Islamic Banking Act 1983 s 3
This legislation has been repealed. Do not cite it as law in force.
Text recovered by OCR from a scanned copy — section numbers and wording may be wrong. Check the official PDF on lom.agc.gov.my before citing.
s 3
(1) Islamic banking business shall not be transacted Islamic in Malaysia except by a company which is in the possession of a licence in writing from the Minister to be authorizing it to do so.
(2) A company which desires authority to carry on fslanec Islamic banking business in Malaysia shall apply in writing through the Central Bank to the Minister for a licence under this section and shall supply-
(a) a copy of the memorandum of association and articles of association or other instrument under which the company is incorporated, duly verified by a statutory declaration made by a senior officer of the company; and
(b) such other document or information as may be called upon by the Minister.
(3) Upon receiving an application under subsection
(2) the Central Bank shall consider the application and make a recommendation to the Minister stating whether a licence should be granted or not and the conditions, if any, to be attached to the licence.
(4) Upon receiving an application under subsection
(2) and the recommendation of the Central Bank under subsection (3), the Minister may, subject to section 4, grant a licence, with or without conditions, or refuse a licence.
(5) The Central Bank shall not recommend the grant of a licence, and the Minister shall not grant a licence, unless the Central Bank or the Minister, as the case may be, is satisfied-
(a) that the aims and operations of the banking. business which it is desired to carry on will not involve any element which is not approved by the Religion of Islam; and
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(b) that there is, in the articles of association of the bank concerned, provision for the establishment of a Syar'iah advisory bodylto advise the bank on the operations of its banking business in order to ensure that they do not involve any element which is not approved by the Religion esa) of Islam
(6) Any person who contravenes the provisions of this section shall be guilty of an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both such fine and imprisonment.
Malay text (authoritative)
(1) Perniagaan bank Islam tidak boleh diuruskan di Fank 1slan Malaysia melainkan oleh sesuatu syarikat yang me- diuruskan miliki suatu lesen secara bertulis daripada Menteri hanya olen yang membenarkannya berbuat demikian.
(2) Sesuatu syarikat yang berkehendakkan kuasa untuk menjalankan perniagaan bank Islam di Malaysia hendaklah memohon secara bertulis kepada Menteri melalui Bank Negara bagi suatu lesen di bawah seksyen ini dan hendaklah mengemukakan—
(a) suatu salinan memorandum persatuan dan artikel persatuan atau suratcara lain yang di bawahnya syarikat itu diperbadankan, diverifikasikan dengan sewajarnya melalui akuan berkanun yang dibuat oleh seorang pegawai kanan syarikat; dan
(b) apa-apa dokumen atau maklumat lain yang diminta oleh Menteri.
(3) Apabila menerima sesuatu permohonan di bawah subseksyen (2) Bank Negara hendaklah menimbangkan permohonan itu dan membuat syor kepada Menteri menyatakan sama ada suatu lesen patüt diberi atau tidak, dan syarat-syarat, jika ada, yang akan dıkenakan kepada lesen itu.
(4) Apabila menerima sesuatu permohonan di bawah subseksyen (2) dan syor Bank Negara di bawah subseksyen (3), Menteri boleh, tertakluk kepada seksyen 4, memberi suatu lesen, dengan syarat atau tanpa syarat, atau enggan memberi suatu lesen. . -
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(5) Bank Negara tidak boleh mengesyorkan pemberian lesen, dan Menteri tidak boleh memberi suatu lesen, melainkan Bank Negara atau Menteri, mengikut mana yang berkenaan, berpuas hati-.
(a) bahawa tujuan dan pengendalian perniagaan bank yang dia berhasrat menjalankan itu tidak akan melibatkan apa-apa elemen yang tıdak diluluskan oleh Agama Islam; dan
(b) bahawa ada terdapat, dalam artikel persatuan bank yang berkenaan, peruntukan bagi penubuhan suatu badan penasihat Syar'iah untuk menasihatkan bank mengenai pengendalian perniagaan banknya untuk menjamin ianya tidak melibatkan apa-apa elemen yang tidak diluluskan oleh Agama Islam.
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(6) Seseorang melanggar peruntukan-peruntukan seksyen ini adalah melakukan suatu kesalahan dan apabila disabitkan boleh dikenakan denda tidak lebih daripada dua puluh ribu ringgit atau penjara selama suatu tempoh tidak lebih daripada tiga tahun atau denda dan penjara itu kedua-duanya. Menteri
Read this section in the full act → · Open Part II →
Find Act 276 on lom.agc.gov.my ↗
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).
