International Banking Order, 2000 · As enacted · Part I · Preliminary
2. Interpretation
Official textFrom Attorney General's Chambers, unchanged
( 1)
In this Order, unless the context otherwise requires -
"the Authority" means such person or body as is appointed by His
Majesty the Sultan and Yang Di-Pertuan to be the Authority for the purposes of this Order;
"bank" means an institution which carries on banking business; and for the purposes of this Order includes all branches and offices in Brunei
Darussalam of such an institlltion;
"banking business", in relation to an institution, includes the taking of deposits from the public in the form of current or savings accounts and the granting of credits, and without limitation includes the issue of credit cards, money collections and transmissions, foreign exchange transactions, the issue of guarantees, trade finance, development finance and sectoral credits, consumer credit, investment banking and Islamic banking business, broking and risk management services whether such business is in any case conducted by conventional practices or using
Internet or other electronic technology and includes electronic banking;
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"broking and risk management services" means on own or customers account in, from or within Brunei Darussalam trading in stocks, shares and securities undertaking money market, financial futures and options and foreign exchange transactions, interest rate transactions dealings in transferable securities of any description derivative instruments or derivative financial instruments or any risk management activities;
"capital funds" means paid-up capital and reserves and any other sources of capital as may be prescribed;
"controller" and references to different descriptions of controller shall be construed in accordance with Part I of the First Schedule;
"deposit" shall be construed in accordance with subsections (2) and (3),
"deposit liability" means liability in respect of a deposit (as so construed), and "depositor" and related expressions shall be construed accordingly;
"director" includes any person occupying the position of director of a comp{lny, by whatever name called, and includes an alternate or substitute director;
"foreign international company" means a body corporate, however constituted, under the law of a country or territory outside Brunei
Darussalam and duly registered under Part XI of the International
Business Companies Order, 2000;
"full", "investment", "Islamic" and "restricted", in relation to a licence, shall be construed in accordance with section 7;
"institution" means a company incorporated or registered under the
Companies Act (Chapter 39), an international business company or a foreign international company;
"international banking business" shall be construed in accordance with subsection (4);
"international business company" has the same meaning . as in the
International Business Companies Order, 2000;
"international investment banking business" means the business of
{a) providing consultancy and advisory services relating to corporate and investment matters, industrial strategy and related questions, and advice and services relating to mergers and restructuring and acquisitions, or making and managing investments on behalf of any person;
providing credit facilities including guarantees and commitments;
participation in stock, or share issues and the provision of services relating thereto; or
the arangement and underwriting of debt and equity issues.
"international Islamic banking business 11
shall be construed in accordance with subsection (5);
"international limited partnership" has the same meaning as in the
International Limited Partnerships Order, 2000;
"international trust" has the same meaning as in the International Trusts
Order, 2000;
"Islamic banking business 11 means banking business whose aims and operations do not involve any element which is not approved by the
Islamic Religion;
"licence" means a licence granted under section 6;
"licensee" means a bank which is for the time being the holder of a licence;
"minimum amount" means such amount of capital funds to be maintained by licensee as may be prescribed;
"the Minister" means the Minister of Finance;
"place of business", in relation to an institution, includes a head or main office, a branch, an agency, a representative office and any other office or place used by the institution (including one used only for a limited period) for the conduct of banking business;
"prescribed" means prescribed by regulations under section 31;
"written law" includes all Acts, Enactments and Proclamations, and subsidiary legislation, or any part thereof, but does not include any Act of Parliament not any Order of Her Britannic Majesty in Council, Royal
Charter or Royal Letter Patent nor any law which no authority in Brunei
Darussalam is empowered to amend;
{2)
Subject to subsection (3}, in this Order a "deposit" is a sum of money paid on terms under which it will be repaid (with or without interest margin, yield, mark·up or premium}. and either on demand or on such terms at such time 1044
or in such circumstances agreed by or on behalf of the person making the payment and the person receiving it.
Notwithstanding subsection (2}, a sum of money is not a deposit if~
{a} it is paid by way of advance or part payment for the sale, hire or other provision of property or services and is repayable only in the event that the property ot those services is or are not in fact sold, hired or otherwise provided;
it is paid by way of security for payment for the prov1s1on of property or services provided or to be provided by the person by whom or on whose behalf the money is accepted;
{c) it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or in any other manner;
{d)
it is a sum of money that is a loan made by a person in the course of a business of lending money carried on by him, to any other person, except a licensee or a bank which is licensed under the Banking Act
(Chapter 95) or the Islamic Banking Act (Chapter 168); or
it is a sum of money that is paid by one institution to another at a time when one of them is a subsidiary or affiliate of the other or both are subsidiaries or affiliation of another institution in terms of the definition of subsidiary, parent, holding an affiliate institutions set forth in Part II of the First Schedule.
For the purposes of this Order, "international banking business" is banking business which does not (except with the prior written consent of the Minister in each case given on such conditions as he considers desirable)
involve-
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taking deposits from, leading money to or otherwise conducting banking business with any person resident in Brunei Darussalam, other than-
a licensee;
an international business company;
a foreign international company;
an international limited partnership;
an international trust; or
BRUNEI DARUSSALAM GOVERNMENT GAZETTE lvi)
a person licensed under the Registered Agents and Trustees
Licensing Order, 2000; or
making available accounts denominated in, lending money in or otherwise conducting banking business in the currency of Brunei
Darussalam.
(a}
For the purposes of this Order, "international Islamic banking business" is international banking business conducted by an institution which may be foreign-owned or controlled but whose aims or operations shall not be detrimental to the interests of
Islamic banking business.