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Flexibility For Labuan Banks And Investment Banks To Co-Locate Outside Of Labuan |
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Monday, 18 January 2010 16:00
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LABUAN, Tuesday [19 January 2010] - The Labuan Offshore Financial Services Authority (LOFSA) is pleased to announce that Labuan banks and Labuan investment banks have recently been accorded the added flexibility to establish their office or offices in other parts of Malaysia other than its office in Labuan with immediate effect.
The recently introduced policy is an expansion of the initiative that was introduced in May 2009 that allowed Labuan Holding Companies to establish their operational and management offices in Kuala Lumpur. This is also part of the financial liberalization package that was announced by Dato’ Sri Mohd Najib Tun Abdul Razak, the Prime Minister of Malaysia in April 2009.
The new policy provides the opportunity for Labuan banks and Labuan investment banks to establish their operations in Kuala Lumpur and other parts of Malaysia. It is also targeted to attract more international banks to choose Labuan IBFC as a base for their regional operations and leverage on the offerings of first class infrastructure, facilities, human capital and professional services that are available in Malaysia.
Among the general criteria for establishing the office/offices outside Labuan include the following:
- The application for approval to set up the co-located office must be submitted to LOFSA prior to its establishment.
- The applicant given approval to establish a co-located office under the Guideline must continue to have an office in Labuan with suitable number of staff to perform the functions assigned to the Labuan office.
- The applicant that co-locates under the Guideline is allowed to conduct the following business activities at the co-located office:
- banking business as permitted under the Offshore Banking Act 1990 or any other relevant legislation; and
- any other banking businesses as may be permitted from time to time.
Further details on the general requirements are included in the “Guideline on Co-Location of Labuan Bank” issued by LOFSA, which can be accessed from www.labuanfsa.gov.my. Alternatively you can download the guidelines directly via the following link: Circular on Guideline on Co-location of Labuan Banks.
The original press release can be downloaded by going to LOFSA Press Release For Co Location For Labuan Banks.
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Last Updated on Tuesday, 05 July 2011 03:15
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