Islamic Banking Act · s 48

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48.
Recommendations concerning financing and investments
(1) In respect of financing facilities or investments of
Islamic banks the Authority, may, after taking into consideration the nature and modalities of Islamic banking business, make recommendations to the
Islamic banks in respect of the following —
(a) the purposes for which financing facilities or investments may or may not be granted or made;
(b) the maximum maturities or, in the case of financing facilities, the type and minimum amount of security which shall be required and, in the case of letters of credit, the minimum or margin deposit;
(c) the limits for any description of financing facilities or investments or for the total amount outstanding in respect of any description of financing facilities or investments.
(2) Any recommendation made under subsection (1) applies uniformly to all Islamic banks engaging in the transactions covered by the recommendations.
(3) Where the Authority has made a recommendation under subsection (1) and either —
(a) no notice of objection is made under subsection (4); or
(b) such a notice is given but representations are not made in accordance with that subsection, the Authority may issue a direction in writing to each licensed Islamic bank on any of the matters referred to in subsection (1) requiring that effect be given to the recommendation within such time as is specified in the direction.
(4) Where the Authority has made a recommendation under subsection (1), the Islamic bank generally or any one of them may, within 14 days of the receipt of the recommendation, give the Authority notice in writing of objection to the recommendation; and where such a notice is given, the Islamic bank concerned shall be entitled, within one month of the notice, to make representations in writing to the Authority setting out the reasons for the objection.

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(5) Upon receipt of any representations under subsection (4), the
Authority shall consider them and may —
(a) reject the representations; or
(b) amend or modify the recommendation in accordance with the representations, or otherwise, and, in either event, the Authority shall thereupon issue a direction in writing to each Islamic bank requiring that, within such time as is specified in the direction, effect be given to the original recommendation or, as the case may be, to the recommendation as subsequently amended or modified by the
Authority.
(6) Any Islamic bank which fails to comply with a direction under subsection (3) or (5), is guilty of an offence and liable on conviction to a fine not exceeding $150,000.

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s 48Recommendations concerning financing and investments

(1)

In respect of financing facilities or investments of

Islamic banks the Authority, may, after taking into consideration the nature and modalities of Islamic banking business, make recommendations to the

Islamic banks in respect of the following —

(a)

the purposes for which financing facilities or investments may or may not be granted or made;

(b)

the maximum maturities or, in the case of financing facilities, the type and minimum amount of security which shall be required and, in the case of letters of credit, the minimum or margin deposit;

(c)

the limits for any description of financing facilities or investments or for the total amount outstanding in respect of any description of financing facilities or investments.

(2)

Any recommendation made under subsection (1) applies uniformly to all Islamic banks engaging in the transactions covered by the recommendations.

(3)

Where the Authority has made a recommendation under subsection (1) and either —

(a)

no notice of objection is made under subsection (4); or

(b)

such a notice is given but representations are not made in accordance with that subsection, the Authority may issue a direction in writing to each licensed Islamic bank on any of the matters referred to in subsection (1) requiring that effect be given to the recommendation within such time as is specified in the direction.

(4)

Where the Authority has made a recommendation under subsection (1), the Islamic bank generally or any one of them may, within 14 days of the receipt of the recommendation, give the Authority notice in writing of objection to the recommendation; and where such a notice is given, the Islamic bank concerned shall be entitled, within one month of the notice, to make representations in writing to the Authority setting out the reasons for the objection.

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(5)

Upon receipt of any representations under subsection (4), the

Authority shall consider them and may —

(a)

reject the representations; or

(b)

amend or modify the recommendation in accordance with the representations, or otherwise, and, in either event, the Authority shall thereupon issue a direction in writing to each Islamic bank requiring that, within such time as is specified in the direction, effect be given to the original recommendation or, as the case may be, to the recommendation as subsequently amended or modified by the

Authority.

(6)

Any Islamic bank which fails to comply with a direction under subsection (3) or (5), is guilty of an offence and liable on conviction to a fine not exceeding $150,000.