Moneylenders
1
LAWS OF MALAYSIA
REPRINT
Act 400
MONEYLENDERS ACT 1951
Incorporating all amendments up to 1 January 2006
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
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MONEYLENDERS ACT 1951
First enacted ... ... ... ... ... ... ...
1951 (Ord. No. 42 of
1951)
Revised
.....................
1989 (Act 400 w.e.f
14 December 1989)
PREVIOUS REPRINT
First Reprint
...
...
...
...
...
2001
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LAWS OF MALAYSIA
Act 400
MONEYLENDERS ACT 1951
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1.
Short title and application
2.
Interpretation
2A. Non-application of Act and exemption therefrom
3.
(Deleted)
4.
Appointment of Registrar, Deputy Registrar, Inspector, and other officers
and servants
4A. Delegation of powers of Registrar
PART II
LICENSING OF MONEYLENDERS
5.
Licence to be taken out by moneylender
5A. Application for licence
5B. Grant of a licence
5C. Duration of licence
5D. Conditions attached to licence
5E. Renewal of licence
5F. Requirement to display licence
6.
Particulars to be shown on licences
7.
(Deleted)
8.
Offences
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Section
9.
Circumstances under which licence shall not be issued
9A. Revocation or suspension of licence
9B. Opportunity of being heard
9C. Appeal to Minister
9D. Validity of licence extended in successful appeal
9E. Prohibition of subsequent application pending appeal on earlier application
9F. Surrender of licence
9G. Transfer or assignment of licence prohibited
10.
(Deleted)
PART III
INVESTIGATION, SEARCH, SEIZURE AND ARREST
10A. Powers of Inspector or police officer in investigation
10B. Power to investigate complaints and inquire into information
10C. Power to examine persons
10D. Search by warrant
10E. Power of arrest
10F. Search without warrant
10G. Seizure of movable property
10H. Further provisions relating to seizure of movable property
10I. Obstruction of inspection and search
10J. Authority to act
10K. Release of property seized
PART IV
EVIDENCE
10L. Evidence of accomplice and agent provocateur
10M. Protection of informers and information
10N. Admissibility of statements by accused persons
10O. Provisions as to evidence
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PART V
CONDUCT OF MONEYLENDING BUSINESS
Section
10P. Moneylender and borrower must enter into a moneylending agreement
11.
Advertisement by moneylender
11A. Application for advertisement permit
12.
No circular implying a banking business to be issued
13.
(Deleted)
14.
(Deleted)
15.
Contract by unlicensed moneylender unenforceable
16.
Moneylending agreement to be given to the borrower
17.
Prohibition of compound interest
17A. Interest for secured and unsecured loans
18.
Accounts to be kept in permanent books
19.
Obligation to supply information as to state of loan and copies of
documents relating thereto
20.
Provisions as to bankruptcy proceedings for moneylenders' loans
21.
Accounts under section 19 to be produced when suing in court
22.
(Deleted)
23.
Prohibition of charge for expenses on loans by moneylender
24.
(Deleted)
25.
Notice and information to be given on assignment of moneylender's
debts
26.
Application of Act as respects assignees
PART VI
MISCELLANEOUS
27.
Attestation of moneylending agreement
28.
(Deleted)
29.
False statements or representations to induce borrowing an offence
29A. General offences
29B. Harassment or intimidation, etc. of borrower
29C. Offences by companies, societies, firms or other body of persons
29D. Prosecution
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Section
29E. Service of notification or document
29F. Power to compound
29G. Jurisdiction
29H. Power to make regulations
30.
(Deleted)
30A. (Deleted)
31.
(Omitted)
FIRST SCHEDULE
SECOND SCHEDULE (Deleted)
THIRD SCHEDULE (Omitted)
Moneylenders
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LAWS OF MALAYSIA
Act 400
MONEYLENDERS ACT 1951
An Act for the regulation and control of the business of moneylending,
the protection of borrowers of the monies lent in the course of such
business, and matters connected therewith.
[Peninsular Malaysia--31 March 1952, L.N. 79/1952]
PART I
PRELIMINARY
Short title and application
1. (1) This Act may be cited as the Moneylenders Act 1951.
(2) This Act shall apply to the States of *Peninsular Malaysia
only.
Interpretation
2.
In this Act, unless the context otherwise requires--
"authorized name" and "authorized address" mean respectively
the name under which and the address at which a moneylender is
authorized by a licence granted under this Act to carry on business
as a moneylender;
" b o r r o w e r " means a person to whom money is lent by a
moneylender;
"company" means any body corporate being a moneylender;
*NOTE--All references to "West Malaysia" shall be construed as reference to "Peninsular Malaysia"
see the Interpretation (Amendment) Act 1997 [Act A996], subsection 5(2).
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"Deputy Registrar" means the Deputy Registrar of Moneylenders
appointed under section 4;
"firm" means an unincorporated body of two or more individuals
or one or more individuals and one or more corporations or two
or more corporations who have entered into partnership with one
another with a view to carrying on business for profit;
"Inspector" means an Inspector of Moneylenders appointed under
section 4;
"interest" does not include any sum lawfully charged in accordance
with this Act by a moneylender for or on account of stamp duties,
fees payable by law and legal costs but, save as aforesaid, includes
any amount by whatsoever name called in excess of the principal
paid or payable to a moneylender in consideration of or otherwise
in respect of a loan;
"licence" means a moneylender's licence issued under this
Act;
"Minister" means the Minister charged with the responsibility
for local government;
"moneylender" means any person who lends a sum of money
to a borrower in consideration of a larger sum being repaid to
him;
"moneylending agreement" means an agreement made in writing
between a moneylender and a borrower for the repayment, in lump
sum or instalments, of money borrowed by the borrower from the
moneylender;
"police officer" means a senior police officer as defined in the
Police Act 1967 [Act 344];
"prescribed" means prescribed by regulations made under this
Act;
"principal" means, in relation to a loan, the amount actually lent
to and received by the borrower;
"Registrar" means the Registrar of Moneylenders appointed under
this Act.
