) (c) or any person authorized by the Bank may establish or operate any system, electronic or otherwise, as may be necessary-

(a) to facilitate the transferring, clearing and settlement of funds and debt securities;

(b) to facilitate the tendering, issuance, borrowing and lending of debt securities;

(c) to provide information to any person relating to the money market or to the tender, issue, trading and offer, or bid prices of debt securities or any other related information relating to debt securities;

(d) for the central handling of debt securities deposited with the Bank by means of entries in debt securities accounts without physical delivery of certificates;

(e) for the carrying out of any other activity related to any of the systems in paragraphs (
45 Chapter 3 Financial services and other functions-45. Co-operation with financial institutions.

The Bank shall use its best endeavours in co-operation with financial institutions in Malaysia to-

(a) promote and maintain banking and financial services for the public; and

(b) foster high standards of banking and finance in Malaysia.

46 Chapter 3 Financial services and other functions-46. Clearing houses and settlement of balances between financial institutions.

(1) In order to facilitate the clearing of cheques and other credit or payment instruments for financial institutions or any person approved by the Bank, the Bank or any body corporate established or acquired under paragraph 48(1) (c) may, at an appropriate time and in conjunction with such institutions or person, establish a clearing house in Kuala Lumpur and in such other place as the Bank or the body corporate may consider necessary.

(2) A financial institution or any person approved by the Bank shall settle, in such manner as the Bank or the body corporate may from time to time specify by notice in writing, all balances between itself and any other financial institution or any person approved by the Bank arising out of the general clearances effected in Kuala Lumpur and such other places as the Bank or a body corporate established or acquired under paragraph 48(1) (c) may >specify.

47 Chapter 3 Financial services and other functions-47. Credit bureau.

(1) The Bank may establish a credit bureau to collect, in such manner and to such extent as the Bank thinks fit, credit information (including information on and relating to the rejection of any cheque by a paying bank by reason of insufficiency of funds in the account of the drawer of the cheque) or any other information which the Bank considers relevant in the assessment of the creditworthiness of the customers of any financial institution.

(2) Notwithstanding section 86, the Bank may disclose, in such manner and to such extent as the Bank thinks fit, the credit information to-

(a) any financial institution for the purpose of assisting in assessing the creditworthiness of its existing and potential customers or for the purpose of assisting a financial institution to assess the eligibility of a customer to maintain or open a current account with the financial institution being a financial institution authorized by
48 Chapter 3 Financial services and other functions-48. Establishment of body corporate, etc .

(1) Notwithstanding section 76, the Bank may-

(a) establish a body corporate for the purpose of training, research and development of human resource in relation to banking and financial services;

(b) establish a body corporate for the purposes of providing finanmcial counselling, debt management services and education on financial management;

(c) establish a body corporate or acquire, hold or sell shares of a body corporate, wholly or partly, to operate payment systems or issue payment instruments, and undertake any other ancillary or incidental function or activity, for the purpose of promoting and developing payment systems and payment instruments in Malaysia;

(d) establish a body corporate or acquire or hold shares of a body corporate, wholly or partly, for the purposes of subparagraph 32(1) (c) (i), (ii) or (iii);

[Am. by Act A1448]
49 Chapter 3 Financial services and other functions-49. Financing for special purposes.

The Bank, with the approval of the Minister on the recommendation of the Board, may establish funds to provide financing through financial institutions on such terms and conditions as the Bank thinks necessary-

(a) in the event of any exigent circumstances or force majeure ;

and

(b) to any segment of the economy for the purposes of promoting financial inclusion.

50 Chapter 3 Financial services and other functions-50. Limit on investment and financing.

The value of shares held by the Bank under paragraph 48(1) (e) together with the financing made under paragraph 48(2) (c) and funds established under section 49 shall not in the aggregate at any time exceed two times the General Reserve Fund.

51 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-51. Establishment of Shariah Advisory Council.

(1) The Bank may establish a Shariah Advisory Council on Islamic Finance which shall be the authority for the ascertainment of Islamic law for the purposes of Islamic financial business.

(2) The Shariah Advisory Council may determine its own procedures.

