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Exchange Control Act 1953 (Revised 1969)

LAWS OF MALAYSIA

REPRINT

PUBLISHED BY

THE COMMISSIONER OF LAW REVISION, MALAYSIA

UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND PERCETAKAN NASIONAL MALAYSIA BHD

2006

Act 17

EXCHANGE CONTROL

ACT 1953

Incorporating all amendments up to 1 January 2006 017e.fm Page 1 Monday, March 27, 2006 1:46 PM

PREPARED FOR PUBLICATION BY

MALAYAN LAW JOURNAL SDN BHD

AND PRINTED BY

PERCETAKAN NASIONAL MALAYSIA BERHAD

KUALA LUMPUR BRANCH

2006

EXCHANGE CONTROL ACT 1953

First enacted ... ... ... ... ... 1953 (Ordinance No. 57 of 1953)

Revised ... ... ... ... ... ... 1969 (Act 17 w.e.f. 14 April 1970)

PREVIOUS REPRINTS

First Reprint ... ... ... ... ... 1992

Second Reprint ... ... ... ... 1999

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LAWS OF MALAYSIA

Act 17

ARRANGEMENT OF SECTIONS

EXCHANGE CONTROL ACT 1953

PART I

PRELIMINARY

Section

1. Short title

2. Interpretation

3. Bank Negara Malaysia to be responsible for administration, etc., of this Act, and Governor of Bank Negara Malaysia to be Controller of Foreign Exchange and to appoint other officers

PART II

GOLD AND FOREIGN CURRENCY

4. Dealings in gold and foreign currency

5. Surrender of gold and foreign currency

6. Bailees of gold and foreign currency

7. Traveller's cheques, etc. PART III

PAYMENTS

8. Payments in Malaysia

9. Payments outside Malaysia

10. Compensation deals PART IV

SECURITIES

11. Issue of securities 017e.fm Page 3 Monday, March 27, 2006 1:46 PM

4 Laws of Malaysia ACT 17

Section

12. Transfer of securities and coupons

13. Issue of bearer certificates and coupons

14. Substitution of securities and certificates outside Malaysia

15. Payment of capital moneys outside Malaysia

16. Duties of persons keeping registers

17. Additional provisions as to nominee holdings

18. Deposit of certificates of title

19. Additional provisions as to deposited certificates

20. Special provisions as to dealings in certain securities

21. Validation of certain transfers

22. Application of Part IV to secondary securities

23. Interpretation of Part IV PART V

IMPORT AND EXPORT

24. Restrictions on import

25. General restrictions on export

26. Payments for exports PART VI

MISCELLANEOUS

27. Duty to collect certain debts

28. Duty not to delay sale or importation of goods

29. Property obtained by infringement of Act

30. Provisions supplemental to preceding provisions of Part VI

31. Transfer of annuities, policies, etc.

32. Settlements

33. Companies PART VII

SUPPLEMENTAL

34. Exemptions 017e.fm Page 4 Monday, March 27, 2006 1:46 PM

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Section

35. Blocked accounts

36. Contracts, legal proceedings, etc.

37. Enforcement and administration

38. Application to Governments

39. Other powers

40. Financial provisions

41. Branches

42. Persons leaving the scheduled territories

43. Determination of residence

44. Controller may prohibit carrying out of certain orders by Governments of, or residents in, other countries

45. Exemption from stamp duty

46. Regulations FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE

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LAWS OF MALAYSIA

Act 17

EXCHANGE CONTROL ACT 1953

An Act to confer powers, and impose duties and restrictions in relation to gold, currency, payments, securities, debts, and the import, export, transfer and settlement of property, and for purposes connected with the matters aforesaid.

[Peninsular Malaysia--1 January 1954, L.N. 818/1953; Sabah and Sarawak--6 August 1964, L.N. 238/1964]

PART I

PRELIMINARY

Short title

1. This Act may be cited as the Exchange Control Act 1953. Interpretation

2. (1) In this Act unless the context otherwise requires-- "authorized dealer" means, in relation to gold or any foreign currency, a person for the time being authorized by an order of the Controller to act for the purposes of this Act as an authorized dealer in relation to gold, or, as the case may be, that foreign currency;

"authorized depositary" means a person for the time being authorized by an order of the Controller to act as an authorized depositary for the purposes of Part IV;

"Bank" or "banker" in so far as it refers to a Bank or banker in Malaysia means any bank licensed under the Banking and Financial Institutions Act 1989 [Act 372];

"bearer certificate" means a certificate of title to securities by the delivery of which (with or without endorsement) the title to the securities is transferable;

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"certificate of title to securities" means any document of title whereby a person recognizes the title of another to securities issued or to be issued by the first-mentioned person, and in the case of any such document with coupons (whether attached or on separate coupon sheets) includes any coupons which have not been detached;

"Controller" means the Controller of Foreign Exchange; "coupon" means a coupon representing dividends or interest on a security;

"foreign currency" does not include local currency or any currency or notes issued under the law of any part of the scheduled territories but, save as aforesaid, includes any currency and any notes of a class which are or have at any time been legal tender in any territory outside Malaysia, and any reference to foreign currency, except so far as the context otherwise requires, includes a reference to any right to receive foreign currency in respect of any credit or balance at a Bank;

"gold" means gold coin and bullion and includes any gold in whatever state or form other than gold which has been materially increased in value by skilled craftsmanship;

"local currency" means currency which is, or has at any time been, legal tender in Malaysia but does not include any currency issued by, or under the authority of, the Japanese Military Authorities; "offence" means an offence against this Act and includes any contravention of or failure to comply with any order, direction, prohibition, restriction, condition or requirement made, given or imposed under powers conferred by this Act;

"policy of assurance" means any policy securing the payment of a capital sum or annuity on the occurrence of a specified event which is certain to happen and includes--

(a) any policy by which the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life; and

(b) any policy securing the payment of an immediate annuity, and the reference in this definition to the occurrence of a specified event which is certain to happen shall include the occurrence, which is certain to happen, of one of specified events none of which by itself is certain to happen;

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"prescribed" means prescribed, for the purposes of the provision in question, by order of the Controller;

"scheduled territories" means the territories specified in the First Schedule, so, however, that the Controller may at any time by order amend the said Schedule, either by the addition or exclusion of territories or otherwise;

"secondary securities" has the meaning ascribed to it by section 22;

"securities" means shares, stock, bonds, notes (other than promissory notes), debentures, debenture stock, units under a unit trust scheme and shares in an oil royalty;

"specified currency" has the meaning ascribed to it by section 5 as extended by section 7;

"unit trust scheme" means any arrangements made for the purpose, or having the effect, of providing for persons having funds available for investment, facilities for the participation by them, as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of any property whatsoever;

"unit" means, in relation to a unit trust scheme, a right or interest (whether described as a unit, as a sub-unit or otherwise) which may be acquired under the scheme.

(2) Any provision of this Act (however worded), the effect of which is to prohibit the doing of any act where a person to or by whom the act is to be done or who stands in a specified relation to any property possesses any specified attribute as to residence or otherwise, shall, where the act is done to or by two or more persons or, as the case may be, where two or more persons stand jointly in that relation to the property, operate to prohibit the doing of that act if any of those persons possess that attribute; and any provision of this Act imposing an obligation on any person to do an act if he possesses any specified attribute as to residence or otherwise shall, in relation to any act which can only be done by two or more persons jointly--

(a) where all those persons possess that attribute, operate to impose a joint obligation on all of them to do the act; and

(b) where only some of them possess that attribute, operate to impose a separate obligation on each one of them 017e.fm Page 9 Monday, March 27, 2006 1:46 PM

10 Laws of Malaysia ACT 17

who possesses that attribute to do all he can to secure the doing of the act.

(3) Any power conferred by this Act to prescribe the declarations which are to be furnished on any occasion shall include a power to require that the declarations shall be made by specified persons and shall be verified in a specified manner.

(4) Nothing in this Act shall be construed as requiring the Controller to pay any sum otherwise than in local currency or otherwise than in Malaysia, and any provision of this Act requiring the Controller to pay any sum to any person shall, where that sum is in a specified currency, be construed as a provision that the Controller shall pay to that person the amount in local currency which he would have received for the specified currency if he had sold it to an authorized dealer in pursuance of an offer made under section 5 at the time when the said sum is paid.

(5) The obligations and prohibitions imposed by this Act shall, subject to the express limitations contained therein, apply to all persons notwithstanding that they are not in Malaysia and are not citizens.

Bank Negara Malaysia to be responsible for administration, etc., of this Act, and Governor of Bank Negara Malaysia to be Controller of Foreign Exchange and to appoint other officers

3. (1) Bank Negara Malaysia shall be responsible for administering, enforcing, carrying out, and giving effect to, the provisions of this Act and the Governor of Bank Negara Malaysia shall be the Controller of Foreign Exchange for the purposes of this Act and shall exercise, discharge, and perform on behalf of Bank Negara Malaysia, the powers, duties and functions conferred on the Controller under this Act.

(2) The Controller may appoint such officers of Bank Negara Malaysia or after consultation with the Minister, in respect of Federal officers, or the Menteri Besar or Chief Minister of the State, in respect of State officers, a Federal officer or State officer to exercise and perform all or any of the powers and duties of the Controller under this Act.

(3) The Controller and all officers appointed by him under subsection (2) shall exercise their powers under this Act subject 017e.fm Page 10 Monday, March 27, 2006 1:46 PM

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to such directions as to general policy and rules and orders as may from time to time be given or made by the Minister. PART II

GOLD AND FOREIGN CURRENCY

Dealings in gold and foreign currency

4. (1) Except with the permission of the Controller, no person, other than an authorized dealer, shall, in Malaysia, buy or borrow any gold or foreign currency from, or sell or lend any gold or foreign currency to, any person other than an authorized dealer. (2) Except with the permission of the Controller, no person resident in the scheduled territories, other than an authorized dealer, shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, buying or borrowing any gold or foreign currency from, or selling or lending any gold or foreign currency to, any person outside Malaysia. (3) Where a person buys or borrows any gold or foreign currency in Malaysia or, being a person resident in the scheduled territories, does any act which involves, is in association with, or is preparatory to, the buying or borrowing of gold or foreign currency outside Malaysia, he shall comply with such conditions as to the use to which it may be put or the period for which it may be retained as may from time to time be notified to him by the Controller.

