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DR 28/2010
A BILL
intituled
An Act to amend the Moneylenders Act 1951.
ENACTED by the Parliament of Malaysia as follows:
1. Short title and commencement
(1) This act may be cited as the Moneylenders (Amendment) Act 2010.
(2) This act comes into operation on a date to be appointed by the Minister by notification in the Gazette.
2. General amendment
The Moneylenders Act 1951 [Act 400], which is referred to as the "principal Act" in this Act, is amended by substituting for the words "holder of the licence", wherever they appear, the word "licensee".
3. Amendment of section 1
Subsection 1(2) of the principal Act is amended by substituting for the words "States of Peninsular Malaysia only" the words "whole of Malaysia".
4. Amendment of section 2
Section 2 of the principal Act is amended:-
(a) by inserting before the definitions of ' "authorized name" and "authorized address" ' the following definition:
' "Authority" has the same meaning assigned to it in the Local Government Ordinance 1961 [Sabah Ord. 11/1961];';
(b) by inserting after the definition of "licence" the following definitions:
' "licensee" means any moneylender to whom a licence has been issued under section 5B;
"local authority" has the same meaning assigned to it in the Local Authorities Ordinance 1996 [Sarawak Ord. 20/1996];';
(c) by substituting for the definition of "moneylender" the following definition:
' "moneylender" means any person who carries on or advertises or announces himself or holds himself out in any way as carrying on the business of moneylending, whether or not he carries on any other business;';
(d) by inserting after the definition of "moneylender" the following definition:
' "moneylending" means the lending of money at interest, with or without security, by a moneylender to a borrower;';
(e) by inserting after the definition of "moneylending agreement" the following definition:
' "Perbadanan Labuan" has the same meaning assigned to it in the Perbadanan Labuan Act 2001 [Act 609];" ';
(f) in the definition of "police officer", by deleting the word "senior"; and
(g) by inserting after the definition of "Registrar" the following definition:
' "senior police officer" means a senior police officer as defined in the Police Act 1967;'.
5. Amendment of section 2A
Section 2A of the principal Act is amended by substituting for subsection (1) the following subsection:
"(1) This Act shall not apply to a person specified in the First Schedule, and such person shall be subject to any written law governing his business or activity.".
6. Amendment of section 4
Subsection 4(1) of the principal Act is amended by inserting after the words "public service" the words ", officer of Perbadanan Labuan in the Federal Territory of Labuan, officer of the Authority in the State of Sabah and officer of the local authority in the State of Sarawak".
7. Amendment of section 4A
Subsection 4A(2) of the principal Act is amended by inserting after the words "public officer" the words ", officer of Perbadanan Labuan in the Federal Territory of labuan, officer of the Authority in the State of Sabah and officer of the local authority in the State of Sarawak".
8. Amendment of section 5
Section 5 of the principal Act is amended:-
(a) in subsection (1), by substituting for the words "conduct business as a moneylender" the words "carry on or advertise or announce himself or hold himself out in any way as carrying on the business of moneylending";
(b) in subsection (2):-
(i) by substituting for the words "carries on business as a moneylender" the words "carries on or advertises or announces himself or holds himself out in any way as carrying on the business of moneylending";
(ii) by substituting for the word "twenty" the words "two hundred and fifty"; and
(iii) by substituting for the words "one hundred thousand" the words "one million".
9. Amendment of section 5F
Subsection 5F(1) of the principal Act is amended:-
(a) by substituting for the word "moneylender" the word "licensee"; and
(b) by substituting for the word "licence" the words "original licence".
10. Amendment of section 6
Section 6 of the principal act is amended:-
(a) in subsection (1):-
(i) by substituting for the word "moneylender", wherever it appears, the word "licensee"; and
(ii) by substituting for paragraph (c) the following paragraph:
"(c) a business name, whether of an individual or of a firm in which he is a partner, under which he or the firm has been registered:-
(i) in the case of Peninsular Malaysia and the Federal Territory of Labuan, under the Registration of Businesses Act 1956 [Act 197];
(ii) in the case of the State of Sabah, under the Trade Licensing Ordinance [Sabah Cap. 144]; and
(iii) in the case of the State of Sarawak, the businesses, Professions and Trade licensing Ordinance [Sarawak Cap. 33] and the Business Sarawak Names Ordinance [Cap. 64]"; and
(b) in subsection (2), by substituting for the word "moneylender's" the word "licensee's".
