Licence to be taken out by pawnbroker
(1) No person shall carry on business as a pawnbroker unless he holds a valid licence granted under this Act.
(2) Any person who carries on business as a pawnbroker without a valid licence, or who continues to carry on such business after his licence has expired or been suspended or revoked commits an offence and shall on conviction 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 pawnbroker shall be made in writing to the Registrar in the 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 document 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specified in the requirement or any extension of time granted by the Registrar, the application shall be deemed to be withdrawn and shall not be further proceeded with.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.
Circumstances under which licence shall not be granted
(1) The licence applied for under section 8 shall not be granted—
(a) if—
(i) where the applicant is an individual person, the applicant;
(ii) where the applicant is a company, a director, general manager, manager or secretary of the company or any other person holding a similar office or position in the company;
(iii) where the applicant is a society, a president, vicepresident, secretary or treasurer of the society or any other person holding a similar office or position in the society;
(iv) where the applicant is a firm or other body of persons, a partner or any member of the firm or body of persons or any other person holding a similar office or position, is a person convicted of an offence involving fraud or dishonesty, or an offence under Chapter XVI or XVII of the Penal Code [Act 574], or is an undischarged bankrupt;
(b) if at the time the application is made—
(i) where the applicant is an individual person, the applicant;
(ii) where the applicant is a company, a director, general manager, manager or secretary of the company or any other person holding a similar office or position in the company;
(iii) where the applicant is a society, a president, vicepresident, secretary or treasurer of the society or any other person holding a similar office or position in the society;
(iv) where the applicant is a firm or other body of persons, a partner or any member of the firm or body of persons or any other person holding a similar office or position, 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 the applicant is responsible for the management of any pawnbroking business, and the licence for that business has been revoked;
(d) where satisfactory evidence has been produced that—
(i) where the applicant is an individual person, the applicant;
(ii) where the applicant is a company, a director, general manager, manager or secretary of the company or any other person holding a similar office or position in the company;
(iii) where the applicant is a society, a president, vicepresident, secretary or treasurer of the society or any other person holding a similar office or position in the society;
(iv) where the applicant is a firm or other body of persons, a partner or any member of the firm or body of persons or any other person holding a similar office or position, is of bad character or 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.
Grant of a licence
(1) Notwithstanding subsection 8(2) or (3), the Registrar may, upon receiving an application for a licence under subsection 8(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
(1) Subject to section 11C and subsection (3), a licence shall, unless sooner revoked, be valid for a period not exceeding two years.
(2) When 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 10B 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 may be 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 commits an offence and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.
Renewal of licence
(1) An application by a licensee for the renewal of his licence shall be made 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 by the licensee of a penalty not exceeding three hundred ringgit, allow an application for the renewal of a licence made less than sixty days before the date of expiry of the licence, 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 licensee fails to apply for the renewal of 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 licensee shall pay the prescribed fee for the renewal of the licence to the Registrar upon being informed by the Registrar of the approval of his application for such renewal.
Requirement to display licence
(1) A licensee shall at all times display his licence in a conspicuous part of the premises where he carries on his pawnbroking business.
(2) Any person who contravenes subsection (1) commits an offence.
Revocation and suspension of licence
(1) If a licensee—
(a) has been carrying on his pawnbroking business, in the opinion of the Registrar, in a manner detrimental to the interest of a pawner or to any member of the public;
(b) being—
(i) an individual, has been declared a bankrupt;
(ii) a company, has been wound up or dissolved by a court;
(iii) a partnership, firm or body of persons, has been dissolved;
(c) has contravened any provision of this Act or any regulation made under this Act;
(d) has been licensed as a result of a fraud or a mistake or misrepresentation in any material particular; or
(e) has failed to comply with any of the conditions stipulated by the Registrar,
the Registrar may, subject to section 11A, revoke the licence issued to the licensee 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 pawning transaction made before such revocation or suspension, other than a transaction 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
(1) Before revoking or suspending a licence under section 11, the Registrar shall give the licensee a notice in writing of his intention to do so and require the licensee to submit reasons as to why the licence should not be revoked or suspended.
(2) After considering the reasons submitted by the licensee, the Registrar shall decide whether to revoke or suspend the licence, or to take no further action, and the Registrar shall notify the licensee of his decision.
Appeal to Minister
Any person who aggrieved by any decision taken by the Registrar under section 11 may, within fourteen days after having been notified of the decision, 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 specified by the Registrar in the licence.