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Non-application of Act and exemption therefrom
2A. (1) This Act shall not apply to--
(a) any authority or body established, appointed or constituted
by any written law, including any local authority;
(b) any co-operative society registered under the *Co-operative
Societies Act 1993 [Act 502];
(c) any bank or merchant bank licensed under the Banking
and Financial Institutions Act 1989 [Act 372] or any
bank licensed under the Islamic Banking Act 1983 [Act
276];
(d) any insurance company licensed under the **Insurance
Act 1996 [Act 553];
(e) any company licensed under the Takaful Act 1984 [Act
312];
(f) any pawnbroker licensed under the Pawnbrokers Act 1972
[Act 81];
(fa) a development financial institution prescribed under the
Development Financial Institutions Act 2001 [Act 618];
and
(g) any licensed finance company as defined in subsection
2(1) of the Banking and Financial Institutions Act 1989.
(h) (Deleted by Act A1193).
(2) The Minister may--
(a) in consideration of the special circumstances relating to
the nature of the business of any company, or the objects
of any society, and its financial standing; and
(b) if he is satisfied that it would not be contrary to the
public interest to do so,
by notification in the Gazette exempt such company or society
from all or any of the provisions of this Act, and such exemption
shall be granted for such duration as may be specified in the
notification, and may be made subject to such limitations, restrictions
or conditions as the Minister may specify in the notification.
*NOTE--This Act has replaced the Co-operative Societies Act 1948 [Act 287]see section 95 of
Act 502.
**NOTE--This Act has replaced the Insurance Act 1963 [Act 89]see subsection 214(1) of
Act 553.
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(3) The Minister may at any time revoke any exemption granted
by him under subsection (2) if he is satisfied, after giving the
company or society concerned an opportunity to be heard, that the
company or the society, as the case may be, has failed to observe
any limitation, restriction or condition subject to which the exemption
was granted, or that it is otherwise no longer suitable to continue
to be granted exemption.
3.
(Deleted by Act A1193).
Appointment of Registrar, Deputy Registrar, Inspector, and
other officers and servants
*4. (1) For the purposes of this Act, the Minister may appoint a
Registrar of Moneylenders and such number of Deputy Registrars
of Moneylenders, Inspectors of Moneylenders and other officers
and servants as the Minister may deem fit from amongst members
of the public service.
(2) The Registrar and Deputy Registrars shall have and may
exercise any of the powers conferred on an Inspector by or under
this Act.
Delegation of powers of Registrar
4A. (1) The Registrar may, in writing, delegate all or any of his
powers or functions under this Act, except his power of delegation,
to any Deputy Registrar or Inspector appointed under section 4.
(2) Without prejudice to subsection (1), the Registrar may, in
writing, delegate any of his powers or functions under this Act in
respect of the investigation of offences under this Act and the
enforcement of the provisions of this Act to any public officer.
(3) Any delegation under subsection (1) or (2) may be revoked
at any time by the Registrar and does not prohibit the Registrar
from himself exercising the powers or performing the functions so
delegated.
*NOTE--For saving and transitional provision of this sectionsee subsections 46(1), (8) and (9)
of Act A1193.
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PART II
LICENSING OF MONEYLENDERS
Licence to be taken out by moneylender
5. (1) No person shall conduct business as a moneylender unless
he is licensed under this Act.
(2) Any person who carries on business as a moneylender without
a valid licence, or who continues to carry on such business after
his licence has expired or been suspended or revoked shall be
guilty of an offence under this Act and shall be liable to a fine
of not less than twenty thousand ringgit but not more than one
hundred thousand ringgit or to imprisonment for a term not exceeding
five years or to both, and in the case of a second or subsequent
offence shall also be liable to whipping in addition to such punishment.
Application for licence
*5A. (1) An application for a licence to carry on business as a
moneylender shall be made in writing to the Registrar in a prescribed
form, and accompanied by such documents or information as may
be prescribed.
(2) The Registrar may in writing, at any time after receiving the
application but before it is determined, require the applicant to
provide within a specified time or any extension of time granted
by the Registrar, such additional documents or information as may
be considered necessary by the Registrar for the purpose of
determining the suitability of the applicant for the licence.
(3) Where any additional documents or information required
under subsection (2) is not provided by the applicant within the
time specified in the requirement or any extension of time granted
by the Registrar, the application shall be deemed to be withdrawn
and shall not be further proceeded with.
(4) Without prejudice to subsection (3), the applicant may submit
a fresh application for a licence to the Registrar, but such application
shall not be made while his application for a licence is still pending
before the Registrar.
*NOTE--For saving and transitional provisions of this sectionsee subsection 46(3) of Act A1193.
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Grant of a licence
5B. (1) Notwithstanding subsection 5A(2) or (3), the Registrar
may, upon receiving an application for a licence under subsection
5A(1), grant or refuse to grant the licence to the applicant, and the
Registrar shall inform the applicant of his decision.
(2) The licence shall be in such form as may be prescribed.
*(3) The applicant shall pay the prescribed application fee for
the licence to the Registrar upon being informed by the Registrar
of the approval of his application for the licence.
Duration of licence
5C. (1) Subject to section 9D and subsection (3), a licence shall,
unless sooner revoked, be valid for a period not exceeding two
years.
