FX license

Labuan is an island and a Federal territory of Malaysia. It is located in the South China Sea at the northwest coast of Borneo, north of Brunei and south of Kota Kinabalu, the capital of the state of Sabah.

For various financial services Labuan Malaysia offers one of the strongest regulatory frameworks and taxes in Labuan are comparatively low (3%).

For starting money broking business in Labuan, it is required to obtain a license from Labuan Financial Service Authority (FSA).

There are three options for launching money brokerage business in Labuan:

• have an established Labuan company in Labuan (with knowledge and experience in money brokering business)

• obtain domestic money broker license

• by confirmation of Bank Negera Malaysia (The Central Bank of Malaysia) operate as licensed institution in accordance with Banking Financial Institutions Act 1989

In order to qualify and maintain the license it is necessary prior to applying for license to have a good track record of financial performance (as minimum of 3 years before submission of application) and it is required to undertake a functional operation of company in Labuan.

There is no restriction for a Labuan money-broker to offer or provide trading of Contract for Difference (CFD) which include futures, shares, indices and other commodities*

N.B.

The money broker has to ensure that the product and services are within the definition of Labuan money-broking business under Section 86 of the Labuan Financial Services and Securities Act 2010