Prohibition to carry on credit reporting business unless registered
(1) No person shall carry on a credit reporting business unless—
(a) it is a company; and
(b) it has been registered as a credit reporting agency and been issued a certificate of registration by the Registrar under subsection 14(5).
(2) A person who contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.
(3) In the case of a continuing offence, the offender shall, in addition to the penalties under subsection (2), be liable to a fine not exceeding ten thousand ringgit for each day or part of a day during which the offence continues after conviction.
Restriction to carry on business other than credit reporting business
(1) A credit reporting agency shall not carry on any business other than a credit reporting business, unless it has obtained the prior written approval of the Registrar.
(2) A person who contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.
Application for registration
(1) A person who intends to carry on a credit reporting business shall submit an application in writing for registration as a credit reporting agency to the Registrar in such form as he may determine.
(2) Every application for registration shall be accompanied by—
(a) a copy of the memorandum of association and articles of association or other constituent documents under which the applicant is established, and its certificate of incorporation duly verified by a statutory declaration made by a director of the applicant;
(b) a copy of the latest audited accounts of the applicant, where applicable; and
(c) such other information or documents as may be determined by the Registrar for the purposes of determining the application and the suitability of the applicant.
(3) The Registrar may in writing at any time after receiving the application and before it is determined, require the applicant to provide such additional documents and information within the time as specified by the Registrar.
(4) If the requirement under subsection (3) is not complied with, the application for registration shall be deemed to have been withdrawn by the applicant and shall not be further proceeded with by the Registrar, but without prejudice to a fresh application being made by the applicant.
Certificate of registration
(1) In considering an application for registration as a credit reporting agency, the Registrar shall be satisfied that—
(a) the applicant has a minimum paid-up capital as prescribed in section 20; and
(b) the chief executive and directors of the applicant have fulfilled the criteria as specified in the Third Schedule.
(2) After having given due consideration to the application for registration and the conditions as referred to in subsection (1), the Registrar may register the applicant or refuse the application for registration.
(3) The decision of the Registrar to register the applicant or refuse the application for registration shall be communicated to the applicant in a written notice issued by the Registrar as soon as practicable.
(4) Where the Registrar refuses the application for registration in pursuance of subsection (2), he shall in the written notice issued under subsection (3) state—
(a) that the application has been refused; and
(b) the reasons for the refusal.
(5) Where the Registrar is satisfied that an applicant may be registered under subsection (2), he shall, upon receipt of the prescribed registration fee, issue to the applicant a certificate of registration in such form as may be determined by him, and the certificate of registration may be subject to such conditions or restrictions as the Registrar may think fit to impose.
(6) The certificate of registration shall be valid for a period not exceeding three years.
Renewal of certificate of registration
(1) A credit reporting agency may make an application for the renewal of the certificate of registration not later than ninety days before the date of expiry of the certificate of registration in the manner and form as determined by the Registrar and the application shall be
accompanied with the prescribed renewal fee and such documents as may be required by the Registrar, but no application for renewal shall be allowed where the application is made after the date of expiry of the certificate of registration.
(2) When renewing a certificate of registration, the Registrar may vary the conditions or restrictions imposed upon the issuance of the certificate of registration or impose additional conditions or restrictions.
(3) The Registrar may refuse to renew a certificate of registration—
(a) if the credit reporting agency has failed to comply with any of the provisions of this Act;
(b) if the credit reporting agency has failed to comply with any conditions or restrictions imposed upon the issuance of the certificate of registration; or
(c) if he is satisfied that the credit reporting agency is unable to continue the credit reporting business in accordance with this Act.