11. Amendment of section 8
Section 8 of the principal Act is amended by substituting for the words "any person" the words "a licensee".
12. Amendment of section 9A
Section 9A of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
13. Amendment of section 9F
Section 9F of the principal Act is amended:-
(a) in subsection (2), by substituting for the word "person" the word "licensee"; and
(b) by inserting after subsection (2) the following subsections:
"(3) A licensee may surrender his licence on his own initiative by forwarding the licence to the Registrar with a written notice of the surrender of the licence.
(4) The surrender of the licence shall take effect fourteen days from the date the Registrar receives the licence and the written notice or such other date as may be specified by the Registrar.
(5) Upon the surrender of the licence under this section, the Registrar shall not refund any fees paid by the licensee under subsections 5B(3) and 5E(4).".
14. New section 9H
The principal Act is amended by inserting after section 9G the following section:
9H "Approval and notification of change of profile
(1) Every licensee shall obtain the approval of the Registrar:-
(a) before changing his business name;
(b) before the employment, appointment or admission of any person who will be responsible for the management of the licensee's business of moneylending; or
(c) before any person becomes a director or partner of the licensee.
(2) Every licensee shall notify the Registrar, in writing, as soon as practicable:-
(a) of any person becoming a substantial shareholder of the licensee; or
(b) of any substantial shareholder of the licensee increasing or reducing his substantial shareholding in the licensee.
(3) Every licensee shall notify the Registrar, in writing:-
(a) of any person ceasing to be a director, partner or substantial shareholder of the licensee; or
(b) of any person ceasing to be responsible for the management of the business of moneylending of the licensee,
not later than fourteen days after the cessation.
(4) Every licensee shall notify the Registrar, in writing, of a bankruptcy order against the licensee, or any director, partner or substantial shareholder of the licensee, not later than fourteen days after the bankruptcy order is made.
(5) Any licensee who contravenes subsection (1), (2), (3) or (4) shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.".
15. Amendment of section 10B
Section 10B of the principal Act is amended:-
(a) in subsection (4), by inserting after the word "Registrar" the words "or in a book to be kept by an officer in charge of a police station"; and
(b) by inserting after subsection (4) the following subsection:
"(4A) A copy, which is certified to be a true copy by the Registrar or an officer in charge of a police district, of an entry under subsection (4) shall be admissible as evidence of the contents of the original and of the time, place and manner in which the complaint was recorded."; and
(c) in subsection (5), by inserting after the words "police officer" the words "not below the rank of Sergeant".
16. Amendment of section 10D
Section 10D of the principal Act is amended:-
(a) in subsection (1):-
(i) by inserting after the words "any premises," the words "or any evidence necessary to establish the commission of an offence under this Act,";
(ii) by substituting for the words "police officer" the words "a senior police officer"; and
(iii) by inserting after the words "such premises" the words "at any reasonable time by day or night";
(b) in subsections (2), (3), (7) and (8), by substituting for the words "police officer", wherever they appear, the words "a senior police officer";
(c) in subsection (4):-
(i) by substituting for the words "an inspector or police officer" the words "An Inspector or a senior police officer"; and
(ii) by substituting for the words "police officer" the words "senior police officer"; and
(d) in subsection (5), by substituting for the words "police officer" the words "senior police officer".
17. Amendment of section 10E
The principal Act is amended by substituting for section 10E the following section:
10E. "Power of arrest
(1) an inspector or a police officer may arrest without warrant any person who commits or attempts to commit, or whom the inspector or police officer reasonably suspects of committing or attempting to commit, any offence under this act.
(2) Where any person is arrested under subsection (1), he shall thereafter be dealt with as provided by the Criminal Procedure Code [Act 593].".
18. Amendment of section 10F
Section 10F of the principal Act is amended by substituting for the words "police officer", wherever they appear, the words "senior police officer".
19. Amendment of section 10G
Section 10G of the principal Act is amended:-
(a) in subsection (1), by substituting for the words "police officer" the words "a senior police officer"; and
(b) in subsection (2), by substituting for the words "police officer" the words "senior police officer".
