Islamic Banking Act · 2024 Revised Edition · Part · Powers of Control Over Islamic Banks
Section 59
Official textFrom Attorney General's Chambers, unchanged
Where an Islamic bank —
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;
informs the Authority that it is likely to become unable to meet its obligations, or that it is insolvent, or about to suspend payments; or
becomes unable to meet its obligations, or is insolvent, or suspends payments,
Islamic Banking it shall forthwith inform the Authority of such fact.
Upon receiving such information, and after an inspection or investigation is made under section 49, 50, 51, 52, 53 or 54 the Authority is of the opinion that —
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
an Islamic bank is carrying on its business in a manner likely to be detrimental to the interest of its depositors or its creditors;
an Islamic bank is insolvent or is likely to become unable to meet its obligations or is about to suspend payment;
an Islamic bank has contravened or failed to comply with any of the provisions of this Act; or
an Islamic bank has contravened or failed to comply with any condition attached to its licence; or
it is in the public interest to do so, the Authority may exercise such one or more of the powers specified in subsection (3) as appears to the Authority to be necessary.
The powers referred to in subsection (2) are that the Authority may —
require the Islamic bank concerned forthwith to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary;
appoint a person to advise the Islamic bank in the proper conduct of its business; or
assume control of and carry on the business of the
Islamic bank or direct some other person to assume control of and carry on the business of the Islamic bank.
The Authority may, upon representation made to the Authority or on its own motion, modify or cancel any action taken by the Authority under subsection (2), and in so modifying or cancelling any action may impose such conditions as the Authority thinks fit, subject to which the modification or cancellation shall have effect.
Islamic Banking 72
In this Act, any reference to the Authority having assumed control of or carrying on the business of an Islamic bank pursuant to the provision of this section is deemed to include a reference to the Authority having directed some other person to assume control of and carry on the business of that Islamic bank.
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;
Part
Overseas Branches and Representative Offices of Domestic Islamic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part