The protection of investors against bankruptcy and discussions on contracts law are provided in this section.

Investor Protection Overview

Statutory controls were included in the Securities Order 2001 to protect the interest of investors, guard against improper trading, and investigate charges of impropriety.

Investor Protection Bankruptcy

The Brunei Supreme Court website linked below offers bankruptcy information.

Investor Protection Contracts Law

The Company Act of Brunei governs private transactions. A general discussion on Brunei's Contract Law can be accessed through the e-commerce link below.

There is currently no specific regulation on cross-border portfolio investments in Brunei.

The Brunei International Financial Center provides mutual fund operational regulations under the Mutual Fund Order 2001.

The Brunei dollar (BND) is pegged to the Singapore dollar (SGD), with its value at par. The 1967 Currency Interchangeability Agreement between Brunei Darussalam and Singapore allows both countries to interchange currencies to avoid the risk of exchange rate fluctuations. SGD is acceptable customary tender in Brunei as is BND in Singapore.

Currency Exchange Controls

The Brunei Currency and Monetary Board exclusively manages and issues coins and notes. Brunei's International Banking Order, 2000, governs provisions on international banking services for nonresidents.

The International Monetary Fund's Annual Report on Exchange Arrangements and Exchange Restrictions for Brunei Darussalam, available only in hard copy, discusses currency exchange controls.

Import/Export of Currencies

Import and export of Brunei dollars and foreign currencies are permitted without restrictions.

Domestic/Foreign Currency Accounts

Residents and nonresidents can maintain both domestic and foreign currency accounts.

Borrowing/Lending

There are no restrictions on domestic or foreign currency borrowing or lending among residents and nonresidents. Foreign investors may use all banking services provided by the seven commercial banks operating in the country (please see the government link on the banking sector). Nonresident lenders are subject to a 20% withholding tax on interest paid. Tax exemptions may be granted to an approved loan on the following conditions:

• the loan is utilized for the purchase of productive equipment;
• credit facilities are obtained through a lending agreement with a foreign finance company; and
• the amount of the loan is at least B$200,000.