Surrender of gold and foreign currency

5. (1) (a) Every person in Malaysia who is entitled to sell, or to procure the sale of, any gold, or any foreign currency to which this section applies, and is not an authorized dealer, shall offer it, or cause it to be offered, for sale to an authorized dealer, unless the Controller consents to his retention and use thereof any gold or he disposes thereof to any other person with the permission of the Controller.

(b) The foreign currency to which this section applies is such foreign currency (hereafter in this Act referred to as "specified currency") as may from time to time be specified by order of the Minister.

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12 Laws of Malaysia ACT 17

(2) If a person who has obtained the consent of the Controller to his retention and use of any gold or specified currency, and has stated in an application for the consent that he requires it for a particular purpose, no longer requires the gold or currency for that purpose, subsection (1) shall thereupon apply to him in relation to that gold or currency as if the Controller had revoked his consent to his retention and use thereof .

(3) A person who acquires any gold or specified currency from an authorized dealer shall be treated for the purposes of this section as if the Controller had consented to the retention and use by him of that gold or currency (subject, however, to any conditions notified to him in accordance with subsection 4(3)), and as if any statement made by him in an application for that gold or currency as to the purpose for which he requires it had been made by him in an application for the Controller's consent to his retention and use thereof.

(4) Where a person has become bound under this section to offer or cause to be offered any gold or specified currency for sale to an authorized dealer, he shall not be deemed to comply with that obligation by any offer made or caused to be made by him, if the offer is an offer to sell at a price exceeding that authorized by the Controller, or without payment of any usual and proper charges of the authorized dealer, or otherwise on any unusual terms.

(5) Where a person has become bound under this section to offer or cause to be offered any gold or specified currency for sale to an authorized dealer and has not complied with that obligation, the Minister may direct that that gold or currency shall vest in the Controller, and it shall vest in the Controller accordingly free from any mortgage, pledge or charge, and the Controller may deal with it as he thinks fit, but the Controller shall pay to the person who would but for the direction be entitled to the gold or currency such sum as he would have received therefor if he had sold it to an authorized dealer in pursuance of an offer made under this section at the time when the vesting occurred.

(6) In any proceedings in respect of a failure to comply with this section, it shall be presumed, until the contrary is shown, that the gold or currency in question has not been offered for sale to an authorized dealer.

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Bailees of gold and foreign currency

6. (1) Every person in Malaysia by whom or to whose order (whether directly or indirectly) any gold or any specified currency in the form of notes is held in Malaysia but who is not entitled to sell it or procure its sale shall notify the Controller in writing that he so holds that gold or currency.

(2) The Controller may direct any person in Malaysia by whom or to whose order (whether directly or indirectly) any gold or any specified currency in the form of notes is held in Malaysia, whether or not he is entitled to sell it or procure its sale, to cause that gold or currency to be kept at all times in the custody of such banker as may be specified in the direction.

Traveller's cheques, etc.

7. (1) This section applies to any document of a kind intended to enable the person to whom the document is issued to obtain foreign currency from some other person on the credit of the person issuing it, and in particular to any traveller's cheque or other draft or letter of credit so intended.

(2) For the purposes of this Act, the person issuing a document to which this section applies, and the person to whom it is issued, shall be deemed respectively to sell and buy foreign currency and where foreign currency is obtained by means of the document to sell and buy that foreign currency.

(3) Any such document not expressed in terms of local currency shall, if it is of a kind intended to enable the person to whom it is issued to obtain any specified currency, be treated also for the purposes of this Act as itself being specified currency. (4) Every person in Malaysia who holds or to whose order there is held any document to which this section applies, being a document expressed in terms of local currency, shall encash it or cause it to be encashed in the scheduled territories with the person issuing it or with a banker, unless the Controller consents to his retention and use thereof and, where in his application for that consent he has stated that he requires it for a particular purpose, unless also he still requires it for that purpose. (5) A person who acquires any document to which subsection (4) applies from an authorized dealer shall be treated for the 017e.fm Page 13 Monday, March 27, 2006 1:46 PM

14 Laws of Malaysia ACT 17

purposes of that subsection as if the Controller had consented to the retention and use by him of that document (subject, however, to any conditions notified to him in accordance with subsection 4(3)), and as if any statement made by him in an application for that document as to the purpose for which he requires it had been made by him in an application for the Controller's consent to his retention and use thereof.

PART III

PAYMENTS

Payments in Malaysia

8. Except with the permission of the Controller, no person shall do any of the following things in Malaysia:

(a) make any payment to or for the credit of a person resident outside the scheduled territories;

(b) make any payment to or for the credit of a person resident in the scheduled territories by order or on behalf of a person resident outside the scheduled territories; or

Provided that where a person resident outside the scheduled territories has paid a sum in or towards the satisfaction of a debt due from him, paragraph (c) shall not prohibit the acknowledgement or recording of the payment.

Payments outside Malaysia

9. (1) Except with the permission of the Controller, no person shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, the making of any payment outside Malaysia, to or for the credit of a person resident outside the scheduled territories.

(2) Nothing in this section shall prohibit the doing of anything otherwise lawful by any person with any foreign currency obtained by him in accordance with Part II or retained by him in pursuance of a consent of the Controller.

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Compensation deals

10. (1) Except with the permission of the Controller, no person shall, in Malaysia, make any payment to or for the credit of a person resident in the scheduled territories, or do any act which involves, is in association with, or is preparatory to, the making of any such payment outside Malaysia, as consideration for or in association with--

(a) the receipt by any person of a payment made outside the scheduled territories, or the acquisition by any person of property which is outside the scheduled territories; or

(b) the transfer to any person, or the creation in favour of any person, of a right (whether present or future, and whether vested or contingent) to receive a payment outside the scheduled territories or to acquire property which is outside the scheduled territories.

(2) Nothing in this section shall prohibit the making of any payment in accordance with the terms of a permission or consent granted under this Act.

PART IV

SECURITIES

Issue of securities

11. (1) Except with the permission of the Controller, no person shall, in Malaysia, issue any security or do any act which involves, is in association with, or is preparatory to, the issuing outside Malaysia of any security which is registered or to be registered in Malaysia, unless the following requirements are fulfilled: (a) neither the person to whom the security is to be issued nor the person, if any, for whom he is to be a nominee is resident outside the scheduled territories; and (b) the prescribed evidence is produced to the person issuing the security as to the residence of the person to whom it is to be issued and that of the person, if any, for whom he is to be a nominee.

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16 Laws of Malaysia ACT 17

(2) The subscription of the memorandum of association of a company to be formed under the Companies Act 1965 [Act 125], by a person resident outside the scheduled territories, or by a nominee for another person so resident, shall, unless he subscribes the memorandum with the permission of the Controller be invalid in so far as it would on registration of the memorandum have the effect of making him a member of or shareholder in the company, so, however, that this provision shall not render invalid the incorporation of the company; and if by virtue of this subsection the number of the subscribers of the memorandum who on its registration become members of the company is less than the minimum number required to subscribe the memorandum, the provisions of the said Act relating to the carrying on of business of a company the number of whose members is reduced below the legal minimum shall apply to the company as if the number of its members had been so reduced. Transfer of securities and coupons

12. (1) Except with the permission of the Controller, a security registered in Malaysia shall not be transferred, and a security not so registered shall not be transferred in Malaysia, unless, in either case, the following requirements are fulfilled:

(a) neither the transferor nor the person, if any, for whom he is a nominee is resident outside the scheduled territories;

(b) the transferor delivers to the transferee at or before the time of the transfer the prescribed declarations as to his residence and that of the person, if any, for whom he is a nominee;

(c) neither the transferee nor the person, if any, for whom he is to be a nominee is resident outside the scheduled territories; and

(d) except where the security is registered in Malaysia otherwise than in a subsidiary register, the Controller is satisfied that the requirements of paragraph (c) are fulfilled:

Provided that--

(i) neither the transferee nor his agent shall be deemed to have committed an offence by reason only that the requirements of paragraph (a) were not fulfilled unless 017e.fm Page 16 Monday, March 27, 2006 1:46 PM

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the transferee or, as the case may be, his agent, knew or had reason to believe that those requirements were not fulfilled; and

(ii) neither the transferor nor his agent shall be deemed to have committed an offence by reason only that any of the requirements of paragraphs (c) and (d) have not been fulfilled unless, in the case of a non-fulfilment of the requirements of paragraph (c), the transferor or, as the case may be, his agent, knew or had reason to believe that those requirements were not fulfilled. (2) Except with the permission of the Controller, a security not registered in Malaysia shall not be transferred outside Malaysia if either the transferor or the transferee or the person, if any, for whom the transferor or transferee is or is to be a nominee, is resident in Malaysia.

(3) Except with the permission of the Controller-- (a) no coupon shall be transferred in Malaysia if either the transferee or the person, if any, for whom he is to be a nominee is resident outside the scheduled territories; (b) no person shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, the transfer of any coupon outside Malaysia if either the transferor or transferee, or the person, if any, for whom the transferor or transferee is or is to be a nominee, is resident in Malaysia.

Issue of bearer certificates and coupons

13. Except with the permission of the Controller, no person shall, in Malaysia, issue any bearer certificate or coupon or so alter any document that it becomes a bearer certificate or coupon, and no person resident in the scheduled territories shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, such issue or alteration outside Malaysia.