20. New sections 10GA and 10GB
The principal Act is amended by inserting after section 10G the following sections:
10GA "Additional powers
(1) Notwithstanding sections 10D and 10F, an Inspector or a senior police officer shall, for the execution of this Act, have power to do all or any of the following:
(a) to visit, enter, inspect and examine with or without notice any premises where a moneylender is or is believed to be carrying on business;
(b) to require the production of any information, book, record or other document kept by a moneylender or other person and to inspect, examine, make copies of them and take extracts from them;
(c) to take photographs of the premises inspected or any part of the premises;
(d) to seize and remove from the premises any book, record or other document, or any machine or equipment containing any book, record or other document; and
(e) make such inquiry as may be necessary to ascertain whether the provisions of this act have been complied with.
(2) Where any book, record or other document, or any machine or equipment containing any book, record or other document is seized under paragraph (1)(d), the seizing officer shall prepare a list of the things seized and immediately deliver a copy signed by him moneylender's officer or to the moneylender, or to the employee, at the premises.
10GB. Access to computerized data
(1) an inspector or a senior police officer conducting a search under this act shall be given access to computerized data whether stored in a computer or otherwise.
(2) For the purpose of this section, "access":-
(a) includes being provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of such computerized data; and
(b) has the same meaning assigned to it by subsections 2(2) and (5) of the Computer Crimes Act 1997 [Act 563].".
21. Amendment of section 10H
Section 10H of the principal Act is amended:-
(a) in subsection (1), by substituting for the words "police officer" the words "a senior police officer"; and
(b) in subsection (2), by substituting for the words "police officer" the words "senior police officer".
22. Amendment of section 10J
The principal act is amended by substituting for section 10J the following section:
10J "Authority to Act
(1) There shall be issued to each inspector an authority card to be signed by the Minister.
(2) Whenever an inspector exercises any of the powers under this act, he shall on demand produce to the person against whom the power is being exercised the authority card issued to him under subsection (1).".
23. Amendment of section 10K
Subsection 10K(1) of the principal Act is amended:-
(a) by substituting for the words "police officer" appearing after the words "an inspector or" the words "a senior police officer"; and
(b) by substituting for the words "police officer" appearing after the words "superior in rank to the" the words "senior police officer".
24. New sections 10OA, 10OB and 10OC
The principal Act is amended by inserting after section 10O the following sections:
10OA. "Presumption as to the business of moneylending
Where in any proceedings against any person, it is alleged that such person is a moneylender, the proof of a single loan at interest made by such person shall raise a presumption that such person is carrying on the business of moneylending, until the contrary is proved.
10OB. Evidence and records of previous conviction
(1) For the purposes of sentencing under this act, when it is necessary to prove in any court that the offence for which a person is being convicted is a second or subsequent offence, a certificate purporting to be a record of his previous conviction, signed by:-
(a) the Registrar; or
(b) any police officer authorized in writing in that behalf by the Chief Police Officer or Commissioner of Police,
having custody of the records in which such conviction is kept, shall be admissible as evidence and shall constitute prima facie proof of any fact stated therein.
(2) The certificate under subsection (1) shall only be admissible if it is a record in respect of the same offence and the conviction is obtained within five years from the date of the present conviction.
10OC. Diary of proceedings in investigation
(1) Every inspector or police officer making an investigation under this Act shall day by day enter his proceedings in the investigation in a diary setting forth:-
(a) the time at which the order to investigate, if any, reached him;
(b) the time at which he began and closed the investigation;
(c) the place or places visited by him; and
(d) a statement of the circumstances ascertained through his investigation.
(2) Notwithstanding anything contained in the Evidence Act 1950 [Act 56], an accused person shall not be entitled, either before or in the course of any proceedings under this Act, to call for or inspect any such diary:
Provided that if the inspector or police officer who has made the investigation refers to the diary for the purposes of section 159 or 160 of the Evidence Act 1950, only such entries as the officer has referred to shall be shown to the accused, and the court shall at the request of the inspector or police officer cause any other entries to be concealed from view or obliterated.".
25. Amendment of section 10P
Section 10P of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
26. Amendment of section 11
Section 11 of the principal Act is amended:-
(a) in the shoulder note, by substituting for the word "moneylender" the word "licensee";
(b) in subsection (1), by substituting for the word "moneylender", wherever it appears, the word "licensee"; and
(c) in subsection (2), by substituting for the word "person" the word "licensee".
