S 110/2010
Amended by
S 4/2012
S 67/2012
REVISED EDITION 2023
B.L.R.O. 7/2023
Deposit Protection
B.L.R.O. 7/2023 3
REVISED EDITION 2023
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Deposit Protection Act is Brunei Act, cited as Act 269 2023, currently marked in force and first recorded in 2023.
Chapter
Amended by
S 4/2012
S 67/2012
REVISED EDITION 2023
B.L.R.O. 7/2023
Deposit Protection
B.L.R.O. 7/2023 3
REVISED EDITION 2023
Opening note
Part
Citation
This Act may be cited as the Deposit Protection Act.
Interpretation
In this Act, unless the context otherwise requires —
“assessment year”, in relation to the calculation and payment of premiums under this Act, means the period beginning on the first day of January and ending on the 31st day of December of each year or such other period as may be approved by the Minister;
“Authority” means the Authority as stated in the Banking
Order, 2006 (S 45/2006), the Islamic Banking Order, 2008
(S 96/2008) and in the case of the Finance Companies Act
(Chapter 89), the Minister;
“Board” means the Board of Directors of the Corporation;
“Chairman” means the Chairman of the Board;
“Chief Executive Officer” means the Chief Executive of the
Corporation;
“Corporation” means the Brunei Darussalam Deposit Protection
Corporation established by section 3;
“deposit” means a deposit as defined in section 2(3) of the Banking
Order, 2006 (S 45/2006), a deposit as defined in section 2(3) of the
Islamic Banking Order, 2008 (S 96/2008) and a deposit as defined in section 2 of the Finance Companies Act (Chapter 89), as the case may be;
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“depositor” means a person —
whose account has been or is to be credited in respect of monies constituting a deposit or part of such deposit; or
to whom a member institution is liable in respect of an instrument issued for monies constituting a deposit or part of such deposit;
“deposit protection” means the protection provided to the depositors of a member institution in case of its failure to pay its deposits;
“director” means a director of the Board;
“financial institution” means a bank licensed under section 4 or 23 of the Banking Order, 2006 (S 45/2006), an Islamic bank licensed under section 4 or 23 of the Islamic Banking Order, 2008 (S 96/2008) and a finance company licensed under section 3 of the Finance Companies
Act (Chapter 89);
“Hukum Syara’ ” means the Laws of Islam according to the Syafeite,
Hanafi, Maliki or Hanbali Sect of the Ahli Sunnah Waljamaah;
“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
“Minister” means the Minister of Finance and Economy;
“protected deposits” means the deposits protected pursuant to section 45.
Part
Chapter
Establishment of Corporation
There is hereby established the “Brunei Darussalam Deposit
Protection Corporation”.
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B.L.R.O. 7/2023 11
The Corporation shall be a body corporate with perpetual succession and a common seal with power, subject to this Act, to acquire and dispose of property and may sue and be sued in its corporate name.
All deeds, documents and other instruments requiring the seal of the Corporation shall be sealed with the common seal of the Corporation by the authority of the Corporation in the presence of the Chief Executive
Officer or a member of the Corporation and of some other person duly authorised by the Corporation to act in that behalf, and shall be signed by the
Chief Executive Officer or member of the Corporation, as the case may be, and by that duly authorised other person, and such signing shall be sufficient evidence that the common seal of the Corporation has been duly and properly affixed and that the seal is the lawful seal of the Corporation.
The Corporation may by resolution or otherwise appoint an officer of the Corporation or any other agent either generally or in a particular case to execute or sign on behalf of the Corporation any agreement or other instrument not under seal in relation to any matter coming within the powers of the Corporation.
Objects of Corporation
The objects of the Corporation shall be —
to administer a deposit protection scheme for the member institutions under this Act;
to provide protection against the loss of part or all of the deposits of a member institution;
Powers of Corporation
The Corporation shall have all such powers as may be necessary for or in connection with, or reasonably incidental to, the furtherance of its objects, the performance of its functions or the discharge of its duties under this Act or under any other written law.
Deposit Protection 12
Without prejudice to the generality of subsection (1), for the purpose of this Act, the Corporation may do all such things necessary or incidental to the objects of the Corporation.
The Corporation may, either generally or in any particular case, appoint any person who is not a director, officer or employee of the
Corporation to render such assistance as it may specify in the exercise of its powers, the performance of its functions or the discharge of its duties under this Act or under any other written law or to exercise, perform or discharge such power, functions or duties as may be specified by the Corporation and subject to the supervision of the Board on behalf of and in the name of the
Corporation.
Office of Corporation
The Corporation may, in or outside Brunei Darussalam, establish any office as it considers necessary or expedient for the performance of its functions.
Chapter
Duties and composition
There shall be a Board of Directors of the Corporation who shall be responsible for the conduct of the business and affairs of the Corporation and shall exercise all powers and do all acts which may be exercised or done by the Corporation.
The Board shall consist of —
four other directors appointed by His Majesty the Sultan and Yang Di-Pertuan, of whom at least two shall have relevant banking and finance or private sector experience.
Terms of office of directors
The Chairman and other directors shall hold office for a term not exceeding 3 years and shall be eligible for re-appointment.
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Disqualification and termination of directors
No person shall be appointed as or shall remain a director who is an officer of a member institution.
His Majesty the Sultan and Yang Di-Pertuan may terminate or suspend the appointment of any director if —
he becomes of unsound mind or otherwise becomes incapable of carrying out his duties;
he has been charged for a criminal offence under any written law punishable with imprisonment, whether by itself, or in lieu of, or in addition to, a fine, in any court in or outside
Brunei Darussalam;
he is absent, except on leave granted by the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, in the case of the chairman or by the chairman, in the case of all other directors, from at least two meetings of the Board in any period of 12 months.
Notwithstanding subsection (2), a director may at any time resign his office by giving a written notice of not less than 30 days to the
Minister.
Actions and proceedings of Board not affected by vacancy etc.
The Board may act notwithstanding any vacancy and its proceedings shall not be invalidated by —
any defect afterwards discovered in the appointment or qualification of any director or the constitution of the Board;
Deposit Protection 14
Remuneration and allowances for directors
Every director attending any meeting of the Board shall be paid by the Corporation such fees, other remuneration and allowances as may be determined by the Minister, on the recommendation of the Board.
Duties of directors
A director shall act honestly and in the best interest of the
Corporation and use reasonable diligence in the discharge of the duties of his office.
A director or any person who has been a director shall not —
make improper use of any information acquired by virtue of his position as a director to gain, directly, or indirectly, an advantage for himself or for any other person; or
do, say or publish anything which may be detrimental to the interests of the Corporation.
Meetings
The Chairman shall preside at all meetings of the Board and in his absence, the directors present shall elect a chairman among the directors and the person so elected shall preside and have all the powers of the chairman.
