1  Name of Course Law of Banking and Security
2 Course Code LAC3133
3 Instructor
4 Rational for the Inclusion of the Course in the Programme This subject is a compulsory subject for SMSU program. It introduces basic features of law of banking and securities in Malaysia.
5 Semester and Year offered Semester 6 (Year 3)
6 Student Learning Time

Face to face Independent learning Formal Assessment Total
Teacher centered Student Centered Learning Non face to face Revision Assessment Preparation Continuous Assessment Final Exam
Lecture T O


 28  6  5  28  10  12  3


7 Credit Value 3 (120 / 40 = 3)
8 Pre-requisite (if any) None
9 Learning outcomes Upon successful completion of this course, students should have the ability to:

  1. sketch the important provisions contained in banking and security law (LO2-P4);
  2. manipulate the banking and security principles to the current issues involving banking and security (LO4-P4); and
  3. display the importance of the banking and security law theoretically and practically (LO7-P5).
10 Transferable skills Students are expected to gain the knowledge on legal issues related to the Internet. In addition, students should be able to develop good written and interpersonal communication, team work and leadership, problem solving through a process of lectures and tutorials.
11 Teaching-Learning and Assessment Strategy Teaching-learning strategy:

The course will be taught through a combination of formal lectures, exercises, group work, using authentic materials, informal activities and various references. Collaborative teamwork will be fostered throughout the course. The use of examination and internal reporting assessment will assess the student’s ability to apply theoretical concepts in context.

Assessment strategy:

  • Formative
  • Summative
12 Synopsis This course will deal with the development of banking as well as securities laws in Malaysia. The law regulating both banking and securities industries especially capital markets have developed significantly in recent years. Hence, the syllabus content is designed to expose students to development on the laws on these areas whilst not leaving aside the development and historical background of the banking and securities industries in Malaysia.

The coverage of this course is relatively wide. Thus, the course will only examine a few selected but contemporary issues particularly relating to good banking practice, unethical practice, banking transaction and criminal offences pertaining to security transaction. The main statutory legislations referred to will be the Financial Services Act 2013, the Bills of Exchange Act 1949, the Computer Crimes Act 1997, the Capital and Market Services Act 2007, the Anti-Money Laundering Act 2001.

13 Mode of Delivery Lecture, tutorial, class discussion, seminar or presentation.
14 Assessment Methods and Types
No. Item Percentage
1. Continuous Assessment 40%
2. Final Examination 60%
  Total: 100%
15 Mapping of the Course Learning Outcome/Module to the Programme Learning Outcomes Refer to attachment
16 Content Outline and the SLT per Topic

Week Topic
1 Historical Development of Banks and the Central Bank in Malaysia
2-3 Banker-Customer Relationship
4 Electronic Banking Issues
5-6 Negotiable Instruments
7 Accounts of Customers
8-9 Lending and Securities
10-11 An Overview of the Security Laws in Malaysia, the Bursa Saham Malaysia and Securities Commission
12-14 Security Offences

*Note: Total = 120 hours

17 Main references 1.   Pheng, L.M. and Samen, D. (2012) Banking Law. 4th Ed. Kuala Lumpur: Malayan Law Journal.

2.   Thani, N.N (2001) Legal Aspect of the Malaysian Financial System. Hong Kong: Sweet & Maxwell Asia.


1.   Anti-Money Laundering Act 2001 (Act 613)

2.   Bills of Exchange Act 1949

3.   Capital Markets and Services Act 2007 (Act 671)

4.   Central Bank of Malaysia Act 1958

5.   Computer Crimes Act 1997(Reprint 2002) (Act 563)

6.   Financial Services Act 2013

7.   Securities Commission Act 2003.

Related cases

18 Additional references
  1. Chai Yee Hong (2013) “The Capital Market and Services Amendment Bill 2012”. LNS(A), p xxxi.
  2. Asmah Laili Yeon. (2013) “An Analysis of Insider Trading Law and Cases in the Malaysian Securities Law”, Proceeding.  4th International Conference on Business and Economic Research. Bandung, Indonesia.
  3. Mohd. Yasin , Norhashimah (2012) Anti-money laundering and counter financing of terrorism regulation of banking institution in Malaysia. Australian Journal of Basic and Applied Sciences, 6 (11). pp. 294-300.
  4.    _____________________   (2012) Introduction and development of Money Laundering in Malaysia. In: Awareness Program on Money laundering, 27 November 2012, Kuala Lumpur. (Unpublished).
  5.   ___________ (2008) Consumer Protection against Unauthorised Use of Credit Cards in Malaysia: A Banking Law Perspective, Journal of Malaysian Comparative Law, vol 35) p 1.



Course Learning Outcomes Compliance to PO Teaching & Learning Activities (TLAs) Assessment Tasks



















  K CTPS CS TS EM LL     KK LS    
1.   sketch the important provisions contained in banking and security law (LO2-P4)   3               Classroom lecture and discussion Written test
2.   manipulate the banking and security principles to the current issues involving banking and security (LO4-P4)       3           Lecture, Tutorials and Presentation Instructor evaluation of the presentation
3.   display the importance of the banking and security law theoretically and practically (LO7-P5)         3         Assignments


Instructor evaluation of the assignment