The Islamic Financial Services Order 2022(1) (PU (A) 230/2022) was published in the Official Gazette on 15 July 2022 and came into operation on 16 July 2022.
Pursuant to PU (A) 230/2022, two definitions in paragraph 3 of the Islamic Financial Services Order 2013(2) (PU(A) 209/2013) were amended as follows:
- in the definition of "licensed Islamic digital bank", the words "almost wholly" were substituted for the word "mainly"; and
- in the definition of "foundational phase", the words "its Islamic banking business" were substituted for the words "its banking business".
The "foundational phase" in PU (A) 230/2022 refers to the period of a minimum of three years up to a maximum of five years from the date the licenced Islamic digital bank commences its operations with the asset limit as set out under the Licensing Framework for Digital Banks issued by Bank Negara Malaysia on 31 December 2020.
Following this amendment, the definitions of "licensed digital bank" and "foundational phase" under paragraph 3 of PU(A) 209/2013 will now read as follows:
'licensed Islamic digital bank' means a person licensed under section 10 of the Act to carry on Islamic banking business, wholly or almost wholly, through digital or electronic means;
'foundational phase' in relation to a licensed Islamic digital bank, means the period of a minimum of three years up to a maximum of five years from the date the licensed Islamic digital bank commences its Islamic banking business, as may be determined by the Bank.
For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.
Endnotes
(1) The Islamic Financial Services (Minimum Amount of Capital Funds or Surplus of Assets Over Liabilities) (Licensed Person) (Amendment) (No. 2) Order 2022.
(2) The Islamic Financial Services (Minimum Amount of Capital Funds or Surplus of Assets Over Liabilities) (Licensed Person) Order 2013.