The decisions of the Board shall be adopted by a simple majority of the directors present and voting.
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A resolution in writing, signed by all the directors, shall be as valid and effectual as if it had been passed at a meeting of the directors duly convened and held.
Nothing in this section shall prevent the Chairman from authorising a director to use live video, television links or other appropriate communication or multimedia facilities to participate in any meeting of the
Board.
Board may make by-laws
The Board may make such by-laws as are necessary or expedient in relation to the administration, management, control, business, assets and affairs of the Corporation including —
the functions, powers, duties, remuneration, benefits and terms and conditions of services, code of conduct or surcharge on officers, employees and agents of the Corporation;
the conflicts of interest in respect of serving directors, officers and employees of the Corporation and those directors, officers and employees who have left the service of the Corporation;
the appointment, terms of reference and activities of committees established by the Corporation;
such other matters as may be required to be provided for under the by-laws in this Act.
By-laws made under this section shall be binding on all persons to whom the by-laws apply.
Any person who does not comply with the by-laws made under subsection (1)(b) is guilty of an offence under this Act.
Deposit Protection 16
Chapter
Appointment, functions and accountability
The Chief Executive Officer shall be appointed by His Majesty the Sultan and Yang Di-Pertuan.
His Majesty the Sultan and Yang Di-Pertuan may, as
His Majesty the Sultan and Yang Di-Pertuan deems necessary appoint the
Chief Executive Officer to be a member of the Board.
The Chief Executive Officer shall be responsible for the day-to-day administration of the business and affairs of the Corporation.
The Chief Executive Officer shall be answerable and accountable to the Board for the exercise of his powers and the performance of his duties.
In the absence or incapacity of the Chief Executive Officer, the
Board may authorise a director of the Corporation to perform the duties, functions and responsibilities of the Chief Executive Officer.
Terms and conditions of service
The Chief Executive Officer shall —
be deemed to be an officer or employee of the Corporation and be subject to the terms and conditions of service as may be determined by the Board; and
enjoy such compensation and such other amenities as approved by the Minister, upon recommendation of the Board.
Chapter
Appointments, terms and conditions of service
The Corporation may appoint such officers and employees as are necessary for carrying on the business and affairs of the Corporation and such officers and employees shall hold office for such periods, receive such
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B.L.R.O. 7/2023 17
salaries, allowances and benefits, and shall be subject to such terms and conditions of service as may be determined by the Board.
An officer or employee of the Corporation shall act in good faith and comply with such requirements, standards, duties and code of conduct as set out by the Board.
The Corporation may, with the approval of the Board, establish and maintain a pension or provident fund for its officers and employees out of the monies of the Corporation.
Preservation of secrecy
Except for the purpose of the performance of his duties or when lawfully required to do so by any court or under any written law, no person who is or has been a director, officer, employee, consultant or agent of the
Corporation shall disclose to any person any information relating to the affairs of the Corporation or any person which he has acquired in the performance of his duties or the exercise of his functions.
Any person who contravenes subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding $50,000, imprisonment for a term not exceeding 3 years or both.
Restriction on enquiring specifically into affairs of particular customer
Without prejudice to the powers of inspection, examination, investigation, inquiry or resolution conferred on the Corporation, nothing in this Act shall —
authorise the Corporation, to inquire specifically into the affairs of any customer of a member institution.
Deposit Protection 18
Part
Source of funds
For the purposes of this Act, the Corporation shall maintain and administer a fund which shall comprise —
all other monies and assets which may in any manner become lawfully payable to, and received by or vested in the
Corporation relating to any matter incidental to its powers, duties and functions,
The Corporation is empowered —
to credit all direct operating income to, or charge all expenses, costs and losses against the fund; or
where such income, expenses, costs or losses cannot be specifically attributed to the fund, such credit or charge shall be proportional to the amount of premiums collected in the assessment year prior to the year in which such credit or charge is made.
In relation to the first assessment year of the Corporation, such credit or charge under subsection (2)(b) shall be determined by the
Corporation.
Borrowing power of Corporation
The Corporation, may borrow from the Consolidated Fund or raise funds in such manner and upon such terms and conditions as may be approved by the Minister, with the approval of His Majesty the Sultan and
Yang Di-Pertuan.
Any borrowing from the Consolidated Fund or raising of funds as provided in subsection (1) shall be in accordance with Hukum Syara’.
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B.L.R.O. 7/2023 19
Permitted investments
The Corporation may invest in —
any stocks, funds, shares or securities in companies incorporated or operating in Brunei Darussalam; and
any investment in any entity or instrument of issuers based in any other country or territory alternating or originating in any other currency, including —
any obligation of a corporation, commercial bank or a bank-holding company, asset-backed security and mortgage-backed security issued or unconditionally guaranteed by a corporate entity or trust; any repurchase and reverse repurchase agreement with a major commercial bank or a primary dealer;
futures, forwards, options contracts or swaps on any investment which are traded on an exchange;
any exchange-traded funds, instruments that provide exposure to market indices for any investment, a private equity fund and a hedge fund;
any Islamic financial instrument;
any other specific investment not included in this subsection as may be approved by the Corporation.
Financial year
The financial year of the Corporation shall begin on the 1st day of January and end on the 31st day of December of each year except that the first financial year of the Corporation shall begin on the date of commencement of this Act and end on 31st December of the following year.
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Audit
The accounts of the Corporation shall be audited annually —
by any person who has been authorised to perform the duties required by the Companies Act (Chapter 39) to be performed by an auditor who shall be appointed annually by His Majesty the
Sultan and Yang Di-Pertuan.
Where the accounts have been audited under subsection (1)(b), they may be verified by the Auditor General before a copy is submitted to the
Minister.
Financial statement and annual report
The Corporation shall within 3 months from the close of its financial year transmit a copy of the annual accounts and annual report on the operations of the Corporation throughout the year to the Minister, who shall subsequently submit to His Majesty the Sultan and Yang Di-Pertuan.
Part
Definition of deposit
In this Part —
“deposit” means the unpaid balance of the aggregate of deposits as defined in section 2 received or held by a member institution from or on behalf of a person in the usual course of the business of deposit-taking of the member institution and shall include —
non-member institution Brunei dollar and foreign currency deposits;
[S 67/2012]
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B.L.R.O. 7/2023 21
a bank draft, certified cheque or other similar instrument or payment instruction, drawn or made against a deposit account for which the member institution is primarily liable;
a cheque entered into a payment system or a clearing house notwithstanding any delay or failure by the member institution in crediting the account; or
any other liability or financial instrument as may be specified by the Corporation, but excludes —
a deposit that is not payable in Brunei Darussalam;
repurchase agreements; and
any other liability or financial instrument as may be specified by the Corporation;
“trust accounts” includes monies held on account for the purpose of trust.
Membership
Every financial institution is deemed to be a member institution from the commencement of this Act.
