Legal Framework

Central Bank of Malaysia Act 2009

An Act to provide for the continued existence of the Central Bank of Malaysia and for the administration, objects, functions and powers of the Bank, for consequential or incidental matters.

Notes

• Incorporates latest amendments up to Act A1616/2020 that came into force (c.i.f.) 1 Oct 2020.
• Date came into force: 25 Nov 2009 (see P.U.(B) 533/2009), except paragraph 23(8)(b) and sections 61, 65, 66 and 66A c.i.f. 1 Oct 2020 (see P.U.(B) 479/2020 and P.U.(B) 480/2020).

See also: AGC's Laws of Malaysia website

Financial Services Act 2013

An Act to provide for the regulation and supervision of financial institutions, payment systems and other relevant entities and the oversight of the money market and foreign exchange market to promote financial stability and for related, consequential or incidental matters.

Notes

• Date came into force: 30 June 2013, except section 129 and Schedule 9, see [P.U.(B) 276/2013]
• Pending incorporation of latest amendment order P.U.(A) 51/2021 amendment to Schedule 11, which came into effect on 11 Feb 2021.

See also: AGC's Laws of Malaysia website

Islamic Financial Services Act 2013

An Act to provide for the regulation and supervision of Islamic financial institutions, payment systems and other relevant entities and the oversight of the Islamic money market and Islamic foreign exchange market to promote financial stability and compliance with Shariah and for related, consequential or incidental matters.

Notes

• Date came into force: 30 June 2013, except paragraphs 1 to 10 of Schedule 9 and paragraphs 13 to 19 of Schedule 9, see [P.U.(B) 277/2013]
• Pending incorporation of latest amendment order P.U.(A) 52/2021 : amendment to Schedule 11, which came into effect on 11 Feb 2021

See also: AGC's Laws of Malaysia website

Insurance Act 1996

An Act to provide new laws for the licensing and regulation of insurance business, insurance broking business, adjusting business and financial advisory business and for other related purposes.

Notes

• Incorporates Latest Amendments up to Act A1247/2005 that came into force (c.i.f.) 1 Jan. 1997
• This act has been repealed except for sections 147(4), 147(5), 150, 151, 144 and 224, that shall continue to remain in full force and effect, as per section 275 of FSA 2013 - Act 758

See also: AGC's Laws of Malaysia website

Development Financial Institutions Act 2002

The DFIA focuses on promoting the development of effective and efficient development financial institutions (DFIs) to ensure that the roles, objectives and activities of the DFIs are consistent with the Government policies and that the mandated roles are effectively and efficiently implemented. DFIA also emphasises on efficient management and effective corporate governance, provides a comprehensive supervision mechanism and mechanism to strengthen the financial position of DFIs through the specification of prudential requirements.

See also: Salient Features of the DFIA

Notes

• Date came into force: 15 February 2002
• Incorporates Latest Amendments:
  • Act A1502/2015 that came into force (c.i.f.) on 31 January 2016, that was gazetted: 26 November 2015
  • PU(A) 14/2016 cif : 31 January 2016, and gazetted: 28 January 2016.
• Pending incorporation of latest amendment order: P.U.(A) 55/2021 : amendment to Fourth Schedule, which came into effect on 11 Feb 2021

See also: AGC's Laws of Malaysia website

Money Services Business Act 2011

The MSBA provides for the licensing, regulation and supervision of the money services business industry which comprises of the comprising money changing, remittance and wholesale currency businesses and other related matters.

The MSBA was enacted with the aim of modernising and elevating the status of the money-changing and remittance business into a more dynamic, competitive and professional industry, while strengthening safeguards against the threats of money laundering, terrorist financing and other illegal activities.

BNM has the power to regulate the industry through the issuance of regulations, guidelines, circulars, standards and notices. Apart from the power to compound and prosecute any person who contravenes the MSBA, BNM is also empowered with other enforcement powers, namely to issue directive to a licensee or money services agent if it is contravening or has contravened the MSBA or is carrying on money services business in a manner detrimental to the interest of customers and public generally. BNM may also take administrative action or institute civil actions against any person who has contravened the MSBA.

Notes

• Date came into force: 1 December 2011

See also: AGC's Laws of Malaysia website

Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001

The AMLATFPUAA provides for the offence of money laundering, the measures to be taken for the prevention of money laundering and terrorism financing offences, investigation powers and the forfeiture of property involved in or derived from money laundering and terrorism financing offences, as well as terrorist property, proceeds of an unlawful activity and instrumentalities of an offence.

The First Schedule of the AMLATFPUAA contains a list of the reporting institutions under the AMLATFPUAA i.e. financial institutions and designated non-financial businesses and professions which are required to perform certain obligations which are designed to prevent money laundering and terrorism financing offences.

The Second Schedule of the AMLATFPUAA lists serious offences from various legislation, which if committed, are likely to result in a person benefitting or deriving proceeds from the offence. The AMLATFPUAA promotes a collaborative and multi-agency approach by setting out the powers and functions of:

1. the competent authority which is responsible to oversee the performance of obligations by the reporting institutions, facilitate the enforcement of the AMLATFPUAA and co-operate with the foreign financial intelligence units;
2. enforcement agencies which are responsible to investigate the offences under the AMLATFPUAA; and
3. supervisory and regulatory authorities which are responsible to facilitate in the implementation of the AMLATFPUAA.

The Minister of Finance has appointed BNM as the competent authority under the AMLATFPUAA.

The Financial Intelligence and Enforcement Department of BNM is responsible to perform BNM's functions as the competent authority under the AMLATFPUAA

Notes

• Date came into force: 5 July 2001
• Incorporates Latest Amendments: PU(A) 423/2017 that came into force (c.i.f.) on 2 Jan 2018 and gazetted on 28 Dec 2017

See also: AGC's Laws of Malaysia website

Currency Act 2020

An Act to provide for the management of currency of Malaysia, regulation of currency processing business, and currency processing activities, and for related matters.

Notes

• No amendments.

See also: AGC's Laws of Malaysia website