Section 5
of International Banking Order, 2000
Section 5
(1)
In considering whether to grant a licence, the Authority shall have regard to –
(a)
the need to protect the interests of depositor, customers, other creditors, and potential depositors, customers and other creditors; and
(b)
the need to protect the security, reputation and economic interests of
Brunei Darussalam in relation to financial matters.
Incorporating amendments until S 1/2016
(Cleancopy) NANI/Bb_as of 08.05.2019
NOTE: Amendment on P1S1 and P45S2 [24.04.2019]; P3S1, P1S2, P10S2, P11S2, P16S2-P18S2P28S2, P31S2, P34S2, P35S2, P39S2,
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BLUV as at 14th January 2016
(2)
Without prejudice to the generality of subsection (1), the Authority shall not grant a licence unless the Authority is satisfied that –
(a)
the applicant institution either enjoys a high reputation in the community or will be able to do so if a licence is granted;
(b)
in the case of an international Islamic bank, that the institution will comply with the doctrines of the Islamic Religion, and that proper provision is made in the institutions constituting documents for the appointment of and provision of advice by the appropriate Shari’ah
Council;
(c)
the capital funds unimpaired by losses or otherwise of an applicant institution are such and will be maintained as may be prescribed;
(d)
every person who is or is to be a director, controller, of the institution or a manager, senior officer or financial controller of its business is a fit and proper person to hold that position;
(e)
the institution will maintain a place of business within Brunei
Darussalam and that place of business will be managed by a person resident in Brunei Darussalam who is a director of the institution;
(f)
except as permitted by this Order the institution will conduct no banking business other than international banking business;
(g)
the institution has demonstrated it will be able to meet such minimum capital requirements as may be prescribed;
(h)
at least two of the persons referred to in paragraph (d) will effectively direct the business of the institution in Brunei Darussalam; and
(i)
the name of the institution and any other such name as is referred to in section 4(1)(d) is not such that it may in any respect mislead potential depositors or other creditors, that it is not for any other reason undesirable and that neither the Registrar of Companies nor the
Registrar of International Business Companies objects to such name.
(3)
In determining for the purposes of subsection (2)(d) whether a person is a fit and proper person to hold a position, regard shall be had to –
(a)
his probity;
Incorporating amendments until S 1/2016
(Cleancopy) NANI/Bb_as of 08.05.2019
NOTE: Amendment on P1S1 and P45S2 [24.04.2019]; P3S1, P1S2, P10S2, P11S2, P16S2-P18S2P28S2, P31S2, P34S2, P35S2, P39S2,
10
BLUV as at 14th January 2016
(b)
his competence and soundness of judgment for fulfilling the responsibilities of the position;
(c)
leave in responsibilities including, without limitation, the due diligence he is likely to conduct and fulfil
(i)
in respect of customers, based on the principle of “know the client”, and
(ii)
in respect of the sources, destination and application of customer funds; and
(d)
whether the interests of potential depositors, investors, customers and parties to transactions or the reputation of Brunei Darussalam are, or are likely to be, in any way prejudiced by his holding that position;
and, without prejudice to the generality of paragraphs (a) to (d), regard may be had to his previous experience, record, conduct and activities in business or financial matters.
(4)
without prejudice to the generality of subsections (1) and (2), the Authority shall not grant a licence to an applicant institution if it appears to the Authority that –
(a)
the institution is closely linked with any person; and
(b)
those close links with that person or any matter relating to any laws of a jurisdiction outside Brunei Darussalam or administrative provisions to which that person is subject are such as would (were a licence to be granted to the institution) prevent the effective exercise by the Authority of the Authority’s supervisory functions, whether exercisable within
Brunei Darussalam or elsewhere in relation to the institution.
(5)
For the purposes of subsection (4), an institution is closely linked with –
(a)
any person who is or, if he were an undertaking, would be its parent undertaking;
(b)
any undertaking which is a subsidiary undertaking of the institution;
(c)
any undertaking which is or, if any person falling within paragraph (a)
were an undertaking, would be a fellow subsidiary undertaking (as defined in Part II of the First Schedule); and
Incorporating amendments until S 1/2016
(Cleancopy) NANI/Bb_as of 08.05.2019
NOTE: Amendment on P1S1 and P45S2 [24.04.2019]; P3S1, P1S2, P10S2, P11S2, P16S2-P18S2P28S2, P31S2, P34S2, P35S2, P39S2,
11
BLUV as at 14th January 2016
(d)
any person in accordance with whose directions or instructions the directors of the institution are accustomed to act;
and any reference to the institution’s close links with any person shall be construed accordingly.
Determination of application for a licence.