Regulatory Requirements

• The applicant company must have a paid up capital of MYR300,000 (unimpaired by losses) or its equivalent in any foreign currency
• The applicant company must inform Labuan FSA of any changes in its shareholding structure  and/or erosion of paid up capital
• The company must inform Labuan FSA of any changes in its shareholding structure and/or any erosion of paid up capital.

Operational Requirements

• The company must maintain a registered office in Labuan, and all dealings must be done through this registered office in Labuan
• All transactions must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislations and authorities
• The company must appoint an auditor
• The company must notify Labuan FSA of any amendments or alteration to any information in its constituent documents.
  

All Labuan money brokers are prohibited from dealing with Malaysian residents other than authorised dealers as specified under Section 4 of the Malaysian Exchange Control Act 1953

Application Requirements

All applications for the setting up of a money broking entity should be directed to the Director General, Labuan FSA and should include, amongst others the following:

• An undertaking letter from the head office/parent company to undertake any liability arising from the operations of its branch or subsidiary in Labuan
• The controller or director or chief executive officer and the directors of the board of the applicant company must be fit and proper persons. Prior written approval of Labuan FSA must be obtained for the appointment of such said persons
• A signed declaration by directors and senior staff of the applicant on confidentiality and secrecy
• A descriptor of the nature of business of the applicant
• A business plan detailing the operations and strategies of the applicant with regard to its Labuan entity
• Audited financial statements of the applicant for the last two years, if applicable, and
• Any other information that is relevant to the application.

Annual Fee

All licensees are required to pay Labuan FSA an annual yearly licence fee of MYR5000 on or before 15th January.

WHAT CONSTITUTES AN MONEY BROKING / FX BUSINESS IN LABUAN?

Money broking / fx is defined as the business of arranging transactions between buyers and sellers in money or foreign exchange markets with brokers acting as an intermediary in consideration of brokerage fees paid or to be paid, but does not include the buying or selling of foreign currencies by the broker as a principal in such markets.

ARE THERE ANY RESTRICTIONS IMPOSED ON MONEY BROKING / FX BUSINESSES IN LABUAN IBFC?

Such companies may only transact business in foreign currency and not deal in Ringgit except for the purpose of defraying administrative and statutory expenses. Labuan money brokers are prohibited from dealing with residents other than the authorised dealers under the Exchange Control Act 1953.