Labuan Bank


Guidelines on Entry Criteria for Labuan Bank

1. What is Labuan Banking Business?

  • Labuan Banking Business means:
    • The Business of providing credit facilities and receiving deposits, offshore investment banking service, Islamic banking business, building credit business, credit token business, development finance business, leasing business or such other activities as approved by the Minister of Finance. It is governed by Part VI of the Labuan Financial services and Securities Act 2010 (LFSSA).

2. Who qualifies?

  • Applicant should meet the following minimum criteria:
    • Must be a bank or financial institution
    • Process sound track record
    • Accorded a good credit rating by a acceptable rating agencies
    • Supevised by a competent regulatory authority
    • Confirm to generally accepted standards of international banking practices or BIS, as the case may be

3. What is required?

  • The minimum requirements for issuance of licence are:
    • Letter of awareness from competent regulatory authority which supervises the applicant
    • Letter of guarantee or undertaking or both from the parent company to be furnished to Labuan FSA
    • Annual licence fee of RM80,000

4. Operational requirements

  • Upon issuance of the licence, the Labuan bank is required to comply with the following:
    • Statutory requirements under the LFSSA
    • Maintain physical presence in Labuan
    • Comply with prudential and reporting requirements issued by Labuan FSA
    • Carry on business in any currency other than the Malaysian currency except as permitted by the relevant authorities
    • Any other requirement issued by Labuan FSA from time to time