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Compliance with Malaysia Deposit Insurance Corporation Regulations 2012 (Circular No 052/2018)

Circular No 052/2018
Dated 23 Feb 2018

To Members of the Malaysian Bar

Compliance with Malaysia Deposit Insurance Corporation
(Disclosure Requirements for Trust Accounts and Joint Accounts) Regulations 2012

We refer to Circular No 024/2013 dated 23 Jan 2013, whereby we informed Members of the Malaysia Deposit Insurance Corporation (Disclosure Requirements for Trust Accounts and Joint Accounts) Regulations 2012 (“Regulations 2012”), which came into operation on 27 Nov 2012.

Malaysia Deposit Insurance Corporation (also known as Perbadanan Insurans Deposit Malaysia, “PIDM”) has once again requested the Bar Council to remind Members to comply strictly with Regulations 2012 and to submit their trust account information to banks or financial institutions by 31 Mar 2018 (Saturday).

To facilitate the submission by Members, PIDM has provided a submission checklist with information on the annual submission requirement, as Appendix 1 (a copy of which is attached).

The relevant portion of the notice we received from PIDM is reproduced below.

Also attached is a copy of PIDM’s “Frequently Asked Questions Relating to Insurance Cover” (“FAQs”), which provides information regarding PIDM’s deposit insurance coverage and PIDM’s requirements in relation to trust accounts.

For enquiries on PIDM, you may contact PIDM’s officers, Sejal Mehta (03- 2173 7479) or Hoh Li Yun (03-2173 7561); or send an email to policyenquiry@pidm.gov.my.

Thank you.

Roger Chan Weng Keng
Secretary
Malaysian Bar


Dated: 29 January 2018

Re: Reminder to update trust account information by 31 March 2018

  • Under the Regulations, if your members hold a trust account1 for two (2) or more beneficiaries at our member banks, they are required to update and submit certain information about the trust account on an annual basis.  However, members who hold a trust account for only a single beneficiary are not required to provide this annual submission.
  • The submission should include updated information relating to the trust account, the beneficiaries, and the amount held for each separate beneficiary of the trust account or percentage interest in the trust account to which the beneficiaries are entitled to.  Your members are given the flexibility to submit the required beneficiary information by way of a separate alphanumeric code or other identifier to preserve the beneficiaries’ confidentiality.  To facilitate the submission by your members, we have attached a checklist as a guide on the details of the annual submission requirement, in Appendix 1.
  • The deadline for the 2018 submission, based on trust account balances as at 31 December 20172, is by 31 March 2018.  The updated information is to be submitted directly to our member bank where the trust account is maintained.
  • A trustee who fails to comply with this annual submission requirement commits an offence under section 195 of the Malaysia Deposit Insurance Corporation Act 2011 and may be liable to a fine, or to imprisonment, or to both.

It is important that the information submitted by your members to our member banks is up-to-date and accurate.  This would ensure that both the trustees and beneficiaries enjoy full deposit insurance protection.  Further details on PIDM’s deposit insurance coverage and PIDM’s requirement relating to trust accounts are available on its website at pidm.gov.my.

Afiza Abdullah (Ms.)
General Manager
Policy and International Division

 

_____________________________
1 For example, client account (e.g. current or fixed deposit account) held by a law firm at a bank.
2 Refers to the closing balance (e.g. closing balance shown in the bank statement) as at 31 December 2017.


This circular and the attachments may also be accessed here.

2 Attachments
Appendix 1.pdf
FAQs.pdf