MONEY SERVICES BUSINESS ACT 2011

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 731 MONEY SERVICES BUSINESS ACT 2011 As at 1 October 2015 2 MONEY SERVICES BUSINESS ACT 2011 Date of Royal Assent … … Date of publication in the Gazette … … 26 August 2011 … 15 September 2011 3 LAWS OF MALAYSIA Act 731 MONEY SERVICES BUSINESS ACT 2011 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title, commencement and non-application 2. Interpretation 3. Functions, powers and duties of the Bank PART II LICENSING 4. Prohibition from carrying on money services business 5. Application for licence 6. Requirements for a licence 7. Grant or refusal of licence 8. Fees 9. Renewal of licence 10. Conditions of licence 11. Display of licence 12. Revocation of licence 13. Appeal against revocation of licence 14. Licence to be forwarded to the Bank 15. Effect of expiry, non-renewal, revocation or surrender of licence 4 Laws of Malaysia Section 16. Surrender of licence 17. Preservation of rights and claims 18. Approval for change in name of licensee 19. Restriction of business 20. Publication of list of licensees PART III MONEY SERVICES BUSINESS 21. Office of licensee 22. Maintenance of capital 23. Use of words “money services business”, etc. 24. Name to be affixed outside office 25. Advertisement 26. Transparency in dealings 27. Licensee to issue receipt 28. Maintenance of records by licensee 29. Sale, leasing, etc., of money services business 30. Appointment of director, chief executive officer or manager 31. Appointment of auditor 32. Shareholders of licensee 33. Effecting change in shareholding structure 34. Submission of information or documents 35. Submission of false information 36. Operational and governance arrangements ACT 731 Money Services Business 5 PART IV REMITTANCE BUSINESS Section 37. Customers’ funds to be kept separately 38. Certificate of closure 39. Operational requirements 40. Use of remittance system by a licensee who carries on remittance business 41. Revocation of approval granted under subsection 40(1) PART V MONEY SERVICES BUSINESS AGENT 42. Appointment of money services business agents 43. Application and grant of approval 44. Register of money services business agents 45. Prohibition from carrying on money services business on behalf of a licensee 46. Money services business agents to comply with provisions of this Act, etc. 47. Revocation of approval for appointment of money services business agent PART VI EXAMINATION 48. Examination of licensee, etc. 49. Examination of specific persons 50. Right of access and production of property, etc. 51. Appearance before examiner 52. Confidentiality of examination reports 6 Laws of Malaysia ACT 731 PART VII INVESTIGATION AND ENFORCEMENT Section 53. Appointment of investigating officer 54. Powers of investigating officer 55. Search and seizure with warrant 56. Search and seizure without warrant 57. Power of an investigating officer in the course of investigation 58. Access to data, etc. 59. Warrant admissible notwithstanding defects 60. List of property, etc., seized 61. Release of the property, etc., seized 62. Obstruction to exercise of powers by an investigating officer 63. Requirement to provide translation 64. Notice to call for examination 65. Power to examine person 66. Surrender of travel documents 67. Assistance to police officer or public authority, etc. 68. Investigating officer deemed to be public servant and public officer 69. Seizable offence 70. Arrested person to be made over to the police 71. Agent provocateur 72. Specific persons in respect of whom powers of investigation may be exercised PART VIII OTHER POWERS OF THE BANK 73. Power of the Bank to issue directives 74. Power of the Bank to issue guidelines, etc. 75. Power of the Bank to take administrative actions Money Services Business 76. Civil action by the Bank Section 77. Power of court to make certain orders 78. Power to make regulations 79. Power of the Bank to publish information PART IX MISCELLANOUS 80. Offence by body corporate 81. Offence by employee or agent 82. Joinder of offences 83. Protection against suits and legal proceedings 84. Secrecy 85. Permitted disclosures 86. Attempts, abetments and conspiracies 87. General penalty 88. Power to compound 89. Prosecution 90. Minister may amend the Schedule 91. Exemptions 92. Act to be read together with the Exchange Control Act 1953 PART X REPEAL, SAVINGS AND TRANSITIONAL 93. Repeal 94. Savings 95. Grant of licence to persons deemed to be licensed or permitted to carry on business 96. Transitional SCHEDULE 7 9 LAWS OF MALAYSIA Act 731 MONEY SERVICES BUSINESS ACT 2011 An Act to provide for the licensing, regulation and supervision of money services business and to provide for related matters. [1 December 2011, P.U. (B) 590/2011] ENACTED by the Parliament of Malaysia as follows: PART I PRELIMINARY Short title and commencement and non-application 1. (1) 2011. This Act may be cited as the Money Services Business Act (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. (3) This Act shall not apply to any authorized dealer. Interpretation 2. In this Act, unless the context otherwise requires — “accounts” includes records of any financial transactions of licensees; “repealed Act” means the Money-Changing Act 1998 [Act 577]; 10 Laws of Malaysia ACT 731 “unsafe and unsound practices” means any practice or conduct by a licensee or a money services business agent which creates the likelihood of insolvency, loss or dissipation of the assets of the licensee or the money services business agent, or is otherwise detrimental to the interest of its customers or the public; “Bank” means the Central Bank of Malaysia; “licensed bank” means— (a) a licensed bank with the same meaning as assigned to it in * section 2 of the Banking and Financial Institutions Act 1989 [Act 372]; or (b) an Islamic bank with