Act 17 Page 1 of 49

LAWS OF MALAYSIA
Act 17

Exchange Control Act 1953

(Revised—1969)
Revised up to 1-Dec-1969
Date of publication in the Gazette 9-Apr-1970
Date of coming into force of
revised version 14-Apr-1970

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.
LN 818/1953
[West Malaysia—1st January, 1954;
LN 238/1964
East Malaysia—6th August, 1964.]

ARRANGEMENT OF SECTIONS
PART I

PRELIMINARY
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

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4. Dealings in gold and foreign currency.

4A. Advertisements relating to dealings in gold and foreign
currency.
5. Surrender of gold and foreign currency.
6. Bailees of gold and foreign currency.
7. Travellers’ cheques, etc.
PART III

PAYMENTS
8. Payments in Malaysia.
9. Payments outside Malaysia.
10. Compensation deals.
10A. Guarantees.
PART IV

SECURITIES
11. Issue of securities.
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. Payment for exports.

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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.
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 —The Scheduled Territories.
Second Schedule —Foreign Companies.
Third Schedule —Blocked Accounts.
Fourth Schedule —Legal Proceedings, etc.
Fifth Schedule —Enforcement.

PART I

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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—

“authorised dealer” means, in relation to gold or any

foreign currency, a person for the time being authorised by
an order of the Controller to act for the purposes of this Act
as an authorised dealer in relation to gold, or, as the case
may be, that foreign currency;
“authorised depositary” means a person for the time being
authorised by an order of the Controller to act as an
authorised depositary for the purposes of Part IV;
62/58.
“Bank” or “banker” in so far as it refers to a Bank or
banker in Malaysia means any bank licensed under the
Banking Ordinance, 1958;
“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;
“certificate of title to securities” means any document of
title whereby a person recognises 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

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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;
“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

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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 some only of them possess that attribute,
operate to impose a separate obligation on each one of
them 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 authorised
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 Act A737.

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

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(2) The Controller may appoint such officers of Bank

Negara Malaysia or after consultation with the Minister, in
respect of Federal officers, or the Mentri 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 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 4. (1) Except with the permission of the Controller, no Act A1241.
foreign currency. person, other than an authorized dealer, shall, in Malaysia—

(a) buy or borrow any gold or foreign currency from;

(b) sell or lend any gold or foreign currency to; or
(c) 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 other than an authorized dealer.
(2) Except with the permission of the Controller, no
person resident in the scheduled territories, other than an
authorised 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.
Act A1241.
(3) Where a person buys or borrows any gold or foreign
currency or does any act which involves, is in association
with, or is preparatory to, buying or borrowing 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.

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Advertisements 4A. (1) Except with the permission of the Controller, no Act A1241.
relating to dealings in person, other than an authorized dealer, shall issue or
gold and foreign
currency. publish, or otherwise facilitate the issuance or publication by
any person of, an advertisement containing—
(a) an invitation or an offer to buy, borrow, sell or lend
any gold or foreign currency; or
(b) information which is intended or might reasonably be
presumed to be intended to lead, directly or indirectly,
to the buying, borrowing, selling or lending of any
gold or foreign currency.
(2) For the purposes of this section, “advertisement”
means the disseminating or conveying of information,
invitation or solicitation by any means or in any form,
including by means of—
(a) any newspaper, magazine, journal or other periodical;
(b) posters, notices or signboards;
(c) circulars, handbills, brochures, pamphlets, books or
other documents;
(d) letters addressed to individuals or bodies;
(e) photographs or cinematograph films; or
(f) sound broadcasting, television, computers or other
electronic means.

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

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from an authorised 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 section 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 authorised 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 authorised by the Controller, or without
payment of any usual and proper charges of the authorised
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 authorised 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
authorised 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 authorised dealer.

Bailees of gold and 6. (1) Every person in Malaysia by whom or to whose

foreign currency. 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.

