Offshore bank license in Labuan

March 16, 2023
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Possessing such a permit as offshore bank license in Labuan requires passing through a complicated process. All local commercial structures are administered by Labuan FSA. This authority is in charge of managing jurisdiction’s International Center and acts as main local enforcement body. Firms intending to get permission for such activities apply in person to FSA.

Offshore banking licenses Labuan: highlights

  1. Currently, there’re 50+ banking establishments spreading commercial and investment services to organizations and individuals, particularly, trade and export, treasury, financial-consulting, project financing, trade and investments, etc. are provided.
  2. Before starting their work, all establishments get such permission as offshore-Labuan bank license.
  3. Main laws governing banks are Exchanges Managing Act of 1953, Crime, and Money Laundering and Terrorist Financing (AML/CFT) Guidelines.
  4. Business-owners are eligible to set up investment banks in Labuan.

Activities covered by Labuan offshore bank licenses

Entrepreneurs get such permission if they do any of next-mentioned:

  • provide loans;
  • main investments;
  • trade finance;
  • finance projects/assets;
  • organization of syndication/credit;
  • revolving credits;
  • provide advisory-services on corporate issues;
  • investing operations from any person, particularly, as a trust;
  • mergers and acquisitions;
  • initial public offerings (IPOs);
  • capital-restructuring;
  • transactions with securities (for example, issuance of debt obligations);
  • private banking;
  • manage wealth for wealthy individuals;
  • manage a portfolio of sovereign wealth funds, pensions and corporations;
  • foreign-exchanges, derivatives deals, or risk-management activities, hedging.

Offshore Labuan bank license requirements

To get offshore-banking license Labuan, applicants should possess branch or subsidiary-firm established locally and also follow one of next-mentioned:

  • a group or organization being involved in investment-activities, and authorized and certified by countries’ authorities in which it was created;
  • an authorized monetary establishment or services-provider approved and administered by local authorities;
  • establishment being approved by Malaysian Bank Negara;
  • an enterprise possessing great professional background and skills in this sector, having 3 years of sound behavior and managed by official bodies.

In addition to norms for Labuan banking licenses, enterprises need to fill a clause about directors and senior heads of organizations providing evidence that they have the appropriate skills and experience to perform their functions in the company.

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