ACT 372 BANKING AND FINANCIAL INSTITUTIONS ACT 1989
PART V - SUBSIDIARIES AND OFFICES OF LICENSED INSTITUTIONS
Section 31. Establishment of correspondent banking relationship.
(1) Subject to subsection (2), a licensed bank or a licensed merchant bank may establish a correspondent banking relationship with any bank outside Malaysia.
(2) The Bank may prescribe by order that such licensed bank or licensed merchant bank as may be set out in the order shall not, except with the prior written approval of the Minister given on the recommendation of the Bank, establish a correspondent banking relationship with any bank established in any country, territory or place outside Malaysia, which may be set out in the order, or with any bank owned or controlled, directly or indirectly, by the government, or an agency of the government, of such country, territory or place.