the same meaning as assigned to it in ** section 2 of the Islamic Banking Act 1983 [Act 276]; “fund” or “money” includes any unit of account or unit of value that facilitates the purchase of goods or services; “data” means representations of information or concepts that are being prepared or have been prepared in a form suitable for use in a computer; “money services business agent” means a person— (a) appointed by a licensee in accordance with section 43 to carry on money services business on behalf of the licensee; and (b) registered by the Bank as a money services business agent under section 44; * NOTE—The Act was repealed by the Financial Services Act 2013 [Act 758]–see section 271 of Act 758 w.e.f. 30 June 2013 (except section 129 and Schedule 9) [P.U. (B) 276/2013] and 1 January 2015 (for section 129 and Schedule 9) [P.U. (B) 552/2014]. ** NOTE—The Act was repealed by the Islamic Financial Services Act 2013 [Act 759]–see section 282 of Act 759 w.e.f. 30 June 2013 (except paragraphs 1 to 10 of Schedule 9 and paragraphs 13 to 19 of Schedule 9) [P.U.(B) 277/2013] and 1 January 2015 (for paragraphs 1 to 10 of Schedule 9 and paragraphs 13 to 19 of Schedule 9) [P.U. (B) 553/2014]. Money Services Business 11 “Governor” means the Governor of the Bank and includes a Deputy Governor of the Bank; “property” means— (a) assets of every kind, whether corporeal or incorporeal, moveable or immovable, tangible or intangible, however acquired; or (b) legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such assets, including bank credits, traveller’s cheques, bank cheques, money orders, shares, securities, bonds, drafts and letters of credit; “licence” means a licence granted under section 7; “chief executive officer”, in relation to a licensee, means a person, by whatever name called, who, either individually or jointly with one or more other persons, is responsible, subject to the authority of the board of directors of the licensee, for the conduct of the business and the management of the licensee; “computer” means any device for recording, storing, processing, retrieving or producing any information or other matter, or for performing any one or more of those functions, by whatever name or description that device is called, and where two or more computers carry out any one or more of those functions in combination or in succession or otherwise conjointly, they shall be treated as a single computer, whether the computers are located within the same premises or otherwise, whether in or outside Malaysia; “information” includes explanations as may be required by the Bank; “foreign currency” means currency notes or coins which are legal tender in any country, territory or place outside Malaysia, and includes any right to receive foreign currency in such form as the 12 Laws of Malaysia ACT 731 Bank may prescribe, but excludes such foreign currency as the Bank may prescribe; “specify” means specify in writing, and a power to specify includes the power to specify differently for different persons or different classes, categories or descriptions of persons, and to amend any specification; “prescribe” means prescribe by regulations published in the Gazette, and a power to prescribe includes the power to prescribe differently for different persons or different classes, categories or descriptions of persons; “Minister” means the Minister charged with the responsibility for finance; “computer output” means a statement or a representation, whether in written, printed, pictorial, film, graphical, acoustic or other form— (a) produced by a computer; (b) displayed on the screen of a computer; or (c) accurately translated from a statement or representation so produced; “office” includes the principal place of business, a branch, an agency, a mobile place of business, a place of business set-up and maintained for a limited period only, and an electronic terminal or platform and any other place from where, or at which, a money services business is or was carried on; “employee”, in relation to a licensee, has the same meaning as assigned to it in the Employment Act 1955 [Act 265] and includes the chief executive officer and the manager; “licensee” means a person licensed under this Act; Money Services Business 13 “substantial shareholdings” and “substantial shareholders” have the same meaning as assigned to them in section 69D of the Companies Act 1965 [Act 125]; “director” includes any person who occupies the position of a director, by whatever name called, and, in particular, without prejudice to the foregoing, in the case of— (a) a corporation, has the same meaning as assigned to it in section 4 of the Companies Act 1965; (b) a statutory body, means a member of the board, committee, council or other governing body, by whatever name called, of the statutory body; (c) a partnership, means a partner; (d) a sole proprietorship, means the sole proprietor; and (e) any other body, association or group of persons, whether corporate or unincorporated, means any person having the direction and control of the management of its affairs or business; “controller”, in relation to a licensee, means a person who, either alone or with any associate— (a) has an interest in more than fifty per centum of the shares of the licensee; (b) has an interest in one-third or more of its voting shares; (c) has the power to appoint or cause to be appointed a majority of the directors of the licensee; (d) has the power to make or cause to be made, decisions in respect of the conduct of the business or the management of the licensee and to give effect to such decisions or cause them to be given effect to; or 14 Laws of Malaysia ACT 731 (e) is the chief executive officer of the licensee or of a body corporate of which the subsidiary is a licensee, and the word “control” shall be construed accordingly; “manager”, in relat