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Islamic Banking Act · s 66

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s 66Notices to Islamic banks

(1)

The Authority may, if it appears to the Authority to be necessary or expedient in the public interest or the interest of the Islamic banking system, by notice in writing to Islamic banks give directions or impose

Islamic Banking requirements on or relating to the operations and activities of and standards to be maintained by Islamic banks.

(2)

Without prejudice to the generality of subsection (1), any notice under that subsection may be given in respect of —

(a)

the revaluation of the assets of Islamic banks;

(b)

the maintenance of credit files of customers and the grading of financing;

(c)

the prohibition or control of the sale of commemorative coins or medals;

(d)

the deposit of specified securities with authorised depositaries;

(e)

the issue of Brunei Darussalam dollar negotiable certificates of deposit;

(f)

prior notification to the Authority of changes in profit margins of Islamic banks;

(g)

restrictions on the granting of Brunei Darussalam dollar financing facilities in whatever form or by whatever means to residents of Brunei Darussalam where such facilities are to be used outside Brunei Darussalam, or to non-residents;

(h)

the appointment of directors, chief and deputy chief executive officers and other principal officers of a bank;

(i)

the maintenance of a register of dealers of an Islamic bank;

(j)

the terms and conditions for the operation of an

Islamic bank’s current and other accounts with the Authority;

(k)

the manner in which an Islamic bank conducts its dealings with its customers, the procedures for the reporting of transactions between an Islamic bank and its employees, and conflicts of interest involving an Islamic bank and its employees or involving an

Islamic bank and its customers;

Islamic Banking 78

(l)

the maximum aggregate permissible percentage holdings by any class, category or description of persons of interests in shares of an Islamic bank incorporated in Brunei Darussalam;

(m)

the limits of the total amount of foreign exchange transactions which an

Islamic bank incorporated in

Brunei Darussalam may undertake and for this purpose the limits may be applied uniformly to all such Islamic banks or separate limits may be determined for any particular Islamic bank incorporated in

Brunei Darussalam or for two or more of such Islamic banks;

(n)

the opening of new branches of an Islamic bank and the change of location of any place of business of an Islamic bank;

(o)

the installation of automated teller machines by an

Islamic bank;

(p)

the provision for and the writing-off of bad financing;

(q)

any audit of a Brunei Darussalam branch of an Islamic bank by an internal auditor from its head office which is outside

Brunei Darussalam;

(r)

the forms, returns and submissions of statistics for the purposes of this Act.

(3)

Every Islamic bank shall comply with any direction given or requirement imposed by any notice under this section.