Malaysia legislation
Section 61
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 61
(a)
it is a Labuan company or a foreign Labuan company, established or registered for the sole and exclusive purpose of carrying on Labuan Islamic banking business in any location permitted by the Authority; or
(b)
it is a Malaysian bank, and holds a valid licence to carry on such business.
(2)
Subsection (1) shall not apply to a Labuan bank unless the
Labuan bank obtains the prior approval of the Authority to carry on Labuan Islamic banking business.
(3)
Any person who contravenes subsection (1) commits and offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a continuing offence, shall, in addition, be liable to a daily fine not exceeding ten thousand ringgit for each day the offence continues to be committed.
*NOTE—The Exchange Control Act 1953 [Act 17] has since been repealed by the Financial
Services Act 2013 [Act 758] which comes into operation on 30 June 2013—see sections 271
and 272 of Act 758.
Labuan Islamic Financial Services and Securities 79
Labuan Islamic investment banking business to be carried on only under licence