Upload
fatfat-shiying
View
1.170
Download
5
Embed Size (px)
DESCRIPTION
Citation preview
Overview ofLabuan IBFC Banking Business
May 2012Labuan Federal Territory, Malaysia.
Role of Labuan FSA
Overview of Labuan IBFC Business
Q & A
Contents of Presentation
1
2
3
Labuan Financial Services Authority (Labuan FSA), formerly known as Labuan Offshore Financial Services Authority (LOFSA), was established on 15 February 1996 under the Labuan Financial Services Authority Act 1996.
• Labuan FSA is the statutory body responsible for the development and administration of the Labuan International Business and Financial Centre (Labuan IBFC).
• Under the government’s vision to position Labuan as a progressive and an integrated financial centre catering for the Asia-Pacific market, the activities of the Labuan FSA are guided by the following objectives:-
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 the 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: Objective
Companies Commission of Malaysia
Bank Negara Malaysia
Securities Commission
Incorporate/ register Labuan companies
License and supervise trust & management companies
License & supervise Labuan banks
License & supervise Labuan insurance & insurance related companies
License & supervise fund managers
Register funds Approval of
bonds issuance Regulate LFX
Sinc
e 19
96Pr
ior t
o 19
96
Labuan FSA (established in 1996)
Labuan FSA: One-stop Regulatory Agency
Labuan FSA : Members of Authority
Datuk Ranjit Ajit Singh Chairman, Securities Commission
Encik Ahmad Hizzad BaharuddinDirector-General of Labuan FSA
Tan Sri Dato’ Sri Dr. Zeti Akhtar AzizGovernor, Central Bank of Malaysia (Chairman)
i. Representing Regulatory Authorities
Y. Bhg. Dato’ Siti Halimah bt. IsmailMinistry of Finance Malaysia
Encik Zainal Abidin
Abdullah CEO, Labuan Corporation
Encik Mohd Naim Daruwish CEO,
Companies Commission of Malaysia
Labuan FSA: Members of Authority …..contd
Datuk Oh Chong PengChairman, Alliance Financial Group Bhd
Datuk Ali Abdul KadirChairman, Jobstreet Corp, Milux Corp, Microlink Solution, Privisia Technology Bhd & Financial Reporting Foundation
Dato’ Mohammed Azlan HashimChairman, D & O Green Technologies Bhd, SILK Holdings Bhd and Labuan IBFC Inc Sdn Bhd
ii. Representing Private Sector
Labuan FSA: International Advisory Panel (IAP)
Dato’ Mohammed Azlan Hashim Chairman of IAP
Dato’ Seri Ahmad Johan Mohammad RaslanExecutive Chairman of PricewaterhouseCoopers, Malaysia
Anthony NeohSenior Member of the Hong Kong Bar
Datuk George RatilalExecutive Vice President (Finance) of PETRONAS
Iqbal KhanCEO of Fajr Capital
Tan Sri Dato’ Megat Zaharuddin Megat Mohd NorChairman of Malayan Banking Bhd
Michael TrothRegion Head, Citi Trust in Asia Pacific
Other IAP members:• Mr Baron Frederik van Tuyll, MD of Equity Trust• Datuk Wira Jalilah Baba, Group Chairman of PKT Logistics Group S/B, Former DG of Malaysia Investment Development Authority (MIDA)• Mr Frank McInerney, GM of General Reinsurance AG’s Singapore
Labuan FSA: The Shariah Supervisory Council
Dr. Mohd Daud Bakar (Chairman)President/Chief Executive OfficeInternational Institute of Islamic Finance Inc. and Chairman of the SAC of BNM & SC of Malaysia
Dato’ Dr. Abdul Halim Haji Ismail (Deputy Chairman)Member of Shariah Councils of BNM and SC of Malaysia
Professor Madya Dr. Ahmad Shahbari @ Sobri SalamonChairman of the Shariah Advisory Board of Syarikat Takaful Malaysia Berhad.
