Islamic Banking Act · 2024 Revised Edition · Part · Prohibited Business
39. Restrictions on acquisition of immovable property
Official textFrom Attorney General's Chambers, unchanged
Subject to subsection (2), an Islamic bank shall not acquire any immovable property wherever situated or interest therein such that the aggregate value of such property and interests held by the Islamic bank exceeds 20 per cent of the capital funds of the Islamic bank or such other percentage as the Authority may allow.
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;
For the purposes of determining the aggregate value of the interest in or rights over immovable property referred to in subsection (1), there shall be excluded such portion of the value as may be attributable to the following —
any interest in or right over immovable property or any part thereof used for the purpose of conducting the business of the Islamic bank in Brunei Darussalam or housing or providing amenities for its officers;
any interest in or right over immovable property held by way of security for the purposes of a transaction entered into in the ordinary course of the business of the Islamic bank in
Brunei Darussalam;
any interest in or right over immovable property held by way of enforcement of such security referred to in paragraph (b) provided that it is disposed of as soon as practicable; and
such other interest in or rights over immovable property as the Authority may allow after taking into consideration the nature and modalities of Islamic banking business.
Islamic Banking
The Authority may provide for the manner of valuation of immovable property for the purposes of this section.
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Any Islamic bank which contravenes 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;
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;
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