52 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-52. Functions of Shariah Advisory Council.

(1) The Shariah Advisory Council shall have the following functions:

(a) to ascertain the Islamic law on any financial matter and issue a ruling upon reference made to it in accordance with this Part;

(b) to advise the Bank on any Shariah issue relating to Islamic financial business, the activities or transactions of the Bank;

(c) to provide advice to any Islamic financial institution or any other person as may be provided under any written law; and

(d) such other functions as may be determined by the Bank.

(2) For the purposes of this Part, "ruling" means any ruling made by the Shariah Advisory Council for the ascertainment of Islamic law for the purposes of Islamic financial business.

53 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-53. Appointment of members to Shariah Advisory Council.

(1) The Yang di-Pertuan Agong may, on the advice of the Minister after consultation with the Bank, appoint from amongst persons who are qualified in the Shariah or who have knowledge or experience in the Shariah and in banking, finance, law or such other related disciplines as members of the Shariah Advisory Council.

(2) If a judge of the High Court, the Court of Appeal or the Federal Court, or a judge of the Shariah Appeal Court of any State or Federal Territory, is to be appointed under subsection (1), such appointment shall not be made except-

(a) in the case of a judge of the High Court, the Court of Appeal or the Federal Court, after consultation by the Bank with the Chief Justice; and

(b) in the case of a judge of the Shariah Appeal Court of any State or Federal Territory, after consultation by the Bank with the Chief Shariah Judge of the respective State or Federal Territory, as the case may
54 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-54. Secretariat to Shariah Advisory Council.

The Bank may-

(a) establish a secretariat and such other committees as it considers necessary to assist the Shariah Advisory Council in carrying out its functions; and

(b) appoint any officer of the Bank or any other person to be a member of the secretariat or such other committees.

55 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-55. The Bank and Islamic financial institutions to consult Shariah Advisory Council.

(1) The Bank shall consult the Shariah Advisory Council on any matter-

(a) relating to Islamic financial business; and

(b) for the purpose of carrying out its functions or conducting its business or affairs under this Act or any other written law in accordance with the Shariah, which requires the ascertainment of Islamic law by the Shariah Advisory Council.

(2) Any Islamic financial institution in respect of its Islamic financial business, may-

(a) refer for a ruling; or

(b) seek the advice,

of the Shariah Advisory Council on the operations of its business in order to ascertain that it does not involve any element which is inconsistent with the Shariah.

56 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-56. Reference to Shariah Advisory Council for ruling from court or arbitrator.

(1) Where in any proceedings relating to Islamic financial business before any court or arbitrator any question arises concerning a Shariah matter, the court or the arbitrator, as the case may be, shall-

(a) take into consideration any published rulings of the Shariah Advisory Council; or

(b) refer such question to the Shariah Advisory Council for its ruling.

(2) Any request for advice or a ruling of the Shariah Advisory Council under this Act or any other law shall be submitted to the secretariat.

57 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-57. Effect of Shariah rulings.

Any ruling made by the Shariah Advisory Council pursuant to a reference made under this Part shall be binding on the Islamic financial institutions under section 55 and the court or arbitrator making a reference under section 56.

58 PART VII ISLAMIC FINANCIAL BUSINESS Chapter 1 Shariah Advisory Council-58. Shariah Advisory Council ruling prevails.

Where the ruling given by a Shariah body or committee constituted in Malaysia by an Islamic financial institution is different from the ruling given by the Shariah Advisory Council, the ruling of the Shariah Advisory Council shall prevail.

59 Chapter 2 Powers of the Bank-59. The Bank to issue circulars, guidelines, etc., on Shariah matters.

(1) The Bank may issue such written circulars, guidelines or notices on any Shariah matter relating to the Islamic financial business carried on by any Islamic financial institution in accordance with the advice or ruling of the Shariah Advisory Council.

(2) An Islamic financial institution shall comply with any written circulars, guidelines or notices issued by the Bank under subsection (1) and within such time as may be set out in the circulars, guidelines or notices.

(3) Any person who fails to comply with any circulars, guidelines or notices issued by the Bank under subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit.

