Banking Act · s 37

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37.
Restrictions on commercial investment etc.
(1) Subject to subsection (2), a bank incorporated or registered in
Brunei Darussalam shall not acquire or hold any part of the share capital of, or otherwise have an interest in, any financial, commercial, agriculture, industrial or other undertaking exceeding in the aggregate 10 per cent of the bank’s capital funds or such other percentage as the Authority may allow.
(2) This section does not apply with respect to —
(a) any shareholding approved in writing by the Authority in another bank or in a subsidiary undertaking of the bank concerned formed for the carrying out of nominee, executor or trustee functions or other functions incidental to banking business;
(b) any shareholding approved by the Authority in any company set up for the purpose of the promotion of development in
Brunei Darussalam; or
(c) any shareholding which the bank acquires in the course of the satisfaction of any debt due to it, but where a bank acquires a shareholding as mentioned in paragraph (c) and, but for this subsection, that shareholding would be in breach of subsection (1), the shareholding shall be reported to the Authority and disposed of as soon as practicable.
(3) A bank which contravenes any of the provisions of this section is guilty of an offence and liable on conviction to a fine not exceeding $150,000.

Banking 48

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s 37Restrictions on commercial investment etc.

(1)

Subject to subsection (2), a bank incorporated or registered in

Brunei Darussalam shall not acquire or hold any part of the share capital of, or otherwise have an interest in, any financial, commercial, agriculture, industrial or other undertaking exceeding in the aggregate 10 per cent of the bank’s capital funds or such other percentage as the Authority may allow.

(2)

This section does not apply with respect to —

(a)

any shareholding approved in writing by the Authority in another bank or in a subsidiary undertaking of the bank concerned formed for the carrying out of nominee, executor or trustee functions or other functions incidental to banking business;

(b)

any shareholding approved by the Authority in any company set up for the purpose of the promotion of development in

Brunei Darussalam; or

(c)

any shareholding which the bank acquires in the course of the satisfaction of any debt due to it, but where a bank acquires a shareholding as mentioned in paragraph (c) and, but for this subsection, that shareholding would be in breach of subsection (1), the shareholding shall be reported to the Authority and disposed of as soon as practicable.

(3)

A bank which contravenes any of the provisions of this section is guilty of an offence and liable on conviction to a fine not exceeding $150,000.

Banking 48