Substitution of securities and certificates outside Malaysia

14. Except with the permission of the Controller-- (a) no person in Malaysia shall do any act with intent to secure--

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18 Laws of Malaysia ACT 17

(i) that a security which is--

(I) registered in Malaysia; or

(II) transferable by means of a bearer

certificate in Malaysia,

becomes, or is replaced by, a security registered outside Malaysia or a security transferable by

means of a bearer certificate outside Malaysia;

(ii) that a certificate of title to any other security, is issued outside Malaysia in substitution for

or in addition to a certificate of title thereto

which is in, or is or has been lost or destroyed

in, Malaysia;

(b) no person resident in the scheduled territories shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, any such transaction outside Malaysia as is referred to in subparagraph (a)(i) or (ii). Payment of capital moneys outside Malaysia

15. Except with the permission of the Controller-- (a) no person in Malaysia shall do any act with intent to secure that capital moneys payable on a security

registered in Malaysia are paid outside Malaysia, or that, where the certificate of title to a security is in Malaysia, capital moneys payable on the security are paid outside Malaysia without production of the

certificate to the person making the payment;

Duties of persons keeping registers

16. Except with the permission of the Controller, no person concerned with the keeping of any register in Malaysia shall-- (a) enter in the register the name of any person in relation to any security unless there has been produced to him 017e.fm Page 18 Monday, March 27, 2006 1:46 PM

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the prescribed evidence that the entry does not form part of a transaction which involves the doing of anything prohibited by this Act;

(b) enter in the register, in respect of any security, an address outside the scheduled territories, except for the purpose of any transaction for which the permission of the Controller has been granted with the knowledge that it involved the entry of that address; or

(c) do any act in relation to the register which recognizes or gives effect to any act appearing to him to have been done with such intent as is mentioned in sections 14 and 15, whether done by a person in or resident in Malaysia or not.

Additional provisions as to nominee holdings

17. (1) Where-- (a) the holder of a security is a nominee and the person for whom he is a nominee is resident outside the

scheduled territories; or

(b) the holder of a security is not a nominee and is resident outside the scheduled territories,

then, except with the permission of the Controller, no person resident in Malaysia shall do any act whereby the holder becomes his nominee in respect of the security.

(2) Except with the permission of the Controller, a person resident in Malaysia for whom the holder of a security is a nominee shall not do any act whereby--

(a) the holder, being a person resident outside the scheduled territories, holds the security otherwise than as his nominee; or

(b) the holder, not being a person resident outside the scheduled territories, holds the security as nominee for a person resident outside the scheduled territories. (3) Where the holder of a security is a nominee, then, except with the permission of the Controller, neither he, if he is resident in Malaysia, nor any person resident in Malaysia through whose 017e.fm Page 19 Monday, March 27, 2006 1:46 PM

20 Laws of Malaysia ACT 17

agency the exercise of all or any of the holder's rights in respect of the security are controlled, shall--

(a) do any act whereby he recognizes or gives effect to the substitution of another person as the person from whom he directly receives his instructions unless both the person previously instructing him and the person substituted for that person were, immediately before the substitution, resident in the scheduled territories and not elsewhere; or

(b) do any act whereby he ceases to be a person bound to give effect to the instructions of another person in relation to the security, unless the person who theretofore instructed him is resident in the scheduled territories and not elsewhere.

(4) Where the holder of a security is not a nominee and is resident in Malaysia, then, except with the permission of the Controller, he shall not do any act whereby he becomes the nominee of another person in respect of the security, unless that other person is resident in the scheduled territories and not elsewhere.

(5) No person resident in the scheduled territories shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, any such transaction outside Malaysia as is referred to in this section.

Deposit of certificates of title

18. (1) This section and section 19 apply to any security except-- (a) a security which is registered in Malaysia otherwise than in a subsidiary register, and on which none of the dividends or interest is payable on presentment of a coupon; and

(b) any such other securities as may be prescribed, and in the following provisions of this section and in section 19 the expression "security", "certificate of title" and "coupon" mean respectively a security to which the said sections apply, a certificate of title to such a security, and a coupon representing dividends or

interest on such a security.

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(2) It shall be the duty of every person by whom or to whose order (whether directly or indirectly) a certificate of title is held in Malaysia, and of every person resident in Malaysia by whom or to whose order (whether directly or indirectly) a certificate of title is held outside Malaysia, to cause the certificate of title to be kept at all times, except with the permission of the Controller, in the custody of an authorized depositary, and nothing in this Part shall prohibit the doing of anything for the purpose of complying with the requirements of this subsection.

(3) Except with the permission of the Controller, an authorized depositary shall not part with any certificate of title or coupon required under this section to be in the custody of an authorized depositary:

Provided that this subsection shall not prohibit an authorized depositary--

(a) from parting with a certificate of title or coupon to or to the order of another authorized depositary, where the person from whom the other authorized depositary is to receive instructions in relation thereto is to be the same as the person from whom he receives instructions; (b) from parting with a certificate of title, for the purpose of obtaining payment of capital moneys payable on the security, to the person entrusted with payment thereof; (c) from parting with a coupon in the ordinary course for collection.

(4) Except with the permission of the Controller, no capital moneys, interest or dividends shall be paid in Malaysia on any security except to or to the order of an authorized depositary having the custody of the certificate of title to that security, so, however, that this subsection shall not be taken as restricting the manner in which any sums lawfully paid on account of the capital moneys, interest or dividends may be dealt with by the person receiving them.

(5) Except with the permission of the Controller, an authorized depositary shall not do any act whereby he recognizes or gives effect to the substitution of one person for another as the person from whom he receives instructions in relation to a certificate of title or coupon, unless there is produced to him the 017e.fm Page 21 Monday, March 27, 2006 1:46 PM

22 Laws of Malaysia ACT 17

prescribed evidence that he is not by so doing giving effect to any transaction which is prohibited by this Act.

(6) Where a certificate of title which under this section should for the time being be in the custody of an authorized depositary is not in the custody of an authorized depositary, then, except with the permission of the Controller, no person shall, in Malaysia, buy, sell, transfer, or do anything which affects his rights or powers in relation to the security or do any act which involves, is in association with, or is preparatory to, any such transaction outside Malaysia.

(7) Except with the permission of the Controller, no person in Malaysia shall, in the case of a certificate of title with coupons (whether attached or on separate coupon sheets), detach any of the coupons otherwise than in the ordinary course for collection. Additional provisions as to deposited certificates

19. (1) Where a certificate of title to a security is by section 18 required to be and is in the custody of an authorized depositary, this section shall, except so far as the Controller otherwise directs, have effect in relation thereto until--

(a) there are delivered to him the prescribed declarations as to the ownership of the security and the residence of the owners thereof; and

(b) in the case of a certificate of title which would ordinarily be accompanied by coupons (whether attached or on separate coupon sheets) but which when it comes into the custody of the authorized depositary, wants, in order to render it complete, any coupons which would not in the ordinary course have been detached for collection, there have also been deposited with him the coupons so wanting at the time when the certificate of title comes into his custody:

Provided that where the said declarations have been delivered to an authorized depositary and he has parted with the certificate of title, paragraph (a) shall not again apply on the certificate coming into the custody of another authorized depositary or again coming into his own custody.

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(2) Except with the permission of the Controller, the authorized depositary shall not part with or destroy the certificate of title or any coupons belonging thereto, otherwise than as mentioned in paragraphs (b) and (c) of the proviso to subsection 18(3), or do any act whereby he recognizes or gives effect to the substitution of one person for another as the person from whom he receives instructions in relation thereto:

Provided that, where the person from whom an authorized depositary receives instructions in relation to any certificate of title becomes bankrupt in Malaysia or dies, this subsection shall not prohibit the authorized depositary from recognizing the Director General of Insolvency or personal representative as the person entitled to give instructions in relation to the certificate of title.

(3) The authorized depositary shall place any capital moneys, dividends or interest on the security received by him to the credit of the person by virtue of whose authority he received them, but shall not permit any part of the sums received to be dealt with except with the permission of the Controller.

Special provisions as to dealings in certain securities

20. (1) The Controller may, if in his opinion there are circumstances rendering it necessary or expedient so to do, by order direct that this section shall apply to such securities as may be prescribed, being securities on which capital moneys, dividends or interest are payable in a specified currency or as respects which the holder has an option to require payment of any capital moneys, dividends or interest thereon in a specified currency.

(2) Except with the permission of the Controller, no person shall, in Malaysia, transfer, or do anything which affects his rights or powers in relation to, any security to which this section applies, and no person resident in the scheduled territories shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, any such transaction outside Malaysia. Validation of certain transfers

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24 Laws of Malaysia ACT 17

transfer, or any previous transfer, or the issue of the security, was by reason of the residence of any person concerned other than the first-mentioned person prohibited by this Act relating to the transfer or issue of securities, be valid unless the first-mentioned person had notice of the facts by reason of which it was prohibited. (2) Without prejudice to subsection (1), the Controller may issue a certificate declaring, in relation to a security, that any acts done before the issue of the certificate purporting to effect the issue or transfer of the security, being acts which were prohibited by this Act, are to be, and are always to have been, as valid as if they had been done with the permission of the Controller, and the said acts shall have effect accordingly.

(3) Nothing in this section shall affect the liability of any person to prosecution for any offence against this Act. Application of Part IV to secondary securities

22. (1) This Part shall apply, with such modifications (if any) as may be prescribed, in relation to any such document as is mentioned in subsection (2), as if the document created, and were the certificate of title to, a security (hereinafter in this Act referred to as a "secondary security").

(2) The documents referred to in subsection (1) are any letter of allotment which may be renounced, any letter of rights, any warrant conferring an option to acquire a security, any deposit certificate in respect of securities (but not including a receipt by an authorized depositary for any certificate of title deposited in pursuance of this Part), and such other documents conferring, or containing evidence of, rights as may be prescribed. Interpretation of Part IV

23. (1) In this Part-- (a) the expression "registered" includes inscribed; (b) the expressions "registered in Malaysia" and "registered outside Malaysia" mean respectively registered in a register in, and registered in a register outside, Malaysia;

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(c) the expression "security which is registered in Malaysia otherwise than in a subsidiary register" means a security which either--

(i) is registered in Malaysia and is not and cannot without the necessity for an entry in the

outside; or

(ii) is registered both in Malaysia and outside but on a transfer cannot, without the necessity for

an entry in the register in Malaysia, become

registered outside in the name of the transferee; and

(d) the expression "a register" includes any book, file or index in which securities are registered.

(2) For the purposes of any provision of this Part prohibiting the transfer of securities, a person shall be deemed to transfer a security if he executes any instrument of transfer thereof, whether effective or not, and shall be deemed to transfer it at the place where he executes the instrument.