Dr. Hussain Hamed HassanChairman of Dubai Islamic Bank’s Fatwa & Shariah Supervision Board, UAE
Dr. Mohamed Ali ElgariProfessor of Islamic EconomicsKing Abdul Aziz University, Jeddah
Dr. Engku Rabiah Adawiah Engku AliAssociate Professor International Islamic University, Malaysia
•International Advisory Panel (IAP)•Shariah Supervisory Council (SSC)
Audit Department
Advisory Committee
Director-General
Deputy Director-General
Corporate Affairs
Department
Business Management Department
Supervision and Enforcement Department
Strategic Development Department
•Corporate Communication and Event Management
•External Relations
•Corporate Secretarial and Performance Management
•HR
•Business Operations
•ROC
•Market Surveillance and Compliance
•Legal Services
• Banking
•Insurance
•Capital Market
•Anti-Money Laundering and Prosecution
•Industry Reporting
•Policy and Business Development
•Tax Strategy
Corporate Services
Department
•Finance•Facility Management
•ICT
•Labuan International School and Subsidiaries
Risk Management Unit
Members of Authority Audit and Risk Management Committee
Ministry of Finance
Labuan FSA: Organisation Structure
Overview of Labuan IBFC Business
Labuan : As an IOFC on 1 Oct 1990…
Develop economy of Labuan and
contribution to the growth of the nation
ComplementKuala Lumpur as
a regional financial centre
Labuan IOFCEstablished In Oct
1990 Rebranded in Jan 2008
Focus area since 2011 – 2020 - Strengthening regional and international financial integration
Definition An offshore financial centre (or OFC), although not precisely defined,
is usually a low-tax, lightly regulated jurisdiction which specializes in
providing the corporate and commercial infrastructure to facilitate the
use of that jurisdiction for the formation of offshore companies and for
the investment of offshore funds.
From Wikipedia
International Financial Centre
Why International Financial Centre?
1. Cost effective and most efficient mean of doing business
2. Product innovation to enhance return of investments
3. Well-regulated and comply with international standard and best practices
4. Niche products not available in domestic market
Cook Island
Western Samoa
Vanuatu
Nauru
Marshall Islands
Hong Kong
Thailand
Singapore
Seychelles
Mauritius
Qatar
Bahrain
Israel
Cyprus
Labuan
Austria
Liechtenstein
Netherlands
Luxembourg
Isle of Man
Irish Republic
Ireland
Guernsey
Jersey
Alderney
Switzerland
Andorra
Gibraltar
Djibouti
MadeiraCanary
Is.
LiberiaMonaco
Malta
Jordan
British Virgin Is.
AnguillaSt. Kitts
NevisSt. Vincent &
Grenadines
Barbados
Uruguay
Belize
Aruba
Bahamas
Bermuda
Turks & Caicos Is.
Cayman Is.
Costa Rica
Panama
Antilles
Dublin
Antigua
Dubai
Labuan is one of more than 70 International Financial Centres in the World
Labuan IBFC : Labuan vs Domestic Cos
Labuan FSA
Domestic Companies
Labuan Companies
SSMRegulatory Body
Governing Law
Ownership
Taxation
Labuan Companies Act 1990
100% non-resident allowed
Min 1 shareholderNo min capital
LBATA : 3% or RM20,000
Companies Act of Malaysia 1965
At least 30% bumiputera (applicable for government project only )Min 2 shareholders
Min RM2 capital
ITA : 25%
CurrencyNon-ringgit Ringgit
Labuan IBFC : Business Activities
Labuan Banking
• Wholesale Banking
• Loans/Deposit• Guarantees• Investment Banking
Capital Market
• Labuan International Financial Exchange (LFX)