60 Chapter 2 Powers of the Bank-60. Promotion of Malaysia as an international Islamic financial centre.

(1) The Bank shall, in co-operation with the Government or any Government agency, statutory body, supervisory authority or international or supranational organization, develop and promote Malaysia as an international Islamic financial centre.

(2) For the purposes of subsection (1), the Bank may-

(a) establish a secretariat or other committees to assist the Government or any organization, council, agency or committee established by the Government; and

(b) generally take such measures or facilitate such actions or provide financing, as may be necessary for the development and promotion of Malaysia as an international Islamic financial centre.

61 PART VIII CURRENCY-61. Unit of currency.

(1) The unit of currency in Malaysia shall be the ringgit, which shall be divided into one hundred sen.

(2) The abbreviated form of the ringgit shall be "RM" or "MYR".

62 PART VIII CURRENCY-62. [Deleted].

(Deleted by Act A1616)

63 PART VIII CURRENCY-63. [Deleted].

(Deleted by Act A1616)

64 PART VIII CURRENCY-64. [Deleted].

(Deleted by Act A1616)

65 PART VIII CURRENCY-65. The Bank may buy and sell ringgit.

The Bank shall at its discretion buy and sell ringgit against gold or any foreign currency eligible for inclusion in the foreign reserves set out under this Act.

66 PART VIII CURRENCY-66. Exchange rate regime for ringgit.

(1) The exchange rate regime for the ringgit shall be determined by the Minister on the recommendation of the Bank.

(2) The Bank shall autonomously conduct foreign exchange operations for the efficient and effective functioning of the exchange rate regime and the foreign exchange market.

66A PART VIII CURRENCY-66A. [No Title].

The powers and functions of the Bank under the Currency Act 2020 [Act 827] are in addition to, and not in derogation of, the powers and functions of the Bank under this Act.

[Am. Act A1616:s3]

67 PART IX FOREIGN RESERVES-67. Duty of the Bank to hold and manage foreign reserves.

(1) It shall be the duty of the Bank at all times to hold and manage foreign reserves for the purposes of giving effect to its objects, carrying out its functions under this Act and maintaining public confidence.

(2) Subject to section 68, the foreign reserves held and managed under subsection (1) shall consist of the following:

(a) gold or other precious metals;

(b) foreign currency;

(c) securities of, or guaranteed by-

(i) governments or agencies of such governments; or

(ii) international financial institutions;

(d) any readily available drawing facility of such international financial institutions;

(e) bills of exchange; and

(f) such other securities and other financial instruments including derivatives.

68 PART IX FOREIGN RESERVES-68. Policies and guidelines on foreign reserves.

The Bank shall hold and manage the foreign reserves in accordance with the policies and guidelines established by the Board.

69 PART X RELATIONS WITH GOVERNMENT-69. Banker and financial agent to Government.

(1) In its function as banker and financial agent to the Government, the Bank-

(a) shall keep account of Government moneys that it receives and disburses; and

(b) may undertake the issue and management of securities, Treasury Bills and other financial instruments publicly issued by the Government.

(2) The Bank shall not charge the Government for any expenses incurred for the services provided under subsection (1).

70 PART X RELATIONS WITH GOVERNMENT-70. Advice to, and acting generally as agent for, Government.

(1) The Governor or any Deputy Governor with the approval of the Minister or any officer of the Bank with the approval of the Governor, may upon request of the Government, act as a member of any committee or commission appointed by the Government to advise or enquire into any matter affecting monetary, financial, banking or currency matters in Malaysia or outside Malaysia.

(2) The Bank, where it is appropriate and consistent with its objects and the provisions of this Act and if it is within its competence and expertise-

(a) shall, upon request by the Government or where the Bank considers it necessary in the interest of the economy, advise the Government on economic matters;

(b) may, upon request of the Government, act as a member of any committee affecting economic matters in Malaysia;

(c) may, upon request of the Government, represent the Government as its agent in all dealings,
71 PART X RELATIONS WITH GOVERNMENT-71. Temporary financing to Government.

(1) The Board may extend temporary financing to the Government on terms prevailing in the market in respect of temporary deficiencies of budget revenue.

