Section 18
Application monies to be held in trust until issuance or allotment
of Labuan Financial Services and Securities Act 2010
Subject to subsections 16(3) and (4) and subsection 17(1), all applications and other monies paid prior to issuance or allotment by any applicant on account of securities offered under subsection 8(1)
by a corporation shall, until the issuance or allotment of such securities, be held upon trust for the applicant and such monies shall be paid into and kept in a separate trust account, pending issuance or allotment.
(2)
If there is non-compliance with this section, every officer of the corporation who is in default and who knowingly and wilfully authorizes or permits the default commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.