BAIDURI BANK LOANS AND ACCOUNTS – BRUNEIAN LAW
1. A small number of recent Baiduri Bank default cases with Garrison customers have been reported to Comd BFB. Customers are failing to adhere to their bank loan requirements, resulting in default on their loans.
2. To avoid reputational damage, the bank has reached out with an information and process campaign to ensure Service Personnel (SP) understand the banking repercussions of failing to abide by written agreements for both bank accounts and loans taken with the bank.
3. SP are reminded of the UK/Bruneian Exchange of Notes (Treaty Series No: 31 (1984)), updated 16 February 2015 which state:
Observance of the law of Negara Brunei Darussalam:
It shall be the duty of the British Forces in Negara Brunei Darussalam, civilian component, authorised service organisations and the members thereof and dependants to respect the law of Negara Brunei Darussalam and to abstain from any activity inconsistent with the spirit of this Agreement and, in particular, from any political activity in Negara Brunei Darussalam. It is the duty of the United Kingdom Service authorities to take measures to acquaint all personnel and civilians to whom this Agreement related of the duty referred to in this sub-paragraph.
4. Baiduri Bank makes clear the agreement outlining Loan applications which are originally calculated based on the individual’s monthly balance received within the Baiduri bank account which should not be changed whilst the loan period is ‘live’.
5. It is known that a small number of our soldiers have defaulted on their loans and, immediately upon receiving their loan, transferred their JPA allotment to an alternative bank to apply for a further loan. To avoid potential reputational damage and repercussions for the SP in question, Loan holders should maintain their agreed level of banking split-pay transfers whilst the loan is ongoing. Should the SPs financial situation change, direct liaison with the bank Manager is strongly suggested.
6. The bank has agreed to enhance the formal employer/employee agreement letter between the bank account holder and BFB, outlining a need to maintain their current JPA split salary to Baiduri Bank for the durations of their loan. A copy of this letter will be held by HR Staffs. A failure to comply with banking agreements would contravene the Banking regulations within Brunei, cause reputational damage to BFB Garrison community and result in the individual defaulting on their initial agreement with the bank. A default on the individual’s loan may also result in the case being transferred to their courts of Brunei Darussalam in extreme cases.
For further enquiries, please contact the RAO department.