Any financial institution licensed after the commencement of this Act is deemed to be a member institution from the date it was granted a licence under section 4 or 23 of the Banking Order, 2006 (S 45/2006), section 4 or 23 of the Islamic Banking Order, 2008 (S 96/2008) or section 3
of the Finance Companies Act (Chapter 89), as the case may be.
Exemption from membership
A financial institution may apply in writing to the Minister to be exempted from the requirement under section 27(1) to be a member institution.
Deposit Protection 22
The Minister may, with the approval of His Majesty the Sultan and Yang Di-Pertuan, by notification published in the Gazette, exempt a financial institution referred to in subsection (1) from the requirement under section 27(1).
The Minister may require an applicant to furnish him with such information or documents as the Minister considers necessary in relation to the application.
Without prejudice to the generality of subsection (2), the
Minister shall, in determining whether to grant an exemption under subsection (2), have regard to —
the scope of deposit-taking business conducted by the financial institution in Brunei Darussalam; and
in the case of a financial institution which is incorporated in a jurisdiction other than Brunei Darussalam —
whether the deposits accepted by its branches and offices located within Brunei Darussalam are protected by a deposit protection scheme, or any other scheme of a similar nature, established and maintained in the jurisdiction in which the financial institution is incorporated (referred to in this section as the foreign deposit protection scheme); and
whether the scope and level of protection available to those deposits under the foreign deposit protection scheme, or any other scheme of a similar nature are not less than the scope and level of protection that would be available to the deposits under the scheme if those deposits were protected by the scheme.
The Minister may, by notice in writing, impose on an exempt member institution such conditions or restrictions relating to the exemption as the Minister may think fit.
The Minister may at any time —
by notice in writing to an exempt member institution, add to, vary or revoke any existing condition or restriction imposed by the Minister under subsection (5); or
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B.L.R.O. 7/2023 23
by notice in writing impose such conditions or restrictions as the Minister may think fit on a class of exempt member institution.
An exempt member institution shall comply with all conditions or restrictions imposed on it under subsection (5) or (6), as the case may be.
Any exempt member institution which contravenes subsection (7) is guilty of an offence and liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine of $10,000 for every day or part thereof during which the offence continues after conviction.
Withdrawal of exemption
The Minister may withdraw an exemption granted to an exempt member institution under section 28(2) if —
the exempt member institution fails to comply with a condition or restriction imposed in respect of the exemption; or
Before withdrawing any exemption granted to an exempt member institution under section 28(2), the Minister shall —
in the notice referred to in paragraph (a), call upon the exempt member institution to show cause within such time as may be specified in the notice why the exemption should not be withdrawn.
If the exempt member institution referred to in subsection (2) —
fails to show cause within the time specified in the notice or within such extended period of time as the Minister may allow; or
fails to show sufficient cause, the Minister shall give notice in writing to the exempt member institution of the date on which the withdrawal of the exemption is to take effect.
Deposit Protection 24
Where a withdrawal of exemption becomes effective, the
Minister shall publish a notice of the withdrawal in the Gazette.
Terms and conditions of membership
The terms and conditions of membership of a member institution shall be prescribed by regulations made under section 86.
A member institution shall comply with the terms and conditions as may be prescribed pursuant to subsection (1).
Any member institution which contravenes subsection (2) is guilty of an offence and liable on conviction to a fine not exceeding
$1,000,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
Cancellation of membership
The Corporation shall cancel the membership of a member institution by informing the member institution in writing if the licence of the member institution has been surrendered or revoked under the Banking Order, 2006
(S 45/2006), the Islamic Banking Order, 2008 (S 96/2008) or the Finance
Companies Act (Chapter 89), as the case may be.
Termination of membership
The Board may, at any time after the Corporation has received a notification from the Authority that a member institution has ceased, or is likely to cease, to be viable convene a meeting to determine whether the membership of the member institution should be terminated.
Where the Board proposes to terminate the membership of the member institution, the Corporation shall give written notice of its proposal to the member institution and shall give the member institution an opportunity to make representations within 5 days from the date of such notice.
Where representations are received by the Corporation from the member institution, the Board shall consider the representations and shall make a determination to confirm or not to confirm the proposal to terminate the membership of the member institution.
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B.L.R.O. 7/2023 25
Where the Board has confirmed its proposal to terminate the membership of the member institution, it shall inform the Minister of its determination in writing.
Where the Minister disagrees with the determination of the
Board, the Minister shall within 15 days from the date of receipt of the notice inform the Board in writing of his decision relating to such determination, and such decision shall become binding on the Board.
Where the Minister has not informed the Board of his decision within the period stipulated under subsection (5), the Minister is deemed to have approved the proposal of the Board to terminate the membership and the Corporation shall —
issue a written notice of termination of membership to the member institution and its membership shall terminate on the expiration of the period specified in the notice.
Where, at any time after a notice of termination has been given to a member institution under subsection (6), the Corporation is satisfied that as the result of any action by the member institution, or any other person, the risks to depositors or to the Corporation has been averted or substantially reduced, the Corporation may revoke its notice of termination and inform the
Minister accordingly.
Effects of cancellation or termination
Where the membership of a member institution is cancelled under section 31 or terminated under section 32 —
the financial institution shall not assume or use the words
“deposit protection” or any derivative of these words in any language or any other word in any language capable of being construed that the financial institution is a member institution;
the member institution shall inform its depositors in writing that the outstanding deposits with the member institution shall continue to be protected deposits for a period of 2 years from the
Deposit Protection 26
effective date of cancellation or termination, unless the deposit is fully withdrawn or has reached its maturity, whichever is earlier;
in the case of a cancellation due to a member institution surrendering its licence, such institution shall be required to notify its depositors of the cancellation of its membership in a manner to be prescribed by the Corporation;
the member institution shall not be considered to be a member institution by reason only that its deposits continue to be protected deposits under paragraph (b), section 46 or 47; and
the member institution shall not be relieved from its obligations or liabilities to the Corporation that have accrued before the cancellation or termination of its membership.
For the purposes of subsection (1)(b), the cancellation under section 31 or termination under section 32 of the membership shall not affect the obligation, right and the ability of the Corporation to make a payment under Chapter 4 of this Part.
For the purpose of subsection (1)(c), the member institution shall indemnify the Corporation in the event of any payment made by the
Corporation to depositors, in respect of such of its deposits as have been transferred or acquired by another member institution or such other person as approved by the Minister.
The Corporation may, in such manner and through such media as it deems expedient, give public notice of the cancellation or termination of any membership of a member institution if in the opinion of the Corporation, the public interest requires that such notice be given.
Where a member institution is obligated to repay to a person any monies that are received or held by the member institution, such monies are deemed not to constitute part of a deposit for the purposes of deposit protection with the Corporation if the date on which the person acquires his interest in the monies is a date subsequent to the date on which the membership of the member institution is cancelled under section 31 or terminated under section 32 by the Corporation.