(3) References in this Part to the person holding a certificate of title or coupon shall be construed as references to the person having physical custody of the certificate of title or coupon: Provided that where the certificate of title or coupon is deposited with any person in a locked or sealed receptacle from which he is not entitled to remove it without the authority of some other person, that other person shall be deemed for the purposes of this subsection to have the physical custody thereof. (4) In this Part, the expression "holder"--

(a) in relation to a security transferable by means of a bearer certificate or to a coupon, includes the person holding the certificate or coupon; and

(b) in relation to a security which is registered in the name of a deceased person, or of any person who, by reason of bankruptcy, unsoundness of mind or any other

disability is incapable of transferring the security, means the personal representative, the Director General of Insolvency or other person entitled to transfer the security.

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26 Laws of Malaysia ACT 17

(5) The holder of a security or coupon shall be deemed for the purposes of this Part to be a nominee in respect thereof if, as respects the exercise of any rights in respect thereof, he is not entitled to exercise those rights except in accordance with instructions given by some other person, and references in this Part to the person for whom the holder of a security or coupon is a nominee shall be construed as references to the person who is entitled to give instructions, either directly or through the agency of one or more persons, as to the exercise of any rights in respect of the security or coupon and is not in so doing himself under a duty to comply with instructions given by some other person: Provided that--

(a) a person shall not by reason only that he has a controlling interest in a body corporate be deemed for the purposes of this subsection to be entitled to give instructions to that body corporate as to the exercise of rights in respect of any security or coupon of which it is the holder; and

(b) a person shall not be deemed to hold a security or coupon as a nominee by reason only that he holds it as trustee if he is entitled to transfer the security or coupon without permission from any other person.

(6) A certificate of title shall not for the purposes of this Part be treated as in the custody of an authorized depositary if either--

(a) the depositary has no notice of the nature of the certificate; or

(b) the certificate is deposited with him in a locked or sealed receptacle from which he is not entitled to remove it without the authority of some other person. (7) Where a certificate of title outside Malaysia is by this Part required to be kept in the custody of an authorized depositary, it shall be deemed to be in the custody of an authorized depositary if--

(a) by his direction or with his assent it is in the custody of some other person who holds it on behalf of and to the order of the authorized depositary; and

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(b) the certificate is not deposited with that other person in a locked or sealed receptacle from which he is not entitled to remove it without the authority of a person other than himself,

and where a certificate of title is by virtue of this subsection deemed to be in the custody of an authorized depositary, references in this Part to the depositary parting with the certificate or a coupon belonging thereto shall be construed as references to his permitting the person having the actual custody thereof to part with it otherwise than to the depositary, and references to his destroying the certificate or such a coupon shall be construed as references to his permitting it to be destroyed. PART V

IMPORT AND EXPORT

Restrictions on import

24. (1) Except with the permission of the Controller and subject to any order made under this Act, no person shall import-- (a) any such notes as may be specified by order of the Controller, being notes issued by a bank or notes of a class which are or have at any time been legal tender in any territory;

(b) any Treasury Bills; and

(c) any certificate of title to any security, including any such certificate which has been cancelled, and any document certifying the destruction, loss or

cancellation of any certificate of title to a security. (2) In this section the expression "note" includes part of a note and the expression "security" includes a secondary security. General restrictions on export

25. (1) Except with the permission of the Controller and subject to any order made under this Act, no person shall export-- (a) any notes of a class which are or have at any time been legal tender in any territory;

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28 Laws of Malaysia ACT 17

(b) any postal orders;

(d) any gold;

(e) any of the following documents (including any such document which has been cancelled):

(i) any certificate of title to a security and any coupon;

(ii) any policy of assurance;

(iii) any bill of exchange or promissory note expressed in terms of a currency other than that of a

scheduled territory and payable otherwise than

within the scheduled territories;

(iv) any document to which section 7 applies not

issued by an authorized dealer or in pursuance

of a permission granted by the Controller; and

(v) any document certifying the destruction, loss or cancellation of any of the documents

aforesaid; and

(f) any such articles exported on the person of a traveller or in a traveller's baggage as may be prescribed. (2) In this section, the expression "note" includes part of a note, the expression "security" includes a secondary security and the expression "coupon" shall be construed in accordance with the meaning of "security".

Payment for exports

26. (1) Except with the permission of the Controller, no person shall export any goods of any class or description to a destination in such territory as may be prescribed unless the Director General of Customs and Excise is satisfied--

(a) that payment for the goods has been made to a person resident in Malaysia in such manner as may be

prescribed in relation to goods of that class or

description exported to a destination in that territory, or is to be so made not later than six months after the date of exportation; and

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(b) that the amount of the payment that has been made or is to be made is such as to represent a return for the goods which is in all the circumstances in accordance with the objects of this Act:

Provided that the Controller may direct that, in cases to which the direction applies, paragraph (a) shall have effect as if for the reference to six months there were substituted a reference to such longer or shorter period as may be specified in the direction, or as if the words "or is to be so made not later than six months after the date of exportation" were omitted.

(2) For the purpose of satisfying himself in the case of any goods as to the matters specified in subsection (1), the Director General of Customs and Excise may require the person making any declaration of the goods for export to deliver to such officer as he may authorize in that behalf together with the said declaration such further declarations signed by such persons as he may require, and where any such further declaration has been so required the goods shall not be exported until it has been delivered as aforesaid.

(3) Where the Director General of Customs and Excise is not satisfied in the case of any goods as to the matters specified in paragraph (1)(b), he shall give his reasons to the person making any declaration of the goods for export and shall take into consideration any representations made by him.

(4) Any reference in this section to the destination of any goods includes a reference to the ultimate destination thereof. PART VI

MISCELLANEOUS

Duty to collect certain debts

27. (1) Except with the permission of the Controller, no person resident in Malaysia who has a right (whether present or future and whether vested or contingent) to receive any specified currency, or to receive from a person resident outside the schedule territories a payment in local currency, shall, in Malaysia, do, or refrain from doing, any act with intent to secure or shall do any act which involves, is in association with, or is preparatory to, any transaction securing--

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(a) that the receipt by him of the whole or part of that currency or, as the case may be, of that payment in local currency, is delayed; or

(b) that the currency or payment ceases, in whole or in part, to be receivable by him:

Provided that nothing in this subsection--

(i) shall, unless the Controller otherwise directs, impose on any person any obligation, in

relation to any debt arising in the carrying on

of any trade or business, to procure the

payment thereof at an earlier time than is

customary in the course of that trade or

business; or

(ii) shall, unless the Controller otherwise directs, prohibit any transfer to a person resident in

Malaysia and not elsewhere of any right to

receive any specified currency or payment in

local currency.

(2) Where a person has contravened subsection (1) in relation to any specified currency or payment in local currency, the Controller may give to him or to any other person who appears to the Controller to be in a position to give effect thereto such directions as appear to the Controller to be expedient for the purpose of obtaining or expediting the receipt of the currency or payment in question, and, without prejudice to the generality of the preceding provisions of this subsection, may direct that there shall be assigned to the Controller, or to such person as may be specified in the directions, the right to receive the currency or payment or enforce any security for the receipt thereof. Duty not to delay sale or importation of goods

28. (1) Where-- (a) any permission or consent has been granted under this Act, or under any corresponding provision of the law in force in any territory comprised in the scheduled territories, subject to a condition providing that, or on the faith of an application stating an intention that, any goods should be sold outside the scheduled territories; 017e.fm Page 30 Monday, March 27, 2006 1:46 PM

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(b) any statement or declaration has been made under any provision of this Act or any such corresponding

provision as aforesaid that any goods are to be sold outside the scheduled territories; or

(c) any currency has been obtained in, or by any person resident in, the scheduled territories on the faith of an application stating an intention that any goods should be sold outside the scheduled territories,

then, except with the permission of the Controller, no person who is entitled to sell or procure the sale of the said goods shall, in Malaysia, do, or refrain from doing, any act with intent to secure or shall do any act which involves, is in association with, or is preparatory to, any transaction securing--

(i) that the said sale is delayed to an extent which is unreasonable having regard to the ordinary course of trade; or

(ii) that, on the said sale, any payment made for the goods is not made in the manner indicated by the condition, statement, or declaration, as the case may be.

(2) Where--

(a) any permission or consent has been granted under this Act, or under any corresponding provisions of the law in force in any territory comprised in the scheduled territories, subject to a condition providing that, or on the faith of an application stating an intention that, any goods should be imported from outside the scheduled territories into any part of the scheduled territories; or (b) any currency has been obtained in, or by any person resident in, the scheduled territories on the faith of an application stating an intention that any goods should be so imported,

then, except with the permission of the Controller, no person who is entitled to procure the importation of the said goods shall, in Malaysia, do, or refrain from doing, any act with intent to secure that the importation thereof is delayed to an extent which is unreasonable having regard to the ordinary course of trade. (3) Where in any such case as is specified in paragraph (1)(a), (b) or (c), or paragraph (2)(a) or (b)--

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32 Laws of Malaysia ACT 17

(a) the goods have not been sold or imported as indicated by the condition, statement or declaration within the time thereby indicated or, if no time is thereby

indicated, a reasonable time, or (in either case) within such further time as may be allowed by the Controller; or

(b) it appears to the Controller that the goods cannot be sold or imported as indicated by the condition,

statement or declaration,

the Controller may give to any person who appears to him to be in a position to give effect thereto such directions as appear to him to be expedient as to the manner in which the goods are to be dealt with.

(4) Without prejudice to the generality of subsection (3), the power conferred thereby on the Controller to give directions shall extend to the giving of directions that the goods shall be assigned to the Controller or to a person specified in the directions. (5) The powers conferred by subsections (3) and (4) in relation to any goods shall extend to the giving of directions with respect to any goods produced or manufactured therefrom, and, where goods to be sold outside the scheduled territories or to be imported were to be produced or manufactured from other goods, to the giving of directions with respect to those other goods and any goods produced or manufactured from those other goods. Property obtained by infringement of Act

29. (1) Where a person-- (a) has made any payment which is prohibited by this Act; or

(b) being bound under this Act to offer or cause to be offered any specified currency to an authorized dealer, has otherwise disposed of that currency,

the Controller may direct him to sell or procure the sale of any property which he is entitled to sell or of which he is entitled to procure the sale, being property which represents, whether directly or indirectly, that payment or that specified currency, as the case may be, and may by the same or a subsequent direction specify the 017e.fm Page 32 Monday, March 27, 2006 1:46 PM

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manner in which, the persons to whom and the terms on which the property is to be sold.

