Licence to be taken out by moneylender
(1) No person shall conduct business as a moneylender unless he is licensed under this Act.
(2) Any person who carries on business as a moneylender without a valid licence, or who continues to carry on such business after his licence has expired or been suspended or revoked shall be guilty of an offence under this Act and shall be liable to a fine of not less than twenty thousand ringgit but not more than one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a second or subsequent offence shall also be liable to whipping in addition to such punishment.
Application for licence
(1) An application for a licence to carry on business as a moneylender shall be made in writing to the Registrar in a prescribed form, and accompanied by such documents or information as may be prescribed.
(2) The Registrar may in writing, at any time after receiving the application but before it is determined, require the applicant to provide within a specified time or any extension of time granted by the Registrar, such additional documents or information as may be considered necessary by the Registrar for the purpose of determining the suitability of the applicant for the licence.
(3) Where any additional documents or information required under subsection (2) is not provided by the applicant within the time specified in the requirement or any extension of time granted by the Registrar, the application shall be deemed to be withdrawn and shall not be further proceeded with.
(4) Without prejudice to subsection (3), the applicant may submit a fresh application for a licence to the Registrar, but such application shall not be made while his application for a licence is still pending before the Registrar.
*NOTE—For saving and transitional provisions of this section–see subsection 46(3) of Act A1193.
Grant of a licence
(1) Notwithstanding subsection 5A(2) or (3), the Registrar may, upon receiving an application for a licence under subsection 5 A(1), grant or refuse to grant the licence to the applicant, and the Registrar shall inform the applicant of his decision.
(2) The licence shall be in such form as may be prescribed.
*(3) The applicant shall pay the prescribed application fee for the licence to the Registrar upon being informed by the Registrar of the approval of his application for the licence.
Duration of licence
5 C. (1) Subject to section 9D and subsection (3), a licence shall, unless sooner revoked, be valid for a period not exceeding two years.
(2) Where a licence is granted, the Registrar shall specify in the licence the date on which the licence is to come into force and the date of its expiry.
(3) Where on the date of expiry of the licence, an application for the renewal of the licence under section 5E is pending before the Registrar, that licence shall remain in force until the application is disposed of, or sixty days after the date of expiry of the licence, whichever is the earlier.
Conditions attached to licence
(1) The Registrar may stipulate in the licence such conditions as he may think fit and he may, at any time during the duration of the licence, add to, revoke or vary any of the conditions.
(2) Any person who fails to comply with any of the conditions of the licence shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
*NOTE—For saving and transitional provisions of this subsection–see subsection 46(4) of Act A1193.
Renewal of licence
(1) An application for the renewal of a licence shall be made by the holder of the licence at least sixty days before the date of expiry of the licence, and the application shall be accompanied by such documents and information as may be required by the Registrar.
(2) Notwithstanding subsection (1), the Registrar may, subject to the payment of a penalty not exceeding three hundred ringgit imposed on the holder of the licence, allow an application for the renewal of a licence made after the time specified in subsection
(1), but no application for such renewal shall be allowed where the application is made after the date of expiry of the licence.
(3) Where the holder of the licence fails to renew the licence before the date of expiry of the licence, he shall not be entitled to make a new application for a licence within a period of two years from the date of expiry of the licence.
(4) The holder of the licence shall pay the prescribed renewal fee for the licence to the Registrar upon being informed by the Registrar of the approval of his application for the renewal of the licence.
Requirement to display licence
5F . (1) A moneylender shall at all times display his licence in a conspicuous place at the premise where he carries out or operates his business.
(2) Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding six months or to both.
Particulars to be shown on licences
(1) Every licence granted to a moneylender shall show his true name and the name under which, and the address at which, he is authorized by the licence to carry on business as such. A licence
shall not authorize a moneylender to carry on business at more than one address or under more than one name or under any name which includes the word “bank” or otherwise implies that he carries on the business of banking, and no licence shall authorize a moneylender to carry on business under any name except—
(a) his true name;
(b) the name of a firm in which he is a partner; or
(c) a business name, whether of an individual or of a firm in which he is a partner, under which he or the firm has been registered under the Registration of Businesses Act 1956 [Act 197].
(2) Any licence taken out in a name other than the moneylender’s true name shall be void.
*NOTE—For saving and transitional provisions of this section–see subsections 46(3) and (4) of Act A1193.
(Deleted by Act A1193).
Offences
If any person—
(a) takes out a licence in any name other than his true name;
(b) being licensed as a moneylender, carries on business as such in any name other than his authorized name or at any other place than his authorized address or addresses;
(c) in the course of business as a moneylender enters into any moneylending agreement with respect to any advance or repayment of money or takes any security for money otherwise than in his authorized name; or
(d) lends money to a person under the age of eighteen years,
he shall be guilty of an offence under this Act and shall be liable to a fine not exceeding* fifty thousand ringgit and for a second or subsequent offence shall be liable to the fine aforesaid or to imprisonment for a term not exceeding twelve months and an offender being a company, society, firm or other body of persons shall for a second or subsequent offence be liable to a fine not exceeding **one hundred thousand ringgit.
*NOTE—Previously “one thousand ringgit”–see Act A1193. **NOTE—Previously “five thousand ringgit”–see Act A1193.
