CURRENCY ACT 2020

Currency LAWS OF MALAYSIA Act 827 CURRENCY ACT 2020 1 2 Laws of Malaysia Act 827 Date of Royal Assent ... ... 14 February 2020 Date of publication in the Gazette ... ... 28 February 2020 Publisher’s Copyright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia). Currency 3 LAWS OF MALAYSIA Act 827 CURRENCY ACT 2020 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. Short title and commencement 3. Person declared as financial institution 2. 4. Interpretation Powers and functions of Bank Part II POWERS RELATING TO CURRENCY 5. Bank to be sole authority to issue currency 7. Issuance, reissuance and exchange of currency at office, etc., established by Bank 6. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Printing and minting of currency under authority of Bank Bank liable for face value of currency Denomination and form of currency Legal tender Sale of currency Safe custody of unissued currency, etc. Power to call in currency Withdrawal of currency Disposal of currency or printing and minting instruments Refund of lost, stolen or imperfect currency Preservation of quality and integrity of currency Part III OFFENCES RELATING TO CURRENCY 18. 19. Prohibition from issuing, printing or minting currency Restriction on use of photograph, drawing or design of currency in publication, etc. 4 Laws of Malaysia Section 20. Prohibition from melting down of currency coin 21. Limitation on cash transaction 22. Non-application of section 21 Act 827 Part IV CURRENCY PROCESSING BUSINESS 23. Declaration of currency processing business Division 1 Registration 24. Prohibition from carrying on currency processing business 25. Application for registration 26. Registration 27. Non-registration 28. Publication of list of registered currency processor 29. Voluntary deregistration 30. Deregistration by Bank 31. Opportunity to make representation for action under section 30 32. Effect of deregistration Division 2 Duties of registered currency processor 33. Prudent and professional practice 34. Duties of director and chief executive officer 35. Fees 36. Preservation of secrecy 37. Detention of currency suspected to be counterfeit 38. Bank, registered currency processor and financial institution to record personal information of person from whom currency is detained 39. Currency to be surrendered and information to be furnished, to police 40. Currency remains property of person from whom currency was detained if currency is genuine 41. Submission of document or information Currency 5 Division 3 Examination Section 42. Power to examine 44. Right of access and production of property, etc. 43. 45. Examination of specific person Appearance before Bank Part V ENFORCEMENT Division 1 Actions by Bank 46. Breach 48. Power to take administrative action 47. 49. 50. 51. Power to issue direction Appropriateness of action Opportunity to make representation for action under section 47 or 48 Appeal against monetary penalty Division 2 Criminal action 52. Offence by person acting in official capacity 53. Offence by employee or officer or agent 54. Attempt, abetment and conspiracy 55. Seizable offence 56. Joinder of offences 57. Compounding of offences 58. Prosecution Part VI GENERAL 59. Monies received by Bank 61. Power to issue standards 60. Power to make regulations 6 Laws of Malaysia Section Act 827 62. Power to issue guidelines 63. Provision relating to approval, standards, specifications, notice, requirements, directions, order or guidelines 64. Publication of enforcement action 65. Amendment of Schedules 66. Protection against suits and legal proceedings 67. Application of section 77 of the Central Bank of Malaysia Act 2009, Division 2 of Part XIV of the Financial Services Act 2013 and Division 2 of Part XV of the Islamic Financial Services Act 2013 68. Exemption Part VII SAVING AND TRANSITIONAL 69. Saving 70. Transitional First Schedule Second Schedule 7 Currency LAWS OF MALAYSIA Act 827 CURRENCY ACT 2020 An Act to provide for the management of currency of Malaysia, regulation of currency processing business and currency processing activities and for related matters. [ ] ENACTED by the Parliament of Malaysia as follows: Part I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Currency Act 2020. (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 provisions of this Act. Interpretation 2. (1) In this Act, unless the context otherwise requires— “currency processing activities” means— (a) the sorting of currency note or currency coin by authenticity or quality; or 8 Laws of Malaysia Act 827 (b) the packing of currency note or currency coin by quality, quantity or denomination; “Bank” has the same meaning assigned to it in subsection 2(1) of the Central Bank of Malaysia Act 2009 [Act 701]; “Governor” means the Governor of the Bank; “financial institution” means— (a) a licensed bank under the Financial Services Act 2013 [Act 758], a licensed Islamic bank under the Islamic Financial Services Act 2013 [Act 759] and a prescribed institution under the Development Financial Institutions Act 2002 [Act 618]; or (b) any person declared as a financial institution in the First Schedule; “instruments and materials” includes— (a) relating to currency note, origination film, progressive, plate, proof, and unprinted, semi-printed or finished currency note; (b) relating to currency coin, design, mould, lettering wheel, punch, collar, die, working tool, rimming and lettering block, coin blank and finished currency coin; and (c) any apparatus, equipment and machinery which are related to the issuance, printing