PAWNBROKERS ACT 1972

Pawnbrokers LAWS OF MALAYSIA REPRINT Act 81 PAWNBROKERS ACT 1972 Incorporating all amendments up to 1 January 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH PERCETAKAN NASIONAL MALAYSIA BHD 2006 1 2 PAWNBROKERS ACT 1972 Date of Royal Assent ... ... ... ... ... ... 5 July 1972 Date of publication in the Gazette ... ... ... ... 13 July 1972 PREVIOUS REPRINTS First Reprint ... Second Reprint ... ... ... ... ... ... ... ... ... 1994 1999 3 LAWS OF MALAYSIA Act 81 PAWNBROKERS ACT 1972 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title 2. Interpretation 3. Persons to be deemed pawnbrokers PART IA ADMINISTRATION 3A. Appointment of Registrar, Deputy Registrars, Inspectors and other officers and servants 3B. Delegation of powers of Registrar PART IB EXTENSION OF LIABILITY OF PAWNBROKERS AND RIGHTS OF PAWNERS TO CERTAIN PERSONS 4. Application of the Act to executors, etc., of pawnbrokers 5. Liability of pawnbrokers for acts of agent or servant 6. Extensions of rights, etc., of pawners to the assigns, executor, etc. Laws of Malaysia 4 ACT 81 PART II PAWNBROKER’S LICENCE Section 7. Licence to be taken out by pawnbroker 8. Application for licence 8A. Circumstances under which licence shall not be granted 9. Grant of a licence 10. Duration of licence 10A. Conditions may be attached to licence 10B. Renewal of licence 10C. Requirement to display licence 11. Revocation and suspension of licence 11A. Opportunity of being heard 11B. Appeal to Minister 11C. Validity of licence extended in successful appeal 11D. Prohibition of similar application when earlier application still pending appeal 11E. Surrender of licence 11F. Transfer or assignment of licence prohibited 11G. Duty of pawnbroker on expiry of licence 12. Pawn premises to keep open after expiration of licence for redemption of pledges 13. Registrar may issue order to licensee to deliver pledges and books and accounts on expiration of licenses, etc. 13A. Book, account or document to be submitted PART IIA ADVERTISEMENT 13B. Advertisement by licensee 13C. Application for advertisement permit Pawnbrokers 5 PART III PAWNING AND REDEMPTION Section 14. Entry of pawning transaction in books and issue of pawn-tickets 15. Pawner to give true information to licensee 16. Business hours and restrictions as to receiving articles in pawn and carrying other business 17. Rate of profit 18. Period for and conditions of redemption 19. Extension of time for redemption 20. Pawnbroker may refuse to deliver up pledge 21. Procedure when pawn-ticket lost 22. Pawnbroker’s responsibility with regard to pledge 23. Pledges not redeemed within time 24. Right of holder of pawn-ticket to inspect sale book 25. Obligation on pawnbroker to account for surplus within four months subject to set-off 26. Disposal of unclaimed surplus 27. Treasury to pay lawful claimant PART IV PREVENTION OF UNLAWFUL DEALINGS 28. Unlawful pawning 29. Duty of licensee to enquire when proposed transaction is suspicious 30. Presumption on possession of pawn-ticket 31. Stolen property 32. Police officer may arrest persons under suspicious circumstances 33. (Deleted) 34. Restoration to the owner by pawnbroker of pledge dishonestly obtained Laws of Malaysia 6 ACT 81 PART IVA INVESTIGATION, SEARCH AND ARREST Section 34A. Power to investigate complaints and inquire into information 34B. Powers of Inspector or police officer in investigation 34C. Power to examine persons 34D. Search by warrant 34E. Search without warrant 34F. Seizure of movable property 34G. Further provisions relating to seizure of movable property 34H. Release of property seized 34I. Obstruction of inspection and search 34J. Seizable offence 34K. Authority to act PART IVB EVIDENCE 34L. Evidence of accomplice and agent provocateur 34M. Protection of informers and information 34N. Admissibility of statements by accused persons 34O. Provisions as to evidence PART V TRIALS AND PROCEEDINGS 35. Magistrate of the First Class to have jurisdiction under this Act 36. Reward to informers 37. Public notice 38. (Deleted) Pawnbrokers PART VI PENALTIES AND FORFEITURE Section 39. False statements or representations to induce pawning an offence 40. General offences 41. Offence by public 41A. General penalty 42. Forfeiture of articles PART VII GENERAL 43. Prosecution 43A. Offences by companies, firms, societies or other body of person 43B. Service of notification or document 43C. Power to compound 44. (Deleted) 45. Power to make regulations 46. Exemption 46A. Power of the Minister to exempt 47. Repeal 48. Transitional and saving provisions 49. Continuance of criminal and civil proceedings SCHEDULE 7 8 Laws of Malaysia ACT 81 Pawnbrokers 9 LAWS OF MALAYSIA Act 81 PAWNBROKERS ACT 1972 An Act for the regulation and control of the business of pawnbroking, the protection of pawners and pledges pawned in the course of such business, and matters connected therewith. [Throughout Malaysia—2 January 1973, P.U. (B) 535/1972] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: PART I PRELIMINARY Short title 1. This Act may be cited as the Pawnbrokers Act 1972. Interpretation 2. In this Act unless the context otherwise requires— “appointed date” means the date appointed by the Minister under section 1; “Consolidated Revenue Account” means the Federal Consolidated Revenue Account maintained pursuant to paragraph 7(a) of the Financial Procedure Act 1957 [Act 61]; “Consolidated Trust Account” means the Federal Consolidated Trust Account maintained pursuant to paragraph 7(c) of the Financial Procedure Act 1957; Laws of Malaysia 10 ACT 81 “Inspector” means the Inspector of Pawnbrokers appointed under subsection 3A(1); “licence” means a licence granted under section 9; “licensed auctioneer” means any person duly licensed to conduct