(2) Where a licence is granted, the Registrar shall specify in the
licence the date on which the licence is to come into force and the
date of its expiry.
(3) Where on the date of expiry of the licence, an application
for the renewal of the licence under section 5E is pending before
the Registrar, that licence shall remain in force until the application
is disposed of, or sixty days after the date of expiry of the licence,
whichever is the earlier.
Conditions attached to licence
5D. (1) The Registrar may stipulate in the licence such conditions
as he may think fit and he may, at any time during the duration
of the licence, add to, revoke or vary any of the conditions.
(2) Any person who fails to comply with any of the conditions
of the licence shall be guilty of an offence under this Act and shall
be liable to a fine not exceeding fifty thousand ringgit or to
imprisonment for a term not exceeding twelve months or to both.
*NOTE--For saving and transitional provisions of this subsectionsee subsection 46(4) of Act
A1193.
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Renewal of licence
*5E. (1) An application for the renewal of a licence shall be made
by the holder of the licence at least sixty days before the date of
expiry of the licence, and the application shall be accompanied by
such documents and information as may be required by the Registrar.
(2) Notwithstanding subsection (1), the Registrar may, subject
to the payment of a penalty not exceeding three hundred ringgit
imposed on the holder of the licence, allow an application for the
renewal of a licence made after the time specified in subsection
(1), but no application for such renewal shall be allowed where
the application is made after the date of expiry of the licence.
(3) Where the holder of the licence fails to renew the licence
before the date of expiry of the licence, he shall not be entitled
to make a new application for a licence within a period of two
years from the date of expiry of the licence.
(4) The holder of the licence shall pay the prescribed renewal
fee for the licence to the Registrar upon being informed by the
Registrar of the approval of his application for the renewal of the
licence.
Requirement to display licence
5F. (1) A moneylender shall at all times display his licence in a
conspicuous place at the premise where he carries out or operates
his business.
(2) Any person who contravenes this section shall be guilty of
an offence under this Act and shall be liable to a fine not exceeding
ten thousand ringgit or to imprisonment for a term not exceeding
six months or to both.
Particulars to be shown on licences
6. (1) Every licence granted to a moneylender shall show his true
name and the name under which, and the address at which, he is
authorized by the licence to carry on business as such. A licence
*NOTE--For saving and transitional provisions of this sectionsee subsections 46(3) and (4) of
Act A1193.
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shall not authorize a moneylender to carry on business at more
than one address or under more than one name or under any name
which includes the word "bank" or otherwise implies that he carries
on the business of banking, and no licence shall authorize a
moneylender to carry on business under any name except--
(a) his true name;
(b) the name of a firm in which he is a partner; or
(c) a business name, whether of an individual or of a firm
in which he is a partner, under which he or the firm has
been registered under the Registration of Businesses Act
1956 [Act 197].
(2) Any licence taken out in a name other than the moneylender's
true name shall be void.
7.
(Deleted by Act A1193).
Offences
8.
If any person--
(a) takes out a licence in any name other than his true name;
(b) being licensed as a moneylender, carries on business as
such in any name other than his authorized name or at
any other place than his authorized address or addresses;
(c) in the course of business as a moneylender enters into
any moneylending agreement with respect to any advance
or repayment of money or takes any security for money
otherwise than in his authorized name; or
(d) lends money to a person under the age of eighteen years,
he shall be guilty of an offence under this Act and shall be liable
to a fine not exceeding* fifty thousand ringgit and for a second
or subsequent offence shall be liable to the fine aforesaid or to
imprisonment for a term not exceeding twelve months and an
offender being a company, society, firm or other body of persons
shall for a second or subsequent offence be liable to a fine not
exceeding **one hundred thousand ringgit.
*NOTE--Previously "one thousand ringgit"see Act A1193.
**NOTE--Previously "five thousand ringgit"see Act A1193.
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Circumstances under which licence shall not be issued
9. (1) The licence applied for under section 5A shall not be issued--
(a) if--
(i) an applicant;
(ii) a director, general manager, manager or secretary
of an applicant or any other person holding a similar
office or position, where the applicant is a company;
(iii) a president, vice-president, secretary or treasurer
of an applicant or any other person holding a similar
office or position, where the applicant is a society;
or
(iv) a partner or any member of an applicant or any
other person holding a similar office or position,
where the applicant is a firm or other body of
persons,
is a person convicted of an offence involving fraud or
dishonesty, or an offence relating to Chapter XVI or
XVII of the Penal Code [Act 574], or is an undischarged
bankrupt;
(b) where at the time the application is made--
(i) an applicant;
(ii) a director, general manager, manager or secretary
of an applicant, where the applicant is a company;
(iii) a president, vice-president, secretary or treasurer
of an applicant, where the applicant is a society; or
(iv) a partner or any member of an applicant, where the
applicant is a firm or other body of persons,
has, due to a conviction for an offence under this Act,
been sentenced to a fine exceeding ten thousand ringgit
or to imprisonment (other than imprisonment in default
of a fine not exceeding ten thousand ringgit);
(c) where at the time the application is made, a person who--
(i) had been a director of a company carrying on the
business of moneylending or had been directly
concerned in the management of the business of
the company;
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(ii) had been a president, vice-president, secretary
or treasurer of a society carrying on the business
of moneylending, or had been directly concerned
in the management of the business of the society;
or
(iii) had been a partner or any member of a firm or other
b o d y of persons carrying on the business of
moneylending, or had been directly concerned in
the management of the business of the firm or other
body of persons,
which has been wound up or dissolved by a court, is a
director, president, vice-president, secretary, treasurer,
p a r t n e r or member, or is directly concerned in the
management of the business of the applicant, where the
applicant is a company, society, firm or other body of
persons, respectively;
(d) where the applicant is responsible for the management of
his business as a moneylender, and the licence for that
business has been revoked;
(e) where satisfactory evidence has been produced
regarding the bad character of the applicant, or of the
director, president, vice-president, secretary, treasurer,
partner or member, or any person responsible for the
management of the business of the applicant, where the
applicant is a company, society, firm or other body of
persons; or
(f) where satisfactory evidence has been produced that the
a p p l i c a n t , or the director, president, vice-president,
secretary, treasurer, partner or member, or any person
responsible for the management of the business of the
applicant, where the applicant is a company, society,
firm or other body of persons, is not a fit and proper
person to hold a licence.
