Islamic Banking Act · 2024 Revised Edition · Part · Powers of Control Over Islamic Banks
49. Investigations on behalf of Authority
Official textFrom Attorney General's Chambers, unchanged
If it appears to the Authority desirable to do so in the public interest or the interests of the creditors or depositors of the
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Islamic bank, the Authority may appoint one or more appropriate persons
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;
(in this section referred to as inspectors) to investigate and report to the
Authority on —
the nature, conduct or state of the Islamic bank’s business or any particular aspect of it; or
the ownership or control of the Islamic bank, and the Authority shall give written notice of any such appointment to the
Islamic bank concerned.
If an inspector thinks it necessary for the purposes of his investigation, he may also investigate the business of any person which is or has at any relevant time been —
a holding company, subsidiary or related company of the
Islamic bank concerned;
a subsidiary or related company of a holding company of that
Islamic bank;
Islamic Banking 60
a holding company of a subsidiary of that Islamic bank; or
a body corporate in the case of either a controller or an indirect controller of that Islamic bank, other than a 10 per cent controller, or the business of any partnership of which the institution is or has at any relevant time been a member.
Where an inspector decides to investigate the business of any person by virtue of subsection (2), he shall give that person and the Authority written notice to that effect.
It shall be the duty of every person who is or was a director, controller, manager, officer, agent, banker or advocate and solicitor or other similar person of a person who is under investigation (whether by virtue of subsection (1) or (2)) whom the inspector considers may be of assistance to his investigation any person appointed to make a report in respect of that person under section 31(1)(b) and anyone who becomes a controller in relation to that person —
director
“director” includes any person occupying the position of director of a company, whatever the title of his office, and includes a person in accordance with whose directions or instructions the directors of a company are accustomed to act and an alternate or substitute director;
to produce to the inspectors, within such time and at such place as they may require, all documents relating to the person concerned which are in his custody or power;
to attend before the inspectors at such time and place as they may require;
otherwise to give the inspectors all assistance in connection with the investigation which he is reasonably able to give, and any inspector may take copies of or extracts from any documents produced to him under paragraph (a).
The preceding provisions of this section apply in relation to an institution which was formerly a licensed Islamic bank as they apply in relation to an institution which continues to be a licensed Islamic bank.
institution
“institution” means a company incorporated or registered under the Companies Act;
For the purpose of exercising his powers under this section, an inspector may enter any premises occupied by a person who is being investigated by him under this section; but he shall not do so without prior notice in writing to that person and to the Authority unless he has reasonable cause to believe that, if such a notice were given, any documents whose
Islamic Banking production could be required under this section would be removed, tampered with or destroyed.
If so required, an inspector shall produce evidence of his appointment under this section.
A statement made by a person in compliance with a requirement imposed by virtue of this section may be used in evidence against him.
Any person who —
without reasonable excuse fails to produce any documents which it is his duty to produce under subsection (4);
without reasonable excuse fails to attend before an inspector when required to do so;
without reasonable excuse fails to answer any question which is put to him by an inspector with respect to any person who is being investigated by virtue of subsection (2); or
intentionally obstructs an inspector in the exercise of the rights conferred by subsection (6), is guilty of an offence and liable on conviction to a fine not exceeding $100,000, imprisonment for a term not exceeding 6 months or both 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;
company
Defined · s 2“company” means a body corporate incorporated or registered in Brunei Darussalam under the Companies Act;
director
Defined · s 2“director” includes any person occupying the position of director of a company, whatever the title of his office, and includes a person in accordance with whose directions or instructions the directors of a company are accustomed to act and an alternate or substitute director;
institution
Defined · s 2“institution” means a company incorporated or registered 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;
Part
Overseas Branches and Representative Offices of Domestic Islamic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part