(2) All financing extended under subsection (1) shall be repaid as soon as possible and shall in any event be payable not more than three months after the end of the financial year of the Government in which it is extended; and if after that date any such financing remains outstanding, the power of the Bank to extend further financing in any subsequent financial year shall not be exercisable unless and until the outstanding financing has been repaid.

(3) The aggregate amount of financing extended by the Bank under subsection (1) and securities issued by the Government, purchased by the Bank excluding any such securities acquired in the course of, or held solely for, monetary policy operations, shall not at any time exceed twelve and a half per centum of the estimated receipts of the Fed
72 PART X RELATIONS WITH GOVERNMENT-72. Issues of policy.

(1) The Bank shall keep the Minister informed of policies relating to its principal objects.

(2) In the event of a difference of opinion between the Minister and the Bank relating to its principal objects, the Minister and the Bank shall endeavour to reach an agreement.

(3) If the Minister and the Bank are unable to reach an agreement, the Board shall furnish to the Minister a statement in relation to the matter in respect of which the difference of opinion has arisen.

(4) The Minister shall then submit a recommendation together with the statement furnished by the Board under subsection (3) to the Cabinet.

(5) Acting on the recommendation of the Minister and the statement furnished by the Board, the Cabinet may determine the policy to be adopted by the Bank.

(6) The Minister shall inform the Bank of the policy as determined under subsection (5) and that the Government accepts responsibility for the policy.

73 PART XI OTHER POWERS OF THE BANK-73. Compliance with the Shariah.

(1) The Bank may, in giving effect to its objects, carrying out its functions or conducting its business or affairs under this Act or any other written law, put in place such arrangements or take such measures as may be approved by the Shariah Advisory Council to ensure that such functions, business or affairs are in accordance with the Shariah.

(2) Without prejudice to the generality of subsection (1), where any arrangements or measures under subsection (1) require-

(a) the establishment of a corporation or a partnership;

(b) the entering into any commercial, agricultural or industrial undertaking; or

(c) transaction involving trade, bailment, sale, purchase, lease or sale and lease back, agency, endowment or other business or dealing involving services, intellectual property, commodities, other assets or properties, which is prohibited or not authorized by this Act, the Bank may,
74 PART XI OTHER POWERS OF THE BANK-74. Acquisition of immovable property.

The Bank may purchase, acquire or lease immovable property-

(a) for the purposes of carrying out its functions or conducting its business or affairs in accordance with the Shariah pursuant to section 73;

(b) for the provision or future provision of-

(i) business premises for the Bank and its agencies and any clearing houses established pursuant to section 46;

(ii) residences for the Governor, Deputy Governors, officers and employees; and

(iii) amenities for the promotion of the welfare of officers and employees; or

(c) as may be provided in any provision of this Act.

75 PART XI OTHER POWERS OF THE BANK-75. General powers of the Bank.

The Bank, where it is consistent with its objects, functions and other provisions in this Act, may-

(a) enter into contracts;

(b) acquire, purchase, take, hold and enjoy movable or immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, lease, rent, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest vested in the Bank upon such terms as the Bank deems fit;

(c) purchase, sell, repurchase, lend or borrow currencies, securities, gold, other precious metals or other commodities or enter into derivatives;

(d) exchange the currencies, securities, gold, other precious metals or other commodities or financial instruments referred to in paragraph (c) for other currencies, securities, gold, other precious metals or other commodities or financial instruments;
<
76 PART XI OTHER POWERS OF THE BANK-76. Business which the Bank may not transact.

Unless otherwise provided in this Act or any other written law, the Bank may not:

[Ins. Act A1616:s4]

(a) engage in trade or otherwise have a direct interest in any commercial, agricultural, industrial or any other undertaking except in the course of the satisfaction of debts due to the Bank provided that any such interest shall be disposed of at the earliest suitable opportunity;

(b) provide financing upon security of any shares;

(c) purchase the shares of any corporation;

(d) extend unsecured financing or financing secured otherwise than as set out in this Act:

Provided that in the event of any debt due to the Bank becoming in the opinion of the Bank endangered, the Bank may secure such debt on any immovable or movable property of the debtor and may acquire such property, which shall, however, be resold at the earliest
77 PART XI OTHER POWERS OF THE BANK-77. Measures to safeguard monetary and financial stability.

