Islamic Banking Act · 2024 Revised Edition · Part · Powers of Control Over Islamic Banks
48. Recommendations concerning financing and investments
Official textFrom Attorney General's Chambers, unchanged
In respect of financing facilities or investments of
financing facilities
“financing facilities” means — (a) the granting of financing and other facilities whereby a customer of the Islamic bank has access to funds or financial guarantees; or (b) the incurring by an Islamic bank of other liabilities on behalf of the customer;
Islamic banks the Authority, may, after taking into consideration the nature and modalities of Islamic banking business, make recommendations to the
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Islamic banks in respect of the following —
the purposes for which financing facilities or investments may or may not be granted or made;
the maximum maturities or, in the case of financing facilities, the type and minimum amount of security which shall be required and, in the case of letters of credit, the minimum or margin deposit;
the limits for any description of financing facilities or investments or for the total amount outstanding in respect of any description of financing facilities or investments.
Any recommendation made under subsection (1) applies uniformly to all Islamic banks engaging in the transactions covered by the recommendations.
Where the Authority has made a recommendation under subsection (1) and either —
no notice of objection is made under subsection (4); or
such a notice is given but representations are not made in accordance with that subsection, the Authority may issue a direction in writing to each licensed Islamic bank on any of the matters referred to in subsection (1) requiring that effect be given to the recommendation within such time as is specified in the direction.
Where the Authority has made a recommendation under subsection (1), the Islamic bank generally or any one of them may, within 14 days of the receipt of the recommendation, give the Authority notice in writing of objection to the recommendation; and where such a notice is given, the Islamic bank concerned shall be entitled, within one month of the notice, to make representations in writing to the Authority setting out the reasons for the objection.
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
Upon receipt of any representations under subsection (4), the
Authority shall consider them and may —
reject the representations; or
amend or modify the recommendation in accordance with the representations, or otherwise, and, in either event, the Authority shall thereupon issue a direction in writing to each Islamic bank requiring that, within such time as is specified in the direction, effect be given to the original recommendation or, as the case may be, to the recommendation as subsequently amended or modified by the
Authority.
Any Islamic bank which fails to comply with a direction under subsection (3) or (5), 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;
financing
Defined · s 2“financing” means the extension of credit, loans, advances, murabahah, leasing, instalment sale, istisna’ or any other modality that is not contrary to Hukum Syara’;
financing facilities
Defined · s 2“financing facilities” means — (a) the granting of financing and other facilities whereby a customer of the Islamic bank has access to funds or financial guarantees; or (b) the incurring by an Islamic bank of other liabilities on behalf of the customer;
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
Overseas Branches and Representative Offices of Domestic Islamic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part