KUALA LUMPUR (Oct 22): Bank Negara Malaysia (BNM) said on Friday that the extension of the deadline to apply for the registration of currency processors under Section 70(1) of the Currency Act 2020 to March 31, 2022 is to give potential applicants enough time to submit all the required documents.
“BNM has extended the grace period for the application of currency processors to provide potential applicants sufficient time to submit all necessary documentation to be registered under the Currency Act 2020,” said BNM in response to theedgemarkets.com's queries.
The BNM said the criteria referred to by the central bank in registering currency processors were set out in the Currency (Registration Requirements) Order 2021.
Some of the requirements under the Currency (Registration Requirements) Order 2021 include:
- The applicant is a company incorporated and registered or deemed to have been registered under the Companies Act 2016 [Act 777] with a minimum net worth and working capital of one hundred thousand ringgit respectively
- The applicant in carrying on a business of collecting currency note or currency coin for or on behalf of another person, is licensed or engages any person licensed under Section 3 of the Private Agencies Act 1971 [Act 27] to carry on a business of private agency for the purpose of providing guards and protection for the security of the property or business of other person
- The applicant shall use premises designated for the exclusive use of the applicant to carry on a currency processing business
- The applicant shall use currency processing equipment and machine which are capable to detect and separate counterfeit currency note or currency coin, to sort/pack currency note or currency coin by quality as determined by the bank, and to sort/pack currency note or currency coin by quantity and denomination
- The director, chief executive officer and any person concerned with the operation or management of the applicant has not been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia; and he/she has not held the position of a director or chief executive officer, or been directly concerned in the operation or management, of any company which has been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia unless he proves that such offence was committed without his knowledge, consent or connivance and et cetera
- The applicant has an operating procedure on currency processing and a business continuity plan
- The applicant has obtained an insurance or a takaful coverage to cover at all times the total value of currencies of its clients which will be processed by the applicant or in the applicant’s possession.
On March 23, 2021, BNM said it was extending the grace period for submission of applications for the registration of currency processors until Sept 30, 2021.