The Islamic Financial Services (Minimum Amount of Capital Funds or Surplus of Assets Over Liabilities) (Licensed Person) (Amendment)(No.2) Order 2022 [P.U. (A) 230/2022] (P.U. (A) 230/2022) was gazetted on 15 July 2022 and came into operation on 16 July 2022.
Pursuant to P.U. (A) 230/2022, the Islamic Financial Services (Minimum Amount of Capital Funds or Surplus of Assets Over Liabilities) (Licensed Person) Order 2013 [P.U.(A) 209/2013] (“P.U.(A) 209/2013”) is amended in paragraph 3 as follows:
(a) in the definition of “licensed Islamic digital bank”, by substituting for the word “mainly” the words “almost wholly”; and
(b) in the definition of “foundational phase”, by substituting for the words “its banking business” the words “its Islamic banking business”.
The “foundational phase” in P.U. (A) 230/2022 refers to the period of a minimum of three (3) years up to a maximum of five (5) years from the date the licensed 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.
With the amendment, the definitions of “licensed digital bank” and “foundational phase” under paragraph 3 of P.U.(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.”