27. Amendment of section 11A
Section 11A of the principal Act is amended by substituting for the word "moneylender" the word "licensee".
28. Amendment of section 16
Section 16 of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
29. Amendment of section 17
Section 17 of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
30. Amendment of section 17A
Section 17A of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
31. Amendment of section 18
Section 18 of the principal Act is amended:-
(a) by substituting for the shoulder note the following shoulder note:
"Duty to keep original copy of moneylending agreement and accounts in permanent books";
(b) by substituting for subsection (1) the following subsection:
"(1) Every licensee shall keep or cause to be kept and maintained:-
(a) such original copy of the moneylending agreement for each loan in which he is or has been concerned; and
(b) such regular accounts of each loan made clearly stating in plain words and in English numerals with or without the numerals of the script otherwise used the terms and transactions incidental to the account entered in a book paged and bound in such manner as not to facilitate the elimination of pages or the interpolation or substitution of pages,
for a period of not less than seven years from the end of the year in which the loan is made."; and
(c) in subsection (2), by substituting for the word "person" the word "licensee".
32. Amendment of section 19
Section 19 of the principal Act is amended:-
(a) by substituting for the word "moneylender", wherever it appears, the word "licensee"; and
(b) in subsection (1), by substituting for the words "First Schedule" the words "First Schedule A".
33. Amendment of section 20
Section 20 of the principal Act is amended:-
(a) in the shoulder note, by substituting for the word "moneylenders' " the word "licensees' "; and
(b) in subsections (1) and (2), by substituting for the word "moneylender" the word "licensee".
34. Amendment of section 21
Section 21 of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
35. Amendment of section 23
Section 23 of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
36. Amendment of section 25
Section 25 of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
37. Amendment of section 26
Section 26 of the principal Act is amended by substituting for the word "moneylender", wherever it appears, the word "licensee".
38. New sections 27A and 27B
The principal Act is amended by inserting after section 27 the following sections:
27A. "Prohibition of employing an agent or canvasser
(1) No moneylender shall employ any agent or canvasser for the purpose of inviting any person to borrow money or to enter into any transaction involving the borrowing of money from a moneylender.
(2) No person shall act as agent or canvasser, or demand or receive directly or indirectly any sum or other value consideration by way of commission or otherwise for introducing or undertaking to introduce to a moneylender any person desiring to borrow money.
(2) Any person who contravenes subsections (1) and (2) shall be guilty of an offence under this act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding fifty thousand ringgit or to both.
27B. Moneylending agreement in which amount is not truly stated or left blank
Any licensee who prepares any moneylending agreement under section 16 in which the principal or rate of interest is not truly stated or is left blank to be filled after the execution of the moneylending agreement shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand ringgit or to both.".
39. Amendment of section 29A
Subsection 29A(1) of the principal act is amended:-
(a) by deleting the word "or" appearing at the end of paragraph (i);
(b) by substituting for the comma appearing at the end of paragraph (j) the word "; or"; and
(c) by inserting after paragraph (j) the following paragraph:
"(k) demands or accepts security for a loan in any form prohibited by the regulations made under section 29H
40. New section 29AA
The principal Act is amended by inserting after section 29A the following section:
29AA. "Prohibition of assisting unlicensed moneylending
(1) Any person who assists a moneylender in contravention of subsection 5(1) shall be guilty of an offence under this Act and shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand ringgit or to both.
(2) For the purpose of subsection (1), where the bank account, passbook, automated teller machine card, credit card or charge card of any person, or the post-dated cheque issued by any person, is proved to the satisfaction of the court to have been used to facilitate the carrying on of the business of a moneylender in contravention of subsection 5(1), that person shall be presumed, until the contrary is proved, to have assisted the moneylender in the contravention of subsection 5(1).".
41. Amendment of section 29B
Section 29B of the principal Act is amended:-
(a) in subsection (1):-
(i) by substituting for the words "not exceeding one hundred thousand ringgit" the words "of not less than fifty thousand ringgit but not more than two hundred and fifty thousand ringgit"; and
(ii) by substituting for the words "fifteen months" the words "three years"; and
(b) in subsection (2):-
(i) by substituting for the words "not exceeding twenty thousand ringgit" the words "of not less than ten thousand ringgit but not more than fifty thousand ringgit"; and
(ii) by substituting for the words "twelve months" the words "two years".