- Listing / Trading
• Fund Management
- Fund Administrator
• Mutual Funds
- Private/Public
Labuan Companies• Registration of Companies• Investment Holding
• Trading• SPVs• MISR• LITC under GIFT Programme
• Labuan Limited Partnership & Limited Liability Partnership
• Protected Cell Company
• Foundations• Leasing……the above are offered in conventional and Islamic
principles
• Life/General• Broking• Underwriting• Captives• Re-Insurance
LabuanInsurance
• Trustee• Administrator• Secretarial
•Private/Public Trust
Trust Companie
s
16
Labuan IBFC : Distinct Capabilities
Advantages
1
2
3
4
5
6
Strategic Location
Wide range of Islamic and Conventional Financial Services and Products
Spectrum of Service Providers / Good Infrastructure
Lower Cost of Operations
One-Stop Regulatory Authority
Balanced and Business Friendly Regulatory Framework
1. Deletion of the word “offshore” to reflect the rebranding of Labuan IBFC.
2. LOFSA renamed as Labuan Financial Services Authority (‘Labuan FSA’).
• Labuan Financial Services Authority Act• Labuan Companies Act• Labuan Trust Act• Labuan Business Activity Tax Act
Four Acts has been retained with amendments
• Labuan Financial Services and Securities Act• Labuan Foundations Act• Labuan Limited Partnerships & Limited Liability
Partnerships Act• Labuan Islamic Financial Services and Securities Act
Promulgate four new legislation
The Outline of the changes on the Legal Framework
Labuan Financial Services Authority Inland Revenue Board
Labuan Financial Services Authority Act 1996
IBFC Regulatory Authority
Acts of General Application in Malaysia
i. Anti-Money Laundering and Anti Terrorism Financing Act 2001
ii. Mutual Assistance in Criminal Matters Act 2002
i. Labuan Business Activity Tax Act 1990
ii. Exemption Order of Income Tax Act 1967
iii. Exemption order of Stamp Act 1949
i. Labuan Companies Act 1990
ii. Labuan Trusts Act 1996
iii. Labuan Financial Services and Securities Act 2010
iv. Labuan Foundation Act 2010
v. Labuan Limited Partnerships & Limited Liability Partnership Act 2010
vi. Labuan Islamic Financial Services and Securities Act 2010
Administer & Enforce Legislation The scope and functions of the Labuan IBFC business are provided and administrated as follows …..
• Taxation under the Labuan Business Activity Tax Act (LBATA)
• No stamp duties on:-• Instruments executed by a Labuan Company (LC) in
connection with Labuan business activity• M & A of an LC• Instruments of transfer of shares between LCs
Tax Framework
Labuan trading activities 3% on audited net profits, or flat rate of RM20,000
Labuan non-trading activities 0% tax
Name of Organisation Objectives
Group of International Finance Centre Supervisors (GIFCS)
Supervision of banking related in cross border activities
Offshore Group of Insurance Supervisors (OGIS)
Supervision of international insurance business
International Organisation of Securities Commissions (IOSCO)
Cooperative forum for securities regulatory agencies
International Association of Insurance Supervisors (IAIS)
Forum of insurance regulators to promote financial stability and international standard setting body
Asia/Pacific Group on Money Laundering (APG)
Collaborative platform for technical assistance and training to improve compliance with AML/CFT standards
Islamic Financial Standards Board (IFSB)
Standard setting body to ensure sound and stable Islamic financial systems
International Islamic Financial Market (IIFM)
Standard-setting body for establishment, development, self regulation and promotion of Islamic capital and money market
International Affiliation
Labuan FSA : Client Charter
One (1) day approval for
company incorporation and
registration
Three (3) weeks approval for
leasing and fund management
licenses
One (1) month approval for
banking and insurance licences
One of the key success factors of Labuan IBFC is effectiveness and efficiency of delivering its mandated functions.
The wide range of Islamic financial products and services available in Labuan IBFC includes Islamic banking, Islamic capital market, Islamic insurance (takaful), Islamic reinsurance (retakaful), Islamic funds, waqf and Islamic trusts administration. The products and services are offered under various Shariah-compliant schemes by Islamic financial institutions in Labuan.
The Labuan Islamic Financial Services and Securities Act 2010 streamlines procedures and requirements for all Shariah-related activities in Labuan IBFC with Labuan FSA as the licensing authority.