(2) Without prejudice to the generality of subsection (1) the power conferred thereby on the Controller to give directions shall extend to the giving of directions that the property shall be assigned to the Controller or to a person specified in the directions.

Provisions supplemental to preceding provisions of Part VI

30. (1) Where, under the preceding provisions of this Part, the Controller has power to give directions that any right to receive any currency or payment in local currency or to enforce any security for the receipt thereof, any goods, or any other property shall be assigned to the Controller, the Controller shall also have power to direct that the right, goods or property shall vest in the Controller, and it or they shall vest in the Controller accordingly free from any mortgage, pledge or charge, and the Controller may deal with it or them as he thinks fit.

(2) Where, in pursuance of directions under the said provisions, any right, goods or property is or are assigned to the Controller or to a person specified in the directions, or any right, goods or property vests in the Controller in pursuance of directions given under subsection (1), the Controller shall pay the net sum recovered by him in respect of the right, goods or property to the person making the assignment or, in the case of any right, goods or property vested in the Controller under subsection (1), to the person who, but for the directions, would be entitled to the right, goods or property.

Transfer of annuities, policies, etc.

31. (1) Except with the permission of the Controller, no person resident in the scheduled territories shall, in Malaysia, transfer to a person resident outside the scheduled territories, or who is to be a nominee for a person resident outside the scheduled territories, any right to the sums assured by any policy of assurance, so, however, that where the person liable for the sums so assured makes any payment thereof to a person resident in the scheduled territories and not elsewhere, or makes, with the permission of the Controller, any payment thereof to any other person-- 017e.fm Page 33 Monday, March 27, 2006 1:46 PM

34 Laws of Malaysia ACT 17

(a) he shall not be bound to inquire as to the residence of any person other than the person to whom, and (if it is not the same person) the person to whose order the payment is made; and

(b) the payment shall, to the extent of the sums paid, discharge him from his liability under the policy, notwithstanding that the payment is made to or to the order of a person who was not entitled thereto

otherwise than by virtue of a transfer prohibited by this subsection.

(2) Subsection 21(2) and (3) shall apply in relation to any transfer prohibited by this section as they apply in relation to a transfer prohibited by this Act of a security.

(3) In this section, the expression "nominee" has, in relation to any policy, annuity or insurance, the same meaning as the said expression has in Part IV in relation to a security. Settlements

32. (1) Except with the permission of the Controller, no person resident in the scheduled territories shall, in Malaysia, settle any property, otherwise than by will, so as to confer an interest in the property on a person who, at the time of the settlement, is resident outside the scheduled territories, or shall exercise, otherwise than by will, any power of appointment, whether created by will or otherwise, in favour of a person who, at the time of the exercise of the power, is resident outside the scheduled territories. (2) A settlement or exercise of a power of appointment shall not be invalid by reason that it is prohibited by this section, except so far as it purports to confer any interest on any person who, at the time of the settlement or the exercise of the power, is resident outside the scheduled territories.

(3) Subsection 21(2) and (3) shall apply in relation to a settlement or the exercise of a power of appointment prohibited by this section as they apply in relation to a transfer prohibited by this Act of a security.

(4) For the purpose of this section--

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or arrangement whereby the property becomes subject to a trust, or (in the case of a re-settlement) to a different trust;

(b) a person shall be deemed to have an interest in property if he has any beneficial interest therein, whether present or future, and whether vested or

contingent, or falls within a limited class of persons in whose favour a discretion or power in respect of the property is exercisable; and

Companies

33. (1) (a) Where there is served on any person in Malaysia a notice in writing that the Controller wishes any such requirements as are hereinafter mentioned to be complied with by any such body corporate as is specified in the Second Schedule (hereafter in this subsection referred to as a "foreign company"), and that person can, by doing or refraining from doing any act--

(i) cause the foreign company to comply with any of the requirements;

(ii) remove any obstacle to the foreign company

complying with any of the requirements; or

(iii) render it in any respect more probable that the foreign company will comply with any of the requirements, then, except so far as permission to the contrary may be given by the Controller, that person shall do, or, as the case may be, refrain from doing, that act.

(b) The requirements with respect to which a notice under paragraph (a) may be given are that the foreign company shall-- (i) furnish to the Controller such particulars as to its assets and business as may be mentioned in the

notice;

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(ii) sell or procure the sale to an authorized dealer of any gold or specified currency mentioned in the notice, being gold or specified currency which it is entitled to sell or of which it is entitled to procure the sale; (iii) declare and pay such dividend as may be mentioned in the notice;

(iv) realize any of its assets mentioned in the notice in such manner as may be so mentioned; and

(v) refrain from selling, transferring, or doing anything which affects its rights or powers in relation to, any such Treasury bills or securities as may be mentioned in the notice.

(2) Except with the permission of the Controller, no person resident in the scheduled territories shall, in Malaysia, do any act whereby a body corporate which is by any means controlled (whether directly or indirectly) by persons resident in the scheduled territories ceases to be controlled by persons resident in the scheduled territories, and no person resident in the scheduled territories shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, any such transaction outside Malaysia:

Provided that this subsection shall not prohibit any person from selling any securities authorized to be dealt in on any recognized stock exchange in Malaysia if the sale takes place in pursuance of an agreement entered into in the ordinary course of business on that exchange.

(3) Except with the permission of the Controller, no person resident in the scheduled territories shall, in Malaysia, lend any money, Treasury bills or securities to any body corporate resident in the scheduled territories which is by any means controlled (whether directly or indirectly) by persons resident outside the scheduled territories, and no person resident in the scheduled territories shall, in Malaysia, do any act which involves, is in association with, or is preparatory to, any such transaction outside Malaysia:

Provided that this subsection shall not apply where the lender after making such inquiries as are reasonable in the circumstances of the case does not know and has no reason to suspect that the body corporate is controlled as aforesaid.

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(4) For the purposes of this section and of the Second Schedule, persons resident in or outside the scheduled territories shall be deemed to control a body corporate notwithstanding that other persons are associated with them in the control thereof if they can together override those other persons.

(5) In this section the expression "security" includes a secondary security.

PART VII

SUPPLEMENTAL

Exemptions

34. Any provision of this Act imposing any obligation or prohibition shall have effect subject to such exemptions as may be granted by order of the Controller, and any such exemption may be either absolute or conditional.

Blocked accounts

35. Where-- (a) under any provision contained in Part III, the permission of the Controller is required for the making of a payment or the placing of any sum to the credit of any person resident outside the scheduled territories; or

(b) any payment falls to be made by an authorized dealer on the sale of any gold or specified currency by any foreign company within the meaning of section 33(1), being a sale made to comply with any requirement

notified under that subsection,

the Controller may direct that the sum payable or to be credited shall be paid or credited to a blocked account only, and, where such a direction is given, the Third Schedule shall have effect in relation to the payment or crediting of the sum.

Contracts, legal proceedings, etc.

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Controller is at the time of the contract required for the performance of any term thereof, that term shall not be performed except in so far as the permission or consent is given or is not required:

Provided that this subsection shall not apply in so far as it is shown to be inconsistent with the intention of the parties that it should apply, whether by reason of their having contemplated the performance of that term in despite of this Act or for any other reason.

(2) Notwithstanding anything in the Bills of Exchange Act 1949 [Act 204], neither the provisions of this Act, nor any condition, whether express or to be implied having regard to those provisions, that any payment shall not be made without the permission of the Controller under this Act, shall be deemed to prevent any instrument being a bill of exchange or promissory note.

(3) The Fourth Schedule shall have effect with respect to legal proceedings, arbitrations, bankruptcy proceedings, the administration of the estates of deceased persons, the winding-up of companies, and proceedings under deeds of arrangement or trust deeds for behoof of creditors.

Enforcement and administration

37. (1) The Fifth Schedule shall have effect for the purpose of the enforcement of this Act.

(2) Persons belonging to the following classes:

(a) bankers, authorized dealers, authorized depositaries; (b) persons to whom any powers of the competent

authority under this Act are delegated;

(c) persons who with the permission of the competent authority are in possession of documents which would, but for the permission, have to be in the custody of an authorized depositary;

(d) persons concerned with the keeping of any register in Malaysia; and

(e) persons entrusted with the payment of capital moneys, dividends or interest in Malaysia,

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shall comply with such directions as may be given to them respectively by the Controller, being--

(i) in the case of any such persons, directions as respects the exercise of any functions exercisable by them by virtue of, or by virtue of anything done under, any provision of this Act; or

(ii) in the case of authorized dealers, such directions as aforesaid or directions as to the terms on which they are to accept gold or foreign currency or directions requiring them to offer their gold or specified currency for sale to Bank Negara Malaysia on such terms as may be specified in any such directions.

Application to Governments

38. This Act shall bind the Federal and State Governments and shall apply to transactions by--

(a) a department of the Federal Government or the Government of any State; or

(b) other person acting on behalf of the Federal Government or the Government of any State,

and the Controller shall not, by virtue of any contract made by them or on their behalf in relation to any securities, be under any obligation to grant any permission under, or any exemption from, Part IV.

Other powers

39. (1) Any permission, consent or authority granted under this Act--

(a) may be either general or special;

(b) may be revoked by the Controller;

(d) may be limited so as to expire on a specified date, unless renewed; and

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(e) shall be published in such a way as, in the opinion of the Controller, to give any person entitled to the benefit of it an adequate opportunity of getting to know of it, unless in his opinion publication is not necessary for that purpose.

(2) Any directions given under any provision of this Act-- (a) may be either general or special;

(b) may be revoked or varied by subsequent directions; and

(c) shall be given to such persons and in such manner as the Controller thinks appropriate, and if so given shall be valid for all purposes.