(2) Any person aggrieved by the refusal of the Registrar to
issue a licence may appeal to the Minister in the prescribed manner
and the decision of the Minister shall be final.
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Revocation or suspension of licence
9A. (1) If a moneylender--
(a) has been carrying on his business, in the opinion of the
Registrar, in a manner detrimental to the interest of the
borrower or to any member of the public;
(b) has contravened any of the provisions of this Act or any
regulations or rules made under this Act;
(c) has been licensed as a result of a fraud, mistake or
misrepresentation in any material particular; or
(d) has failed to comply with any of the conditions of
the licence, the Registrar may, subject to section 9B,
r e v o k e the licence issued to the moneylender or
suspend the licence for such period as the Registrar thinks
fit.
(2) A revocation or suspension of a licence under this section
shall not affect any moneylending agreement entered into before
such revocation or suspension, other than that in respect of which
such revocation or suspension is made.
( 3 ) W h e r e a licence has been revoked or suspended, the
licence shall have no effect from the date of revocation of the
licence or during the period of suspension of the licence, as the
case may be.
Opportunity of being heard
9B. (1) Before revoking or suspending a licence under section 9A,
the Registrar shall give the holder of the licence a notice in writing
of his intention to do so and require the holder of the licence to
submit reasons why the licence should not be revoked or suspended.
(2) After considering the reasons submitted by the holder of the
licence, the Registrar shall decide whether to revoke or suspend
the licence, or to take no further action, and the Registrar shall
notify the holder of the licence of his decision.
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Appeal to Minister
9C. Any person aggrieved by any decision taken by the Registrar
under section 9A may, within fourteen days after having been
notified of the decision under subsection 9B(2), appeal against that
decision to the Minister whose decision is final and shall not be
questioned in any court.
Validity of licence extended in successful appeal
9D. Where the Minister allows an appeal against the revocation
or suspension of a licence under this Act, the validity of the
licence shall be extended by a period corresponding to that during
which the licence had no effect and such extended period shall be
inserted in the licence.
Prohibition of subsequent application pending appeal on earlier
application
9E. (1) Where an applicant appeals against the refusal of the Registrar
to issue a licence to him, or a holder of a licence appeals against
the revocation of his licence by the Registrar, he shall not subsequently
make an application for a licence until the appeal against the
Registrar's decision has been determined by the Minister.
(2) In the event that any licence is issued as a result of a
subsequent application made in the circumstances specified in
subsection (1), the licence so granted shall be void and shall have
no effect.
(3) Any person who contravenes this section shall be guilty of
an offence under this Act and shall be liable to a fine not exceeding
twenty thousand ringgit or to imprisonment for a term not exceeding
three months or to both.
Surrender of licence
9F. (1) Upon the revocation of the licence under section 9A, or
the rejection of an appeal against the revocation of the licence
under section 9C, the holder of the licence shall, within 14 days
from the date of the notice of revocation, or the notice of rejection
of appeal against revocation, being served on him, surrender his
licence to the Registrar.
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(2) Any person who fails to surrender his licence as required
under subsection (1) shall be guilty of an offence under this Act
and shall be liable to a fine not exceeding twenty thousand ringgit
or to imprisonment for a term not exceeding twelve months or to
both.
Transfer or assignment of licence prohibited
9G. (1) Subject to subsections (2) and (3), the holder of a licence
shall not transfer or assign his licence to any other person, or cause
or permit any other person to use his licence or provide the services
authorized in the licence.
(2) Except with the prior written consent of the Registrar, the
holder of a licence shall not appoint any person for the purpose
of exercising any of the rights conferred on him under the licence,
or cause or permit any such person to exercise any such right.
(3) The Registrar may authorize the transfer of a licence where--
(a) the holder of a licence--
(i) being a company, is liquidated and a receiver or
manager is appointed in relation to the moneylending
business of the company; or
(ii) being a society, firm or other body of persons is
dissolved and a receiver or manager is appointed
in relation to the moneylending business of the
society, firm or other body of persons; or
(b) for any reason the Registrar is satisfied that it would be
just to do so.
( 4 ) E x c e p t where the Registrar has given his consent or
authorization under subsection (2) or (3), the holder of a licence
who purports to transfer or assign his licence to any other person,
or causes or permits any other person to use his licence or to
provide the services authorized in the licence, shall be guilty of
an offence under this Act and shall be liable to a fine not exceeding
twenty thousand ringgit or to imprisonment for a term not exceeding
twelve months or to both.
10. (Deleted by Act A1193).
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PART III
INVESTIGATION, SEARCH, SEIZURE AND ARREST
Powers of Inspector or police officer in investigation
10A. (1) Every Inspector or police officer making an investigation
under this Act shall have the power to require information, whether
orally or in writing, from any person acquainted or supposed to
be acquainted with the facts and circumstances of the case under
investigation.
(2) Any person who, on being required by an Inspector or police
officer to give information under this section, refuses to comply
with such requirement or furnishes as true any information which
he knows or has reason to believe to be false, shall be guilty of
an offence under this Act and shall be liable to a fine not exceeding
ten thousand ringgit or to imprisonment for a term not exceeding
twelve months or to both.
