Islamic Banking Act · 2024 Revised Edition · Part · Powers of Control Over Islamic Banks
56. Inspection in Brunei Darussalam by parent supervisory authority
Official textFrom Attorney General's Chambers, unchanged
In relation to an
Islamic bank incorporated outside
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;
Brunei Darussalam, a parent supervisory authority may, with the prior written approval of the Authority and under conditions of confidentiality, conduct an inspection in Brunei Darussalam of the books, accounts and transactions of any branch or office of that Islamic bank in
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Brunei Darussalam in accordance with this section if —
the inspection is required by the parent supervisory authority for the sole purpose of carrying out its supervisory functions;
the parent supervisory authority has given to the Authority such written undertaking as to the confidentiality of the information obtained, as the Authority may determine; and
the parent supervisory authority has given a written undertaking to the Authority to comply with the provisions of this Act and such conditions as the Authority may impose under subsection (2).
The Authority may at any time, whether before, on or after giving written approval for an inspection under this section, require the parent supervisory authority to comply with conditions relating to —
the classes of information to which the parent supervisory authority shall or shall not have access in the course of the inspection;
the conduct of the inspection;
the use or disclosure of any information obtained in the course of the inspection; and
such other matters as the Authority may determine.
Subject to compliance by the parent supervisory authority with such conditions as the Authority may impose under subsection (2), an
Islamic bank under inspection —
shall afford the parent supervisory authority access to such books, accounts, documents and other records, however kept or maintained, of the branch or office of the Islamic bank under inspection, and provide such information (including information
Islamic Banking relating to the Islamic bank’s internal control systems) and facilities as may be required to conduct the inspection; and
shall not be required to afford the parent supervisory authority access to its books, accounts, documents and other records, however kept or maintained, or to provide information or facilities at such times or at such places as would unduly interfere with the proper conduct of the normal daily business of the Islamic bank.
A parent supervisory authority may, with the prior written approval of the Authority, appoint another body to conduct the inspection under subsection (1), and in such event the provisions of this section apply to the appointed body as they apply to the parent supervisory authority.
For the purposes of ensuring the confidentiality of any information obtained in the course of an inspection by a parent supervisory authority under this section, section 58(1) shall, with the necessary modifications, apply to any official of the parent supervisory authority as if the official is an officer of an Islamic bank.
Any Islamic bank which refuses or neglects, without reasonable excuse, to afford access to any book, account, document or other record, however kept or maintained, or provide any information or facility as may be required by this section 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.
document
“document” includes a circular brochure, pamphlet, poster, handbill, prospectus and other document which is directed at or likely to be read by members of the public; and also includes any newspaper, magazine, journal or other periodical publication;
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;
document
Defined · s 2“document” includes a circular brochure, pamphlet, poster, handbill, prospectus and other document which is directed at or likely to be read by members of the public; and also includes any newspaper, magazine, journal or other periodical publication;
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