Language Switcher

Offshore Banking Act – Act 443 (1990)

An Act to provide for the licensing and regulations of persons carrying on offshore banking business and offshore financial business and for matters incidental thereto or connected therewith.

The Act has five Parts and

Part I. Preliminary

1. Short title and commencement
2. Interpretation
3. Functions, powers and duties of the Bank

Part II. Licensing Of Offshore Banks

4. Offshore banking business to be carried on only under licence
5. Submission of application for licence to Bank
6. Grant or refusal of licence by Minister
7. Requirement to use, and restriction on use of, the words “offshore bank”, etc.
8. Revocation of licence
9. Surrender of licence
10. Licensed offshore banks to stop carrying on offshore banking business on revocation or surrender of licence
11. Minimum amount of capital funds
12. Amendment or alteration of constituent documents of licensed offshore banks
13. Bank to publish list of licensed offshore banks

Part III. Duties Of Licensed Offshore Banks

14. Offices and subsidiaries
15. Prohibition of certain accounts
16. Appointment and duties of auditor
17. Financial statements to be submitted to Bank
18. Statistics and information to be submitted to Bank
19. Licence fees
20. Transactions in Malaysian currency is prohibited

Part IV. Secrecy
21. Restriction on inquiry specifically into affairs of particular customer
22. Secrecy
23. Verification of licensed offshore bank’s submissions

Part IVA. Offshore Financial Business

23A. Offshore financial business to be registered
23B. Registration of offshore financial business
23C. Approval or refusal of registration by the Bank
23D. Regulation of registered institution
23E. Annual fee
23F. Revocation of registration

Part V. General Provisions

23G. Electronic fund transfers
24. General penalty
25. Power to compound offences
26. Indemnity
27. Regulations
28. Applications of Offshore Companies Act 1990 and Companies Act 1965
29. Application of Exchange Control Act 1953
30. Banking and Financial Institutions Act- 1989 and Islamic Banking Act 1983 not to apply
31. Minister’s power to exempt
32. Payment from a deceased person’s account
33. Exempt dealer
34. Securities Industry Act 1983 not to apply in certain circumstances
35. Internal audit and internal auditor

Malaysia-Offshore Banking Act-1990-eng (full text in English, PDF)

Comments are closed.