Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part XI · Appeals
175. Accounts and records
Feedback & supportA licensed entity under this Act shall cause to be kept proper accounting and other records that will sufficiently explain the transaction and financial position of the licensed entity.
licensed entity
“licensed entity” means a person licensed or registered to carry on any activity under any Part;
Every licensed entity and the directors thereof shall cause appropriate entries to be made in the accounting and other records of the licensed entity within sixty days of completion of the transaction to which they relate.
It shall be mandatory for the accounting and other records of a licensed entity to be kept at the registered office of the licensed entity or at such place in Labuan as the directors of the licensed entity think fit and the accounting and other records shall at all times be open to inspection by any director and shall be kept in such manner as to enable them to be conveniently and properly audited.
office
“office” includes the principal place of business, a branch, an agency, a mobile place of business, a place of business set up and maintained for a limited period only, an electronic terminal and any other place of business;
The Authority may, in any particular case, direct that the accounting and other records of a licensed entity be open to inspection by an auditor acting for a director, but only upon an undertaking in writing that the information acquired by the auditor during his inspection shall not be disclosed to him except to that director.
Any director of a licensed entity who fails to take all reasonable steps to secure compliance by the licensed entity with the requirements of this section, or a director who has by his own willful act been the cause of any default by the licensed entity under this section commits an offence.
director
“director”, in relation to a person specified in the first column of the First Schedule, has the meaning set out in the second column of the First Schedule as against such person;
For the purposes of this section, “accounting and other records” shall include, if applicable, the following:
all sums of money received and expended by the licensed entity and the matters in respect of which the receipt and expenditure took place;
all sales and purchases of goods by the licensed entity;
the assets and liabilities of the licensed entity; and
all such relevant books and records as specified by the
Authority.
Notwithstanding subsection (3), the Authority may in writing allow a licensed entity to keep accounting and other records outside Labuan provided that the licensed entity shall also maintain accounts and records that reflect its financial position with reasonable accuracy and such accounts and records are updated once every six months in Labuan.