Any member institution which contravenes subsection (1)(a),
or (c) is guilty of an offence and liable on conviction to a fine not
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B.L.R.O. 7/2023 27
exceeding $1,000,000, and in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
Maintenance of assets in Brunei Darussalam
Regulations may be made under section 86 to require a member institution, or a class of member institutions to maintain, in relation to its protected deposits base, such minimum amount of assets in
Brunei Darussalam as may be prescribed for meeting its liabilities in respect of protected deposits placed with the member institution.
Regulations may be made under section 86 which are necessary or expedient for carrying out the purposes of this section, including regulations for or with respect to —
the circumstances under which, and the manner in which, the Corporation may impose an asset maintenance requirement;
the types of assets that are to be treated as assets maintained in Brunei Darussalam and the minimum amount of assets for the purpose of an asset maintenance requirement; and
If the Corporation is satisfied that a member institution has failed to comply with any asset maintenance requirement under subsection (1), the Corporation may by notice in writing to the member institution impose a financial penalty.
Any member institution which fails to comply with any asset maintenance requirement of the Corporation under subsection (1) shall be liable to pay, upon being called to do so by the Corporation, for any day or part thereof of such failure, a financial penalty which shall be determined in accordance with the following formula —
A x r x 1 365
where A is the deficiency in the amount of assets necessary for the member institution to comply with the asset maintenance
Deposit Protection 28
requirement of the Corporation under section 34(4) for that day; and r is a percentage that is 10 per cent plus the 3-month
Singapore Dollar Singapore Interbank Offer Rate
(expressed as a percentage) for that day, as determined by the Association of Banks in Singapore.
[S 67/2012]
Before imposing a financial penalty on a member institution, the
Corporation shall —
give the member institution notice in writing of its intention to do so, including the basis for its decision to impose the financial penalty; and
in the notice referred to in paragraph (a), call upon the member institution to show cause within such time as may be specified in the notice why the financial penalty should not be imposed.
If the member institution referred to in subsection (5) —
fails to show cause within the time specified in the notice or within such extended period of time as the Corporation may allow; or
fails to show sufficient cause, the Corporation shall give notice in writing to the member institution of the date by which the payment of the financial penalty is to be made.
Where a member institution is given a notice under subsection (6), the member institution shall pay the financial penalty to the
Corporation by the date of payment specified in the notice.
Any financial penalty payable under this Act shall be recoverable as a debt due to the Corporation by the member institution.
Notwithstanding any provision in the Limitation Act
(Chapter 14), an action to recover any financial penalty recoverable by virtue of this section shall not be brought after the expiration of 3 years from the date on which the cause of action accrued.
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B.L.R.O. 7/2023 29
Any financial penalty paid to or recovered by the Corporation shall be paid into the Consolidated Fund.
Where the Corporation has commenced any proceedings in a court to recover a financial penalty from a member institution, the
Corporation shall be entitled to claim costs on a full indemnity basis from that member institution.
Any member institution which is aggrieved by a decision of the
Corporation to impose a financial penalty under subsection (3) may, within 30 days of the decision of the Corporation, appeal in writing to the
Minister whose decision is final.
First premium
The Corporation shall assess and collect the premium payable by a member institution for the assessment year in which it becomes a member institution (hereinafter referred to as the first premium) an amount of $50,000 or such other rate to be prescribed by the Corporation, with the prior approval of the Minister, whichever is the higher.
No first premium shall be required to be paid in relation to any deposit transferred from a member institution to another member institution within a business group upon which premium has been paid for the assessment year in which the member institution becomes a member.
A member institution shall pay the first premium to the
Corporation within 30 days from the date it becomes a member.
Annual premium
Every member institution shall, for each assessment year following the assessment year in which it becomes a member institution, pay an annual premium for all protected deposits placed with it.
The maximum annual premium rates under this Act shall not exceed 0.5 per cent of the total protected deposits.
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The quantum of such annual premium paid under subsection (2)
shall not be lower than the first premium.
A member institution shall pay the annual premium within 30 days upon the receipt of the notice of payment.
Calculation of annual premium
The annual premium shall be calculated as follows —
the premium rates to be applied to a member institution shall be based on the total protected deposits held by the member institution as at 31st December of the preceding assessment year; and
the applicable premium rates for each member institution shall be based on such criteria as may be prescribed.
The premium payable by a member institution shall be based on returns to be certified by the chief executive of the member institution to be submitted in such form and within such period as the Corporation may require.
For the purpose of this section, “chief executive” in relation to a member institution, means an individual, by whatever name called, who, or jointly with one or more persons, is responsible, subject to the authority of the directors, for the conduct of the business and the administration of that member institution.
Notice of payment of premium
Where the Corporation has computed the amount of premium payable by a member institution or any assessment year or part thereof under section 36 or 42, the Corporation shall give the member institution notice in writing of the amount of annual premium or the additional premium that the member institution is required to pay under this Act for that assessment year or part thereof.
No set-off on premium payment
A member institution shall not reduce or otherwise adjust any premium payment payable by it to the Corporation on the basis of any claim by the member institution against the Corporation.
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B.L.R.O. 7/2023 31
Power to refund or remit premium
The Corporation may, with the approval of the Minister, refund or remit in whole or in part any premium paid or payable by any member institution under this Act.
Refund of premium paid in excess
Where it appears to the Corporation that a member institution has paid premium in excess of the amount payable under this Act, the
Corporation shall refund to the member institution the amount of premium paid in excess.
Additional premium where funds insufficient to meet payment
Where the funds are insufficient to make any payment due to the depositors under this Act, the Authority may, with the concurrence of the
Corporation, determine —
that member institution shall be required to pay additional premium for any assessment year or part thereof; and
Where a determination is made under subsection (1) —
publish a notice in the Gazette of the requirement to pay additional premium and the premium rate or rates for the purposes of computing the additional premium referred to in subsection (1); and
compute the additional premium payable by the member institutions for that assessment year or part thereof and notify the Corporation accordingly; and
the Corporation shall, upon receipt of the notification referred to in paragraph (a)(ii) give notice in writing to every member institution of the additional premium that the member institution is required to pay for that assessment year or part thereof and the date by which the additional premium shall be paid.
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Any member institution shall not, without the prior approval of the Minister, be required to pay additional premium for any assessment year exceeding 0.5 per cent of the total protected deposit of that member institution.
For the purposes of subsection (3), the total protected deposit of a member institution shall be determined on the date prescribed by the
Authority for computing the amounts of premium payable by member institutions.
Payment of premium and late payment fees
Where a member institution is given notice in writing to pay a premium under this Act for any assessment year or part thereof, the member institution shall pay to the Corporation —
in the case of the premium, on or before the date of payment specified in the regulations;
in the case of the additional premium, on or before the date of payment specified in the notice, the amount of premium or additional premium, as the case may be, that the member institution is required to pay for that assessment year or part thereof.
