Labuan Full Fledge Bank
Labuan banking business is the business of receiving deposits on current account, deposit account, savings account or any other account as may be specified including the Labuan investment banking business, Labuan financial business, Labuan Islamic banking business, or such other business as Labuan FSA may specify, with the approval of the Minister of Finance, in any currency (including ringgit where permitted by the Exchange Control Act 1953 or such other relevant law in force).
An applicant should meet the following minimum eligibility criteria:
1. Must be a bank or financial institution;
2. Possesses a sound track record;
3. Accorded a good credit rating by acceptable rating agencies;
4. Supervised by a competent regulatory authority and Conforms to generally accepted standards of international banking practices or BIS, as the case may be.
Labuan Investment Bank
Labuan investment banking is defined as the business of providing credit facilities, providing consultancy and advisory services relating to corporate and investment matters including dealing in securities, or making and managing investments on behalf of any person, business of undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities, Labuan Islamic investment banking business, Labuan financial business or such other business as Labuan FSA may specify, with the approval of the Minister of Finance, in any currency (including ringgit where permitted by the Exchange Control Act 1953 or such other relevant law in force).
Labuan investment banks are not allowed to accept deposits.
Entry Requirements: A Labuan investment bank can be set up as a branch or subsidiary and registered or incorporated under the Labuan Companies Act 1990. The application may be accepted from:
1. An investment bank or group engaging in investment banking activities licensed by the regulatory authority in the country of origin;
2. A licensed bank or an established financial institution or financial service provider supervised by a competent regulatory authority;
3. Any licensed institutions under BAFIA with prior approval of Bank Negara Malaysia; and
4. Corporations with the necessary expertise and experience in financial industry with at least three years good track records and regulated by an Authority in their home countries.
For further details on the procedure and requirement as well as the fees for establishing a Labuan full fledge bank/Labuan Investment Bank, please do not hesitate to contact us.