(1) Notwithstanding the provisions of this Act, the Board may, for the purpose of giving effect to the objects of the Bank or safeguarding the balance of payments position, by notice in writing give directions to, or impose requirements on, any person including financial institutions in respect of or relating to-

(a) transactions between residents, non-residents or residents and non-residents, in ringgit or foreign currency, or involving gold, other precious metals, securities or other financial instruments including derivatives; or

(b) the receipt, surrender or retention of foreign currency, gold or other precious metals.

(2) For the purposes of this section-

"foreign currency" shall have the meaning as in subsection 2(1) and in addition includes any document of a kind intended to enable the person to whom the document is issued to o
78 PART XI OTHER POWERS OF THE BANK-78. Record of international accounts.

(1) For the purposes of giving effect to its objects and carrying out its functions under this Act, the Bank shall maintain a record of international accounts containing such data and information as the Bank may determine.

(2) For the purpose of maintaining the record of international accounts, the Bank shall have the power to require in writing at any time persons which, in the opinion of the Bank, having in their possession or under their custody or control, or has within their capacity to obtain, compile or submit, any data, information or document relating to the record of international accounts-

(a) to submit such data, information or document to the Bank; or

(b) to attend before an officer of the Bank to answer any enquiries in relation to such data, information or document.

(3) Any person who is required to submit any data, information or document under this section sha
79 PART XII INTERNATIONAL MATTERS-79. International co-operation.

The Bank may-

(a) participate in any arrangement, scheme, programme or initiative with any other central banks, monetary authorities or international financial institutions or authorities outside Malaysia to promote bilateral, regional and international monetary, financial or economic co-operation; or

(b) with the approval of the Minister on the recommendation of the Board, fund or provide financing in whole or in part for the arrangement, scheme, programme or initiative referred to in paragraph (a) .

80 PART XII INTERNATIONAL MATTERS-80. Membership in international organizations.

The Bank shall exercise the rights and perform the obligations arising from the-

(a) membership of Malaysia in the International Monetary Fund under the Bretton Woods Agreements Act 1957 [Act 472] ;

(b) membership of the Bank in the Islamic Financial Services Board pursuant to the Islamic Financial Services Board Act 2002 [Act 623] ; and

(c) membership of Malaysia or the Bank in any international organization in respect of which provision is made in any federal law.

81 PART XII INTERNATIONAL MATTERS-81. Participation in Bank for International Settlements and other international financial institutions.

The Bank may acquire, hold and sell shares of-

(a) the Bank for International Settlements; and

(b) any other international financial institution, and exercise the rights and perform the obligations arising from its membership or participation in the Bank for International Settlements and such other international financial institution.

82 PART XII INTERNATIONAL MATTERS-82. Regulations or directions to discharge Government's international obligations under United Nations Security Council Resolutions.

(1) Where the Security Council of the United Nations decides, in pursuance of Article 41 of the Charter of the United Nations, on measures to be employed to give effect to any of its decision and calls upon the Government of Malaysia to apply such measures, the Bank may, in relation to the measures that are within the functions and duties of the Bank, with the approval of the Minister, make regulations for, or issue directions in writing to any financial institution or class of financial institutions to enable those measures to be effectively applied.

(2) Any financial institution for which the regulations are made or to which directions are issued under subsection (1) shall comply with the regulations or directions notwithstanding any other duty imposed on the financial institution by any contract or law or international agreement.

(3) Any financial institution shall not, in carrying out any act in compliance with the regulations made
83 PART XIII OFFICERS AND EMPLOYEES-83. Officers and employees of the Bank.

(1) The Bank may appoint such officers and employees as it considers to be necessary for the efficient conduct of the business of the Bank.

(2) Officers and employees of the Bank shall hold office for such period, receive such salaries and allowances and shall be subject to such by-laws on conduct and discipline and other terms and conditions of service as may be determined by the Board.

