Labuan Foundations Act 2010 · Updated to 23 Apr 2025 · Part VI · Capacity of Labuan Foundation
57. Money or other property from illegal activities
Feedback & supportA Labuan foundation shall not accept—
any money or other property originating from a transaction, operation or other activity which is a criminal offence under the laws of Malaysia or which, had it been carried out in
Malaysia, would have been such an offence; or
any money or other property the receipt, ownership or control of which is or would be an offence as mentioned in paragraph (a).
It shall be the duty of a council member, a supervisory person, an officer, or a secretary of a Labuan foundation to forthwith bring it to the notice of the Authority where he—
supervisory person
“supervisory person” means any person or body of persons having supervisory powers over the Labuan foundation and is appointed under the charter of the Labuan foundation;
has reason to believe that the Labuan foundation has property or has income accruing to it or derived by it and originating from a transaction, operation or other activity which is a criminal offence under the laws of Malaysia or which, had it been carried out in Malaysia, would have been such an offence; or
has received or has in its possession or control money or other property the receipt, ownership or control of which is or would be an offence as mentioned in paragraph (a).
Any council member, supervisory person, officer, or secretary of a Labuan foundation who without reasonable excuse fails to observe the requirements of subsection (1) or fails to comply with the requirements of subsection (2) commits an offence and shall, upon conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding five years or to both.
officer
“officer” means the officer of a Labuan foundation appointed in accordance with section 35;
All moneys or property described in subsections (1) and (2) shall be forfeited to the Government and become its property absolutely.
property
“property” includes— (a) assets of every kind, whether corporeal or incorporeal, movable or immovable, tangible or intangible, however acquired; and (b) legal documents or instruments in any form, including electronic or digital, evidencing title to or interest in, such assets as described in paragraph (a), including bank cheques, money orders, shares, securities, bonds, bank drafts and letters of credit;
52 Laws of Malaysia
Malaysia
“Malaysia” means the territories of the Federation of Malaysia, the territorial waters of Malaysia and the sea-bed and subsoil of the territorial waters, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the sea-bed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia and in accordance with international law as an area over which Malaysia has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non living;