MONEY SERVICES BUSINESS (AMENDMENT) ACT 2024

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

General amendment

by substituting for the definition of “licensed bank”

the following definition:

‘  “licensed bank” means—

a licensed bank under the Financial Services

Act 2013 [Act 758]; or

a licensed Islamic bank under the Islamic

Financial Services Act 2013 [Act 759];’;

by inserting after the definition of “foreign currency”

the following definition:

‘  “facilitating the transfer of funds” includes any one or more of the following acts:

offering services to transfer funds;

accepting or receiving funds;

transporting funds;

arranging for transfer of funds;

issuing receipt for transfer of funds;

utilising a system to transfer funds;

allowing an account to be used for transfer or receipt of funds; or

Money Services Business (Amendment)

engaging in any form of settlement activity, including net settlement, set-off and debt assignment, arising from transfer of funds;’;

in the definition of “substantial shareholdings” and

“substantial shareholders” by substituting for the words

“section 69d of the Companies Act 1965 [Act 125]”

the words “section 136 of the Companies Act 2016

[Act 777]”;

in the definition of “director”, in paragraph (a), by substituting for the words “section 4 of the Companies

Act 1965” the words “section 3 of the Companies

Act 2016”;

by deleting the definition of “authorized dealer”;

in the definition of “wholesale currency business”, in paragraph (a), by substituting for the words

“an authorized dealer” the words “a licensed bank”;

by substituting for the definition of “remittance business”

the following definition:

‘  “remittance business” means—

the business of transferring funds; or

the business of facilitating transfer of funds, whether in any form or by any means or whether there is any movement of funds or not, on behalf of an originator person in or outside Malaysia to a beneficiary person in or outside Malaysia, and the originator person and the beneficiary person may be the same person, but excludes such other business, activity, system or arrangement as the Bank may prescribe;’; and

in the definition of “company”, by substituting for the words “section 4 of the Companies Act 1965”

the words “subsection 2(1) of the Companies Act 2016”.

Amendment of section 4

an offence under the Central Bank of Malaysia

Act 2009, the Banking and Financial Institutions

Act 1989 [Act 372], the Islamic Banking

Act 1983 [Act 276], the Insurance Act 1996

[Act 553], the Takaful Act 1984 [Act 312], the Exchange Control Act 1953 [Act 17], the Payment

Systems Act 2003 [Act 627], the Development

Financial Institutions Act 2002 [Act 618], the Financial Services Act 2013, the Islamic Financial

Services Act 2013, the Currency Act 2020

[Act 827] or any other written law administered by the Bank;

An order for forfeiture or release of any property seized under this Act may be made by the court before which the prosecution for an offence has been held and an order for forfeiture of the property may be made if—

The court making an order under subsection (2) may—

All property forfeited under this section shall be vested in the Government of Malaysia.”.

Amendment of section 86

“criminal conspiracy” has the same meaning assigned to it in section 120a of the Penal Code; and

“abet” has the same meaning assigned to it in section 107 of the Penal Code.

ILLUSTRATIONS

A, an employer, who knows B is not a licensee under this

Act invites B to provide remittance business services for

A’s employees. A abets the commission of an offence committed by B to carry out remittance business without a licence under this Act.

A, a remittance system provider, who knows B is not a licensee under this Act, continues to provide B with a system or application that supports B’s remittance business activity.

A abets the commission of an offence committed by B to carry out remittance business without a licence under this Act.

A, a landlord, who knows B is not a licensee under this Act, continues to rent out the premises to B although the Bank has informed A that B is carrying on currency exchange business without a licence. A abets the commission of an offence committed by B to carry out currency exchange business without a licence under this Act.”.

Money Services Business (Amendment)

9

New section 89a

by deleting paragraphs 2, 3, 4, 11, 12, 20, 22, 34

and 35; and

by substituting for paragraph 18 the following paragraph:

“18.  paragraph 30(10)(b);”.

Saving

Any reference to “money-changing business” in any written law, or in any licence granted or other document or instrument issued by the Bank under the principal Act before the date of coming into operation of this Act, shall after the date of coming into operation of this Act be construed as a reference to

“currency exchange business”.