(3) The Bank may, with the approval of the Minister, out of the funds of the Bank establish and maintain a pension and provident fund for its officers and employees, which in this subsection includes the Governor and the Deputy Governors, and their dependants.

(4) There shall continue to be a Bank Negara Malaysia Staff Welfare Account which shall include the amount standing to the credit of the Bank Negara Malaysia Staff Welfare Account created under subsection 15(5) of the repealed Act immediately before the coming into operation of this Act an
84 PART XIII OFFICERS AND EMPLOYEES-84. Financing for housing, vehicles, studies and scholarships.

(1) Without prejudice to subsections 83(4) and (5), but subject to subsections (2), (3) and (4), the Bank shall not extend financing to an officer or employee.

(2) The Bank may extend financing to an officer or employee upon such terms and conditions as the Board may determine-

(a) for the purchase, erection, alteration, renovation or enlargement of a house in which he resides or intends to reside;

(b) to discharge a mortgage or encumbrance on such a house; or

(c) for the purchase of a vehicle.

(3) The Bank may, where the Governor is satisfied that special or compassionate circumstances exist or the purpose is appropriate, extend financing to an officer or employee on such terms and conditions as the Governor may determine, not exceeding at any one time an amount equal to three months' salary of the officer or employee.

(4) The Bank may extend financin
85 PART XIII OFFICERS AND EMPLOYEES-85. Remuneration not to be related to profits.

No salary, fee, wage, or other remuneration, or allowance, paid by the Bank shall be computed by reference to the profits of the Bank.

86 PART XIV GENERAL-86. Preservation of secrecy.

(1) Without prejudice to section 88, and except for the purpose of the performance of his duties or the carrying out of his functions or when lawfully required to do so by any court or under any law, no person who is or has been director, officer, or employee of the Bank or member of the Shariah Advisory Council or any committee appointed under this Act shall disclose to any person any information relating to the business or affairs of the Bank or of a financial institution or of a customer of the Bank or of a financial institution which he has acquired in the performance of his duties or the carrying out of his functions.

(2) Any person who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both.

87 PART XIV GENERAL-87. Immunity.

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

(a) any officer or employee of the Bank;

(b) any person lawfully acting on behalf of the Bank, or on behalf of any such officer or employee, in his capacity as a person acting on such behalf; or

(c) any person appointed pursuant to this Act, 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, in pursuance or in execution of, or intended pursuance or execution of, this Act, any order in writing, direction, instruction, notice or other thing issued under this Act:

Provided that such act or such statement was done or made, or was omitted to be done or made, in good faith.

(2) In this section, the expr
88 PART XIV GENERAL-88. Power to report suspected offence.

(1) Where the Bank 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 under any law enforced by the Bank referred to in the Second Schedule or other written law, suspects that any person has committed any offence under this Act, or any of the Acts referred to in the Second Schedule, or any other written law, it shall be lawful for the Bank 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 or all information in relation to such offence to any 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 Bank to have been committed.

(2) Subsection (1) shall have full force and effect, notwithstanding anything inco
89 PART XIV GENERAL-89. Power to compound.

(1) The Governor may, with the consent in writing of the Public Prosecutor, offer in writing to compound any offence punishable under this Act or any regulations made under this Act, by accepting from the person reasonably suspected of having committed the offence, such sum of money as he thinks fit not exceeding the amount of the maximum fine to which that person would have been liable if he had been convicted of the offence, within such time as may be specified in the offer.

(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, and if the amount specified in the offer is not paid within the time specified in the offer or within such extended period as the Governor may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

(3) Where an offence has been compounded under subs
90 PART XIV GENERAL-90. Prosecution.

No prosecution in respect of any offence under this Act shall be instituted except by or with the written consent of the Public Prosecutor.

91 PART XIV GENERAL-91. Offence by body corporate.

(1) If a body corporate commits an offence under this Act or any regulations made under this Act, any person who at the time of the commission of the offence was a director, chief executive officer, chief operating officer, manager, secretary or other similar officer of the body corporate 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 the body corporate or was assisting in such management-

(a) may be charged severally or jointly in the same proceedings with the body corporate; and

(b) if the body corporate is found to have committed the offence, shall be deemed to have committed that offence unless, having regard to the nature of his functions in that capacity and to all circumstances, he proves-

(i) that the offence was committed without his knowledge, consent or connivance; and

(ii) t
92 PART XIV GENERAL-92. The Bank may be represented by officer or employee of the Bank in civil proceedings.

