Lending rules: Brunei
What the published rules require for unsecured consumer loans in Brunei, in the order a loan is made, and how TS LMS handles each step.
Last reviewed 22 October 2026 · Email me when these rules change
Lender type covered Licensed moneylender (Moneylenders Act, Cap. 62); finance companies (Finance Companies Act, Cap. 89) where stated
- 01
What licence do you need to lend in Brunei?
Moneylender licence from BDCB
What the rules require
Under the Moneylenders Act (Cap. 62), no person may carry on the business of a moneylender unless registered and licensed (s. 3); licences are granted annually for a fee of BND 500. Brunei Darussalam Central Bank (BDCB) states that any person carrying on the business of a moneylender must be licensed by BDCB and that operating without a licence is an offence under s. 8(1). BDCB's licensing criteria also require a minimum paid-up capital set by BDCB, a permanent place of business or registered office in Brunei, and a security amount set by the Authority. Each moneylender must keep a register of every borrower (name, sex, age, nationality), open to inspection by a magistrate (s. 6).
Effective: being checked against the official text · Rules as of 6 April 2024 · Source: Moneylenders Act (Chapter 62), Laws of Brunei, B.L.R.O. 1/1984 · Misuse of BDCB Name and Logo to Promote Unlicensed Moneylenders (press release, 6 April 2024) · Licensing Criteria – Finance Providers
How TS LMS handles it
Products, credit rules and limits are set up for each lender and country. Changes to credit policy and to products need a second person's approval, and every change is kept in the audit log.
- 02
Is there an interest rate cap in Brunei?
Statutory cap: 24% p.a. unsecured, 15% p.a. secured
What the rules require
The Moneylenders Act (Cap. 62) provides that interest charged on loans shall not exceed 15 per cent per annum if secured and 24 per cent per annum on a note of hand only (s. 5). His Majesty the Sultan and Yang Di-Pertuan in Council may vary the rates of interest and licence fees by public notification (s. 7). Breach of s. 5 is punishable by a fine of BND 2,500 and imprisonment for six months (s. 8(2)).
Effective: being checked against the official text · Rules as of 1984 · Source: Moneylenders Act (Chapter 62), Laws of Brunei, B.L.R.O. 1/1984
How TS LMS handles it
Each product can carry an annual rate ceiling and always carries a ceiling on the total cost of credit; a quote above either is refused.
- 03
What affordability checks are required in Brunei?
Finance companies: 60% TDSR limit
What the rules require
For finance companies, the AMBD (now BDCB) Notice on Total Debt Service Ratio (BU/N-11/2017/46, Amendment No. 1, effective 9 November 2017) applies to credit granted to natural persons: for borrowers with net monthly income from BND 1,750 to under BND 10,000, total monthly debt obligations must not exceed 60% of net monthly income; outside that band the company's internal credit policy applies. Finance companies must verify customers' debt obligations extensively and accurately, set prudent TDSR thresholds in their credit policy, and notify the regulator of threshold changes within 10 working days. BDCB's Guidelines on Responsible Lending/Financing for Finance Companies (FCI/G3/2022/1, issued 15 March 2022, effective six months after issuance) state that credit should be provided only if the assessment shows the customer is able to meet the obligations under the agreement, and that limits such as the TDSR still apply when assisting customers in financial difficulty.
Effective November 2017 · Rules as of 15 March 2022 · Source: Notice to Finance Companies – Total Debt Service Ratio, Notice No. BU/N-11/2017/46 (Amendment No. 1) · Guidelines on Responsible Lending/Financing for Finance Companies, Guidelines No. FCI/G3/2022/1
How TS LMS handles it
Income and the debt-to-income ratio are assessed and kept with the credit decision; a limit above the suggested amount needs a written reason.
- 04
Can loan contracts be signed electronically in Brunei?
Written, stamped acknowledgement; Electronic Transactions Act
What the rules require
How TS LMS handles it
Where loans are signed electronically, the agreement is stored unchanged and signed only after approval, and the signature record keeps who signed, when, the agreement's fingerprint and the device. Money is released by a second staff member who is not the approver, and not if the payout account differs from the one approved.
- 05
What identity checks and anti-money laundering duties apply in Brunei?
Criminal Asset Recovery Order 2012; non-face-to-face CDD
What the rules require
How TS LMS handles it
ID document and face checks, and sanctions and PEP screening, are built in. A sanctions match blocks approval and release until compliance clears it with a second officer's confirmation, and a PEP match needs a written enhanced due-diligence note before staff approval.
- 06
What are the data protection and credit bureau rules in Brunei?
PDPO 2025; BDCB Credit Bureau
What the rules require
How TS LMS handles it
Personal data is kept for set periods by type and then removed, and a borrower's request to access their data can be answered from the system. Contacting a borrower's emergency contact requires the borrower's recorded consent.
This page summarises published rules for general information; it is not legal advice. Rules change: check the current text with the authority before acting.