Required documents and data for Labuan Money Broking License
GENERAL REQUIREMENTS
When dealing with an application, the Labuan FSA will not grant a licence unless it is satisfied that the applicant:
- Is a company incorporated under the laws of Labuan;
- Has at least 2 natural person appointed as directors;
- Has a registered address and registered agent;
- Maintains a paid-up capital of at least 500,000 MYR (Malaysian Ringgit) or equivalent in a foreign currency;
- Maintains an operational office in Labuan;
- Maintains local employees in Labuan;
- Satisfies the Authority that relevant persons meet a 'fit and proper' criteria;
- Will be able, if licensed, to comply with any financial resources regulations that may apply to it;
- Maintains adequate records and books of accounts in Labuan;
- The Securities Dealer Licence is valid for a period of one year and must be renewed annually.
FIT AND PROPER TEST
Labuan FSA expects that the relevant persons are competent, honest, possess integrity and have sound financial standing. This provides the FSA with the assurance that such persons are able to fulfil their statutory obligations under the relevant legislations and to act effectively, honestly, fairly and in the best interest of their organisation’s stakeholders. Therefore, the Regulator will assess and determine the fitness and propriety of relevant persons. The 'fit and proper' requirements apply to persons in control, directors, officers, and persons who are responsible for key functions of the company.
For the purpose of determining whether a person meets the ‘fit and proper’ criteria, the following may be taken into consideration:
- Integrity
- Competency
- Soundness o judgement
- Financial standing
If the relevant person fails to satisfy Labuan FSA that the relevant person is fit and proper, Labuan FSA may refuse the person’s application.
DUE DILIGENCE
For individuals:
- Notarized KYC documents of each shareholder, beneficial owner and director not older than 3 months in English. If it’s not in English, a certified translation is required;
- Net worth statement certified by qualified accountant or certified true copy of the latest three months of bank statements indicating the amount of funds available;
- Two professional reference letters;
- Resume (CV) for each shareholder, beneficial owner and director;
- Information of relevant background and experience of applicants;
- Certified true copy of relevant academic and professional certificates.
For legal entities:
- Certificate of incorporation;
- Memorandum and articles of association or equivalent;
- Corporate registries;
- Certificate of good standing if the company is older than 1 year;
- Audited Accounts if the company is older than two years;
- Due diligence documents for the individuals behind the company.
DOCUMENTS REQUIRED
- Proposed organisation chart;
- Completed application forms;
- Personal questionnaire forms;
- Signed statutory declarations;
- Audited Financial Statements of the applicant for the past 2 years except in the case of an applicant who was incorporated within the last 12 months;
- Proof of source of wealth and source of funds (bank statement showing at least at least 500,000 MYR/equivalent in a foreign currency in deposit);
- Proof of physical office and registered address;
- Notice of place at which the company's records are to be kept;
- A detailed Business Plan;
- Client Service Agreement or Terms of Business;
- Anti Money Laundering Manual and Know Your Customer Policy;
- Draft services management agreement between the applicant and the service provider for function to be undertaken by other parties;
- Draft contract or agreement between the applicant with its liquidity providers, trading platform providers and proposed customers, if applicable the draft agreement must be available before the issuance of the licence.
N.B.
- If documents are not in English language or language of particular country, then they must be accompanied by a notarized translation.
- Additional documents may be requested by the Regulator at its discretion.