Revocation of registration
(1) The Registrar may revoke the registration of a credit reporting agency if he is satisfied that—
(a) the credit reporting agency has failed to comply with any of the provisions of this Act;
(b) the credit reporting agency has failed to comply with any of the conditions or restrictions imposed upon the issuance of the certificate of registration;
(c) the issuance of the certificate of registration was induced by a false representation of fact by the credit reporting agency;
(d) the credit reporting agency is in the course of being wound up or otherwise dissolved;
(e) a receiver, manager or receiver and manager or an equivalent person has been appointed in respect of any property of the credit reporting agency;
(f) the credit reporting agency has ceased to carry on the credit reporting business for a continuous period of three months;
(g) the credit reporting agency carries on the credit reporting business in addition to other businesses without the prior written approval of the Registrar under subsection 12(1); or
(h) the credit reporting agency surrenders its certificate of registration to the Registrar.
(2) Notwithstanding subsection (1), the Registrar shall not revoke the registration of the credit reporting agency unless the Registrar is satisfied that, after giving the credit reporting agency an opportunity of making any representation in writing it may wish to make, the registration should be revoked.
(3) Where the registration of the credit reporting agency is revoked, the Registrar shall issue a notice of revocation of registration to the credit reporting agency, and the certificate of registration issued in respect of such registration shall have no effect upon service of the notice of revocation of registration.
(4) A credit reporting agency whose registration has been revoked under this section and who continues to carry on the credit reporting business thereafter commits an offence and shall, upon conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.
(5) In the case of a continuing offence, the offender shall, in addition to the penalties under subsection (4), be liable to a fine not exceeding ten thousand ringgit for each day or part of a day during which the offence continues after conviction.
Surrender of certificate of registration
(1) Where the certificate of registration is revoked pursuant to section 16, the holder of the certificate shall, within fourteen days from the date of service of the notice of revocation of registration, surrender the certificate to the Registrar.
(2) A person who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.
Appeal against decision of Registrar
Where the Registrar—
(a) refuses an application for registration under section 14 or an application for the renewal of registration under section 15; or
(b) revokes the certificate of registration under section 16,
the person so aggrieved by the decision of the Registrar may appeal to the Minister against such decision in accordance with section 59.
Handling of credit information when registration of credit reporting agency is revoked, etc.
(1) Any credit reporting agency which—
(a) has ceased to be a credit reporting agency; or
(b) has its certificate of registration revoked by the Registrar pursuant to section 16,
shall, within the period as determined by the Registrar, hand over all the credit information in its databases or within its possession, in
whatever form available, and the databases, including back-up files, to the Registrar.
(2) Upon receipt of the credit information and databases from the credit reporting agency under subsection (1), referred to as the “first credit reporting agency”, the Registrar may decide either—
(a) to destroy the credit information and databases; or
(b) with the approval of the Minister, to hand over the credit information and databases to another credit reporting agency, referred to as the “subsequent credit reporting agency”, upon payment of compensation by the subsequent credit reporting agency to the first credit reporting agency of an amount to be agreed between the first credit reporting agency and the subsequent credit reporting agency.
(3) In granting his approval to the handing over of the credit information and databases of the first credit reporting agency in pursuance of paragraph (2)(b), the Minister shall be satisfied that the subsequent credit reporting agency to which the credit information and databases is proposed to be handed over to has at least similar or equivalent financial abilities, expertise and facilities to that of the first credit reporting agency to assume the processing of the credit information.
(4) The subsequent credit reporting agency shall, upon receipt of the credit information and databases under paragraph (2)(b)—
(a) inform the customer by written notice of the fact that his credit information has been handed over to the subsequent credit reporting agency; and
(b) have the same duties and obligations in relation to that customer as if it was the first credit reporting agency and shall comply with all the provisions of this Act.
(5) Where the first credit reporting agency hands over any credit information and databases to a subsequent credit reporting agency in pursuance of paragraph (2)(b), any consent obtained by the first credit
reporting agency from a customer under paragraph 24(1)(a) shall lapse, and the subsequent credit reporting agency shall obtain the consent of the customer under paragraph 24(1)(a) if it intends to disclose the credit information of the customer under that section.
(6) A credit reporting agency which contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.
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).
