Disqualification of director
(1) A person is disqualified from being appointed as a director of an operator of a designated payment system if—
(a) that person has been adjudged a bankrupt, or has suspended la omentside halaysia, widhin five years pdito to tihe date of the appointment;
(b) that person has been convicted of an offence under this Act or such an offence has been compounded against him;
(c) that person has been convicted of an offence under the Banking and Financial Institutions Act 1989, Insurance Act 1996 [Act 553], Islamic Banking Act 1983 [Act 276], Takaful Act 1984 [Act 312], Money-Changing Act 1998 [Act 577), Exchange Control Act 1953 [Act 17], Central Bank of Malaysia Act 1958, Development Financial Institutions Act 2002 [Act 618], Anti Money Laundering Act 2001 [Act 613], Securities Industry Act 1983, Futures Industry Act 1993, Companies Act 1965 [Act 125] or under any written law involving fraud or dishonesty which is punishable with, as the case may be-
(i) imprisonment for one year or more, whether by itself, or in lieu of, or in addition to, a fine; or
(ii) a fine of one million ringgit or more, or such offence has been compounded against him;
(d) that person has been a director or chief executive officer of any company which has been convicted of an offence under any written law during his tenure of office unless he proves that such offence was committed without his knowledge or consent and he was not in a position to prevent the offence;
(e) there has been made against that person an order of detention, supervision, restricted residence, banishment or deportation, or if there has been imposed on him any form of restriction or supervision by bond or otherwise, under any law relating to the prevention of crime, or to preventive detention for the prevention of crime or drug trafficking, or to restricted residence, or to banishment or immigration; or
(f) that person has been a director or chief executive officer of a corporation incorporated in or outside Malaysia which is being or has been wound up.
(2) No person shall accept an appointment as a director of an operator of a designated payment system, and no such operator shall appoint a person as a director of such operator, if that person is disqualified under subsection (1).
Appointment of chief executive officer
(1) A person is disqualified from being appointed or remaining as chief executive officer of an operator of a designated payment system it—
(a) that person would be disqualified from being appointed a director under subsection 9(1);
(b) that person is not available for full time employment; or
(c) that person is carrying on any other business or vocation, except as a non-executive director or shareholder of another company.
(2) No person shall accept an appointment as chief executive fficer of an operator of a designated payment system, and no suc perator shall appoint a person as chief executive officer of suc operator, if that person is disqualified under subsection (1).
(3) An operator of a designated payment system shall appoint a chief executive officer who shall be—
(a) an individual; and
(b) resident in Malaysia during the period of his appointment. Exceptions
(1) A person who is disqualified as a director or chief executive officer of an operator of a designated payment system on the ground specified in paragraph 9(1)(f) may, with the written concurrence of the operator in which he is holding office or is to be appointed, apply to the Bank in writing to be exempted from that paragraph and the Bank may grant such exemption, subject to such conditions as it considers fit to impose.
(2) During the pendency of any criminal proceedings in any court for an offence referred to in paragraph 9(1)(b) or (c) against a director or chief executive officer of an operator of a designated payment system, that director or chief executive officer shall not act in that capacity, or hold any other office, or act in any other capacity, in any payment system or in any manner, directly or indirectly, be concerned with any business or affairs of any payment system unless authorized in writing by the Bank to such extent and subject to such conditions as the Bank may impose.
(3) For the purposes of subsection (2), criminal proceedings shall be deemed to be pending from the date that the accused person is first charged in court for the offence until the date of the final conclusion of the proceedings, whether in a court of original jurisdiction or, in the event of an appeal by any party, in a court of final appellate jurisdiction. Effect of disqualification
Where a person becomes disqualified under subsection 9(1) or 10(1) after his appointment—
(a) he shall immediately cease to hold office; and
(b) the operator of the designated payment system shall immediately terminate his appointment, and that person, notwithstanding any contract of service, shall not be entitled to claim any compensation for his loss of office or termination of appointment. Governance arrangements
The operator of a designated payment system shall establish adequate governance arrangements which are effective, accountable and transparent to ensure the continued integrity of such designated Operational arrangements
An operator of a designated payment system shall establish the following operational arrangements:
(a) rules and procedures setting out the rights and liabilities of the operator and the participant and the financial risk. he participant may incur:
(b) procedures, controls and measures for the management of credit, liquidity and settlement risk, including rules determining the time when a payment instruction and a settlement is final;
(c) criteria for participation in the designated payment system;
(d) measures to ensure the safety, security and operational reliability of the designated payment system including contingency arrangements. Changes to designated payment systems
(1) Where the Bank has prescribed documents and information under subsection (2), an operator of a designated payment system shall submit to the Bank particulars of any proposed change to the documents or information within thirty days prior to the making of such change.
(2) The Bank, in prescribing the documents and information to be submitted under subsection 5(3), may also prescribe the documents and information to which subsection (1) shall apply.
(3) Where it appears to the Bank that such change is inappropriate, the Bank may, before the expiry of the thirty days referred to in subsection (1)-
(a) prohibit the operator from making such change; or
(b) require the operator to make any other changes as the Bank may specify.
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).
