Banking Act (Brunei Darussalam)

The Act governs the regulation and licensing of the business of banking. It provides that no banking business shall be transacted in Brunei except by a company or an international bank. Moreover, no company other than an international bank shall continue or commence to carry on banking business in Brunei Darussalam without obtaining a license. It sets the minimum authorized capital for a company carrying on a banking business, as well as the minimum subscribed sum and paid up capital. Furthermore, the Act sets the amount of reserve fund that a bank must maintain, as well as minimum cash balances and liquid assets that may be required from time to time. The act also proscribes the use, without the consent of the Minister of the minister responsible for finance, of the word "bank" in the business name of a company, or of any name implying that the business of banking is carried on. The Act also provides for certain offenses punishable by fine and/or imprisonment including the unauthorized use of the word "bank," failure to comply with an order pursuant to the powers granted to the Minister, fraudulent inducement in relation to deposits, obstruction of investigation, and certain punishable attempts, preparations, abetments and conspiracies. The Act further provides certain powers such as entry, search and seizure by an investigating or police officer, examination of a person, arrest and investigation.