In forceUpdated to 15 Oct 2022Read it in Bahasa Malaysia

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Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part VI · Labuan Banking

87. Labuan banking business, Labuan investment banking business and Labuan financial business to be carried on only under licence

(1)

No person shall carry on Labuan banking business, Labuan investment banking business or Labuan financial business unless—

(a)

it is a Labuan company or a foreign Labuan company;

(b)

it is a Malaysian bank, and holds a valid licence to carry on such business.

(2)

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.

Terms defined in this Act

foreign Labuan company
Defined · s 2
“foreign Labuan company” means a foreign company registered under Part VIII of the Labuan Companies Act 1990;
Open s 2
Labuan banking business
Defined · s 86
“Labuan banking business” means— (a) the business of receiving deposits on current account, deposit account, savings account or any other account as may be specified by the Authority; (b) Labuan investment banking business; (c) Labuan financial business; (d) Labuan Islamic banking business; (e) such other business as the Authority, with the approval of the Minister, may specify, in any currency (including ringgit where permitted by the *Exchange Control Act 1953 or such other relevant law in force);
Open s 86
Labuan company
Defined · s 2
“Labuan company” has the meaning assigned to it in the Labuan Companies Act 1990;
Open s 2
Labuan financial business
Defined · s 86
“Labuan financial business” means— (a) building credit business; (b) credit token business; (c) development finance business; (d) leasing business; (e) factoring business; (f) money-broking business; (g) Labuan Islamic financial business; or (h) such other business as the Authority, with the approval of the Minister, may specify, in any currency (including ringgit where permitted by the *Exchange Control Act 1953 or such other relevant law in force);
Open s 86
Labuan investment banking business
Defined · s 86
“Labuan investment banking business” means— (a) the business of providing credit facilities; (b) the business of 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; (c) the business of undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities; (d) Labuan Islamic investment banking business; *NOTE—The Exchange Control Act 1953 has since been repealed by the Financial Services Act 2013 which comes into operation on 30 June 2013—see sections 271 and 272…
Open s 86
licence
Defined · s 2
“licence” means a licence granted or renewed under this Act;
Open s 2
Malaysian bank
Defined · s 86
“Malaysian bank” means a licensed as bank defined in the **Banking and Financial Institutions Act 1989 or an Islamic bank as defined in the ***Islamic Banking Act 1983; *NOTE—The Exchange Control Act 1953 has since been repealed by the Financial Services Act 2013 which comes into operation on 30 June 2013—see sections 271 and 272…
Open s 86
person
Defined · s 2
“person” includes a corporation, partnership, a body of persons, corporate or unincorporated and a corporation sole;
Open s 2
ringgit
Defined · s 2
“ringgit” means a ringgit in the currency of Malaysia;
Open s 2

Report

Read on from s 88

Part VII

Labuan Insurance

Part VIII

Company Management

Read on from Part VIII

Part IX

Read on from Part IX

Part X

Self-Regulatory Organizations

Read on from Part X

Part XI

Appeals

Read on from Part XI