Labuan Forex (FX) Money Broking License

Desfran provides a turnkey solution for financial licensing. To facilitate your process of applying for a Labuan Forex Money Broking license, we will:

  • Promote your application to the Labuan regulators
  • Assist with answering questions regarding the application process and requirements
  • Draft and review application documents and questionnaires
  • Follow up with the application and ensure the submission of additional information required by the related departments in Labuan

Permissions

Labuan money broking business is intended to serve institutional investors and high-net-worth individuals. The licensee is allowed to:

  • Bring together the counterparties on mutually acceptable terms for the same financial products in money or foreign exchange market to facilitate the conclusion of a transaction;
  • Receive payment for its service in the form of brokerage or commission fees; and
  • Act as a mediator and is strictly not permitted to act as a principal(1).
(1) Principal will ‘deal for their own account and based on its own risk’. This Guidelines restricts position-taking by the money broker.

Capital Requirement

Minimum paid up capital of MYR 500,000 (or equivalent) unimpaired by losses with a certificate of evidence from the banks within Malaysia and Labuan.

Physical Presence

Required to maintain an operational office in Labuan. The operational office should be used for business purposes only and must be appropriately furnished with office equipment.

Business Plan

Desfran shall seek to understand your business activities and goals to assist with your business plan drafting that best encompasses this whilst still being compliant to the prevailing regulations. Desfran shall also advise on the possible questions that might be posed by the regulator.

Other Information
  • Approved activities: Labuan money broker can only transact business in foreign currency and not deal in Ringgit except for the purpose of defraying administrative and statutory expenses.
  • Restriction of business: Labuan money broker is prohibited from dealing with residents other than authorized dealers approved by Central Bank of Malaysia.
  • Auditor: Labuan money broker is required to appoint a Labuan Approved Auditor for the accounts.
  • Information renewal: Labuan money broker must notify Labuan FSA of any amendments or alterations on any information in its constituent’s documents.
Due Diligence

Due Diligence is necessary to formally verify the identity of all clients of the firm. The following documents are required to conduct due diligence for the license application:

  • A copy of the photo page of the passport ceritifed by a notary public for each director and shareholder;
  • A copy of proof of address (issued within the last 3 months) by a notary public for each director and shareholder;
  • Curriculum Vitae (CV);
  • Business Plan;
  • Financial Forecast;
  • Organisation Chart;
  • For company directorship or shareholdership, a certified copy of the constitution documents of the company and above details on each director and shareholder of the company;
  • Other supporting document when necessary.

 

Please note for a company listed on a major stock exchange or subject to regulatory supervision in a country with equivalent AML regulations to Labuan, evidence of such listing or regulation will suffice in place of the above information. Where the directors to be appointed are employees of such a listed or regulated company, a certified passport copy and confirmation of employment (to include position) will suffice.
Regulator

Labuan FSA is the statutory body responsible for the development and administration of the Labuan International Business and Financial Centre (Labuan IBFC).

The objectives of Labuan FSA include the following:

  • To promote and develop Labuan as an international centre for business and financial services;
  • To develop national objectives, policies and priorities for the orderly development and administration of international business and financial services in Labuan; and
  • To act as the central regulatory, supervisory and enforcement authority of the international business and financial services industry in Labuan.

Labuan FSA’s key role is to license and regulate licensed entities operating within Labuan IBFC and to ensure all such entities remain in compliance with the internal and international best standards adopted by the jurisdiction. Labuan FSA also develops policies for the orderly conduct of business and financial services in Labuan IBFC.

Desfran assists with the complete licensing application. Contact us to find out more about the Labuan company registration and forex license application. Our team of experts will get back to within the next business day.

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