or minting of currency note or currency coin; “Monetary Penalty Review Committee” means the Monetary Penalty Review Committee established under section 238 of the Financial Services Act 2013; “computer” has the same meaning assigned to it in section 3 of the Evidence Act 1950 [Act 56]; “currency note” means a note issued by the Bank including a commemorative note issued by the Bank for, or to commemorate, a particular event or purpose; Currency 9 “currency coin” means a coin issued by the Bank including a commemorative coin issued by the Bank for, or to commemorate, a particular event or purpose; “Minister” means the Minister charged with the responsibility for finance; “person” means any natural person, corporation, statutory body, local authority, society, trade union, co-operative society, partnership or any other body, organisation, association or group of persons, whether corporate or unincorporated and includes the Government and any State Government; “computer output” means a statement or 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; “registered currency processor” means a person registered under subsection 26(1) to carry on a currency processing business and for the purpose of Division 3 of Part IV includes any financial institution carrying on currency processing activities; “currency processing business” means— (a) the business of— (i) collecting currency note or currency coin; (ii) sorting currency note or currency coin by authenticity and quality; and (iii) packing currency note or currency coin by quality, quantity and denomination, by a person for or on behalf of another person; or 10 Laws of Malaysia Act 827 (b) any activity declared as a currency processing business under section 23. (2) A currency note shall be deemed defaced— (a) if any word, sign, symbol, drawing, caricature, or other thing, has been written, inscribed or in any other manner or by any other means has been shown on its surface; or (b) if the currency note is torn, marred, burnt, stained, spoilt or otherwise in any manner mutilated. (3) A currency coin shall be deemed tampered with— (a) if the currency coin is impaired, diminished or lightened otherwise than by fair wear and tear; or (b) if the currency coin is stamped, engraved or pierced, regardless whether the coin has been diminished or lightened. Person declared as financial institution 3. Any person specified in the First Schedule is declared as a financial institution for the purposes of this Act. Powers and functions of Bank 4. (1) The powers and functions of the Bank under this Act are in addition to, and not in derogation of, the powers and functions of the Bank under the Central Bank of Malaysia Act 2009. (2) The Governor shall exercise such powers and perform such functions of the Bank under this Act on behalf of the Bank. (3) The Bank may, either generally or in a particular case, appoint any person, including an officer of the Bank, whether in or outside Malaysia— (a) to exercise any of the powers or perform any of the functions, of the Bank, under this Act on behalf of and in the name of the Bank; or Currency 11 (b) to render such assistance in the exercise of any of the powers or performance of any of the functions, of the Bank, under this Act. Part II POWERS RELATING TO CURRENCY Bank to be sole authority to issue currency 5. The Bank shall be the sole authority to issue currency note and currency coin in Malaysia. Printing and minting of currency under authority of Bank 6. (1) The currency note and currency coin shall only be printed or minted by or under the authority of the Bank. (2) The Bank shall arrange for the printing of currency note and the minting of currency coin. Issuance, reissuance and exchange of currency at office, etc., established by Bank 7. The Bank shall issue and reissue and may exchange currency note and currency coin at the office of the Bank or at any agency as the Bank may establish or appoint for such purpose. Bank liable for face value of currency 8. The Bank shall be liable for the face value of currency note and currency coin issued by the Bank. Denomination and form of currency 9. (1) Currency note and currency coin issued by the Bank— (a) shall be in such denomination of ringgit or sen; and 12 Laws of Malaysia Act 827 (b) shall be of such form, characteristics or design, or bear such feature or device, as approved by the Minister, on the recommendation of the Bank. (2) The standard weight and composition of currency coin issued by the Bank and the amount of remedy and variation shall be as approved by the Minister, on the recommendation of the Bank. Legal tender 10. (1) Only currency note and currency coin issued by the Bank shall be legal tender in Malaysia at its face value provided that the currency note is not defaced and the currency coin is not tampered with. (2) The currency note and currency coin referred to in subsection (1) shall be legal tender at its face value for a payment not exceeding the maximum aggregate quantity or value of currency note or currency coin as specified in the Second Schedule. Sale of currency 11. (1) The Bank may, for the purpose of promoting numismatics, sell currency note or currency coin at a price other than its face value. (2) Any proceeds from the sale of currency note or currency coin pursuant to subsection (1) shall be considered as an income to the Bank. Safe custody of unissued currency, etc. 12. The Bank shall, in such manner as the Bank deems fit— (a) arrange for the safe custody of unissued currency note or currency coin; and (b) prepare and