(3) Where any information furnished by a person to an Inspector
or police officer is proved to be untrue or incorrect in whole or
in part, it shall be no defence to allege that the information or any
part of the information was misinterpreted, or furnished inadvertently
or without criminal or fraudulent intent.
Power to investigate complaints and inquire into information
10B. (1) Every complaint relating to the commission of an offence
under this Act may be made orally or in writing to an Inspector
or police officer.
(2) Where a complaint is made orally, it shall be reduced into
writing and read over to the person making the complaint.
(3) Every complaint, whether in writing or reduced into writing,
shall be signed by the person making the complaint.
(4) Every complaint, whether in writing or reduced into writing,
shall be entered in a book kept at the office of the Registrar and
there shall be appended to such entry the date and hour on which
such complaint was made.
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(5) Where an Inspector or police officer has reason to suspect
the commission of an offence under this Act following a complaint
made under subsection (1) or information otherwise received by
him, he shall cause an investigation to be made and for such
purpose may exercise all the powers of investigation provided for
under this Act.
Power to examine persons
10C. (1) An Inspector or police officer investigating an offence
under this Act may--
(a) order any person to attend before him for the purpose of
being examined orally in relation to any matter which
may, in his opinion, assist in the investigation into the
offence;
(b) order any person to produce before him any book, document
or any certified copy of such book or document, or any
other article which may, in his opinion, assist in the
investigation into the offence; or
(c) by written notice require any person to furnish a statement
in writing made on oath or affirmation, setting out in the
notice all such information which may be required, being
information which, in the opinion of the Inspector or
police officer, would be of assistance in the investigation
into the offence.
(2) A person to whom an order under paragraph (1)(a) has been
given shall--
(a) attend in accordance with the terms of the order to be
examined, and shall continue to attend from day to day
as directed by the Inspector or police officer until the
examination is completed; and
(b) during such examination, disclose all information which
is within his knowledge, or which is available to him, or
which is capable of being obtained by him, in respect of
the matter in relation to which he is being examined,
whether or not any question is put to him with regard to
such matter, and where any question is put to him he
shall answer the question truthfully and to the best of his
knowledge and belief.
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(3) A person to whom an order has been given under paragraph
(1)(b) shall not conceal, destroy, alter, remove from or send out
of Malaysia, or deal with, expend, or dispose of, any book, document
or article specified in the order, or alter or deface any entry in any
such book or document, or cause such act to be done, or assist or
conspire to do such act.
(4) A person to whom a written notice has been given under
paragraph (1)(c) shall, in his written statement made on oath or
affirmation, furnish and disclose truthfully all information required
under the notice which is within his knowledge, or which is available
to him, or which is capable of being obtained by him.
(5) A person to whom an order or a notice is given under
subsection (1) shall comply with such order or notice and with the
provisions of subsection (2), (3) or (4) in relation to the order or
notice, but nothing contained in subsection (2), (3) or (4) shall be
construed as compelling the person who is being examined under
this section to disclose any information, book, document or article
which may incriminate him for any offence under this Act or any
other written law.
(6) An Inspector or police officer examining a person under
paragraph (1)(a) shall record in writing any statement made by the
person and the statement so recorded shall be signed by the person
being examined or affixed with his thumbprint as the case may be,
after it has been read to him in the language in which he made
it and after he has been given an opportunity to make any corrections
he may wish, and if such person refuses to sign the record, the
Inspector or police officer shall endorse on the record under his
hand the fact of such refusal and the reasons for such refusal, if
any, stated by the person being examined.
(7) The record of an examination under paragraph (1)(a), or a
written statement on oath or affirmation made pursuant to paragraph
(1)(c), or any book, document or article produced under paragraph
(1)(b) or in the course of an examination under paragraph (1)(a)
or under a written statement on oath or affirmation made pursuant
to paragraph (1)(c) shall, notwithstanding any written law or rule
of law to the contrary, be admissible in evidence in any proceedings
in any court for an offence under this Act, regardless whether such
proceedings are against the person who was examined, or who
produced the book, document or article, or who made the written
statement on oath or affirmation, or against any other person.
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(8) Any person who contravenes this section shall be guilty of
an offence under this Act and shall on conviction be liable to a
fine not exceeding fifty thousand ringgit or to imprisonment for
a term not exceeding fifteen months or to both.
Search by warrant
10D. (1) If it appears to a Magistrate, upon written information
and after such inquiry as he considers necessary, that there is
reasonable cause to believe that an offence under this Act has been
committed or is being committed on or in respect of any premises,
the Magistrate may issue a warrant authorizing an Inspector or
police officer named in that warrant to enter such premises with
such assistance as may be required, and if necessary by force.
(2) An Inspector or police officer may, in the premises entered
under subsection (1), inspect--
(a) any book, account or document, including computerized
data, which contains or is reasonably suspected to contain
any information regarding any offence suspected to have
been committed under this Act; and
(b) any mark, signboard, card, letter, pamphlet, item, thing,
article or goods that are reasonably believed to furnish
evidence regarding the commission of such offence,
and may seize such book, account, document or data or any copy
or extract of such book, account, document or data, or such mark,
signboard, card, letter, pamphlet, item, thing, article or goods.
(3) An Inspector or police officer conducting a search under
subsection (1) may, if in his opinion it is reasonably necessary to
do so for the purpose of investigating the offence, search any
person who is in, or on, such premises and detain such person and
remove him to such place as may be necessary to facilitate such
search.