Subject to subsection (3), if a member institution fails to pay the premium or additional premium or any part thereof in contravention of subsection (1) —
the Corporation may, by notice in writing, impose on the member institution such late payment fee as the Corporation may by regulations determine; and
the member institution shall pay to the Corporation the late payment fee together with the unpaid premium or additional premium, as the case may be, on or before the date of payment specified in the notice.
The late payment fee referred to in subsection (2) shall not exceed the amount of premium or additional premium, as the case may be, owing by the member institution.
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B.L.R.O. 7/2023 33
The amount of premium or additional premium owing by the member institution or the late payment fee shall be paid in such manner as may be specified in the regulations.
Without prejudice to any other remedy, any premium, additional premium or late payment fee payable under this Act shall be recoverable as a debt due to the Corporation by the member institution.
Where the Corporation has commenced any legal proceedings in a court to recover a premium, additional premium or a late payment fee from a member institution, the Corporation shall be entitled to claim costs on a full indemnity basis from that member institution.
Premium regulations
Regulations may be made under section 86 in respect of the determination of the first premium and the annual premiums including —
the establishment of a system of classifying member institutions in different categories;
the criteria or factors to be taken into account, the procedures to be followed by the Corporation in determining the category in which a member institution is classified; and
Scope of coverage
The Corporation shall administer a deposit protection scheme for all protected deposits placed with a member institution.
For the purpose of subsection (1), where a depositor owns more than one deposit with a member institution, the aggregate of those deposits shall be protected by the deposit protection scheme to a maximum amount of $50,000 in respect of the principal and return on the deposits.
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Subject to regulations made under section 86 —
where a member institution is obligated to repay monies to a depositor who is acting as a trustee for another or as joint owner with another, and the trusteeship or joint ownership is disclosed on the records of the member institution —
the deposit of the depositor as trustee or as a joint owner is deemed to be a deposit separate from any deposit of that depositor acting on his own behalf or acting in another trust or joint capacity with the member institution;
where a trustee is acting for two or more beneficiaries, the deposit held in trust by him for each beneficiary, shall each be deemed to be a separate deposit; and
the deposit held in trust by a trustee for a beneficiary in a member institution is deemed to be a deposit separate from a deposit of that beneficiary with the member institution on his own behalf and shall also be deemed to be separate from any deposit held in trust by another trustee for the beneficiary in the member institution;
for the avoidance of doubt, where a depositor is a joint owner of a deposit in a member institution with another person, all the deposits of such depositor with such person shall be aggregated and be deemed to be one protected deposit to a maximum amount of $50,000.
For the purposes of subsection (3) —
for a trust account, that the account is held by the trustee for the named beneficiaries; or
for a joint account, the names of the individual joint owners;
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maintain detailed records as may be prescribed on the trust accounts;
submit to the member institution such records as may be required by the Corporation under this Act; and
file a statutory declaration certifying the accuracy of the records submitted at sub-paragraph (ii) when required by the Corporation;
the trustee in maintaining and submitting any record on the trust accounts required under paragraph (b) shall ensure that the information given shall be true, correct and complete and shall not contain false or deceptive information and the member institution shall rely on such records for the purposes of paragraph (a) and the trustee shall indemnify the member institution in the event of any legal proceedings relating to such records.
Notwithstanding anything in subsection (3)(a), the Corporation shall not separately protect the deposits held in trust for any beneficiary if, in the opinion of the Corporation, the trust exists primarily for the purpose of obtaining or increasing deposit protection.
For the purpose of subsection 3(a)(iii), any deposit held on trust by the same trustee for the same beneficiary shall be aggregated and be deemed to be one deposit.
Subject to regulations made under section 86 and the disclosure made by the trustee under subsection (4)(c), where a depositor —
carries on any professional practice, that has been disclosed as such on the records of the member institution, a deposit of such business or professional practice is deemed to be separate from the deposits of the depositor on his own behalf or as trustee or joint owner.
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Deposits by amalgamating institutions etc.
Where a person has deposits with two or more member institutions that amalgamate and continue in operation as one member institution (in this Chapter referred to as the amalgamated institution), a deposit of that person with an amalgamating institution on the day on which the amalgamated institution is formed, less any withdrawal from the deposit, is deemed to be and continue to be separately protected by the deposit protection scheme for a period of 2 years or upon maturity or until withdrawal, whichever is earlier, after the amalgamating institution becomes part of the amalgamated institution.
A deposit made by a person referred to in subsection (1) with an amalgamated institution after the day on which the amalgamated institution is formed shall be protected by the deposit protection scheme only to the extent that the aggregate of that person’s deposits with the amalgamated institution is less than $50,000.
Where a member institution acquires the deposits of another member institution or amalgamating institution, those deposits, less any withdrawal from the deposits, shall continue to remain in the deposit protection scheme separately from any protected deposit up to the coverage limit of $50,000 for a period of 2 years, or upon maturity or until withdrawal, whichever is earlier, after the date of acquisition.
A member institution shall maintain such records as necessary for the purposes of subsections (1) and (2).
Deposits of member institution acquired by non-member institution
Where deposits with a member institution are acquired by a person who is not a member institution, such deposits are deemed to be and continue to be protected by the deposit up to the limit of $50,000 for the remainder of the assessment year, or upon maturity or until withdrawal, whichever is earlier, after the acquisition of the deposits by the acquiring non-member institution.
For the purposes of subsection (1), and in accordance with such regulations as may be prescribed —
in relation to the depositors, the member institution shall —
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obtain written consent of at least 75 per cent of all the depositors or their personal representatives to transfer deposits;
obtain written acknowledgement of each depositor that the depositor is aware that deposits transferred to the non-member institution will remain protected deposits for the remainder of the assessment year, or upon maturity or until withdrawal, whichever is earlier, the deposits placed with the amalgamated non-member institution shall no longer be protected deposits in whole or in part by the Corporation;
upon a request in writing, pay to a depositor, the principal amount of the deposit and return thereon, calculated to the date of withdrawal and no charge or penalty shall be imposed in respect of the payment;
and
provide a statement that the acquired member institution’s obligation to repay deposits will be assumed by the non-member institution; and
in relation to the acquiring non-member institution, enter into an agreement in writing to assume the acquired member institution’s liability in relation to the deposits on the same terms and conditions.
For the purpose of subsection (2)(b), the member institution shall indemnify the Corporation in the event of any payment made by the
Corporation to depositors, in respect of such of its deposits as have been transferred or acquired by the acquiring non-member institution.
Deemed deposits
Where a member institution assumes the deposits of another member institution under section 45, the deposits are for the purposes of sections 35
and 36, deemed to be placed with the member institution that assumes them as of the day on which they are assumed.