42. Amendment of section 29F
Section 29F of the principal Act is amended:-
(a) in subsection (1), by inserting after the words "Public Prosecutor" the words "in writing"; and
(b) by substituting for subsection (5) the following subsection:
"(5) All monies paid to the Registrar or to an inspector specifically authorized under subsection (1) shall be paid into and form part of:-
(a) in the case of Peninsular Malaysia and the Federal Territory of Labuan, the Federal Consolidated Fund; and
(b) in the case of the States of Sabah and Sarawak, the State Consolidated Fund of the State respectively.".
43. Amendment of section 29H
Subsection 29H(2) of the principal Act is amended:-
(a) by deleting the word "or" appearing at the end of paragraph (g);
(b) in paragraph (h), by substituting for the word "moneylender" the word "licensee";
(c) by substituting for the full stop appearing at the end of paragraph (h) the word "; or"; and
(d) by inserting after paragraph paragraphs: (h) the following
"(i) the form of security for the repayment of a loan which shall not be demanded or accepted by the licensee;
(j) the annual statement, in such form and containing such information, to be sent to the Registrar.".
44. New sections 29I, 29J and 29K
The principal Act is amended by inserting after section 29H the following sections:
29I "Reward to informer
(1) The Registrar may reward such amount of money to any informer whose information leads to the conviction of any person for an offence under this Act.
(2) The reward made under subsection (1) shall be paid from:-
(a) in the case of Peninsular Malaysia and the Federal Territory of Labuan, the Federal Consolidated Fund; and
(b) in the case of the States of Sabah and Sarawak, the State Consolidated Fund of the State respectively.
29J. Assignment of proceeds to the States of Sabah and Sarawak
The following proceeds are assigned to the States of Sabah and Sarawak:
(a) penalties for late renewal of licence under section and
(b) fees for advertisement permits as prescribed under the Moneylenders (Control and licensing) Regulations 2003 [P.U. (A) 400/2003].
29K. Power to amend First Schedule
The Minister may, by order published in the Gazette, amend the First Schedule.".
45. Substitution of First Schedule
The principal Act is amended by substituting for the First Schedule the following Schedule:
"FIRST SCHEDULE
[Subsection 2A(1)]
1. Any authority or body established, appointed or constituted by any written law, including any local authority.
2. Any co-operative society registered under the Co-operative Societies act 1993 [Act 502].
3. Any licensed bank or licensed merchant bank as defined under the Banking and Financial Institutions Act 1989 [Act 372] or any islamic bank as defined under the Islamic Banking Act 1983 [Act 276].
4. Any insurance company licensed under the Insurance Act 1996 [Act 553].
5. Any company licensed under the Takaful Act 1984 [Act 314].
6. Any pawnbroker licensed under the Pawnbrokers Act 1972 [Act 81].
7. A development financial institution prescribed under the Development Financial Institutions Act 2001 [Act 618].
8. A licensed finance company as defined under subsection 2(1) of the Banking and Financial Institutions Act 1989.
9. Any company who lends money to its related corporation as defined under the Companies Act 1965 [Act 125].
10. Any company who lends money to its director, officer or employee as a benefit accorded to such person under his terms of employment.
11. Any person who subscribes or purchases debt securities which include:-
(a) stocks issued under the Loan (Local) act 1959 [Act 637];
(b) Treasury bills issued under the Treasury Bills (Local) Act 1946 [Act 188];
(c) investments under the Government Funding Act 1983 [Act 275]; and
(d) debentures as defined under section 2 of the Capital Markets and Services Act 2007 [Act 671].
12. Any person licensed, registered or regulated under the Capital Markets and Services Act 2007.
13. Any scheduled institution as defined under the Banking and Financial Institutions Act 1989.
14. Any company who is an issuer of a credit card or charge card approved under the Payment System Act 2003 [Act 627].
15.Any Labuan bank as defined under the Labuan Financial Services and Securities Act 2010 [Act 704].
16. Any company who is licensed under Part Vii of the Labuan Financial Services and Securities Act 2010.".
46. New First Schedule A
The principal Act is amended by inserting after the First Schedule: Schedule the following
"FIRST SCHEDULE A
[Section 19]
TABLE 1
PRINCIPAL AND INTEREST
Principal
Date on which loan was made
Rate per centum per annum or the Amount of interest
TABLE 2
REPAYMENT
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TABLE 3
AMOUNT OF ARREARS
Principal
Date due
Interest
Date Due
1.
