18. Prior notification of ceasing to be relevant controller

(1)

A person shall not cease to be an indirect, 10 per cent,

20 per cent, 33 per cent or majority controller (as defined in Part 2

of Schedule 1) of an Islamic bank unless he has first given to the Authority written notice of his intention to cease to be such a controller of the

Islamic bank.

(2)

If, after ceasing to be such a controller of an Islamic bank, a person will, either alone or with any associate or associates —

(a)

still hold 10 per cent or more of the shares in the

Islamic bank or in another body of which the Islamic bank is a subsidiary undertaking;

(b)

still be entitled to exercise or control the exercise of 10 per cent or more of the voting power at any general meeting of the Islamic bank or of another such other body; or

(c)

still be able to exercise a significant influence over the management of the Islamic bank or of another such body by virtue either of a holding of shares in the Islamic bank or in the other body or of an entitlement to exercise, or control the exercise of, the voting power at a general meeting of the Islamic bank or the other body, his notice under subsection (1) shall state the percentage of the shares or voting power which (alone or with any associate) he will hold or be entitled to exercise or control.

(3)

Subject to subsection (4), a person who contravenes subsection (1) or (2) is guilty of an offence.

(4)

Subject to subsection (5), a person is not guilty of an offence under subsection (3) if he shows that he did not know of the acts or circumstances by virtue of which he ceased to be controller of the relevant description in sufficient time to enable him to comply with subsection (1).

Islamic Banking 30

(5)

Notwithstanding anything in subsection (4), a person who ceases to be a controller of a relevant description without having complied with subsection (1) is guilty of an offence if, within 14 days of becoming aware of the fact that he has ceased to be such a controller, he fails to give the

Authority a written notice of that fact complying with subsection (2).

(6)

Any person in contravention of this section is guilty of an offence and liable on conviction to a fine not exceeding $100,000.

Terms defined in s 2

Part 7

Reserve Funds, Dividends, Balance Sheets and Information

Prohibited Business

Minimum Assets Requirements

Powers of Control Over Islamic Banks

Overseas Branches and Representative Offices of Domestic Islamic Banks

Unclaimed Balances

Invitations to Make Deposits

General

Schedules