Islamic Finance
Annual Fees
Type of Company RM
Labuan Companies 1,500
Foreign Labuan Company (Branch Operations) 5,300
Labuan Bank / Labuan Investment Bank Licensee 80,000
Leasing 40,000
Labuan Insurance Companies Licensee:
• General/Life 30,000
• Captive / Insurance Manager, Underwriting Manager and Insurance Broker
10,000
• Master-Rent-A-Captive 13,000
• Subsidiary-Rent-A-Captive 3,000
Trust Company Licensee 8,000
Private Trust Company 5,000
Type of Company RM
Labuan Foundation 750
Labuan Securities Licensee 5,000
Protecting Cell Company (PCC) Licensee – PCC (Core) 30,000
Protecting Cell Company (PCC) Licensee – PCC (Each Cell) 10,000
Labuan Limited Partnerships & Labuan Limited Liability Partnerships 1,000
Auditors 1,000
Liquidator 1,000
Fund Manager (outside Labuan) 10,000
Fund Manager (Inside Labuan) 5,000
Fund Administrator (outside Labuan) 5,000
Fund Administrator (inside Labuan) 2,000
Public Fund 2,000
Labuan IBFC fees are amongst the most competitive
Operational requirements on Labuan banking
Labuan Banks
Banking LicenceGovern by Labuan Financial Services and Securities Act (LFSSA) effective 11 Feb 2010
Full Banking License providing credit facilities; Labuan investment banking service; Islamic banking business; building credit business; credit token business; development finance business; leasing business or such other
activities receiving deposits, Other business approved by the
Authority
Investment Banking License Providing credit facilities Providing consultancy/advisory services
relating to corporate & investment matters or making investments on behalf of any person
Undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities
Other business approved by the Authority
Not allowed to accept deposits.
Dealing in Non Ringgit Malaysia & Non-MalaysianPermitted Dealings with Malaysian Residents
Labuan Banks : Eligibility
Eligibility
Full Banking License Must be a licensed bank or financial
institution supervised by competent authority
Possess sound track record Accorded a good credit rating by
acceptable rating agencies Supervised by a competent regulatory
authority Conform to generally accepted
standards of international banking practices or BIS, as the case may be.
Investment Banking License An investment bank or group
engaging in investment banking activities licensed by the regulatory authority in the country of origin
A licensed bank or an established financial institution or financial service provider supervised by competent authority
Possess sound track record Any licensed institutions under
approval of Bank Negara Malaysia Any person(s) with the necessary
expertise and experience in investment banking industry.
Labuan Banks : Requirements/Applications
Capital RM10 mil – unimpaired by loss / RM10 mil – branch net working fundsAnnual FeesRM80,000 per annumPhysical Presence Sufficient staff maintained in LabuanDealings through Labuan officeMarketing offices in Kuala Lumpur or Johor Bharu (max 4 staff) allowedAllow co-location anywhere in MalaysiaBranches/full operational office allowed anywhere in Malaysia for Islamic banksApplicationundertaking letter – Head office/parent 3 years business plan3 years audited annual accounts for the immediately preceding applicationletter of consent - home regulatory authority (where applicable)fit and proper persons:
controller or director or CEO ; board of directors of a subsidiary
sound track record, experience, expertise in similar undertaking.Note : For Islamic Banks – to appoint Shariah Supervisory Council / Advisor
Labuan Banks : International presence in Labuan include...
Bank CountryBarclays PLC UKGoldman Sachs USAUBS AG SwitzerlandBNP Paribas SA FranceThe Royal Bank of Scotland Group plc UKDeutsche Bank AG GermanyBank of America NA USACredit Suisse Group Switzerland
JPMorgan Chase Bank National Association USAKuwait Finance Kuwait
Global Incentive For Trading (GIFT)
Background of GIFT Programme Collaboration between Labuan FSA with Performance
Management and Delivery Unit (PEMANDU) and Malaysia Petroleum Resources Corporation (MPRC).
Facilitating the implementation of Oil & Gas Trading Incentive in Malaysia using a Labuan structure under NKEA-OGE
Emulating Singapore’s Global Trading Programme
31
GIFT : Status Endorsed by the Authority on 6 Sept 2011 Endorsed by Bahagian Analisa Cukai, Kementerian
Kewangan on 20 Sept 2011 Endorsed by NKEA Steering Committee on Oil, Gas and
Energy, Chaired by YAB Prime Minister on 22 Sept 2011 Approved by YAB MOF on 26 Oct 2011 Launched on 31 Oct 2011 Five companies: Petronas, Dialog Group Bhd, YTL Power
International Bhd , UK-based BB Energy and Rotterdam group, Vitol Trading, were awarded a trading license each.
