LEGISLATION ADMINISTERED AND ENFORCED BY BANK NEGARA MALAYSIA AND SECURITY COMMISSION

August 28, 2017 Law

The Act provides for the disposal, aims of the Central Bank. It besides enumerates the powers and the responsibilities of the Central Bank in relation to issue of currency, care of external modesty, authorised concern of the bank, specific powers to cover with ailing establishments, its relationship with the Government and fiscal establishments. The Act besides contains general commissariats on the Bank ‘s histories, powers to intensify etc.

2. Banking and Financial Institutions Act 1989 ( BAFIA )

The BAFIA which came into force on October 1, 1989 provides for the licensing and ordinance of establishments transporting on banking, finance company, merchandiser banking, price reduction house and money-broking concerns. It besides provides for the ordinance of establishments transporting on scheduled concern consisting non-bank beginnings of recognition and finance, such as recognition and bear down card companies, constructing societies, factorization, renting companies and development finance establishments. Non-scheduled establishments which are engaged in the proviso of finance may be capable to Part X and XI of the BAFIA as the Minister of Finance may make up one’s mind.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

3. Exchange Control Act 1953

Exchange Control Notices ( ECM ) – ECM 1 to 16

The Act restricts traffics in gold and foreign currencies, payments to and from occupants, issue of securities outside Malaysia, imports and exports and colonies. The Act besides empowers the Controller for Foreign Exchange to allow permissions and consent on the foregoing and to implement the commissariats of the Act.

The Act is supplemented by the Exchange Control Notices ( ECM ) . ECM is issued by the Controller which embodies the general permission and waies of the Controller.

4. Islamic Banking Act 1983

An Act to supply for the licensing and ordinance of Islamic banking concern. The Act inter alia has commissariats on the fiscal demands and responsibilities of an Islamic Bank, ownership, control and direction of Islamic Bankss, limitations on its concern, powers of supervising and control over Islamic bank and other general commissariats such as punishments etc.

5. Insurance Act 1996

The commissariats of the Act trade with the licensing of insurance companies, insurance agents adjustors and reinsurers. It besides deals with puting up of subordinate and offices, constitution of insurance fund, way and control of defaulting insurance companies, the control on direction of licensee, histories of licensee, scrutiny and probe powers of the Central Bank, winding-up, transportation of concern of licensee. The Act besides provides for affairs associating to policies, insurance warrant strategy fund, enforcement powers of the Central Bank, discourtesies and other general commissariats.

6. Takaful Act 1984

An Act to supply for the enrollment and ordinance of takaful concern in Malaysia and for other intents associating to or connected with takaful. “ Takaful ” in this context means a strategy based on brotherhood, solidarity and common aid which provides for common fiscal assistance and aid to the participants in instance of demand whereby the participants reciprocally agree to lend for that intent.

7. Government Investment Act 1983

An Act to confabulate on the Minister power to have investings of moneys for a fixed period and to pay dividend thereon. The Act amongst other things appoints the Central Bank as the agent of the Government and allows the issue of the investing by manner of book-entry i.e. scripless.

8. Anti-Money Laundering and Anti-Terrorism Financing Act 2001 ( AMLA )

Since 2000, Malaysia has made important advancement in building a comprehensive anti-money laundering government. Malaysia ‘s National Coordination Committee to Counter Money Laundering ( NCC ) , comprised of members from 13 authorities bureaus, oversaw the drafting of Malaysia ‘s Anti-Money Laundering Act 2001 ( AMLA ) and coordinates government-wide anti-money laundering attempts.

The AMLA, enacted in January 2002, criminalized money laundering and lifted bank secretiveness commissariats for condemnable probes affecting more than 150 predicate discourtesies. The jurisprudence besides created a fiscal intelligence unit ( FIU ) located in the Central Bank, Bank Negara Malaysia ( BNM ) . The FIU is tasked with receiving and analysing information, and sharing fiscal intelligence with the appropriate enforcement bureaus for farther probes. The Malayan FIU works with more than twelve other bureaus to place and look into leery minutess.