Notwithstanding the provisions of any written law-

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

(b) in any other civil proceedings in which the Bank 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 officer or employee of the Bank authorized by the Governor for the purpose, may, on behalf of the Bank, institute such proceedings or appear as an advocate therein and may make all appearances and applications and do all acts in respect of such proceedings on behalf of the Bank.

93 PART XIV GENERAL-93. Fees and charges.

Subject to subsection 69(2), the Bank may impose such fees or charges as it deems appropriate for the services provided by the Bank or the Shariah Advisory Council in relation to its functions under this Act or any other written law.

94 PART XIV GENERAL-94. Power to make regulations.

(1) The Bank may, with the approval of the Minister, make regulations for the better carrying out of the objects and purposes of this Act.

(2) Without prejudice to the generality of subsection (1), regulations may be made-

(a) to give effect to section 78;

(b) to provide for administrative penalties pursuant to section 98;

(c) to provide that any act or omission in contravention of any provision of the regulations shall be an offence; and

(d) to provide for the imposition of penalties for any offence under the regulations which shall not exceed one million ringgit or to imprisonment for a term not exceeding one year or to both.

95 PART XIV GENERAL-95. Power to issue guidelines, etc .

The Bank may, for-

(a) giving effect to its objects and carrying out its functions or conducting its business or affairs;

(b) giving full effect to any provision of this Act; or

(c) the further, better or more convenient implementation of the provisions of this Act,

generally in respect of this Act, or in respect of any particular provision of this Act, or generally in respect of the conduct of the Bank, issue such guidelines, by-laws, circulars, standards or notices as the Bank may consider necessary or expedient.

96 PART XIV GENERAL-96. Exemptions.

The Minister may, on the recommendation of the Bank and provided that it is not inconsistent with the objects and functions of the Bank, by order published in the Gazette , exempt any particular person or any class, category or description of persons, from all or any of the provisions of this Act, for such duration, and subject to such conditions, as the Minister may specify in the order.

97 PART XIV GENERAL-97. Power to amend Schedule.

The Minister may, on the recommendation of the Bank, from time to time by order published in the Gazette amend any provision in the First, Second or Third Schedule and upon such publication, such provision as amended, shall come into full force and effect and shall be deemed to be an integral part of this Act as from the date of such publication, or from such later date as may be specified in the order.

98 PART XIV GENERAL-98. Power to impose administrative penalty.

(1) The Bank may, by regulations made under section 94, impose administrative penalties on any person for any delay in complying with any directive, guideline, standard, circular, specification, order or notice issued by the Bank in respect of any provision of this Act.

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

(3) If a satisfactory explanation is not received within fourteen days from the date of the written notice, the Bank may impose an administrative penalty in an amount not exceeding five hundred ringgit for each day of non-compliance and such amount shall not in total exceed the sum of five thousand ringgit.

99 PART XV REPEAL, SAVINGS AND TRANSITIONAL-99. Repeal.

The Central Bank of Malaysia Act 1958 is repealed.

100 PART XV REPEAL, SAVINGS AND TRANSITIONAL-100. Savings and transitional.

Notwithstanding the repeal of the Central Bank of Malaysia Act 1958 under section 99-

(a) Part III of the repealed Act shall continue to remain in full force and effect until such date to be appointed by the Minister in accordance with subsection 1(2) for the coming into operation of Part VIII of this Act;

(b) subparagraphs 30(1) (oo) (ii), (iii), (iiia), (iv) and (v) of the repealed Act shall continue to remain in full force and effect until such date to be appointed by the Minister by notification in the Gazette for the repeal to take effect;

(c) the capital of the Bank under the repealed Act which on the coming into operation of this Act stands at one hundred million ringgit of which the amount of twenty million ringgit being the capital of the Bank which was subscribed and paid up by the Government under subsection 6(2) of the repealed Act on the establishment