sales under any law relating to sales by public auction; “licensee” means any pawnbroker to whom a licence has been granted under section 9; “pawnbroker” means a person who carries on pawnbroking business; “pawnbroker’s book” means the book referred to in section 14; “pawnbroking business” includes the business of taking articles in pawn; “pawner” means a person delivering an article for pawn to a pawnbroker; “pledge” means any tangible personal property, other than choses-in-action, titles, securities or documents evidencing indebtedness, which is deposited or delivered into the possession of a pawnbroker; “police officer” means a senior police officer as defined in the Police Act 1967 [Act 344]; “premises” means the place where a person carries on business as a pawnbroker; “Registrar” means the Registrar of Pawnbrokers appointed under subsection 3A(1). Persons to be deemed pawnbrokers 3. Any person who— (a) receives or takes of or from any person whomsoever any article by way of security for the repayment of any sum of money, not exceeding ten thousand ringgit, advanced thereon; or Pawnbrokers 11 (b) purchases or receives or takes in articles and pays or advances or lends thereon any sum of money, not exceeding ten thousand ringgit, with or under an agreement or understanding expressed or implied or to be from the nature and character of the dealing reasonably inferred that those articles may afterwards be redeemed or repurchased on any terms, shall be deemed to be a person carrying on the business of taking articles in pawn, and every such transaction, article, payment, advance and loan shall be deemed a pawning, pledge or loan respectively within this Act. (2) (Deleted by Act A1209) PART I A ADMINISTRATION Appointment of Registrar, Deputy Registrars, Inspectors and other officers and servants 3A. (1) For the purpose of this Act, the Minister may appoint a Registrar of Pawnbrokers and such numbers of Deputy Registrars of Pawnbrokers, Inspectors of Pawnbrokers and other officers and servants as the Minister may deem fit from amongst members of the public service. (2) The Registrar and Deputy Registrars shall have and may exercise any of the powers conferred on an Inspector by or under this Act. Delegation of powers of Registrar 3B. (1) The Registrar may, in writing, delegate all or any of his powers or functions under this Act, except his power of delegation, to any Deputy Registrar or Inspector appointed under subsection 3A(1). (2) Without prejudice to subsection (1), the Registrar may, in writing, delegate any of his powers or functions under this Act in respect of the investigation of offences under this Act and the enforcement of the provisions of this Act to any public officer or officer of a local authority. 12 Laws of Malaysia ACT 81 (3) Any delegation under subsection (1) or (2) may be revoked at any time by the Registrar and does not prohibit the Registrar from himself exercising the powers or performing the functions so delegated. PART IB EXTENSION OF LIABILITY OF PAWNBROKERS AND RIGHTS OF PAWNERS TO CERTAIN PERSONS Application of the Act to executors, etc., of pawnbrokers 4. The provisions of this Act relating to licensees shall extend to and include the executors or administrators of deceased licensees, except that an executor or administrator shall not be answerable for any penalty or forfeiture personally or out of his own estate, unless the same is incurred by his own act or neglect. Liability of pawnbrokers for acts of agent or servant 5. (1) Whenever any licensee would be liable under this Act or of any regulations made thereunder to any punishment or penalty for any act, omission, neglect or default he shall be liable to the same punishment or penalty for every singular act, omission, neglect or default of any agent or servant employed by him in the course of his business as such licensee. (2) Every agent or servant employed by any licensee in the course of his business as such shall also be liable in respect of any act, omission, neglect or default of his to every punishment or penalty described for acts, omissions, neglects or defaults contrary to this Act or of any regulations made thereunder as if such agent or servant had been the licensee. Extensions of rights, etc., of pawners to the assigns, executor, etc. 6. The rights, powers and benefits under this Act reserved to and conferred on pawners shall extend to, and be deemed to be reserved to and conferred on, the assignees of pawners, and to and on the executors or administrators of deceased pawners; but any person Pawnbrokers 13 representing himself to a licensee to be the assign, executor or administrator of a pawner shall, if required by the licensee, produce to the licensee the assignment, probate, letters of administration or other instrument under which he claims. PART II PAWNBROKER’S LICENCE Licence to be taken out by pawnbroker 7. (1) No person shall carry on business as a pawnbroker unless he holds a valid licence granted under this Act. (2) Any person who carries on business as a pawnbroker without a valid licence, or who continues to carry on such business after his licence has expired or been suspended or revoked commits an offence and shall on conviction be liable to a fine of not less than twenty thousand ringgit but not more than one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both and in the case of a second or subsequent offence shall also be liable to whipping in addition to such punishment. Application for licence 8. (1) An application for a licence to carry on business as a pawnbroker shall be made in writing to the Registrar in the prescribed form, and accompanied by such documents or information as may be prescribed. (2) The Registrar may in writing, at any time after receivin