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Travellers’ cheques, 7. (1) This section applies to any document of a kind

etc. 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
travellers’ 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 authorised dealer shall be
treated for the purposes of that sub-section 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 section 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

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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
(c) place any sum to the credit of any person resident
outside the scheduled territories:
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 acknowledgment or recording of the payment.

Payments outside 9. (1) Except with the permission of the Controller, no

Malaysia. 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.

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.

Guarantees. 10A. (1) Except with the permission of the Controller, no Act A1241.

person resident in the scheduled territories shall give any

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guarantee or do any act which involves, is in association

with, or is preparatory to the giving of any guarantee,
indemnity or similar undertaking in respect of any debt,
obligation or liability—
(a) of a person resident in the scheduled territories and
due or owing to a person resident outside the
scheduled territories; or
(b) of a person resident outside the scheduled territories.
(2) Except with the permission of the Controller, no
person resident in the scheduled territories shall obtain any
guarantee or do any act which involves, is in association
with, or is preparatory to the obtaining of a guarantee,
indemnity or similar undertaking from a person resident
outside the scheduled territories in respect of any debt,
obligation or liability.
(3) For the purpose of this section, the giving or obtaining
of a guarantee shall include a renewal or extension of such
guarantee.
(4) In this section, the expression “guarantee” includes the
pledging of any security issued or registered in Malaysia or
any other property in Malaysia to secure the repayment of a
debt, obligation or liability referred to in subsection (1) or
(2).

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.
79/65.
(2) The subscription of the memorandum of association of
a company to be formed under the Companies Act, 1965, by
a person resident outside the scheduled territories, or by a

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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 sub-section 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 12. (1) Except with the permission of the Controller, a
and coupons. 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
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

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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 13. Except with the permission of the Controller, no person
certificates and shall, in Malaysia, issue any bearer certificate or coupon or
coupons.
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 14. Except with the permission of the Controller—

securities and
certificates outside
Malaysia.

(a) no person in Malaysia shall do any act with intent to

secure—
(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; or
(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,

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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 sub-paragraph (i) or (ii) of
paragraph (a).

Payment of capital 15. Except with the permission of the Controller—

moneys outside
Malaysia.

(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;
(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 paragraph (a).

Duties of persons 16. Except with the permission of the Controller, no person
keeping registers. 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
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 recognises
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 17. (1) Where—

as to nominee
holdings.

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(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 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 recognises 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.

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Deposit of certificates 18. (1) This section and section 19 apply to any security
of title. 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.
(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
authorised depositary, and nothing in this Part shall prohibit
the doing of anything for the purpose of complying with the
requirements of this sub-section.
(3) Except with the permission of the Controller, an
authorised depositary shall not part with any certificate of
title or coupon required under this section to be in the
custody of an authorised depositary:
Provided that this sub-section shall not prohibit an
authorised depositary—
(a) from parting with a certificate of title or coupon to or
to the order of another authorised depositary, where
the person from whom the other authorised 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
authorised depositary having the custody of the certificate of

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title to that security, so, however, that this sub-section 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
authorised depositary shall not do any act whereby he
recognises 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 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 authorised
depositary is not in the custody of an authorised 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 19. (1) Where a certificate of title to a security is by

as to deposited section 18 required to be and is in the custody of an
certificates.
authorised 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 authorised 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 authorised depositary and he has parted with
the certificate of title, paragraph (a) shall not again apply on

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the certificate coming into the custody of another authorised

depositary or again coming into his own custody.
(2) Except with the permission of the Controller, the
authorised 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 section 18 (3), or do any act whereby he
recognises 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 authorised
depositary receives instructions in relation to any certificate
of title becomes bankrupt in Malaysia or dies, this sub-
section shall not prohibit the authorised depositary from
recognising the Official Assignee or personal representative
as the person entitled to give instructions in relation to the
certificate of title.
(3) The authorised 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 20. (1) The Controller may, if in his opinion there are
to dealings in certain circumstances rendering it necessary or expedient so to do,
securities.
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 21. (1) The title of any person to a security for which he
transfers. has given value on a transfer thereof, and the title of all
persons claiming through or under him, shall,
notwithstanding that the 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

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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 22. (1) This Part shall apply, with such modifications (if
to secondary any) as may be prescribed, in relation to any such document
securities.
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 authorised 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 23. (1) In this Part—

IV.