Not part of deposit
Where monies are or were received by a member institution for which the institution has issued or is obligated to issue an instrument
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evidencing a deposit, other than a bank draft, certified cheque, traveller’s cheque, prepaid letter of credit or money order —
the monies do not constitute a deposit unless the instrument and records of the institution specify the person entitled, at the date of issue of the instrument, to the repayment of the monies evidenced thereby;
the person referred to in paragraph (a) is deemed to be the depositor in respect of the monies unless particulars of a transfer of the instrument are entered on the records of the institution, in which case the most recent transferee shown on the records is deemed to be the depositor; and
the entry of a transfer on the records of a member institution is ineffective for the purpose of paragraph (b), if the entry is made subsequent to the cancellation or termination of the membership of the member institution.
Payments
All payments made by the Corporation in respect of deposits and all associated costs thereon shall be made from the funds.
All payments made by the Corporation shall be based on the deposit records of the member institution as in the opinion of the Corporation appears to be entitled to it.
Obligatory payment
The
Corporation shall, in the manner described in subsection (2), make payment in respect of any deposit protected with the
Corporation where a winding up order has been made in respect of —
any person to whom that deposit has been transferred —
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under section 33(1)(c) from a member institution which has surrendered its licence; or
under section 46(1) from a member institution which has amalgamated with such person.
Where the Corporation is obliged to make payment under subsection (1) in respect of any deposit, the Corporation shall as soon as practicable and in any case not later than 3 months from the date of the winding up order make payment to such person based on the record of a member institution as in the opinion of the Corporation appears to be entitled to it in such manner deemed appropriate by the Corporation.
Discretionary payment
The Corporation may, with the prior written approval of the Minister, make payment in respect of any protected deposit where —
the member institution that holds the deposit or any person to whom that deposit has been transferred under section 33(1)(c)
from a member institution which has surrendered its licence or under section 46(1) from a member institution amalgamating with such person, is unable to make any payment in respect of the deposit, by reason of —
an order of a court;
any action taken by the receiver, manager or receiver and manager during the period when a member institution is in receivership;
a petition for winding up has been presented to the court against the member institution that holds the deposit or any person to whom that deposit has been transferred under section 33(1)(c) from a member institution which has surrendered its licence or under section 46(1) from a member institution amalgamating with such person; and
the membership of the member institution that holds the deposit is cancelled or terminated.
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Advance payment
The Corporation may in respect of sections 51 and 52 make advance payment to the depositors of the member institution.
Date of computing liability
The date for computing liability for obligatory payment by the
Corporation shall be the date of the commencement of winding up of the member institution.
The date for computing liability for the discretionary payment in respect of an event under section 52 shall be the date when the event first occurs.
Calculation of protected foreign currency deposits for obligatory payment
For the purpose of making obligatory payment by the Corporation, all protected foreign currency deposits will be paid in Brunei dollars based on the published value of the currency exchange rate as of the date of winding up of the member institution.
How return on deposit to be calculated for obligatory payment
For the purpose of calculating the obligatory payment by the
Corporation in respect of any protected deposit protected by the Corporation where a winding up order has been made in respect of a member institution that holds the deposit, the principal, including return accrued, in relation to the deposit shall be included only up to the date of the winding up of the member institution.
Restrictions on entitlement to payment
Where the Corporation has paid a protected depositor the full amount of payment payable to the protected depositor in respect of his protected deposits in accordance with this Act, no other person is entitled, in respect of the protected deposits, to payment under this Act.
Corporation may pay return on obligatory payment
Where the Corporation makes an obligatory payment under section 51, the Corporation may at its sole discretion pay, in addition to the amount the Corporation is obliged to pay, return on that amount at a rate
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determined by the Corporation for the period commencing on the date of the winding up in respect of a member institution that holds the deposit and ending on the date of the making of the payment in respect of the deposit, but the aggregate of the payments made under this section and section 51 in relation to the deposit shall in no case exceed $50,000.
How return on deposit to be calculated for discretionary payment
In calculating the payment by the Corporation in respect of any protected member institution where the Corporation makes a discretionary payment —
subject to paragraph (b), the return accrued, in relation to the deposit shall be included only up to the date of the payment by the Corporation; or
if a proceeding for the winding up of a member institution that holds the deposit has been commenced before the date of the payment by the Corporation but a winding up order has not yet been made, the return accrued, in relation to the deposit shall be included only up to the date of the commencement of the winding up of the member institution.
Return on index-linked deposits
Any return referred to in section 56 or 59 in relation to a deposit held by a member institution shall be determined in accordance with regulations prescribed if a payment to be made by the member institution in respect of the deposit is to be determined, in whole or in part, by reference in any way to —
a reference rate determined by reference to any one or more of those prices or rates;
a reference rate determined by reference to any one or more non-financial events; or
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any other kind of variable index or reference point as may be specified by the Corporation.
Discharge of liability
Payment under this Chapter by the Corporation in respect of any protected deposit discharges the Corporation from all liabilities to the extent of the amount of the payment made in respect of that deposit, and in no case is the Corporation under any obligation to see to the proper application in any way of the payment so made.
Subrogation
On any payment under this Act to, or for the benefit of, any protected depositor in respect of his protected deposit, the Corporation shall be subrogated to the extent of such payment to all the rights and remedies of —
in the case where payment is made to a protected depositor who is a beneficiary of a trust, the trustee; or
in the case where payment is made to a protected depositor who is a client in a client account, the depositor who held the protected deposit in that client account, as the case may be, in respect of the protected deposit in priority over —
the rights and remedies of the protected depositor, the person who received the payment on behalf of the protected depositor, the trustee or the depositor of a client account, as the case may be, in relation to that protected deposit; and
the rights and remedies of any person who is subrogated, whether or not before the Corporation’s subrogation, to the rights and remedies of any of the persons referred to in paragraphs (a), (b), (c) and (d) in relation to that protected deposit,
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and may maintain an action in respect of those rights and remedies in the name of person referred to in paragraph (a), (b), (c) or (d), as the case may be, or in the name of the Corporation.
The persons referred to in subsection (1)(a), (b), (c) and (d), or any person who is subrogated, whether or not before the Corporation’s subrogation, to the rights and remedies of those persons, shall not be entitled to receive any amount from, or out of, the assets of the failed member institution until the Corporation has been reimbursed in full the amount of payment paid to those persons.
The Corporation shall be entitled —
in the case where the failed member institution is wound up, to be reimbursed out of the assets of the failed member institution for the expenses incurred in —
the payments to protected depositors; and
the lodging of a claim with the liquidator of the member institution for any payment that has been paid out to protected depositors; or
in any other case, to be reimbursed by the failed member institution or the provisional liquidator of the failed member institution, as the case may be, for the expenses incurred in —
the payments to protected depositors; and
where a claim has been lodged with the provisional liquidator of the failed member institution for any payment that has been paid out to protected depositors, the lodging of the claim.