2.
3.
4.
5.
6.
7.
TABLE 4
SUMS NOT YET DUE
Principal
Date due
interest
Date Due
1.
2.
3.
4.
5.
6.
7.
47. Revocation
The Federal Territory of Labuan (Extension and Modification of the Moneylenders Act 1951) Order 2007 [P.U. (A) 413/2007] and the States of Sabah and Sarawak (Extension and Modification of the Moneylenders Act 1951) Order 2007 [P.U. (A) 414/2007] are revoked.
EXPLANATORY STATEMENT
This bill seeks to amend the Moneylenders Act 1951 ["Act 400"]:-
(a) to clarify the scope of Act 400;
(b) to tighten the regulation of the conduct of moneylending business by the licensee with the introduction of new offences and obligation;
(c) to enhance the powers of the Registrar of Moneylenders and the Iinspectors of Moneylenders as well as the members of the Royal Malaysia Police in relation to the enforcement of Act 400; and
(d) to counter illegal moneylenders by introducing new offences and increasing the penalty for serious offences, i.e. conducting unlicensed moneylending business and harassment and intimidation of borrowers.
2. Clause 1 of the bill contains the short title and the provision on the commencement date of the proposed act.
3. Clause 2 of the bill seeks to make a general amendment in respect of the words "holder of the licence" which will be replaced by the word "licensee".
4. Clause 3 of the bill seeks to amend subsection 1(2) of Act 400 to provide that Act 400 applies to the whole of Malaysia. Act 400 was extended to the Federal Territory of Labuan and the States of Sabah and Sarawak vide the Federal Territory of Labuan (Extension and Modification of the Moneylenders Act 1951) Order 2007 [P.U. (A) 413/2007] and the States of Sabah and Sarawak (Extension and Modification of the Moneylenders Act 1951) Order 2007 [P.U. (A) 414/2007] effective from 1 January 2008.
5. Clause 4 of the bill seeks to amend section 2 of Act 400 in respect of definitions. in particular, the proposed amendment seeks to amend the term "moneylender" and to introduce the definition of "moneylending" to clarify that Act 400 only applies to any person who lends money at interest as a business.
6. Clause 5 of the bill seeks to amend section 2A of act 400 to exclude certain persons as listed in the new First Schedule from the application of Act 400. Act 400 does not regard their businesses as those of moneylending, though the transactions to which they are parties involve the lending of money.
7. Clauses 6, 7, 10 and 41 of the bill seek to amend sections 4, 4A, 6 and 29f of Act 400 respectively. These amendments are necessary to reflect the extension of act 400 to the Federal Territory of labuan, the State of Sabah and the State of Sarawak.
8. Clause 8 of the bill seeks to amend section 5 consequent to the amendment made to the term "moneylender" under section 2 of Act 400. The amendment also seeks to provide for an increase in penalty.
9. Clause 9 of the bill seeks to amend section 5F of act 400 to clarify that a licensee shall display his original licence at the premises.
10. Clauses 11, 12, 25, 26, 27, 28, 29, 30, 32, 33, 34, 35, 36 and 37 of the bill seek to amend sections 8, 9A, 10P, 11, 11A, 16, 17, 17A, 19, 20, 21, 23, 25 and 26 of Act 400 respectively to clarify that such provisions apply to the licensee.
11. Clause 13 of the bill seeks to amend section 9F of Act 400 to allow a licensee to surrender his licence on his own initiative at any time by written notice to the Registrar. However, the surrender will only take effect fourteen days after the notice of surrender received by the Registrar or such other period as may be specified in writing by the Registrar.
12. Clause 14 of the bill seeks to introduce a new section 9H into Act 400 to require a licensee to obtain the Registrar's approval in relation to certain changes specified in the section, such as, a proposed change in the business name of the licensee etc.. The proposed section 9H further requires the licensee to notify the Registrar on a person becoming a substantial shareholder of the licensee or if there is a change in the substantial shareholding of the substantial shareholder.
13. Clause 15 of the bill seeks to amend section 10B of Act 400 to require any complaint made to a police officer to be entered in a book kept at the police station. The proposed amendment also specifies the officer who can certify the copy of the complaint made under the section to be the true copy, namely the Registrar and the officer in charge of police district.
