Labuan Investment Bank

Labuan investment banking is defined as:

• the business of providing credit facilities
• 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
• 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
• Labuan Islamic investment banking business
• Labuan financial business, or
• such other business as Labuan FSA may specify, with the approval of the Minister of Finance, in any currency (including in Malaysian Ringgit where permitted by the Financial Services Act 2013 or such other relevant law in force).

Labuan investment banks are not allowed to accept deposits.

Entry Requirement

1. A Labuan investment bank can be set up as a branch or subsidiary and registered or incorporated under the Labuan Companies Act 1990. The application may be accepted from:
2. An investment bank or group engaging in investment banking activities licensed by the regulatory authority in the country of origin
3. A licensed bank or an established financial institution or financial service provider supervised by a competent regulatory authority
4. Any institutions licensed under the Financial Services Act 2013 with prior approval from Bank Negara Malaysia; and
5. Corporations with the necessary expertise and experience in the financial industry with at least three years of good track record and regulated by an authority in their home country.