International Banking Order, 2000 · As enacted
23. Regulatory powers of the Authority
Official textFrom Attorney General's Chambers, unchanged
If the Authority is satisfied that a licensee -
the Authority
"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;
{a)
has ceased to carry on internatioal banking business;
banking business
"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; 1043 29th. JUNE, 2000
{b)
has gone into liquidation, is wound up or in the process of being wound up or is otherwise dissolved;
{c)
has made an arrangement or composition with its creditors;
{d)
is unable or appears likely to become unable to meet its obligations as they fall due;
{e)
is carrying on business in a manner detrimental to the public interest, the interests of its depositors or other creditors its customers or persons conducting transactions with it;
{f)
has failed to comply with any condition of its licence;
{g)
has failed to pay any fee due under this Order or has otherwise contravened any provision of this Order; or
{h) has surrendered, had revoked or had suspended a banking licence in any other jurisdiction in circumstances which affect, or are likely to affect, the licensee's compliance with the criteria specified in section 5, the Authority may take any one or more of the courses of action specified in subsection (2).
licensee
"licensee" means a bank which is for the time being the holder of a licence;
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The courses of action referred to in subsection (1) are-
{a) the revocation of the licence;
the imposition of varied or additional conditions on the licence;
{c)
the substitution of any director or officer of the licensee;
{d)
the appointment, at the expense of the licensee, of a person to advise the licensee on the proper conduct of its affairs and to report to the Authority thereon within three months of his appointment;
{e)
the appointment, at the expense of the licensee, of a person to assume control of the licensee's affairs, being a person who shall have, mutatis mutandis, all the powers of a person appointed as a receiver or manager of a company under the International Business
Companies Order, 2000 of the Companies Act (Chapter 39);
{f) where the licensee is incorporated under the laws of jurisdiction other than Brunei Darussalam, at the expense of the licensee to take such advice and steps in such jurisdiction as may be appropriate having regard to the needs specified in subsections 5(1)(a) and 5(1)(b), including the investigation of winding-up liquidation or analagous procedures or proceedings; and
to require the licensee to take such other action as the Authority considers necessary.
Before taking any of the courses of action specified in subsection (2), the
Authority shall give the licensee an opportunity to make representations why the course of action in question should not be taken; and, whether or not such representations are made, if the Authority does take a course of action under subsection (2), the licensee may appeal to the High Court against the taking of the action.
A person appointed under paragraph (d) or paragraph (e) of subsection
(in the following provisions of this section referred to an 11appointee") shall from time to time and in any case within three months of his appointment or, as the case may be, the extension of his appointment under subsection (5), prepare and furnish a report to the Authority on the affairs of the licensee and may make recommendations therein.
On receipt of a report under subsection (4), the Authority may -
revoke the appointment of the appointee;
extend the period of the appointee's appointment;
subject to any condition which the Authority may impose, allow the licensee to reorganise its affairs in a manner approved by the
Authority;
revoke the licence and request the Attorney General to apply to the
High Court for an order that the licensee be wound up in accordance with Part V of the Companies Act (Chapter 39), either by the Court or subject to the supervision of the Court (and in this subsection "the Court" has the same meaning as in that Act).
In the case of a licensee which is an international business company, the reference in subsection (5)(d) to Part V of the Companies Act (Chapter 391, is a reference to that Part as it applies to such a company by virtue of the International
international business company
"international business company" has the same meaning. as in the International Business Companies Order, 2000;
Business Companies Order, 2000.
Whenever the Authority revokes a licence under subsection (2J(a} or subsection (5)(dJ, it shall cause notice of the revocation to be published in the
Gazette and may also cause notice to be published, whether within Brunei 1066
Darussalam or elsewhere, in such newspaper or other publication as he may think fit in the circumstances.
Terms defined in s 2
banking business
Defined · s 2"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; 1043 29th. JUNE, 2000
director
Defined · s 2"director" includes any person occupying the position of director of a comp{lny, by whatever name called, and includes an alternate or substitute director;
international business company
Defined · s 2"international business company" has the same meaning. as in the International Business Companies Order, 2000;
licensee
Defined · s 2"licensee" means a bank which is for the time being the holder of a licence;
the Authority
Defined · s 2"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;