14. Clauses 16, 18, 19, 21 and 23 of the bill seek to amend sections 10D, 10F, 10G, 10H and 10K of Act 400 respectively to provide for the power of search and seizure now to be given to a senior police officer.
15. Clause 17 of the bill seeks to substitute section 10E of Act 400 to empower the inspector appointed under section 4 of Act 400 to arrest without warrant any person reasonably believed to have committed an offence under Act 400.
16. Clause 20 of the bill seeks to introduce new sections 10GA and 10GB into Act 400. The proposed section 10GA empowers an inspector appointed under section 4 of Act 400 or a senior police officer to enter premises used or believed to be used by a moneylender to carry on business in order to inspect the premises and any book, record or other document found on the premises, and to require a moneylender to provide information or documents. The proposed section 10GB seeks to provide that an inspector or a senior police officer shall have access to computerized data.
17. Clause 22 of the bill seeks to substitute section 10J to provide that each inspector appointed under section 4 of act 400 shall be issued with an authority card to be signed by the Minister and shall on demand produce his card against whom the power is being exercised under act 400.
18. Clause 24 of the bill seeks to introduce new sections 10OA, 10OB and 10OC into Act 400. The proposed section 10OA seeks to facilitate the proof of business of moneylending. The proposed amendment provides that upon the proof of a single loan of money at interest, it is presumed, in the absence of rebutting evidence, that such transaction amounts to carrying on the business of moneylending. The proposed section 10OB seeks to enable a record of previous conviction to be admissible as evidence and to constitute prima facie proof of any fact stated in the record. The proposed section 10OC requires an inspector appointed under section 4 of Act 400 and a police officer to enter his proceedings in the investigation in his diary which contains, inter alia, the time at which he began and closed the investigation.
19. Clause 31 of the bill seeks to amend section 18 of Act 400 to require the licensee to keep the original copies of the moneylending agreements and the regular accounts of each loan made for a period of not less than seven years from the end of the year to which the loan is made.
20. Clause 38 of the bill seeks to introduce new sections 27A and 27B into Act 400. The proposed section 27A seeks to prohibit both the licensee and unlicensed moneylender to employ an agent or canvasser for the purpose of inviting any person to borrow money from the licensee or the unlicensed moneylender, and to provide that any person shall not act as such agent or canvasser. The proposed section 27B moneylending agreement in which seeks to provide an offence for preparing the amount is not truly stated or left blank.
21. Clause 39 of the bill seeks to amend section 29A of Act 400 to introduce a new offence for any licensee who demands or accepts security for a loan in any form prohibited by regulations made by the Minister.
22. Clause 40 of the bill seeks to introduce a new section 29AA into Act 400 to make it an offence for any person to assist an unlicensed moneylender, and the proposed amendment contains a presumption for this purpose, i.e. if a person whose bank account, passbook, automated teller machine card, credit card or charge card is proved to have been used to facilitate the unlicensed moneylending business, such person is presumed to have assisted in the business.
23. Clause 41 of the bill seeks to amend section 29B of Act 400 to provide an increase in penalty.
24. Clause 43 of the bill seeks to amend section 29H of Act 400 to empower the Minister to make regulations relating to the form of security for the repayment of loan which shall not be demanded by the licensee and the form of annual statement.
25. Clause 44 seeks to introduce new sections 29I, 29J and 29K. The proposed section 29I deals with the provision relating to reward for any informer whose information leads to a conviction for any offence under act 400. The proposed section 29J seeks to reflect the extension of act 400 to the Federal Territory of Labuan, the State of Sabah and the State of Sarawak where the proceeds specified in the section are to be assigned to the States of Sabah and Sarawak. The proposed section 29K empowers the Minister to amend the First Schedule by order published in the Gazette.
26. Clause 47 revokes the Federal Territory of Labuan (Extension and Modification of the Moneylenders Act 1951) Order 2007 [P.U. (A) 413/2007] and the States of Sabah and Sarawak (Extension and Modification of the Moneylenders Act 1951) Order 2007 [P.U. (A) 414/2007] as a result of the insertion of the modification provided under both Orders into the bill.
27. Other amendments not specifically dealt with in this Statement are amendments which are minor or consequential in nature.
FINANCIAL IMPLICATIONS
This bill will not involve the Government in any extra financial expenditure.