(3) Notwithstanding paragraph (2)(c), a person shall not by virtue of any direction given by the Controller under this Act, be convicted of an offence against this Act, unless the direction was served on him or he knew, or avoided getting to know, of the giving thereof:

Provided that where reasonable steps were taken for the purpose of bringing the purport of the direction to his notice, it shall be for him to show that he neither knew nor avoided getting to know of the giving thereof.

(4) The Controller may, to such extent and subject to such restrictions and conditions as he may think proper, delegate or authorize the delegation of any of his powers (other than any power to make orders or to give authority to apply for a search warrant) to any person, or class or description of persons, approved by him, and references in this Act shall be construed accordingly.

(5) Any document stating that any permission, consent, authority or direction is given under any of the provisions of this Act by the Controller, and purporting to be signed on his behalf, shall be evidence of the facts stated in the document.

Financial provisions

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and any sums received under or by virtue of this Act by any Government department shall be paid into the Consolidated Fund. Branches

41. (1) The Controller may by order or direction provide that, for such of the purposes of this Act as may be specified in the order or direction--

(a) any transaction with or by a branch of any business, whether carried on by a body corporate or otherwise, shall be treated in all respects as if the branch were a body corporate resident where the branch is situated; (b) the making of any book entry or other statement recording a debit against a branch of any business in favour of any other branch of that business, shall be treated as a payment to that other branch; and

(c) any property held by or on behalf of the person carrying on the business shall be deemed to be held by such of the branches of the business as may be

determined in accordance with the order or direction, and any such order or direction which makes, for any of the purposes of Part IV, such provision as is mentioned in paragraph (c) may contain provisions declaring the circumstances in which a branch is to be treated as nominee for any other branch. (2) Any reference in subsection (1) or (unless the contrary intention appears) in any order or direction made thereunder to a branch of a business shall be deemed to include a reference to the head office of that business.

(3) Subsections (1) and (2) shall apply in relation to any body of persons (whether corporate or unincorporated) carrying on any activity, whether for the purpose of profit or not, as they apply in relation to a business.

Persons leaving the scheduled territories

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to him or to his credit and transactions in or in relation to Treasury bills, securities or secondary securities in which he is in any way concerned shall, whether or not he continues to be resident in Malaysia, be subject to such restrictions as may be specified in the direction.

Determination of residence

43. (1) For the purposes of this Act, a personal representative of a deceased person shall, unless the Controller otherwise directs, be treated as resident in the territory where the deceased person was resident for the purposes in question at the time of his death and as not resident elsewhere, so far as relates to any matters in which the personal representative is concerned solely in his capacity as such.

(2) The Controller may give directions declaring that for all or any of the purposes of this Act a person is to be treated as resident or not resident in such territories as may be specified in the directions.

Controller may prohibit carrying out of certain orders by Governments of, or residents in, other countries

44. (1) Where the Controller is satisfied that owing to the changes in the external or internal position of any country or territory, action is being, or is likely to be, taken to the detriment of the economic position of Malaysia, the Controller may give general or special directions prohibiting, either absolutely or to such extent as may be specified in the directions, the carrying out, except with permission granted by the Controller, of any order given by or on behalf of the Government of that country or territory or any person resident therein at the time when the directions were given or at any later time while these directions are in force in so far as the order--

(i) requires the person to whom the order is given to make any payment or to part with any gold or securities; or (ii) requires any change to be made in the persons to whose credit any sum is to stand or to whose order any gold or securities are to be held.

(2) Where any directions are given under this section with respect to any country or territory, a branch in that country or 017e.fm Page 42 Monday, March 27, 2006 1:46 PM

Exchange Control 43

territory of any business, whether carried on by a body corporate or otherwise, shall, for the purposes of this section, be treated in all respects as if the branch were a body corporate resident in that country or territory.

Exemption from stamp duty

45. (1) No stamp duty shall be chargeable-- (a) on any security by reason only of the assignment, transfer or negotiation thereof to the Controller; (b) on any instrument whereby any security is assigned or transferred to the Controller (whether on sale or otherwise); or

(2) This section applies to assignments, transfers, negotiations or sales of securities effected whether in compliance with this Act or otherwise.

(3) In this section the expression "contract note" means the note sent by a broker or agent to his principal, or by any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or marketable securities, advising the principal, or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a broker or agent to his principal where the principal is himself acting as broker or agent for a principal and is himself a person who bona fide carries on the business of a stockbroker in Malaysia.

Regulations

46. (1) The Minister may make such regulations as may be necessary for the better carrying out or giving effect to the provisions of this Act.

(2) All such regulations shall be laid before the Dewan Rakyat as soon as practicable after they are made but shall not continue in force thereafter unless approved by resolution of the Dewan. 017e.fm Page 43 Monday, March 27, 2006 1:46 PM

44 Laws of Malaysia ACT 17

(3) In approving any such regulations the Dewan Rakyat may make such alterations therein as it may think fit. FIRST SCHEDULE

[Section 2]

THE SCHEDULED TERRITORIES

1. Malaysia SECOND SCHEDULE

[Sections 33 and 35]

FOREIGN COMPANIES

1. The bodies corporate in question are bodies corporate not incorporated under any written law for the time being in force in any part of Malaysia in the case of which any of the following conditions is fulfilled:

(a) that the body corporate is by any means controlled (whether directly or indirectly) by persons resident in Malaysia;

(b) that more than one-half of the sums which, on a liquidation thereof, would be receivable by holders of share or loan capital would be receivable directly or indirectly by or for the benefit of persons resident in Malaysia;

(c) that more than one-half of the assets which, on a liquidation thereof, would be available for distribution after the payment of creditors would be receivable directly or indirectly by or for the benefit of persons resident in Malaysia; or

(d) that more than one-half--

(i) of the interest payable on its loans and loan capital, if any; (ii) of the dividends payable on its preference share capital, if any; or (iii) of the dividends payable on its share capital, if any, not being preference share capital,

is receivable, directly or indirectly, by or for the benefit of persons resident in Malaysia.

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Exchange Control 45

2. Where the identity of the persons by whom or for whose benefit any sum, assets, interest or dividends are directly or indirectly receivable depends on the exercise by a person resident in Malaysia of a power of appointment or similar power, the sum, assets, interests or dividends shall, for the purposes of this Schedule, be deemed to be receivable directly or indirectly by or for the benefit of persons resident in Malaysia. THIRD SCHEDULE

[Section 35]

BLOCKED ACCOUNTS

1. In this Schedule, the expression "a blocked account" means an account opened as a blocked account at an office or branch in Malaysia in favour of any person by a banker authorized by the Controller to open blocked accounts, and the expression "the banker" means, in relation to any person, a banker who opens a blocked account in favour of that person.

2. Where a direction is given that a payment is to be made to a blocked account only, then, subject to paragraph 3--

(a) the manner in which the payment may be made shall be either-- (i) to the banker, with a direction that it is to be credited to a blocked account of that person [which direction may, in the case of a payment by means of a cheque or warrant, be made by marking the cheque or warrant with the words "blocked account of" (naming the person in question) or words to the same effect]; or (ii) by a crossed cheque or warrant drawn in favour of that person, marked with the words "payable only to blocked account of payee" or words to the same effect; and

(b) the sum collected shall be credited by the banker to a blocked account of that person.

3. Where a direction is given that a sum is to be paid or credited to a blocked account only, then, notwithstanding the direction, the sum may, with the consent of the person to whom it is to be paid or credited, and subject to the requirements of Part IV of this Act, be invested instead in the purchase for that person of any such investments as may be prescribed for the purposes of paragraph (a) of the proviso to paragraph 4.

4. Any sum standing to the credit of a blocked account shall not be dealt with except with the permission of the Controller:

Provided that, subject to compliance with the requirements of Part IV of this Act-- (a) the whole or any part of any such sum may, at the request of the person in whose name the account stands, be invested through the banker in such investments as may be prescribed; and

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46 Laws of Malaysia ACT 17

(b) nothing in this Schedule shall be construed as restricting the manner in which the investments acquired may be dealt with.

5. Where a person in whose name a blocked account is standing becomes bankrupt in Malaysia or dies, the banker may, notwithstanding anything in paragraph 4, transfer the account to the name of the Director General of Insolvency or personal representative, but, save as aforesaid, no change shall, except with the permission of the Controller, be made in the name in which the account stands; and where any such change is made (whether or not the permission of the Controller is necessary therefor) the account shall remain a blocked account notwithstanding the change, and the provisions of this Schedule shall apply accordingly.

6. Where-- (a) a sum is due from any person to any other person but the Controller directs that it shall be paid or credited to a blocked account only;and (b) the person to whom the sum is due nominates such an account to the person from whom the sum is due,

the last mentioned person is under a duty to the person to whom the sum is due to cause the sum to be paid or credited to that blocked account, and the crediting of any sum to a blocked account in pursuance of a direction of the Controller shall, to the extent of the sum credited, be a good discharge to the person from whom the sum is due:

Provided that in the case of a sum due under a contract this paragraph shall not apply in so far as it is shown to be inconsistent with the intention of the parties that it should apply.

FOURTH SCHEDULE

[Section 36]

LEGAL PROCEEDINGS, ETC.

1. Part III of this Act shall apply to sums required to be paid by any judgment or order of any court or by any award as they apply in relation to other sums, and it shall be implied in any judgment or order of any court in Malaysia, and in any award given under any written law for the time being in force in any part of Malaysia, that any sum required to be paid by the judgment, order or award (whether as a debt, as damages or otherwise) to which the said provisions apply shall not be paid except with the permission of the Controller.

