1. Pursuant to subsection 55(5) of the Bankruptcy Act 1967 and subsection 277(5) of the Companies Act 1965, financial institutions shall be notified of the bankruptcy of an individual or winding up status of a company. Thus, INSOLVENCY NOTIFICATION SYSTEM (INS) is developed to replace notifications of first letters sent manually (by post) to financial institutions. Through this system, financial institutions will be notified of the bankruptcy of an individual and winding up status of a company via MdI’s portal on a daily basis. Financial institutions will then be required to provide MdI with the information relating to the individual or wound up company’s account and surrender the balance of the accounts to the Director General of Insolvency as administrator of a bankrupt or as the Official Receiver of a wound up company.
2. Financial institutions may gain access into the system through the MdI portal by clicking the INS tab and log into the system using the username and password provided. The notification will be displayed and the financial institutions will be required to provide the bankrupt or wound up company’s last known address and surrender the balance of the bankrupt or wound up company’s account within 7 working days to the Director General of Insolvency as administrator of a bankrupt or as the Official Receiver of a wound up company.
3. Through INS, a list of bankrupts and companies wound up by the Court will be uploaded to the MdI portal within 24 hours after receiving notification from the Court that a Receiving Order and Adjudication Order has been entered against an individual or a Winding Up Order has been entered against a company.
4. In addition, the financial institutions will then be required to provide the said information to the MdI branch administering the case which is also provided in the system. The displayed information will be available for 14 days from the date of uploading into the system.
5. To date, 27 financial institutions have been participated and applied INS effective on 1st January 2014 as follows:
1. Affin Bank
2. Agro Bank
4. Al Rajhi Bank
5. AlKhair International Islamic Bank Berhad
6. Alliance Bank
9. Bank Islam
10. Bank Muamalat
11. Bank of Nova Scotia, Kuala Lumpur
12. Bank Rakyat
14. CIMB Bank
16. Credit Guarantee Corporation (CGC)
17. Hong Leong
18. Hong Leong Investment Bank
19. India International Bank (Malaysia) Berhad
20. Kuwait Finance
23. Public Bank
25. Standard Chartered
26. Sumitomo Mitsui Banking Corporation Malaysia Berhad
27. United Overseas Bank
6. MdI welcomes any ideas, feedbacks and cooperation with financial institutions in Malaysia for purposes of implementation of INS. Those interested to be a part of this new integrated system may contact the Policy, Legal & Strategic Communications Division of MdI at 03-8885 1994 (Puan Raden) / Information Technology Department at 03-8885 1380 (En. Ebenezer) / Bankruptcy Division at 03-8885 1880 (Puan Siti Subaikah) Liquidation Division at 03-8885 1309 (Puan Hasni Adura).