Islamic Banking Act · 2024 Revised Edition · Part · Prohibited Business
37. Restrictions on commercial investment etc.
Official textFrom Attorney General's Chambers, unchanged
Subject to subsection (2), an Islamic bank incorporated or registered in Brunei Darussalam shall not acquire or hold any part of the share capital of, or otherwise have an interest in, any financial, commercial, agriculture, industrial or other undertaking exceeding in the aggregate 10 per cent of the Islamic bank’s capital funds or such other percentage as the Authority may allow after taking into consideration the nature and modalities of Islamic banking business.
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;
Islamic Banking
This section does not apply with respect to —
any shareholding approved in writing by the Authority in another Islamic bank or in a subsidiary undertaking of the
Islamic bank concerned formed for the carrying out of nominee, executor or trustee functions or other functions incidental to Islamic banking business;
any shareholding approved by the Authority in any company set up for the purpose of the promotion of development in
Brunei Darussalam; or
any shareholding which the Islamic bank acquires in the course of the satisfaction of any debt due to it, but where an Islamic bank acquires a shareholding as mentioned in paragraph (c) and, but for this subsection, that shareholding would be in breach of subsection (1), the shareholding shall be reported to the Authority and disposed of as soon as practicable.
An Islamic bank which contravenes any provision of this section is guilty of an offence and liable on conviction to a fine not exceeding $150,000.
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;
company
Defined · s 2“company” means a body corporate incorporated or registered in Brunei Darussalam under the Companies Act;
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;
Islamic banking business
Defined · s 2“Islamic banking business” means business whose aims and operations are not contrary to Hukum Syara’ and which consists of receiving of deposits or other repayable funds from the public, paying or collecting cheques drawn by or paid in by customers, the granting of financing facilities to customers, and includes such other business as the Authority may authorise for the purposes of this Act;
share
Defined · s 2“share”, in relation to an institution, means a share in the share capital of that institution and includes an interest in such share;
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