(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;
(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 register in
Malaysia become, registered 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

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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 sub-section 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 Official
Assignee or other person entitled to transfer the
security.
(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

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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 authorised 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 authorised
depositary, it shall be deemed to be in the custody of an
authorised 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 authorised depositary; and
(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 authorised 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—

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(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 25 (1) Except with the permission of the Controller and
export. 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;
(b) any postal orders;
(c) any Treasury Bills;
(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 authorised 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”.

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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
Comptroller-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
(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
Comptroller-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 authorise 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 Comptroller-General of Customs and
Excise is not satisfied in the case of any goods as to the
matters specified in subsection (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

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Duty to collect certain 27. (1) Except with the permission of the Controller, no
debts. 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 scheduled 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–
(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 sub–section—
(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 the provisions of
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 28. (1) Where—

or importation of
goods.

(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

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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;
(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 subsection
(1) (a), (b) or (c), or sub-section (2) (a) or (b)–
(a) the goods have not been sold or imported as indicated

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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 the provisions 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 29. (1) Where a person—

infringement of Act.

(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 authorised 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 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

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specified in the directions.

Provisions 30. (1) Where, under the preceding provisions of this Part,
supplemental to the Controller has power to give directions that any right to
preceding provisions
of Part VI. 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 or vest 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, 31. (1) Except with the permission of the Controller, no
policies, etc. 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—
(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 sub-section.
(2) Section 21 (2) and (3) shall apply in relation to any
transfer prohibited by this section as they apply in relation to

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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) Section 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—
(a) any reference to settling property includes a reference
to the making of any disposition, covenant, agreement
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
(c) the expression “will” includes any testamentary
disposition.
(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.

Companies. 33. (1) (a) Where there is served on any person in

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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;
(ii) sell or procure the sale to an authorised 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) realise 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 sub-section shall not prohibit any person
from selling any securities authorised to be dealt in on any
recognised stock exchange in Malaysia if the sale takes place

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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 sub-section shall not apply where the
lender after making such inquires 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.
(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 provisions 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 authorised 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 sub–section,

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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 36. (1) It shall be an implied condition in any contract that,
proceedings, etc. where, by virtue of this Act, the permission or consent of the
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.
75/49.
(2) Notwithstanding anything in the Bills of Exchange
Ordinance, 1949, 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 37. (1) The Fifth Schedule shall have effect for the
administration. purpose of the enforcement of this Act.

(2) Persons belonging to the following classes:

(a) bankers, authorised dealers, authorised 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
authorised depositary;
(d) persons concerned with the keeping of any register in
Malaysia; and
(e) persons entrusted with the payment of capital moneys,

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dividends or interest in Malaysia,

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 authorised 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 38. This Act shall bind the Federal and State Governments
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;
(c) may be absolute or conditional;
(d) may be limited so as to expire on a specified date,
unless renewed; and
(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;

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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 subsection (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 authorise 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. 40. Subject to the provisions of any written law any
expenses incurred under or by virtue of this Act by any
Government department shall be paid out of moneys
provided by Parliament, 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

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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 42. Where a person resident in Malaysia leaves the
scheduled territories. scheduled territories, the Controller may, before, at or after
the time he leaves the scheduled territories, direct that, for
such period as may be specified in the direction, payments
by him or on his behalf and 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 43. (1) For the purposes of this Act, a personal

residence. 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 44. (1) Where the Controller is satisfied that owing to the
prohibit carrying out changes in the external or internal position of any country or
of certain orders by
Governments of, or territory, action is being, or is likely to be, taken to the
residents in, other detriment of the economic position of Malaysia, the

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countries. 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
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 45. (1) No stamp duty shall be chargeable—

duty.