2. Nothing in this Act shall be construed as preventing the payment by any person of any sum into any court in Malaysia but Part III of this Act shall apply to the payment of any sum out of court, whether under an order of the court or otherwise, to or for the credit of any person resident outside the scheduled territories. 017e.fm Page 46 Monday, March 27, 2006 1:46 PM

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3. Rules of court may be made to make provision for-- (a) enabling any person who is required by any judgment, order or award to pay any sum, if he apprehends that the payment of that sum is unlawful under this Act except with the permission of the Controller, to pay that sum into court;

(b) declaring that payment of a sum into court by virtue of subparagraph (a), together with the delivery to the other party concerned of such evidence of the payments as may be prescribed by the rules, shall, to the extent of the payment, be a good discharge to the person making the payment; and (c) so regulating the process of execution which may issue in respect of any sum required to be paid by any judgment, order or award as to secure that, unless it is shown, in such manner as may be prescribed by the rules, that the permission of the Controller for the payment of the sum is not required under this Act or has been given without conditions, the proceeds of the execution will be paid into court, and, so far as is necessary for that purpose, varying the form of any writ of execution or other similar document of the duties of the sheriff or other officer to whom any such writ or other similar document is directed: Provided that the form of any bankruptcy notice shall be such as may be prescribed by the Controller.

4. (1) In any proceedings in a prescribed court and in any arbitration proceedings, a claim for the recovery of any debt shall not be defeated by reason only of the debt not being payable without the permission of the Controller and of that permission not having been given or having been revoked.

(2) No court shall be prescribed for the purpose of this paragraph unless the Controller is satisfied that adequate provision has been made therefor by rules of court for the purposes specified under paragraph 3.

5. (1) In any bankruptcy, in the winding up of any company or in the administration of the estate of any deceased person (being a bankruptcy, winding up or administration carried on under any written law for the time being in force in any part of Malaysia), a claim for a sum not payable without the permission of the Controller shall, notwithstanding that the permission has not been given or has been revoked, be admitted to proof as if it had been given and had not been revoked: Provided that nothing in this subparagraph shall be construed as affecting the application of Part III of this Act to payments by any trustee, liquidator, personal representative or other person in any such bankruptcy, winding up or administration. (2) The provisions of this Act restricting the making of settlements shall not apply to any deed of arrangement made for the benefit of creditors generally, and subparagraph (1) shall apply in relation to proceedings under any deed of arrangement as they apply in relation to proceedings in bankruptcy.

6. A debt for the payment of which the permission of the Controller is required under this Act shall, if in other respects it complies with the requirements of 017e.fm Page 47 Monday, March 27, 2006 1:46 PM

48 Laws of Malaysia ACT 17

subsection 5(1) of the Bankruptcy Act 1967 [Act 360], be allowed to be a good petitioning creditors debt, notwithstanding the said requirement, if and to the extent that the debt can be satisfied either by a payment into court or by a payment to a blocked account.

FIFTH SCHEDULE

[Section 37]

ENFORCEMENT

PART I

General provisions as to evidence and information

1. (1) Without prejudice to any other provisions of this Act the Controller may give to any person in or resident in Malaysia directions requiring him, within such time and in such manner as may be specified in the directions, to furnish to him, or to any person designated in the directions as a person authorized to require it, any information in his possession or control which the Controller or the person so authorized, as the case may be, may require for the purpose of securing compliance with or detecting evasion of this Act.

(2) A person required by any such directions as aforesaid to furnish information shall also produce such books, accounts or other documents (hereafter in this Part referred to as "documents") in his possession or control as may be required for the said purpose by the Controller or by the person authorized to require the information, as the case may be.

(3) Nothing in subparagraphs (1) and (2) shall be taken to require any person who has acted as advocate for any person to disclose any privileged communication made to him in that capacity.

(4) Where a person is convicted for failing to give information or produce documents when required so to do under this paragraph, the court may make an order requiring the offender, within such period as may be specified in the order, to comply with the requirement to give the information or produce the documents.

2. (1) If a Magistrate is satisfied by information on oath given by a person authorized by the Controller to act for the purposes of this paragraph either-- (a) that there is reasonable ground for suspecting that an offence against this Act has been or is being committed and that evidence of the commission of the offence is to be found at any premises specified in the information, or in any vehicle, vessel or aircraft so specified; or 017e.fm Page 48 Monday, March 27, 2006 1:46 PM

Exchange Control 49

(b) that any documents which ought to have been produced under paragraph 1 and have not been produced are to be found at any such premises or in any such vehicle, vessel or aircraft,

he may grant a search warrant authorizing any police officer, together with any other persons named in the warrant and any other police officer, to enter the premises specified in the information or, as the case may be, any premises upon which the vehicle, vessel or aircraft so specified may be, at any time within one month from the date of the warrant, and to search the premises, or, as the case may be, the vehicle, vessel or aircraft.

(2) A person authorized by any such warrant as aforesaid to search any premises or any vehicle, vessel or aircraft, may search every person who is found in, or whom he has reasonable ground to believe to have recently left or to be about to enter, those premises or that vehicle, vessel or aircraft, as the case may be, and may seize any article found in the premises or in the vehicle, vessel or aircraft which he has reasonable ground for believing to be evidence of the commission of any offence against this Act or any documents which he has reasonable ground for believing ought to have been produced under paragraph 1:

Provided that no female shall, in pursuance of any warrant issued under this paragraph, be searched except by a female.

(3) Where, by virtue of this paragraph, a person has any power to enter any premises, he may use such force as is reasonably necessary for the purpose of exercising that power.

3. (1) Any article coming into the possession of an executive authority (whether in consequence of the seizure of the article under or by virtue of this Act or otherwise) which the authority has reasonable ground for believing to be evidence of the commission of an offence against this Act may be retained for a period of three months or, if within that period there are commenced proceedings in respect of such an offence in which the article is, or can properly be, adduced in evidence, until the final determination of those proceedings.

(2) For the purposes of this paragraph, any person to whom any powers of the Controller are delegated or on whom any functions are conferred by or by virtue of this Act, including any police officer, shall be deemed to be an executive authority. (3) For the purposes of this paragraph, any proceedings shall be deemed not to have been finally determined so long as there is pending any appeal in the matter of the proceedings, and an appeal in that matter shall be deemed to be pending during the ordinary time within which such an appeal may be lodged, and, if such an appeal is duly lodged, the appeal shall be deemed to be pending until it is decided or withdrawn.

(4) The powers conferred by this paragraph in relation to any article shall be in addition to, and not in derogation of, any powers otherwise exercisable in relation thereto.

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50 Laws of Malaysia ACT 17

4. No person in or resident in Malaysia shall-- (a) with intent to evade the provisions of this Act, destroy, mutilate, deface, secrete or remove any documents;

(b) in furnishing any information for any of the purposes of this Act, make any statement which he knows to be false in a material particular, or recklessly make any statement which is false in a material particular; (c) obstruct any person in the exercise of any powers conferred on him by virtue of this Part.

5. (1) Any information given by a person for any of the purposes of this Act may be given in evidence against him notwithstanding that it may tend to incriminate him. (2) Subparagraph (1) shall be without prejudice to any question as to the admissibility of evidence of any information obtained under any written law (other than this Act) in the absence of any such express provision.

6. (1) The Controller or any person authorized by him in writing in that behalf may enter the premises of any financial institution and inspect any of the books or documents in the possession of such financial institution relating either to any account or accounts kept by such financial institution or relating to any other matter. (2) The Controller or any person authorized by him in writing in that behalf may by writing under his hand require any financial institution to furnish him with such periodical or other returns or to furnish such information or copies of such accounts or other documents as he may in such writing specify. (3) Any financial institution to whom a requirement has been made under subparagraph (2) shall comply therewith within such times as may be specified in the requirement or if no time is specified without unnecessary delay. PART II

General provisions as to offences

7. (1) Any person in or resident in Malaysia who contravenes or fails to comply with any restriction or requirement imposed by or under this Act or any rules, orders or regulations made thereunder and any such person who conspires or attempts, or aids, abets, counsels or procures any other person, to contravene or fail to comply with any such restriction or requirement as aforesaid, shall be guilty of an offence punishable under this Part:

Provided that an offence punishable by virtue of Part III shall not be punishable under this Part.

(2) Any person who commits an offence punishable under this Part shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three years or to both and where the offence is concerned with any currency, any security, any gold, any goods or any other property, the court may order the currency, security, gold, goods or property to be forfeited. 017e.fm Page 50 Monday, March 27, 2006 1:46 PM

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(3) Notwithstanding the provisions of any other written law, a Sessions Court shall have power to award the full penalties prescribed for any offence or any abetment of or attempt or conspiracy to commit an offence punishable under this Part. (4) Notwithstanding subparagraph (2) where any person is convicted of an offence in relation to any currency, any security, any payment, any gold, any goods or any other property, and that offence does not consist only of a failure to give information or produce books, accounts or other documents with respect thereto when required so to do under Part I the maximum fine which may be imposed shall be such fine as is authorized by subparagraph (2) or a fine equal to three times the value of the currency, security, payment, gold, goods or property.

8. (1) Any person authorized by the Minister in writing in that behalf may compound any offence punishable under this Part or by virtue of Part III, by accepting from the person reasonably suspected of having committed such offence a sum of money not exceeding one thousand ringgit.

(2) On payment of such money the person reasonably suspected of having committed an offence shall, if in custody, be discharged; any currency, security, gold, goods or other property seized shall be released and no further proceedings shall be taken against such person or property.

9. For the purposes of any prosecution or of compounding any offence under this Act--

(a) whenever any agent or servant in the course of his employment does or omits to do an act the doing or omission to do which by his principal or employer would be an offence, such agent or servant shall be guilty of that offence, and his principal or employer and any person who at the time of the act or omission was in charge of the business in respect of which the act or omission occurred shall also be guilty of that offence unless such principal or employer or other person, as the case may be, proves to the satisfaction of the court that having regard to all the circumstances he took all reasonable means and precautions to prevent such act or omission;

(b) where any offence has been committed by any body corporate, any person who at the time of the commission of such offence was a director, general manager, secretary or other similar officer of the body corporate or was purporting to act in any such capacity, shall be deemed to be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that having regard to the nature of his functions in that capacity and to all the circumstances he took all reasonable means and precautions to prevent the commission of the offence.

