Deposit Protection Act · 2023 Revised Edition · Part 4
28. Exemption from membership
Official textFrom Attorney General's Chambers, unchanged
A financial institution may apply in writing to the Minister to be exempted from the requirement under section 27(1) to be a member institution.
financial institution
“financial institution” means a bank licensed under section 4 or 23 of the Banking Order, 2006, an Islamic bank licensed under section 4 or 23 of the Islamic Banking Order, 2008 and a finance company licensed under section 3 of the Finance Companies Act;
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deposit protection
“deposit protection” means the protection provided to the depositors of a member institution in case of its failure to pay its deposits;
The Minister may, with the approval of His Majesty the Sultan and Yang Di-Pertuan, by notification published in the Gazette, exempt a financial institution referred to in subsection (1) from the requirement under section 27(1).
The Minister may require an applicant to furnish him with such information or documents as the Minister considers necessary in relation to the application.
Without prejudice to the generality of subsection (2), the
Minister shall, in determining whether to grant an exemption under subsection (2), have regard to —
the scope of deposit-taking business conducted by the financial institution in Brunei Darussalam; and
in the case of a financial institution which is incorporated in a jurisdiction other than Brunei Darussalam —
whether the deposits accepted by its branches and offices located within Brunei Darussalam are protected by a deposit protection scheme, or any other scheme of a similar nature, established and maintained in the jurisdiction in which the financial institution is incorporated (referred to in this section as the foreign deposit protection scheme); and
whether the scope and level of protection available to those deposits under the foreign deposit protection scheme, or any other scheme of a similar nature are not less than the scope and level of protection that would be available to the deposits under the scheme if those deposits were protected by the scheme.
The Minister may, by notice in writing, impose on an exempt member institution such conditions or restrictions relating to the exemption as the Minister may think fit.
member institution
“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
The Minister may at any time —
by notice in writing to an exempt member institution, add to, vary or revoke any existing condition or restriction imposed by the Minister under subsection (5); or
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by notice in writing impose such conditions or restrictions as the Minister may think fit on a class of exempt member institution.
An exempt member institution shall comply with all conditions or restrictions imposed on it under subsection (5) or (6), as the case may be.
Any exempt member institution which contravenes subsection (7) is guilty of an offence and liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine of $10,000 for every day or part thereof during which the offence continues after conviction.
Terms defined in s 2
deposit
Defined · s 2“deposit” means a deposit as defined in section 2(3) of the Banking Order, 2006, a deposit as defined in section 2(3) of the Islamic Banking Order, 2008 and a deposit as defined in section 2 of the Finance Companies Act, as the case may be;
deposit protection
Defined · s 2“deposit protection” means the protection provided to the depositors of a member institution in case of its failure to pay its deposits;
financial institution
Defined · s 2“financial institution” means a bank licensed under section 4 or 23 of the Banking Order, 2006, an Islamic bank licensed under section 4 or 23 of the Islamic Banking Order, 2008 and a finance company licensed under section 3 of the Finance Companies Act;
member institution
Defined · s 2“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
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Offences
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