(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
(c) on any contract note for, or relating to, any sale of
securities to the Controller.
(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.

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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
Ra’ayat as soon as practicable after they are made but shall
not continue in force thereafter unless approved by
resolution of the Dewan.
(3) In approving any such regulations the Dewan Ra’ayat
may make such alterations therein as it may think fit.

FIRST SCHEDULE

(Section 2)

THE SCHEDULED TERRITORIES

1. Malaysia
PU(A) 119/1973.
2.—36. (Deleted)

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,

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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.
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
authorised 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

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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
(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 Official Assignee 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:

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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.
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
sub–paragraph (a), together with the delivery to the
other party concerned of such evidence of the payment
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

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necessary for that purpose, varying the form of any

writ of execution or other similar document or 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 sub-paragraph 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 sub-paragraph (1)
shall apply in relation to proceedings under any deed of
arrangement as they apply in relation to proceedings in
bankruptcy.
55/67.
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 section 5 (1) of the
Bankruptcy Act, 1967, 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

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(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 authorised to require it, any information in his
possession or control which the Controller or the person so
authorised, 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 authorised to require the information, as the case may
be.
Act A1241.
(3) Nothing in sub-paragraphs (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 for the purpose of any pending proceedings.
(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 authorised 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
(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,
Act A1241.

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he may grant a search warrant authorising any officer of

Bank Negara Malaysia appointed under subsection 3(2) or
any police officer, together with any other persons named in
the warrant and any other police officers, 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 authorised 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.
Act A1241.
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 twelve 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,

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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.
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) The provisions of sub-paragraph (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 authorised 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 authorised 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 sub-paragraph (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

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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 dollars 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.
Act A1241.
(2A) Notwithstanding subparagraph (2), any person who
commits an offence under subsection 4(1) or (2) punishable
under this Part shall, on conviction, be liable to a fine not
exceeding one million ringgit or to imprisonment for a term
not exceeding five years or to both and the court may order
any currency, gold or any property involved in respect of the
commission of the offence to be forfeited.
(3) Notwithstanding the provisions of any other written
law, a Sessions Court in West Malaysia, the Court of a
Magistrate of the First Class in Sabah and a District Court
presided over by a Stipendiary Magistrate in Sarawak 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.
Act A1241.
(4) Notwithstanding sub-paragraph (2) or (2A) 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 authorised by sub- paragraph (2) or (2A) or a
fine equal to three times the value of the currency, security,
payment, gold, goods or property, whichever is higher.
Act A1241.
8. (1) Any person authorised 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 fifty per centum of the amount
of the maximum fine to which that person would have been
liable if he had been convicted of such offence.
(2) On payment of such money the person reasonably
suspected of having committed an offence shall, if in

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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 maybe, 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.
Act A1241.
10. No proceedings for an offence punishable under this
Part shall be instituted, except by or with the consent of the
Public Prosecutor:
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 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 Public Prosecutor:
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

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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 to do so by
an authorised 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 authorised 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 authorised

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officer and any person working under his directions may

examine or search the goods for the purpose of ascertaining
whether the goods contain 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 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 authorised 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
sub- paragraph (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
authorised 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 authorised
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 authorised 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.
62/67.
15. The Customs Act, 1967, 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

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or exported by any of the provisions of the said Part except

with the permission of the Controller.
62/67.
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.
34/47.
18. An authorised officer may examine any postal article
within the meaning of the Post Office Ordinance, 1947,
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 “authorised officer” means
any officer of customs as defined in the Customs Act, 1967,
any police officer and any officer or person authorised by the
Controller to exercise the powers and perform the duties of
an authorised officer under this Part.

As amended by Latest Amendment Act A1241/2005, CIF: 1 Jan 2007

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