Section 34
Maintenance of assets in Brunei Darussalam
(1)
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.
(2)
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 —
(a)
the circumstances under which, and the manner in which, the Corporation may impose an asset maintenance requirement;
(b)
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
(c)
the method for the valuation of assets maintained in
Brunei Darussalam.
(3)
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.
(4)
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]
(5)
Before imposing a financial penalty on a member institution, the
Corporation shall —
(a)
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
(b)
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.
(6)
If the member institution referred to in subsection (5) —
(a)
fails to show cause within the time specified in the notice or within such extended period of time as the Corporation may allow; or
(b)
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.
(7)
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.
(8)
Any financial penalty payable under this Act shall be recoverable as a debt due to the Corporation by the member institution.
(9)
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.
Deposit Protection
B.L.R.O. 7/2023 29
(10)
Any financial penalty paid to or recovered by the Corporation shall be paid into the Consolidated Fund.
(11)
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.
(12)
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.