9. Uniform Customs and Practice for Documentary Credits ( UCP 600 )

Not a statute law but a trade finance patterns

The Uniform Customs and Practice for Documentary Credits ( UCP ) is a set of regulations on the issue and usage of letters of recognition. The UCP is utilised by bankers and commercial parties in more than 175 states in trade finance. UCP 600 came into consequence on 1 July 2007. It is the 6th alteration of the regulations since they were foremost promulgated in 1933.

UCP defines rights and duties of the assorted parties in a documental recognition dealing, it is non jurisprudence and any given documental recognition is capable to the UCP merely to the extent indicated in the docudrama recognition itself.

10. Capital Markets and Services Act 2007 ( CMSA )

The CMSA prescribes the Torahs among others, to modulate and to supply for affairs associating to the activities, markets and mediators in the capital markets. CMSA mostly consolidates the Securities Industry Act 1983 ( SIA ) , the Futures Industry Act 1993 ( FIA ) and Part IV of the Securities Commission Act 1993 ( SCA ) , makes some alterations to the regulative construction of stock markets and hereafters markets, revamps the securities and hereafters industry licensing model, adds new commissariats to assist advance Malaysia ‘s development as a planetary Islamic fiscal hub, improves and modernises the regulative model, fund elevation activities and investor protection and introduces commissariats for self-regulatory organisations.

11. Labuan Financial Services and Securities Act 2010 ( LFSSA )

This Act provides the model on the licensing and ordinance of fiscal services and securities in Labuan. With the passage of the Labuan Financial Services and Securities Act 2010, the undermentioned Acts are repealed: –

O Labuan Trust Companies Act 1990 ;

O Offshore Banking Act 1990 ;

O Offshore Insurance Act 1990 ; and

o Labuan Offshore Securities Industry Act 1998.

12. Labuan Islamic Financial Services and Securities Act 2010

The Act sets the licensing and regulative model for Islamic fiscal services and securities in Labuan and provides for the constitution of Islamic banking and Takaful concern including confined Takaful concern plus Labuan Islamic trusts, foundations, limited partnerships and limited liability partnerships.

13. Labuan Financial Services Authority Act 1996

This Act described and governed the functions and powers of Labuan FSA. Under this statute law, Labuan FSA is allowed and given the power to administrate, transport out and implement the Labuan statute law to all industry participants in this legal power.

14. Malaysia Deposit Insurance Corporation Act 2011

The Act sets equal powers to the Malaysia Deposit Insurance Corporation ( PIDM ) to pull off troubled fiscal establishments ( member establishments ) efficaciously. Provides PIDM powers to better consumer protection in footings of finance. The range of protection for sedimentations has been raised from RM60,000 to RM250,000.

Exchange Control Notices ( ECM ) – ECM 1 to 16

Bank Negara Malaysia, as agent of the Government on exchange control affairs, administers the Exchange Control Act 1953 since August 1, 1960, with the Governor as the Controller of Foreign Exchange. To complement the Act, the Controller issues exchange control notices and assorted handbills from clip to clip. Presently, there are 16 ECM notices:

ECM No. & A ; Contentss

1 Definitions

2 Dealingss in Gold and Foreign Currency

3 External Histories

4 General Payments

5 Export of Goods

6 Credit Facilities to Non-Residents

7 Foreign Currency Histories

8 Domestic Credit Facilities to Non-Resident Controlled Companies – This notice was revoked on April 1, 2005.

9 Investings Abroad

10 Foreign Currency Credit Facilities and Ringgit Credit Facilities From Non-Residents

11 Inter-Company Histories

12 Securities

13 Import and Export of Currency Notes, Bills of Exchange, Assurance Policies, etc.

14 Dealingss with Specified Persons and in Restricted Currencies

15 Labuan International Offshore Financial Centre

16 Approved Operational Headquarters

x

Hi!
I'm Amanda

Would you like to get a custom essay? How about receiving a customized one?

Check it out