To enable the Bank to meet the objectives of a central bank, it is vested with comprehensive legal powers under the following legislation to regulate and supervise the financial system. These pieces of legislation includes:
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.
Incorporating latest amendments up to Act A1616/2020 c.i.f. 1 Oct 2020.
Date of coming 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).
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.
Date come into force: 30 June 2013, except section 129 and Schedule 9, see [P.U.(B) 276/2013]
- Not yet incorporating with latest amendment order P.U.(A) 51/2021 : amendment to Schedule 11, which came into effect on 11 Feb 2021
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.
Date come 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]
- Not yet incorporating with latest amendment order P.U.(A) 52/2021 : amendment to Schedule 11, which came into effect on 11 Feb 2021
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. Incorporating Latest Amendments up to Act A1247/2005 - cif : 1 Jan. 1997
* Note: This act has been repealed except section 147(4), 147(5), 150, 151, 144 and 224 shall continue to remain in full force and effect, see section 275 of FSA 2013 - Act 758
The DFIA which came into force on 15 February 2002 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.
Incorporating Latest Amendments:
cif : 31 January 2016
gazetted: 26 November 2015
cif : 31 January 2016
gazetted: 28 January 2016
- Not yet incorporating with latest amendment order P.U.(A) 55/2021 : amendment to Fourth Schedule, which came into effect on 11 Feb 2021
See also : The Salient Features of the DFIA
The Money Services Business Act 2011 (MSBA) came into force on 1 December 2011 and 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 aims to modernize and elevate 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.
The Bank 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, the Bank 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. The Bank may also take administrative action or institute civil actions against any person who has contravened the MSBA.
Date come into force: 1 December 2011
Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613)
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:
a. 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;
b. enforcement agencies which are responsible to investigate the offences under the AMLATFPUAA; and
c. 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
Incorporating Latest Amendments:
cif : 2 Jan 2018
gazetted: 28 Dec 2017
An Act to provide for the management of currency of Malaysia, regulation of currency processing business, and currency processing activities, and for related matters.