Assignment
Where the Corporation deems it advisable, the Corporation may withhold payment in respect of any deposit with a member institution until it has received an assignment in writing of all the rights and interests of the depositor in relation to the deposit.
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Time limitation for claims
No action may be taken against the Corporation in respect of the obligation of the Corporation to make payment in relation to a deposit held by a member institution that is being wound up unless the action is commenced within 10 years after the date of the commencement of the winding up of the member institution.
Part
Holding out as member institution
No person shall hold itself out to be a member institution, or represent that it or any other person is protected under the Corporation unless such other person is a member institution.
Any person who contravenes subsection (1) is guilty of an offence and is liable on conviction to a fine not exceeding $1,000,000, imprisonment for a term not exceeding 3 years or both and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
False statements
Any person who prepares, signs, approves or concurs in any —
account, statement, return, report or other document required to be submitted to the Corporation under this Act that he knows or has reason to believe is false, or contains false or misleading information; or
return that does not present fairly information required to be submitted to the Corporation under this Act, is guilty of an offence and liable on conviction to a fine not exceeding $100,000, imprisonment for a term not exceeding 3 years or both.
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Failure to provide information etc.
Every member institution that fails or neglects —
within the time specified for so doing, to provide the
Corporation with any account, record, statement, return, report or other document respecting the business or affairs of a member institution that is required to be submitted to the Corporation under this Act; or
to respond, within the time specified in the notice, to a request for information or explanations respecting a member institution made by or on behalf of the Corporation under this Act, is guilty of an offence and liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $1,000 for every day or part thereof during which the offence continues after conviction.
General penalty for offences not otherwise provided for
Unless otherwise provided in this Act, any person, other than the
Corporation, who commits an offence against this Act, contravenes or does not comply with this Act, any specification or requirement made, or any order in writing, direction, instruction, or notice given, or any limit, term, condition or restriction imposed, or any other thing howsoever done, in the exercise of any power conferred under, pursuant to or by virtue of, this Act is guilty of an offence and liable on conviction to a fine not exceeding $100,000.
Offences by body corporate etc.
Where an offence has been committed by any body corporate or unincorporate under this Act, any person who at the time of the commission of the offence was a director, officer or controller of the body corporate or unincorporate or was purporting to act in any such capacity, or was in any manner or to any extent responsible for the carrying on of any business or for the management of any assets, liabilities or affairs of such body corporate or unincorporate, or was assisting in such management, commits that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.
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Where any person hereinafter in this subsection referred to as the “principal” is liable under this Act to any punishment or penalty for any act, omission, neglect or default, he shall be liable to the same punishment or penalty for every such act, omission, neglect or default of any clerk, servant or agent of his, or of the clerk or servant of such agent.
Subsection (2) is applicable where such act, omission, neglect or default was committed by the clerk or servant of the principal in the course of his employment, or by the agent when acting on behalf of the principal, or by the clerk or servant of such agent in the course of his employment by such agent or otherwise on behalf of the agent.
Compounding of offences
The Corporation may, without instituting proceedings against any person for any offence under this Act, or any regulations made thereunder, which is punishable only by a fine or a penalty, demand and receive the amount of the fine or penalty or such reduced amount as it thinks fit from that person.
If that person —
pays that amount to the Corporation within 14 days after the demand, no proceedings shall be taken against him in relation to the offence; or
does not so pay the amount so demanded, the Corporation may cause proceedings to be instituted in relation to the offence.
Court may order compliance
Where a person is convicted of an offence under this Act, the court may, in addition to any fine or term of imprisonment that may be imposed, order such person to rectify the contravention of this Act in respect of which he was convicted.
Additional monetary punishment
Where a person is convicted of an offence under this Act, the court may, where it is satisfied that as a result of the commission of the offence the convicted person acquired a monetary benefit or that monetary benefit accrued to the benefit of such person, order the convicted person to pay, notwithstanding the maximum amount of any fine that may otherwise be
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imposed under this Act, an additional fine in an amount equal to the court’s estimation of the amount of the monetary benefit.
Compliance or restraining order
If a person does not comply with any provision of this Act, the
Corporation may apply to the High Court for an order directing such person to comply or restrain such person from acting in breach of the provision and, on the application, the Court may make such order as it thinks fit.
Recovery of fines
All fines payable under this Act are recoverable and enforceable, with costs, at the suit of the Corporation, instituted by the Corporation and, when recovered, to be paid into and form part of the Consolidated Fund.
Part
Submission of information to Corporation
Unless expressly provided for in this Act to the contrary, if in the exercise of any of its powers, the performance of any of its functions, or the discharge of any of its duties under this Act, the Corporation requires any information from any member institution or from any related corporation of any of the member institution, on any matter relating to the business or affairs of such member institution or related corporation, such member institution or related corporation shall, notwithstanding section 58 of the
Banking Order, 2006 (S 45/2006) or section 58 of the Islamic Banking
Order, 2008 (S 96/2008) submit such information to the Corporation.
Any officer or agent of the member institution or related corporation or any other person having access or holding or in possession of the books, records, accounts or other documents of a member institution or related corporation shall, if at any time called upon in writing by the
Corporation to do so, produce the same to the Corporation as it may require.
Where the information obtained by the Corporation under subsection (1) or (2) relates to the account, business or affairs of any customer of any member institution or related corporation supplying the information, that information shall be confidential as between the
Corporation and the member institution or related corporation supplying it.
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Any person who fails to comply with any requirement under this section is guilty of an offence and liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $1,000 for every day or part thereof during which the offence continues after conviction.
Submission of information to Authority
The Authority is entitled to all information obtained by or produced to the Corporation, whether in the course of conducting an examination, inspection or otherwise, regarding the business and affairs of any member institution or any of its subsidiaries or affiliates or of any person dealing with the member institution or any of its subsidiaries or affiliates, that relates to the safety and soundness or the operations, of the member institution.
Exemption [S 4/2012]
The Minister may, with the approval of His Majesty the Sultan and
Yang Di-Pertuan, subject to such conditions and for such period or periods as he thinks fit, exempt in writing any person or class of persons from all or any of the provisions of this Act.
Judicial notice
The court shall take judicial notice of —
Winding up of Corporation
No written law relating to insolvency or winding up of any body corporate shall apply to the Corporation and in no case shall the business and affairs of the Corporation be wound up.
Public servants
The directors, the Chief Executive Officer and the officers and employees of the Corporation are deemed to be public servants within the meaning of the Penal Code (Chapter 22).
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Power to appoint attorney
The Corporation may, by instrument under its common seal, appoint a person whether in Brunei Darussalam or outside Brunei Darussalam 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 authorised by the instrument to do or execute.
