Banking Act · s 8

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8.
Criteria for granting and refusing licences
(1) In considering whether to grant a licence, the Authority shall have regard to —
(a) the need to protect the public interest or the interests of depositors, customers, other creditors and potential depositors, customers and other creditors; and
(b) the need to protect the security, reputation and economic interests of Brunei Darussalam in relation to financial matters.
(2) Without prejudice to the generality of subsection (1), the Authority shall not grant a licence unless the Authority is satisfied that —
(a) the applicant enjoys a high reputation in the financial community or will be able to do so if a licence is granted;

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(b) every person who is to be a director, controller or manager of the business is a fit and proper person to hold that position;
(c) the applicant will carry on banking business in
Brunei Darussalam and, in carrying on the business, will at all times maintain adequate accounting and other records and adequate systems of control of its business and records;
(d) in the case of a bank whose head office is proposed to be situated in Brunei Darussalam, its capital issued and paid up is not less than $100,000,000, deduction having been made in respect of a debit balance, if any, appearing in the profit and loss account of the bank; and
(e) in the case of a bank whose head office is situated outside
Brunei Darussalam —
(i) its capital issued and paid up is not less than the equivalent of $1,000,000,000 deduction having been made in respect of a debit balance, if any, appearing in the profit and loss account of the bank;
(ii) it holds net head office funds of not less than
$30,000,000
in respect of its business in
Brunei Darussalam, at all times, in the form of assets approved by the Authority.
(3) In determining for the purposes of subsection (2)(b), whether a person is a fit and proper person to hold any position, regard shall be had to —
(a) his probity;
(b) his competence and soundness of judgment for fulfilling the responsibilities of position including, without limitation, the due diligence he is likely to conduct and fulfil —
(i) in respect of customers, based on the principle of
“know the client”; and
(ii) in respect of the sources, destination and application of customer funds; and

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(c) whether the public interest, the interests of potential depositors, investors, customers and parties or the reputation of
Brunei Darussalam are, or are likely to be, in any way prejudiced by his holding that position, and, without prejudice to the generality of this section, regard may be had to his education, experience, record, conduct and activities in business or financial matters.
(4) Without prejudice to the generality of subsections (1) and (2), the
Authority shall not grant a licence to an applicant if it appears to the
Authority that —
(a) the applicant is an institution which is closely linked with any person; and
(b) the applicant’s close links with that person or any matter relating to any laws of any jurisdiction outside Brunei Darussalam or administrative provisions to which that person is subject are such as would (were a licence to be granted to the applicant) prevent the effective exercise by the Authority of the Authority’s supervisory functions in relation to the applicant.
(5) For the purposes of subsection (4), an applicant is closely linked with —
(a) any person who is or, if he were an undertaking, would be its parent undertaking;
(b) any undertaking which is a subsidiary undertaking of the applicant;
(c) any undertaking which is or, if any person falling within paragraph (a) were an undertaking, would be a fellow subsidiary undertaking; and
(d) any person in accordance with whose directions or instructions the directors of the applicant are accustomed to act, and any reference to the applicant’s close links with any person shall be construed accordingly.

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(6) Notwithstanding anything in the preceding provisions of this section, a bank shall not be granted or hold a licence if the Authority is satisfied that 50 per cent or more of its capital issued and paid-up is owned by or on behalf of the government of any country or territory other than
Brunei Darussalam or of an agency of any such government, or that all or a majority of the persons having the directions, control or management of the bank are appointed by or on behalf of any such government or agency:
Provided that the Authority may, in its absolute discretion, grant a licence to any such bank for such period not exceeding one year at any time as the
Authority may think fit.

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s 8Criteria for granting and refusing licences

(1)

In considering whether to grant a licence, the Authority shall have regard to —

(a)

the need to protect the public interest or the interests of depositors, customers, other creditors and potential depositors, customers and other creditors; and

(b)

the need to protect the security, reputation and economic interests of Brunei Darussalam in relation to financial matters.

(2)

Without prejudice to the generality of subsection (1), the Authority shall not grant a licence unless the Authority is satisfied that —

(a)

the applicant enjoys a high reputation in the financial community or will be able to do so if a licence is granted;

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(b)

every person who is to be a director, controller or manager of the business is a fit and proper person to hold that position;

(c)

the applicant will carry on banking business in

Brunei Darussalam and, in carrying on the business, will at all times maintain adequate accounting and other records and adequate systems of control of its business and records;

(d)

in the case of a bank whose head office is proposed to be situated in Brunei Darussalam, its capital issued and paid up is not less than $100,000,000, deduction having been made in respect of a debit balance, if any, appearing in the profit and loss account of the bank; and

(e)

in the case of a bank whose head office is situated outside

Brunei Darussalam —

(i)

its capital issued and paid up is not less than the equivalent of $1,000,000,000 deduction having been made in respect of a debit balance, if any, appearing in the profit and loss account of the bank;

(ii)

it holds net head office funds of not less than

$30,000,000

in respect of its business in

Brunei Darussalam, at all times, in the form of assets approved by the Authority.

(3)

In determining for the purposes of subsection (2)(b), whether a person is a fit and proper person to hold any position, regard shall be had to —

(a)

his probity;

(b)

his competence and soundness of judgment for fulfilling the responsibilities of position including, without limitation, the due diligence he is likely to conduct and fulfil —

(i)

in respect of customers, based on the principle of

“know the client”; and

(ii)

in respect of the sources, destination and application of customer funds; and

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(c)

whether the public interest, the interests of potential depositors, investors, customers and parties or the reputation of

Brunei Darussalam are, or are likely to be, in any way prejudiced by his holding that position, and, without prejudice to the generality of this section, regard may be had to his education, experience, record, conduct and activities in business or financial matters.

(4)

Without prejudice to the generality of subsections (1) and (2), the

Authority shall not grant a licence to an applicant if it appears to the

Authority that —

(a)

the applicant is an institution which is closely linked with any person; and

(b)

the applicant’s close links with that person or any matter relating to any laws of any jurisdiction outside Brunei Darussalam or administrative provisions to which that person is subject are such as would (were a licence to be granted to the applicant) prevent the effective exercise by the Authority of the Authority’s supervisory functions in relation to the applicant.

(5)

For the purposes of subsection (4), an applicant is closely linked with —

(a)

any person who is or, if he were an undertaking, would be its parent undertaking;

(b)

any undertaking which is a subsidiary undertaking of the applicant;

(c)

any undertaking which is or, if any person falling within paragraph (a) were an undertaking, would be a fellow subsidiary undertaking; and

(d)

any person in accordance with whose directions or instructions the directors of the applicant are accustomed to act, and any reference to the applicant’s close links with any person shall be construed accordingly.

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(6)

Notwithstanding anything in the preceding provisions of this section, a bank shall not be granted or hold a licence if the Authority is satisfied that 50 per cent or more of its capital issued and paid-up is owned by or on behalf of the government of any country or territory other than

Brunei Darussalam or of an agency of any such government, or that all or a majority of the persons having the directions, control or management of the bank are appointed by or on behalf of any such government or agency:

Provided that the Authority may, in its absolute discretion, grant a licence to any such bank for such period not exceeding one year at any time as the

Authority may think fit.