10. No proceedings for an offence punishable under this Part shall be instituted, except by or with the consent of the Attorney General or the Controller: Provided that in any case to which paragraph 9(a) applies no proceedings shall be instituted against any principal or employer or person who at the time of the act or 017e.fm Page 51 Monday, March 27, 2006 1:46 PM

52 Laws of Malaysia ACT 17

omission by a servant or agent was in charge of the business in respect of which such act or omission occurred, except by or with the consent of the Attorney General: And provided further that this paragraph shall not prevent the issue or execution of a warrant for the arrest of any person in respect of such an offence, or the remanding in custody or on bail of any person charged with such an offence. PART III

Import and Export

11. Any person who, on any occasion, is about to leave any part of Malaysia to any place outside Malaysia or arrives in any part of Malaysia from a place outside Malaysia (which person is hereafter in this paragraph referred to as "the traveller") shall, if on that occasion he is required so to do by an authorized officer-- (a) declare whether or not he has with him anything prohibited to be imported or exported by any of the provisions of Part V of this Act except with the permission of the Controller; and

(b) produce any such thing as aforesaid which he has with him, and the officer may examine or search any article which the traveller has with him for the purpose of ascertaining whether he is conveying or has in his possession any such thing, and, if the officer has reasonable grounds for suspecting that the traveller has about his person any such thing, search him, and may seize anything produced as aforesaid or found upon such examination or search as aforesaid as to which the officer has reasonable ground for suspecting that it is prohibited to be imported or exported by any of the provisions of Part V of this Act except with permission of the Controller:

Provided that no female shall be searched in pursuance of this paragraph except by a female.

12. Where any person arrives in any part of Malaysia from any place outside Malaysia or is about to leave any part of Malaysia to any place outside Malaysia in any vessel, vehicle or aircraft an authorized officer accompanied by any person working under his direction may board the vessel, vehicle or aircraft for the purpose of exercising the powers conferred on him by paragraph 11 and may also examine or search the vessel, vehicle or aircraft for the purpose of ascertaining whether there is on board the vessel, vehicle or aircraft anything prohibited to be imported or exported by any of the provisions of Part V of this Act, except with the permission of the Controller, and may seize anything found upon such examination or search as aforesaid as to which the officer has reasonable ground for suspecting that it is prohibited to be imported or exported by any of the provisions of Part V of this Act, except with permission of the Controller.

13. (1) As respects any goods consigned from any part of Malaysia to any place outside Malaysia or to any part of Malaysia from any place outside Malaysia an authorized officer and any person working under his directions may examine or search the goods for the purpose of ascertaining whether the goods contain anything 017e.fm Page 52 Monday, March 27, 2006 1:46 PM

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prohibited to be imported or exported by any of the provisions of Part V of this Act except with the permission of the Controller and may seize anything found upon such examination or search as to which the officer has reasonable ground for suspecting that it is prohibited to be exported or imported by any of the provisions of Part V of this Act, except with permission of the Controller. (2) An authorized officer and any person acting under his directions may go on board any vessel, vehicle or aircraft for the purpose of exercising the powers conferred on them by subparagraph (1) in relation to any goods on board the vessel, vehicle or aircraft.

14. (1) Where, at any place in Malaysia, any person is on any occasion found in circumstances in which it is reasonable to suppose that on that occasion he has communicated, or intends to communicate, at that place with a person embarking thereat on a vessel, vehicle or aircraft for the purpose of leaving any part of Malaysia to any place outside Malaysia, or landing thereat from a vessel, vehicle or aircraft on coming to any part of Malaysia from any place outside Malaysia he shall if requested so to do by an authorized officer declare whether he has with him anything prohibited to be imported or exported by any of the provisions of Part V of this Act, and, if so, produce the same for inspection and answer truthfully all questions which may be put to him in connection therewith and an authorized officer or any person acting under his directions may search any such person provided that no female shall be searched except by a female.

(2) An authorized officer may, in order to prevent the possibility of an offence being committed under this Act, detain anything so prohibited to be imported or exported which is in the possession of any such person, and, if he detains any such article, shall give a receipt therefor to such person and shall return such article to such person when he is satisfied that such possibility no longer exists.

15. The Customs Act 1967 [Act 235], shall, subject to such modifications, if any, as may be prescribed to adapt the said Act to this Act, apply in relation to anything prohibited to be imported or exported by any of the provisions of Part V of this Act except with the permission of the Controller as the said Act applies in relation to goods prohibited to be imported or exported by or under the said Act and any reference in the said Act to goods shall be construed as including a reference to anything prohibited to be imported or exported by any of the provisions of the said Part except with the permission of the Controller.

16. Any declaration required to be made or given under Part V of this Act shall, for the purposes of the Customs Act 1967, be deemed to be a declaration in a matter relating to customs.

17. If anything prohibited to be exported by any provision of Part V of this Act is exported in contravention thereof, or is brought to a quay, airport or other place, or water-or air-borne, for the purpose of being so exported, the exporter or his agent shall be liable to the same penalty as that to which a person is liable for an offence to which the Customs Act 1967, applies.

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18. An authorized officer may examine any postal article within the meaning of the Postal Services Act 1991 [Act 465], addressed to any person in or outside Malaysia for the purpose of securing compliance with or detecting evasion of this Act.

19. Paragraphs 8, 9 and 10 in Part II shall apply also to offences punishable by virtue of this Part.

20. In this Part the expression "authorized officer" means any officer of customs as defined in the Customs Act 1967, any police officer and any officer or person authorized by the Controller to exercise the powers and perform the duties of an authorized officer under this Part.

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LAWS OF MALAYSIA

Act 17

EXCHANGE CONTROL ACT 1953

LIST OF AMENDMENTS

Amending law Short title In force from

L.N. 332/1958 Federal Constitution (Modification of Laws) (Ordinances and Proclamations)

Order 1958

13-11-1958

L.N. 250/1959 Amendment to First Schedule 23-07-1959 Act 8/1960 Exchange Control (Amendment) Act 1960 05-05-1960 L.N. 150/1961 Exchange Control (Scheduled Territories) Order 1961

11-05-1961

L.N. 50/1962 Exchange Control (Scheduled Territories) (Amendment) Order 1962

15-02-1962

L.N. 238/1964 Modification of Laws (Exchange Control) Order 1964

06-08-1964

Act 79/1965 Companies Act 1965 15-04-1966

L.N. 455/1965 Exchange Control (Scheduled Territories) (Amendment) Order 1965

30-11-1965

P.U. 48/1966 Exchange Control (Scheduled Territories) (Amendment) Order 1966

09-08-1965

Act 48/1966 Exchange Control (Amendment) Act

1966

28-07-1966

P.U. 431/1966 Exchange Control (Scheduled Territories) (Amendment No. 2) Order 1966

07-11-1966

P.U. 494/1966 Exchange Control (Scheduled Territories) Order 1966

29-12-1966

P.U. 6/1968 Exchange Control (Scheduled Territories) (Amendment) Order 1967

30-11-1967

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56 Laws of Malaysia ACT 17

P.U. 163/1968 Exchange Control (Scheduled Territories) (Amendment) Order 1968

12-03-1968

P.U. 420/1968 Exchange Control (Scheduled Territories) (Amendment) (No. 2) Order 1968

06-09-1968

P.U.(A)497/1969 Modification of Laws (Exchange Control) (Amendment) Order 1969

06-08-1964

P.U.(B)324/1970 Titles of Office Ordinance 1949,

Notification under section 3

01-01-1971

P.U.(A)414/1970 Exchange Control (Scheduled Territories) (Amendment) Order 1970

10-10-1970

P.U.(A)102/1971 Exchange Control (Scheduled Territories) (Amendment) Order 1971

05-01-1971

P.U.(A)413/1971 Exchange Control (Scheduled Territories) (Amendment) (No. 2) Order 1971

12-11-1971

P.U.(A)13/1972 Exchange Control (Scheduled Territories) (Amendment) Order 1972

21-01-1972

P.U.(A)83/1972 Exchange Control (Scheduled Territories) (Amendment) (No. 2) Order 1972

17-03-1972

P.U.(A)165/1972 Exchange Control (Scheduled Territories) (Amendment) (No. 3) Order 1972

16-06-1972

P.U.(A)119/1973 Exchange Control (Scheduled Territories) Order 1973

08-05-1973

Act 160 Malaysian Currency (Ringgit) Act 1975 29-08-1975 P.U.(A)357/1980 Subordinate Courts Act (Extension) Order 1980

01-06-1981

Act A737 Central Bank of Malaysia, Exchange

Control, Insurance and Takaful

(Amendment) Act 1989

28-07-1966;

s. 33

01-05-1989;

s. 35

Amending law Short title In force from

017e.fm Page 56 Monday, March 27, 2006 1:46 PM

LAWS OF MALAYSIA

Act 17

EXCHANGE CONTROL ACT 1953

LIST OF SECTIONS AMENDED

Section Amending authority In force from

2 Act 8/1960 05-05-1960

L.N. 238/1964 06-08-1964

3 Act 48/1966 28-07-1966

Act A737 28-07-1966

24 Act 8/1960 05-05-1960

Act 48/1966 28-07-1966

25 Act 8/1960 05-05-1960

Act 48/1966 28-07-1966

26 P.U.(B)324/1970 01-01-1971

33 Act 8/1960 05-05-1960

37 Act 48/1966 28-07-1966

40 Act 48/1966 28-07-1966

42 Act 8/1960 05-05-1960

First Schedule L.N. 250/1959 27-07-1959

L.N. 150/1961 11-05-1961

L.N. 50/1962 15-02-1962

L.N. 455/1965 30-11-1965

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58 Laws of Malaysia ACT 17

P.U.(A)48/1966 28-07-1966

P.U.(A)431/1966 07-11-1966

P.U.(A)494/1966 29-12-1966

P.U.(A)6/1968 30-11-1965

P.U.(A)163/1968 12-03-1968

P.U.(A)420/1968 06-09-1968

P.U.(A)414/1970 10-10-1970

P.U.(A)102/1971 05-01-1971

P.U.(A)413/1971 12-11-1971

P.U.(A)13/1972 21-01-1972

P.U.(A)83/1972 17-03-1972

P.U.(A)165/1972 16-06-1972

P.U.(A)119/1973 08-05-1973

Fourth Schedule P.U.(A)497/1969 06-08-1964

Fifth Schedule Act 8/1960 05-05-1960

Act 48/1966 28-07-1966

Section Amending authority In force from

017e.fm Page 58 Monday, March 27, 2006 1:46 PM

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