(4) An Inspector or police officer making a search of a person
under subsection (3) may seize or take possession of any book,
account, document, card, letter, pamphlet, item, thing, article or
goods found on the person for the purpose of the investigation
being carried out by the Inspector or police officer.
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(5) Where, by reason of their nature, size or amount, it is not
practicable to remove any book, account, document, mark, signboard,
card, letter, pamphlet, item, thing, article or goods seized under
this section, the Inspector or police officer making the seizure
shall, by any means, seal such book, account, document, mark,
signboard, card, letter, pamphlet, item, thing, article or goods in
the premises or container in which they are found.
(6) A person who, without lawful authority, breaks, tampers
with or damages the seal referred to in subsection (5) or removes
any book, account, document, mark, signboard, card, letter, pamphlet,
item, thing, article or goods under seal, or attempts to do so shall
be guilty of an offence under this Act and shall be liable to a fine
not exceeding fifty thousand ringgit or to imprisonment for a term
not exceeding fifteen months or to both.
(7) Whenever it is necessary so to do, an Inspector or police
officer exercising any power under subsection (1) may--
(a) break open any outer or inner door or window of any
premises and enter into the premises, or otherwise forcibly
enter into the premises and every part of the premises;
(b) remove by force any obstruction to such entry, search,
seizure, detention or removal as he is empowered to
effect; or
(c) detain any person found on any premises searched under
subsection (1) until such premises have been searched.
(8) No person shall be searched under this section except by an
Inspector or police officer who is of the same gender as the person
to be searched.
Power of arrest
10E. If any person is found committing an offence under this
Act, or is reasonably suspected of having committed, or has attempted
to commit, or is about to commit, such an offence, he may be
arrested by an Inspector or police officer with a warrant and shall
be brought immediately before a Magistrate to be dealt with according
to the law.
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Search without warrant
10F. If the Inspector or police officer in any of the circumstances
referred to in section 10D has reasonable cause to believe that by
reason of delay in obtaining a search warrant under that section
the investigation would be adversely affected or the evidence of
the commission of the offence is likely to be tampered with, removed,
damaged or destroyed, the Inspector or police officer may enter
the premises and exercise in, and in respect of the premises, all
the powers referred to in section 10D in as full and ample a manner
as if he were authorized to do so by a warrant issued under that
section.
Seizure of movable property
10G. (1) In the course of an investigation into an offence under
this Act, an Inspector or police officer may seize any movable
property which he has reasonable grounds to suspect to be the
subject matter of an offence under this Act or evidence relating
to the commission of an offence under this Act.
(2) The occupant of the place searched or, any person on his
behalf, shall in every instance be permitted to attend during the
search and a list of all movable property seized pursuant to subsection
(1) and of the places in which such property are respectively found
shall be prepared by the Inspector or police officer effecting the
seizure and signed by him.
(3) A copy of the list referred to in subsection (2) shall be
served on the owner of such property or on the person from whom
the property was seized as soon as possible and shall be signed
by such owner or person.
Further provisions relating to seizure of movable property
10H. (1) Where any movable property is seized under this Act,
the seizure shall be effected by removing the movable property
from the possession, custody or control of the person from whom
it was seized and placing it under the custody of such person or
authority and at such place as an Inspector or police officer may
determine.
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(2) Where it is not practicable, or it is otherwise not desirable,
to effect the removal of any property under subsection (1), the
Inspector or police officer may leave it at the premises in which
it is seized under the custody of such person as he may determine
for the purpose.
Obstruction of inspection and search
10I. (1) Any person who--
(a) refuses any Inspector or police officer access to any
premises or any part of such premises, or fails to submit
to a search of his person by a person authorized to search
him under this Act;
(b) assaults, obstructs, hinders or delays an Inspector or police
officer in the execution of his duty under this Act;
(c) fails to comply with any lawful demand, notice, order or
requirement of an Inspector or police officer in the execution
of his duty under this Act;
(d) omits, refuses or neglects to give to an Inspector or police
officer any information which may reasonably be required
of him and which he is empowered to give;
(e) fails to produce to, or conceals or attempts to conceal
from an Inspector or police officer any book, account,
document, data, mark, signboard, card, letter, pamphlet,
item, thing, article or goods in relation to which such
Inspector or police officer has reasonable grounds for
suspecting that an offence under this Act has been or is
being committed, or which is liable to seizure under this
Act;
(f) rescues or endeavours to rescue or causes to be rescued
any thing which has been duly seized; or
(g) destroys any thing to prevent the seizure or the securing
of the thing,
shall be guilty of an offence under this Act and shall be liable to
a fine not exceeding twenty thousand ringgit or to imprisonment
for a term not exceeding twelve months or to both.
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(2) Any person who abets the commission of any offence as
specified under subsection (1) shall be guilty of an offence under
this Act and shall be liable to a fine not exceeding twenty thousand
ringgit or to imprisonment for a term not exceeding twelve months
or to both.
(3) Any person who, while committing or abetting the commission
of any offence under subsection (1) or (2), causes hurt to an
Inspector, police officer or any public officer who is carrying out
the enforcement of this Act shall be guilty of an offence under this
Act and shall be liable to the punishment as specified in subsection
(1) or (2), respectively, and to whipping.
Authority to act
10J. An Inspector when acting under this Part, shall on demand,
declare his office and produce to the person against whom he is
acting such written authorization as the Registrar may direct to be
carried by such Inspector.
Release of property seized
10K. (1) Where any property has been seized under this Act, an
Inspector or police officer superior in rank to the police officer
who effected the seizure, may, if there is no prosecution for an
offence under this Act, or upon the completion of proceedings for
such offence, or if it is not otherwise required for the purpose of
any proceedings under this Act, release the property to its owner,
or to the person from whose possession, custody or control it was
seized, or to such person who may be entitled to the property, and
in such event the officer effecting the seizure, the Government, or
any person acting on behalf of the Government, shall not be liable
to any proceedings by any person if the seizure of the property and
the release of the property had been effected in good faith.