Immunity
No action, suit, prosecution or other proceeding whatsoever shall lie or be brought, instituted or maintained in any court or before any other authority against —
any director, officer, employee or agent of the Corporation, either personally or in their official capacity;
any person lawfully acting on behalf of the Corporation, any such director, officer, employee or agent, either personally or in his capacity as a person acting on such behalf, 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 or omitted to be done or made, in pursuance or in execution of, or intended pursuance or execution of, this Act, or any order in writing, direction, instruction, notice or other thing whatsoever issued under this Act.
Subsection (1) applies only where such act or such statement was done or made, or was omitted to be done or made in good faith.
Nothing in subsection (1) shall be construed to relieve the
Corporation from the obligation to make payment in respect of a protected deposit under this Act
Inspection of books of member institutions
The Corporation may from time to time inspect, under conditions of secrecy, the books of a member institution for the purposes of this Act.
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For the purposes of an inspection under this section —
the member institution and any other person who is in possession of the books of the member institution shall produce such books to the Corporation and give such information or facilities as may be required by the Corporation.
the member institution shall procure that any other person who is in possession of its books produce its books to the
Corporation and give such information or facilities as may be required by the Corporation; and
make copies of, or take possession of, any of such books;
use, or permit the use of, any of such books for the purposes of any proceedings under this Act; and
for a decision to be made on whether or not proceedings should be commenced under this
Act in relation to such books; or
No one shall be entitled, as against the Corporation, to claim a lien on any of the books, such a lien is not otherwise prejudiced.
The Corporation may require a person who produced any book to the Corporation to explain, to the best of his knowledge and belief, any matter about the compilation of the book or to which the book relates.
Any person who, without reasonable excuse, contravenes subsection (2) or a requirement of the Corporation under subsection (4) is guilty of an offence and liable on conviction to a fine not exceeding $100,000, imprisonment for a term not exceeding 2 years or both
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and, in the case of a continuing offence, to a further fine not exceeding $1,000 for every day or part thereof during which the offence continues after conviction.
Provision of information and production of books
The Corporation may, by notice in writing, require a member institution to —
produce any book, at such time and in such manner as the Corporation may reasonably require for the proper discharge of its functions.
Any information received from a member institution under this section shall be treated as secret by the Corporation.
Nothing in subsection (2) shall preclude the Corporation from disclosing the information if —
the information is disclosed in such a manner that an individual member institution’s identity cannot be ascertained;
disclosure of the information on individual member institutions is necessary in the Corporation’s performance of its functions or in the exercise of its powers.
Any member institution which fails to or neglects to furnish any information or produce any book required by the Corporation under this section is guilty of an offence.
Service of documents etc.
Any notice, order or document required or authorised by this
Act to be served on any person may be served —
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by delivering it to the person or to some adult member or employee of his family or household at his last known place of residence;
by leaving it at his usual or last known place of residence or business in an envelope addressed to the person;
by sending it by registered post addressed to the person at his usual or last known place of residence or business; or
by delivering it to the secretary or other like officer of the body corporate, firm or body of persons at its registered office or principal place of business; or
by sending it by registered post addressed to the body corporate, firm or body of persons at its registered office or principal place of business.
Any notice, order or document sent by registered post to any person in accordance with subsection (1) is deemed to be duly served on the person at the time when the notice, order or document, as the case may be, would in the ordinary course of post be delivered.
When proving service of the notice, order or document referred to in subsection (2), it shall be sufficient to prove that the envelope containing the notice, order or document, as the case may be, was properly addressed, stamped and posted by registered post.
Electronic service
The Corporation may provide an electronic service for the service of any notice that is required or authorised by this Act to be served on any person.
The Corporation may use the electronic service to serve any notice on behalf of the Corporation.
For the purposes of the electronic service, the Corporation may assign to any person —
Notwithstanding section 84, where any person has given his consent for any notice to be served on him through the electronic service, the
Corporation may serve the notice on that person by transmitting an electronic record of the notice to that person’s account with the electronic service.
Where a person has given his consent for a notice to be served on him through the electronic service, the notice is deemed to have been served at the time when an electronic record of the notice enters his account with the electronic service.
Notwithstanding any other written law, in any proceedings under this Act —
an electronic record of any notice that was served, through the electronic service; or
any copy or print-out of that electronic record, shall be admissible as evidence of the facts stated or contained therein if that electronic record, copy or print-out —
is certified by the Corporation to contain all or any information served through the electronic service in accordance with this section; and
is duly authenticated in the manner specified in subsection (8) or is otherwise authenticated in the manner provided in the Evidence Act (Chapter 108)
for the authentication of computer output.
For the avoidance of doubt —
an electronic record of any notice that was served, through the electronic service; or
any copy or print-out of that electronic record, shall not be inadmissible in evidence merely because the notice was served, without the delivery of any equivalent document or counterpart in paper form.
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For the purposes of this section, a certificate —
any person whose authentication code was used to serve the notice; and
any person or device involved in the production or transmission of the electronic record of the notice, or the copy or print-out thereof;
purporting to be signed by the Corporation or by a person occupying a responsible position in relation to the operation of the electronic service at the relevant time, shall be sufficient evidence that the electronic record, copy or print-out has been duly authenticated, unless the court, in its discretion, calls for further evidence on this issue.
Where the electronic record of any notice, or a copy or print-out of that electronic record, is admissible under subsection (6), it shall be presumed, until the contrary is proved, that the electronic record, copy or print-out accurately reproduces the contents of that document.
Regulations may be made under section 86 which are necessary or expedient for carrying out the purposes of this section, including regulations prescribing the procedure for the use of the electronic service, including the procedure in circumstances where there is a breakdown or interruption of the electronic service.
Power to make regulations, rules, orders, by-laws, directives, guidelines circulars or notices 86.
The Minister may, with the approval of His Majesty the Sultan and Yang Di-Pertuan, make such regulations, rules or orders, by-laws, directives, guidelines, circulars or notices, as may be necessary or expedient for giving full effect to this Act, for carrying out or achieving the objects and purposes of this Act, or any provision thereof, or for the further, better or more convenient implementation of this Act.
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Any regulations, rules, orders, by-laws, directives, guidelines, circulars or notices made under this section may relate to all, or any class, category or description of persons and different provisions may be made for different persons, classes, categories or descriptions of person.
Without prejudice to the generality of subsection (1), such regulations, rules, orders, by-laws, directives, guidelines, circulars or notices may be made in respect of —
forms, including forms of notifications, notices and certificates, for the purposes of this Act;
deposits of a trustee, joint owner or a deposit of a business or professional practice under section 45;
where a person has deposits with two or more member institutions that amalgamate and continue in operation as one member institution under section 46; or
where such deposits are to be acquired by a person who is not a member institution under section 47;
anything under this Act required to be made as regulations, rules, orders, by-laws, directives, guidelines, circulars or notices.
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