Prohibition of similar application when earlier application still pending appeal
(1) Where an applicant appeals against the refusal of the Registrar to grant a licence to him, or a licensee 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 granted 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 subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
Surrender of licence
(1) Upon the revocation of the licence under section 11, or if there is an appeal, upon the rejection of an appeal against the revocation of the licence under section 11B, the pawnbroker shall, within fourteen days from the date of the notice of the revocation, or the notice of rejection of the 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) commits an offence and shall on conviction 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
(1) Subject to subsections (2) and (3), a licensee 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) A licensee may, with the prior consent of the Registrar, 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 licensee—
(i) being a company, is liquidated and a receiver or manager is appointed in relation to the pawnbroking 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 pawnbroking business of the society, firm or other body of persons; or
(b) for any other reason the Registrar is satisfied that it would be just to authorize such transfer.
(4) Except where the Registrar has given his consent or authorization under subsection (2) or (3), a licensee 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, commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
Duty of pawnbroker on expiry of licence
(1) Every pawnbroker to whom a licence has been granted under section 9 shall, upon the expiry of his licence—
(a) send a notice to each and every pawner of the fact that his licence has expired; and
(b) send a report to the Registrar stating the number of pawners whose pledges are still in his custody and particulars of such pledges.
(2) Any person who contravenes this section commits an offence.
Pawn premises to keep open after expiration of licence for redemption of pledges
(1) Upon the expiration or sooner determination of any licence the pawnbroker shall keep open the licensed premises daily from 8.00 a.m. to 6.00 p.m. for the redemption of pledges and for all purposes of this Act, except taking of pledge in pawn, shall continue to exercise the rights and privileges and be subject to the duties and liabilities of a licensee until the whole of the pledges held by him in pawn have been redeemed or the latest period of redemption for any of such pledges has expired.
(2) (a) Such pawnbroker may, with the written consent of the Registrar, enter into a contract with any person to undertake the duties and liabilities imposed and to exercise the rights and privileges conferred upon him by subsection (1) and, with such consent and upon such conditions as the Registrar may see fit to impose for the protection of pawners, may transfer to that person the possession of all pledges held by him in pawn, and that person shall thereafter be deemed to be the pawnbroker in respect thereof.
(b) (Deleted by Act 1209).
(3) A notice of every such transfer shall be posted on the premises of the transferor and the transferee and at every court-house, police station and district and land offices in the district in which the premises is situated. Such notice shall also be published in a newspaper to be approved by the Registrar.
(4) The Registrar may authorize the person to whom such transfer has been made to deal with the pledges held in pawn in any specified place other than the licensed premises, and to remove the pledges.
(5) Nothing in this section shall relieve the transferor from any liability under this Act for any act done or omitted to be done before the date of such transfer.
Registrar may issue order to licensee to deliver pledges, books and accounts on expiration of licenses, etc.
(1) Upon the expiration or sooner determination of any licence granted under this Act, the Registrar may, if he so thinks fit in the interest of the persons who have pledged articles with the licensee whose licence has expired or been determined, issue an order to the licensee to deliver up to an officer named in such order all pledges held in pawn by the licensee and all books and accounts kept by him in connection with his business of pawnbroking.
(2) Such officer may take possession of all the pledges, books and accounts and, if necessary, may enter upon the premises used by the licensee and take possession of all the pledges, books and accounts and may remove the same to a place of safety.
(3) Such officer shall hold the pledges subject to redemption in like manner in all respects as if the same were held by the licensee.
(4) Upon redemption of, or the expiration of the period of redemption for, all the pledges in pawn such officer shall, upon payment by the licensee of all reasonable expenses incurred, hand over to the licensee the amount of all sums received from pawners as payment of moneys borrowed and profit due and all the pledges which have not been redeemed within due term and all the books and accounts.
(5) Such officer may, with the written consent of the Registrar, enter into a contract with sureties with any person to hold the pledges upon the terms which he himself is entitled to hold them, as set out in the two preceding subsections, and may, subject to such terms, transfer the possession of the pledges, books and accounts to that person.
Book, account or document to be submitted
(1) Every pawnbroker shall submit to the Registrar—
(a) any book, account or document, including computerized data, which contains the pawnbroking transactions of the pawnbroker at his principal premises and at each of his other premises within such time as the Registrar may specify; and
(b) such other information as the Registrar may specify.
(2) Any information received from a pawnbroker under this section shall be treated as secret.
(3) Any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment not exceeding twelve months 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).