(2) A record in writing shall be made by the officer effecting
any release of the property under subsection (1) in respect of such
release specifying in detail the circumstances of, and the reasons
for such release.
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PART IV
EVIDENCE
Evidence of accomplice and agent provocateur
10L. (1) Notwithstanding any written law or rule of law to the
contrary, in any proceedings against any person for an offence
under this Act--
(a) no witness shall be regarded as an accomplice by reason
only of such witness having--
(i) accepted, received, obtained, solicited, agreed to
accept or receive, or attempted to obtain any sum
of money from a moneylender; or
(ii) been in any manner concerned in the commission
o f such offence or having knowledge of the
commission of the offence;
(b) no agent provocateur, whether or not he is an Inspector
or police officer, shall be presumed to be unworthy of
credit by reason only of his having attempted to commit
or having abetted the commission of, or having abetted
or having been engaged in a criminal conspiracy to commit,
such offence if the main purpose of the attempt to commit,
abetment in the commission of, or abetment or engagement
in the criminal conspiracy to commit, the offence was to
secure evidence against such person; and
(c) any statement, whether oral or written, made to an agent
provocateur by such person shall be admissible as evidence
at his trial.
(2) Notwithstanding any written law or rule of law to the contrary,
a conviction for any offence under this Act solely on the
uncorroborated evidence of any accomplice or agent provocateur
shall not be illegal and no such conviction shall be set aside merely
because the court which tried the case has failed to refer in the
grounds of its judgement to the need to warn itself against the
danger of convicting on such evidence.
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Protection of informers and information
10M. (1) Except as hereinafter provided, no complaint as to an
offence under this Act shall be admitted in evidence in any civil
or criminal proceedings, and no witness shall be obliged or permitted
to disclose the name or address of any person who gave the
information, or the substance and nature of the information received
from him, or state any matter which might lead to his discovery.
(2) If any application, particular, return, account, document or
written statement which is given in evidence or liable to inspection
in any civil or criminal proceedings contains any entry in which
any person who gave the information is named or described, or
which might lead to his discovery, the court before which the
proceedings are held shall cause all such entries to be concealed
from view or to be obliterated so far as may be necessary to protect
such person from discovery, but no further.
(3) If in any proceedings relating to any offence under this Act,
the court, after full inquiry into the case, is of the opinion that the
person who gave the information wilfully made in his complaint
a material statement which he knew or believed to be false or did
not believe to be true, or is of the opinion that justice cannot be
fully done between the parties to the proceedings without the
discovery of the person who gave the information, the court may
require the production of the original complaint, if in writing, and
permit inquiry and require full disclosure concerning that person.
Admissibility of statements by accused persons
10N. (1) In any trial or inquiry by a court into an offence under
this Act, any statement, whether the statement amounts to a confession
or not or is oral or in writing, made at any time, whether before
or after the person is charged and whether in the course of an
investigation or not and whether or not wholly or partly in answer
to questions, by an accused person to or in the hearing of any
Inspector or police officer, whether or not interpreted to him by
any other Inspector or police officer or any other person, whether
concerned or not in the arrest of that person, shall, notwithstanding
any written law or rule of law to the contrary, be admissible at his
trial in evidence and, if that person tenders himself as a witness,
any such statement may be used in cross-examination and for the
purpose of impeaching his credit.
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(2) No statement made under subsection (1) shall be admissible
or used as provided for in that subsection if the making of the
statement appears to the court to have been caused by any inducement,
threat or promise having reference to the charge against the person,
proceeding from a person in authority and sufficient in the opinion
of the court to give that person grounds which would appear to
him reasonable for supposing that by making it he would gain any
advantage or avoid any evil of a temporal nature in reference to
the proceedings against him.
(3) Where any person is arrested or is informed that he may be
prosecuted for any offence under this Act, he shall be served with
a notice in writing, which shall be explained to him, to the following
effect:
"You have been arrested/informed that you may be prosecuted
for ...(the possible offence under this Act). Do you wish to say any
thing? If there is any fact on which you intend to rely in your
defence in court, you are advised to mention it now. If you hold
it back till you go to court, your evidence may be less likely to
be believed and this may have a bad effect on your case in general.
If you wish to mention any fact now, and you would like it written
down, this will be done."
(4) Notwithstanding subsection (3), a statement by any person
accused of any offence under this Act made before there is time
to serve a written notice under that subsection shall not be rendered
inadmissible in evidence merely by reason of no such written
notice having been served on him if such written notice has been
served on him as soon as is reasonably possible after the statement
was made.
(5) No statement made by an accused person in answer to a
written notice served on him pursuant to subsection (3) shall be
construed as a statement caused by any inducement, threat or
promise as is described in subsection (2), if it is otherwise voluntary.
(6) Where in any criminal proceedings against a person for an
offence under this Act, evidence is given that the accused, on
being informed that he might be prosecuted for it, failed to mention
any such fact, being a fact which in the circumstances existing at
the time he could reasonably have been expected to mention when
so informed, the court, in determining whether the prosecution has
made out a prima facie case against the accused and in determining
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whether the accused is guilty of the offence charged, may draw
such inferences from the failure as appear proper; and the failure
may, on the basis of those inferences, be treated as, or as capable
of amounting to, corroboration of any evidence given against the
accused in relation to which the failure is material.
