Islamic Banking Act · 2024 Revised Edition · Part · Reserve Funds, Dividends, Balance Sheets and Information
24. Maintenance of reserve fund
Official textFrom Attorney General's Chambers, unchanged
Every Islamic bank shall —
Islamic bank
“Islamic bank” means a company which carries on Islamic banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
maintain a reserve fund; and
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
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;
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
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.
If the Authority is satisfied that the aggregate reserve fund of an
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
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.
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.
Terms defined in s 2
Authority
Defined · s 2“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Islamic bank
Defined · s 2“Islamic bank” means a company which carries on Islamic banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
Part
Prohibited Business
Part
Minimum Assets Requirements
Part
Powers of Control Over Islamic Banks
Part
Overseas Branches and Representative Offices of Domestic Islamic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part