Labuan Islamic Investment Bank

Labuan Islamic investment banks are allowed to operate as full-fledged Islamic banks except accepting deposits. The followings are the range of businesses allowed to be undertaken by a Labuan Islamic investment banks:

  • Providing financing facilities in compliance with Shariah principles
  • 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, in compliance with Shariah principles
  • Undertaking foreign exchange transactions, profit rate swaps, dealings in Islamic derivative instruments or Islamic derivative financial instruments which are in compliance with Shariah principles or any other similar risk management activities
  • Labuan Islamic financial business
  • Such other business as The Authority, with the approval of the Minister of Finance may specify

Entry Requirement

An application may be accepted from:

  • An investment bank or group engaging in investment banking activities licensed by the regulatory authority in the country of origin
  • A licensed bank or an established financial institution or financial service provider supervised by a competent regulatory authority
  • Any licensed institutions under the Banking and Financial Institutions Act 1969 (BAFIA) with prior approval of Bank Negara Malaysia
  • Any person(s) with the necessary expertise and experience in investment banking industry