Islamic Banking Act · s 24

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24.
Maintenance of reserve fund
(1) Every Islamic bank shall —
(a) maintain a reserve fund; and
(b) transfer to that reserve fund out of the net profits of each year, after due provision has been made for zakat and taxation, a sum determined as follows —

Islamic Banking
(i) so long as the amount of the reserve fund is less than 50 per cent of the paid-up capital, the sum shall not be less than 50 per cent of those net profits;
(ii) so long as the amount of the reserve fund is 50 per cent or more but less than 100 per cent of the paid-up capital, the sum shall not be less than 25 per cent of those net profits; and
(iii) so long as the amount of the reserve fund is 100 per cent or more of the paid-up capital, the sum shall not be less than 5 per cent of those net profits.
(2) If the Authority is satisfied that the aggregate reserve fund of an
Islamic bank whose head office is situated outside Brunei Darussalam is adequate for its business, the Authority may, by order in writing, exempt that
Islamic bank from the provisions of subsection (1) for such period as the
Authority thinks fit.
(3) Any Islamic bank which fails to comply with the provisions of subsection (1) 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 not exceeding $10,000 for every day during which the offence continues after conviction.

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s 24Maintenance of reserve fund

(1)

Every Islamic bank shall —

(a)

maintain a reserve fund; and

(b)

transfer to that reserve fund out of the net profits of each year, after due provision has been made for zakat and taxation, a sum determined as follows —

Islamic Banking

(i)

so long as the amount of the reserve fund is less than 50 per cent of the paid-up capital, the sum shall not be less than 50 per cent of those net profits;

(ii)

so long as the amount of the reserve fund is 50 per cent or more but less than 100 per cent of the paid-up capital, the sum shall not be less than 25 per cent of those net profits; and

(iii)

so long as the amount of the reserve fund is 100 per cent or more of the paid-up capital, the sum shall not be less than 5 per cent of those net profits.

(2)

If the Authority is satisfied that the aggregate reserve fund of an

Islamic bank whose head office is situated outside Brunei Darussalam is adequate for its business, the Authority may, by order in writing, exempt that

Islamic bank from the provisions of subsection (1) for such period as the

Authority thinks fit.

(3)

Any Islamic bank which fails to comply with the provisions of subsection (1) 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 not exceeding $10,000 for every day during which the offence continues after conviction.