(7) Nothing in subsection (6) shall in any criminal proceedings--
(a) prejudice the admissibility in evidence of the silence or
other reaction of the accused in the face of any thing said
in his presence relating to the offence in respect of which
he is charged, in so far as evidence thereof would be
admissible apart from that subsection; or
(b) be taken to preclude the drawing of any inference from
any silence or other reaction of the accused which could
be drawn from that subsection.
Provisions as to evidence
10O. (1) A copy of a licence, certified by the Registrar to be a
true copy of such licence, shall be admissible as evidence for all
purposes for which the original of such copy would have been
admissible had such original been produced and admitted as evidence,
without proof of the signature or authority of the person signing
the licence or the copy of the licence.
(2) When in any proceedings for an offence under this Act it
is necessary to prove that a person was, or was not, the holder of
a licence, a certificate purporting to be signed by the Registrar and
certifying that the person was or was not, the holder of a licence,
shall be admissible as evidence and shall constitute prima facie
proof of the facts certified in such certificate, without proof of the
signature or the authority of the Registrar to issue the certificate.
PART V
CONDUCT OF MONEYLENDING BUSINESS
Moneylender and borrower must enter into a moneylending
agreement
*10P. (1) A moneylender who intends to lend money to a borrower
shall enter into a moneylending agreement with the borrower, and
that agreement shall be in the prescribed form.
*NOTE--For saving and transitional provisions of this sectionsee subsections 46(5), (6) and (7)
of Act A1193.
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(2) Any moneylender who contravenes this section shall be
guilty of an offence under this Act and shall be liable to a fine
of not less than ten thousand ringgit but not more than fifty thousand
ringgit or to imprisonment for a term not exceeding five years or
to both, and in the case of a second or subsequent offence shall
also be liable to whipping in addition to such punishment.
(3) Any moneylending agreement which does not comply with
the prescribed form shall be void and have no effect and shall not
be enforceable.
Advertisement by moneylender
*11. (1) No advertisement regarding the business of moneylending
carried on by a moneylender shall be issued or published or caused
to be issued or published by the moneylender, unless an advertisement
permit in respect of that advertisement has been granted by the
Registrar.
(2) Any person who contravenes this section shall be guilty of
an offence under this Act and shall be liable to a fine not exceeding
ten thousand ringgit or to imprisonment for a term not exceeding
twelve months or to both.
Application for advertisement permit
11A. An application for an advertisement permit by a moneylender
shall be made in writing to the Registrar in the prescribed form
and accompanied by such particulars and documents as may be
prescribed.
No circular implying a banking business to be issued
12. If a moneylender for the purpose of the business carried on
by him as such issues or publishes or causes to be issued or
published any advertisement, circular or document of any kind
whatsoever containing expressions which might reasonably be held
to imply that he carries on the business of banking he shall be
liable to a fine not exceeding **ten thousand ringgit and on a
second or subsequent offence shall be liable to the fine aforesaid
or to imprisonment for a term not exceeding twelve months or to
both and an offender being a company, society, firm or other body
of persons shall for a second or subsequent offence be liable to
a fine not exceeding ***fifteen thousand ringgit.
*NOTE--For saving and transitional provisions of this sectionsee subsection 46(2) of Act A1193.
**NOTE--Previously "one thousand ringgit"see Act A1193.
***NOTE--Previously "five thousand ringgit"see Act A1193.
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13.
(Deleted by Act A1193).
14.
(Deleted by Act A1193).
Contract by unlicensed moneylender unenforceable
15. No moneylending agreement in respect of money lent after
the coming into force of this Act by an unlicensed moneylender
shall be enforceable.
Moneylending agreement to be given to the borrower
16. (1) No moneylending agreement shall be enforceable unless
the agreement has been signed by all the parties to the agreement
and a copy of the agreement duly stamped is delivered to the
borrower by the moneylender before the money is lent.
(2) A moneylender who executes a moneylending agreement
which does not comply with this section shall be guilty of an
offence under this Act and shall be liable to a fine not exceeding
ten thousand ringgit or to imprisonment for a term not exceeding
twelve months or to both.
Prohibition of compound interest
1 7 . ( 1 ) A n y moneylending agreement made on or after the
commencement of this Act, for the loan of money by a moneylender
shall be illegal in so far as it provides, directly or indirectly, for
the payment of compound interest, or for the rate or amount of
interest to be increased by reason of any default in the payment
of sums due under the moneylending agreement:
Provided that provision may be made in any such moneylending
agreement that if default is made in the payment upon the due date
of any sum or instalment payable to the moneylender under the
moneylending agreement, whether in respect of principal or interest,
the moneylender shall be entitled to charge simple interest on the
unpaid sum or instalment which shall be calculated at the rate of
eight per centum per annum from day to day from the date of
default in payment of the sum or instalment until that sum or
instalment is paid, and any interest so charged shall not be reckoned
for the purposes of this Act as part of the interest charged in
respect of the loan.
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(2) This section shall not apply to transactions known as Thavannai
transactions, between one moneylender and another moneylender,
provided that any such transaction is evidenced by a written document
duly stamped.
(3) (Deleted by Act A1193).
Interest for secured and unsecured loans
17A. (1) For the purposes of this Act, the interest for a secured
loan shall not exceed twelve per centum per annum and the interest
for an unsecured loan shall not exceed eighteen per centum per
annum.
(2) Notwithstanding subsection (1), interest shall not at any
time be recoverable by a moneylender of an amount in excess of
the sum then due as principal unless a Court, having regard to all
the circumstances, otherwise decrees.
(3) Where in a moneylending agreement the interest charged
for a secured loan or an unsecured loan, as the case may be, is
more than that specified in subsection (1), that agreement shall be
void and have no effect and shall not