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• Library > Legal Subjects > Banking and Financial Law

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• Library > Legal Subjects > Litigation > Civil Matters

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• Banking and Financial Legalese (Terms)
• Buying on Hire Purchase
• Commodities
• Danaharta Act
• Exchange Control Rules
• Offshore Banking
• Securities

WHO HAS THE POWER OF SUPERVISION AND CONTROL OVER BANKS OR FINANCIAL INSTITUTIONS ?

In Malaysia, the Central Bank of Malaysia shall have wide powers of supervision and control over bank and financial institution which is provided under Part X of the Banking and Financial Institutions Act 1989.

The Central Bank of Malaysia may examine and issue directive for the supervision and control of the banks and financial institutions.

The Central Bank of Malaysia may also at any time, without giving notice, examine any of the records and transactions of a licensed institution.

The Minister of Finance may direct the Central Bank of Malaysia to examine into the affairs of any bank or financial institution on suspicion of any breach of Banking and Financial Institutions Act 1989 or any activity detrimental of the interests of its depositors or creditors.

No bank or financial institution, and no director or officer of the institution shall fail to

• allow access to, give possession of or produce

its books or other document, accounts, titles, securities or cash.

Any person who contravenes the above provision shall be guilty of an offense and shall on conviction be liable to be punished with

• imprisonment not exceeding 5 years or
• with a fine not exceeding RM$3 million or
• with both such imprisonment and fine and
• in the case of continuing offense, shall, in addition, be liable to be punished with a daily fine not exceeding RM$3,000 for every day during which the offense continues.