Main Category

• Library > Legal Subjects > Banking and Financial Law

Related Category

• Library > Legal Subjects > Litigation > Civil Matters

Related Topics

• Banking and Financial Legalese (Terms)
• Buying on Hire Purchase
• Commodities
• Danaharta Act
• Exchange Control Rules
• Offshore Banking
• Securities

WHO IS PERMITTED TO CARRY ON BANKING, FINANCE COMPANY, DISCOUNT HOUSE OR MONEY-BROKING BUSINESS IN MALAYSIA ?

The banking, finance company, merchant banking, discount house and money-broking businesses must be carried on only under a valid license issued by the Minister of Finance.

Only public companies can apply for license to carry on

• banking, finance company, merchant banking or discount house business.

Whereas only a corporation is eligible to apply for license to carry on

• money-broking business.

I RECEIVE AN UNSOLICITED CALL FROM A BANK SOLICITING DEPOSIT FROM ME. IS THIS LEGAL ?

No.

Unsolicited call means personal visit or oral communication made without express invitation.

Unless it is with the written consent of the Central Bank of Malaysia, no person shall make an unsolicited call to

• solicit or procure the making of a deposit or
• enter into or offer to enter into any agreement with a view to the acceptance of a deposit

from any person in Malaysia or outside Malaysia.

The intention of this provision under Section 26 of the Banking and Financial Institutions Act 1989 is to stem "illegal deposit-taking activities".

This section is frequently breached by marketing officers.