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IntroductionNotes for completion of Form IIB
1. These notes provide general instructions on the submission of the application for an IIB licence.
2. To facilitate the application process, BNM has drawn up a proforma application form, Form IIB and a sample memorandum of undertaking.
3. Part A should be completed by:
i. Malaysian-owned and locally incorporated foreign-owned banking institution licensed under the Banking and Financial Institutions Act 1989 seeking a licence under the Islamic Banking Act 1983 for the sole and exclusive purpose of carrying on Islamic banking business in international currencies via a subsidiary set-up; or
ii. Malaysian-owned and locally incorporated foreign-owned banking institution licensed under the Banking and Financial Institutions Act 1989 seeking a licence under the Islamic Banking Act 1983 for the sole and exclusive purpose of carrying on Islamic banking business in international currencies via a branch set-up.
4. Part B should be completed by:
i. Foreign financial institution seeking a licence under the Islamic
Banking Act 1983 for the sole and exclusive purpose of carrying on Islamic banking business in international currencies via a subsidiary set-up; orii. Foreign financial institution seeking a licence under the Islamic Banking Act 1983 for the sole and exclusive purpose of carrying on Islamic banking business in international currencies via a branch set-up.
5. The completed Form IIB, which should be bound together with the requisite documents, should be submitted with the application letter to:-
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
MALAYSIA
6. All applications will be acknowledged.
7. BNM may require submission of any other relevant documents.
Certified translation of documents
8. Where a document or a certified copy of it to be lodged with BNM is neither in the national language of Malaysia nor in English, the applicant is required to lodge, at the same time, a certified translation of such document either in the national language of Malaysia or in English.
9. Translated documents must be certified in the following manner:-
i. By an official to whom the custody of the
original instrument, certificate, contract or
document is committed, being an official holding or purporting to hold an office corresponding to that of the Register in the place in which the corporation is formed or
ii. By a notary or a translator public duly admitted and sworn in accordance with the law of the place in which the corporation is formed or incorporated.
Authorisation of documents and forms lodged
10. Documents submitted to BNM with Form IIB shall be certified and accompanied by a declaration to that effect by the authorised signatories. Further, the name(s) of the person(s) signing the documents and Form IIB lodged shall be legibly written or typewritten against the signature(s) of that person(s).
11. Applicants are also required to attach evidence of proper authorisation to submit the application, for example, a directors’ resolution. In the case of a person applying on behalf of an applicant, a power of attorney.
Secrecy of information submitted to BNM
12. All information submitted to BNM in respect of the application for an IIB licence shall be treated as strictly confidential.
Islamic Banking and Takaful Development Department
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
Malaysia
PART A
This part is only applicable to:
• Malaysian-owned and locally incorporated foreign-owned banking institution licensed under the Banking and Financial Institutions Act 1989 seeking a licence under the Islamic Banking Act 1983 for the sole and exclusive purpose of carrying on Islamic banking business in international
currencies via a subsidiary set-up; or• Malaysian-owned and locally incorporated foreign-owned banking institution licensed under the Banking and Financial Institutions Act 1989 seeking a licence under the Islamic Banking Act 1983 for the sole and exclusive purpose of carrying on Islamic banking business in international currencies via a branch set-up.
“banking business” means—
the business of—
(i) receiving deposits on current account, deposit account, savings account or other similar account;
(ii) paying or collecting cheques drawn by or paid in by customers; and
(iii) provision of finance; or such other
business as the Bank, with the approval of the Minister, may prescribe;
“factoring business” means—
(a) the business of acquiring debts due to any person; or
(b).such other business as the Bank, with the approval of the Minister, may prescribe;
“building credit business” means—
the business of providing any credit facilities to any person
for the express purpose of—
(i) the purchase of immovable property; or
(ii) the construction, reconstruction or renovation of any building or other structure for residential, commercial or industrial purposes; or
such other business as the Bank, with the approval of the Minister, may prescribe;
“development finance business” means—
(a) the business of providing capital or other credit facility on terms which would require the same to be utilised for industrial, agricultural, commercial or other economic development; and for the purposes of this definition, “development” includes the commencement of any new industrial, agricultural, commercial or other economic venture or the expansion or improvement of any such existing venture; or
such other business as the Bank, with the approval of the Minister, may prescribe;
“director”
(a) includes any person who occupies the position of a director, by whatever name called and, in particular, without prejudice tohe foregoing, in the case of—) a corporation, has the meaning assigned thereto by the Companies Act 1965;
(b) a co-operative society, means a member of the board, or other governing body howsoever called, of the co-operative society
(c) a statutory body, means a member of the board, committee, council or other governing body, howsoever called, of the statutory body;
(d) a partnership, means a partner;
(e) a sole proprietorship, means the sole proprietor;
and
(f) any other body, association or group of persons, whether corporate or unincorporate, means any person having the direction
and control of themanagement of its affairs or business;