32
Global Incentive for Trading (GIFT) A GIFT of incentives for traders, of specified commodities,
to use Malaysia as their international trading base generating substantial tax revenues
To enjoy GIFT, use Labuan IBFC structure to be known as Labuan International Commodity Trading Company (LITC)
Why Labuan – ready incentive and tax framework, ease of establishment, financial infrastructure, and cost effectiveness
33
Structure Specified as a Labuan financial business under Section 86 of the LFSSA Act 2010
(LFSSA) Licensed by Labuan FSA under section 92 of the LFSSA and shall be referred to as
Labuan International Commodity Trading Company (LITC) The licence is valid for a period of five years from the date of approval and may
be reviewed for renewal Existing Labuan companies currently undertaking LITC business are required to
be licensed as LITC by January 2013 (Thru Labuan FSA’s Directive under section 4B LFSA Act 1996)
Activity The LITC business is the trading, in any currency other than Ringgit, of:–
Petroleum and petroleum related products; Minerals; Carbon credits; and Any other commodities as may be approved by Labuan FSA
GIFT
Tax Incentives Corporate tax rate of 3% of chargeable profits, or at the rate of 10% in the case
where the LITC does not comply with qualifying criteria. Other tax benefits e.g stamp duty, withholding taxes, personal taxes 50% exemption on gross employment income of Non-Malaysian professional,
managerial staff including trader with the LITC who earn more than RM15,000 per month
The LITC shall be subject to the rate of 10% in the case where the LITC does not comply with the qualifying criteria.
Qualifying Criteria Minimum company revenue of USD 100 Million per year Local expenses of at least RM 3 Million per year No of start up staff: 3 professional traders
Location Incentive Registered office in Labuan, operational office anywhere in Malaysia
GIFT
Performance
of Financial Industries
Performance of Labuan IBFCSECTOR 2009 2010 2011 ** GROWTH (%)
Companies 7, 423 8,004 8,655 8.1
Banks
• No of Banks• Loans (USD)• Deposits (USD)• PBT (USD)
5918.5b10.2b
249.7m
6119.8b11.6B
536.4m
6024.6b9.5b
404.9m
-1.624.2-15.8-24.5
Insurance
• No of Companies• Premiums (USD)
1491.1b
1691.2b
1811.6b
7.133.3
Leasing
• No of Companies• Assets Leased (USD)
13621.9b
17625.0b
22727.6b
29.010.4
LFX
• Market Cap (USD) 16.6b 17.1b 17.1b 0
Funds
• Size (USD) 9.6b 9.6b 9.4b -2.1
Takaful / Retakaful
• Gross Contributions (USD) 234.1m 296.7m 459.5m 54.9
Note : ** The numbers are subject to changes
Labuan IBFC : Social & Economic Contribution
INDIRECT
• Hotels• Restaurants• Education• Tourism and recreation• Residential properties• Transportation• Services sector, eg
Legal, accounting and management services
38
DIRECT• Complement domestic
financial sector through its offer of products and services
• Regional integration through trade and financing
• Critical mass of business stimulates economic activities – Creation of Employment
in Labuan – Direct and Indirect
– Demand for household products and services
– Catalyst for specialized industries which leverages on Labuan‘s natural advantages eg MISR. Oil and Gas
Q & A
Labuan IBFC Inc. Sdn. Bhd.Suite 3A-2, Plaza Sentral,Jalan Stesen Sentral, KL Sentral50470 Kuala Lumpur, Malaysiat. +603 2773 8977f. +603 2780 2077e. [email protected]
• Hong Kong representative officeSuite 1102 11/FMalaysia BuildingNo. 50 Gloucester RoadHong Kong, SARt: +852 2527 2318f: +852 2520 2938
Contact Us
Labuan OfficeLabuan Financial Services Authority,Level 17, Main Office Tower,Financial Park Complex,Jalan Merdeka,87000 Labuan F.T., Malaysia.t. +6 087 591200f. +6087 428200e. [email protected]
KL Facilities OfficeSuite 2A-06-01, Level 6 Block 2A, Plaza Sentral, KL Sentral,50470 Kuala Lumpur F.T., Malaysia.t. +6 03 2273 8200f. +6 03 2274 8200