Labuan Bank License

The procedure of acquiring a Labuan bank license tends to be complex and lengthy however the low tax system and high levels of privacy make Labuan a favorable offshore jurisdiction to acquire a license from.

Acquire a Labuan Bank License

The Labuan Financial Services Authority (FSA) regulates Labuan banks. All applications for a Labuan bank license have to be addressed to the Minister of Finance of the Labuan FSA. The bank license allows the holder to conduct business with non- residents and non-local companies of Labuan.

In order to obtain a Labuan bank license, the applicant must fulfill the minimum capital requirement set by the Labuan FSA. The amount stipulated is RM 10 million.

In addition to the minimum capital requirement, the applicant is required to pay the annual license fee of RM80, 000. This needs to be paid to the Labuan FSA before the 15th January each year.

The holder of the license is able to engage in the following banking activities;

  • Receive deposits
  • Labuan investment banking business
  • Labuan financial business
  • Labuan Islamic business
  • Any other business approved by the Minister of Finance of the Labuan FSA

A Labuan bank license offers the holder high levels of privacy in terms of publishing or disclosing any information of a Labuan bank customer. The banks also exercise the Anti-Money Laundering and Anti-Terrorist Financing Act 1953.

It is advised to seek the assistance of a professional consultancy firm when acquiring a Labuan bank license; this allows applicants to obtain the license in line with regulations of the jurisdiction.