Circumstances under which licence shall not be issued
(1) The licence applied for under section 5A shall not be issued—
(a) if—
(i) an applicant;
(ii) a director, general manager, manager or secretary of an applicant or any other person holding a similar office or position, where the applicant is a company;
(iii) a president, vice-president, secretary or treasurer of an applicant or any other person holding a similar office or position, where the applicant is a society; or
(iv) a partner or any member of an applicant or any other person holding a similar office or position, where the applicant is a firm or other body of persons, is a person convicted of an offence involving fraud or dishonesty, or an offence relating to Chapter XVI or XVII of the Penal Code [Act 574], or is an undischarged bankrupt;
(b) where at the time the application is made—
(i) an applicant;
(ii) a director, general manager, manager or secretary of an applicant, where the applicant is a company;
(iii) a president, vice-president, secretary or treasurer of an applicant, where the applicant is a society; or
(iv) a partner or any member of an applicant, where the applicant is a firm or other body of persons, has, due to a conviction for an offence under this Act, been sentenced to a fine exceeding ten thousand ringgit or to imprisonment (other than imprisonment in default of a fine not exceeding ten thousand ringgit);
(c) where at the time the application is made, a person who—
(i) had been a director of a company carrying on the business of moneylending or had been directly concerned in the management of the business of the company;
(ii) had been a president, vice-president, secretary or treasurer of a society carrying on the business of moneylending, or had been directly concerned in the management of the business of the society; or
(iii) had been a partner or any member of a firm or other body of persons carrying on the business of moneylending, or had been directly concerned in the management of the business of the firm or other body of persons,
which has been wound up or dissolved by a court, is a director, president, vice-president, secretary, treasurer, partner or member, or is directly concerned in the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons, respectively;
(d) where the applicant is responsible for the management of his business as a moneylender, and the licence for that business has been revoked;
(e) where satisfactory evidence has been produced regarding the bad character of the applicant, or of the director, president, vice-president, secretary, treasurer, partner or member, or any person responsible for the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons; or
(f) where satisfactory evidence has been produced that the applicant, or the director, president, vice-president, secretary, treasurer, partner or member, or any person responsible for the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons, is not a fit and proper person to hold a licence.
(2) Any person aggrieved by the refusal of the Registrar to issue a licence may appeal to the Minister in the prescribed manner and the decision of the Minister shall be final.
Revocation or suspension of licence
(1) If a moneylender—
(a) has been carrying on his business, in the opinion of the Registrar, in a manner detrimental to the interest of the borrower or to any member of the public;
(b) has contravened any of the provisions of this Act or any regulations or rules made under this Act;
(c) has been licensed as a result of a fraud, mistake or misrepresentation in any material particular; or
(d) has failed to comply with any of the conditions of the licence, the Registrar may, subject to section 9B, revoke the licence issued to the moneylender or suspend the licence for such period as the Registrar thinks fit.
(2) A revocation or suspension of a licence under this section shall not affect any moneylending agreement entered into before such revocation or suspension, other than that in respect of which such revocation or suspension is made.
(3) Where a licence has been revoked or suspended, the licence shall have no effect from the date of revocation of the licence or during the period of suspension of the licence, as the case may be.
Opportunity of being heard
9B . (1) Before revoking or suspending a licence under section 9A, the Registrar shall give the holder of the licence a notice in writing of his intention to do so and require the holder of the licence to submit reasons why the licence should not be revoked or suspended.
(2) After considering the reasons submitted by the holder of the licence, the Registrar shall decide whether to revoke or suspend the licence, or to take no further action, and the Registrar shall notify the holder of the licence of his decision.
Appeal to Minister
Any person aggrieved by any decision taken by the Registrar under section 9A may, within fourteen days after having been notified of the decision under subsection 9B(2), appeal against that decision to the Minister whose decision is final and shall not be questioned in any court.
Validity of licence extended in successful appeal
Where the Minister allows an appeal against the revocation or suspension of a licence under this Act, the validity of the licence shall be extended by a period corresponding to that during which the licence had no effect and such extended period shall be inserted in the licence.
Prohibition of subsequent application pending appeal on earlier application
(1) Where an applicant appeals against the refusal of the Registrar to issue a licence to him, or a holder of a licence appeals against the revocation of his licence by the Registrar, he shall not subsequently make an application for a licence until the appeal against the Registrar’s decision has been determined by the Minister.
(2) In the event that any licence is issued as a result of a subsequent application made in the circumstances specified in subsection (1), the licence so granted shall be void and shall have no effect.
(3) Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three months or to both.
Surrender of licence
(1) Upon the revocation of the licence under section 9A, or the rejection of an appeal against the revocation of the licence under section 9C, the holder of the licence shall, within 14 days from the date of the notice of revocation, or the notice of rejection of appeal against revocation, being served on him, surrender his licence to the Registrar.
(2) Any person who fails to surrender his licence as required under subsection (1) shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
Transfer or assignment of licence prohibited
9G . (1) Subject to subsections (2) and (3), the holder of a licence shall not transfer or assign his licence to any other person, or cause or permit any other person to use his licence or provide the services authorized in the licence.
(2) Except with the prior written consent of the Registrar, the holder of a licence shall not appoint any person for the purpose of exercising any of the rights conferred on him under the licence, or cause or permit any such person to exercise any such right.
(3) The Registrar may authorize the transfer of a licence where—
(a) the holder of a licence—
(i) being a company, is liquidated and a receiver or manager is appointed in relation to the moneylending business of the company; or
(ii) being a society, firm or other body of persons is dissolved and a receiver or manager is appointed in relation to the moneylending business of the society, firm or other body of persons; or
(b) for any reason the Registrar is satisfied that it would be just to do so.
(4) Except where the Registrar has given his consent or authorization under subsection (2) or (3), the holder of a licence who purports to transfer or assign his licence to any other person, or causes or permits any other person to use his licence or to provide the services authorized in the licence, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
(Deleted by Act A1193).
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
