Labuan IBFC Welcomes the Asian Fintech Industry

The midshore jurisdiction’s readily available structures and solutions as well as unique Regulatory stance makes it an Asian domicile of choice for Fintech businesses

Kuala Lumpur, 28 November 2018 – Labuan International Business and Financial Centre (Labuan IBFC) aims to be the domicile of choice for financial technology (Fintech) businesses in Asia via its ready suite of structures and solutions.

Riding on the wave of Fintech offerings, which Labuan IBFC has coined as ‘Innovative Financial Services’ (IFS), the midshore jurisdiction is looking forward to welcoming even more IFS businesses from Asia with its substance-enabling yet cost-efficient structures and solutions.

CEO of Labuan IBFC Inc, Farah Jaafar-Crossby said, “The jurisdiction has always been agile in responding to the market and industry needs. Fintech or as we call it IFS, is clearly a thriving industry and its adoption rate has been increasingly high among our players so far. Hence, we think it is time for us to officially embrace this movement.”

Farah added: “We hope to see a positive take-up rate on the applications to set up IFS-related businesses in Labuan IBFC as we have been receiving many enquiries. In fact, what is unique is that we have adopted a unique approach to IFC as there isn’t a special licence needed to operate an IFS-related business in Labuan IBFC.”

Unlike other jurisdictions, Labuan IBFC has opted for more open approach where interested business owners with IFS-related businesses need to merely apply to operate as a Labuan-licenced entity under the Labuan Financial Services & Securities Act (LFSSA) 2010 or the Labuan Islamic Financial Services & Securities Act (LIFSSA) 2010. For existing Labuan-licensed entities that wish to incorporate any IFS activities into their current business operations, they are simply required to apply to Labuan FSA noting their change of business plan.

“This approach is only possible as Labuan FSA is a one stop regulator and is able to process each application on its merit individually. In addition, the midshore jurisdiction already offers one of the widest range of structures and solutions available in Asia, from licenses in money broking, credit token, private fund management and protected cell companies. All these licensed activities are able to be conducted for IFS-related businesses based on a strong business case” Farah explained.

To further drive the development of the IFS sector in Labuan IBFC, the Authority (Labuan FSA) has also released a Frequently Asked Questions (FAQs) to provide guidance for interested parties who would like to set up an IFS-related Labuan entity. The list of FAQs covers key areas of IFS in the jurisdiction, the regulatory aspects and guide for applications. The list of FAQs can be obtained here: https://tinyurl.com/y5xwwz9p

To date, Labuan FSA has approved four IFS-related Labuan entities and continues to receive new applications related to this industry. In fact, Asia’s first robo-advisory service for Shariah-compliant investments is offered via a Labuan-licensed entity. This entity has been operating since July 2017. This combination is indeed unique as it brings together Labuan IBFC’s leadership position in Islamic finance and its growing influence in IFS.

Media Contacts

Labuan IBFC

Audrey Liew
audrey@libfc.com
Tel: +603 2773 8975
Mobile: +6012-913 8979

Geraldine Lim
geraldine@libfc.com
Tel: +603 2773 8991
Mobile: +6012-253 8666


ABOUT LABUAN IBFC
ASIA PACIFIC’S MIDSHORE INTERNATIONAL BUSINESS AND FINANCIAL CENTRE

Labuan International Business and Financial Centre (Labuan IBFC), Malaysia, through its internationally recognised yet business-friendly legal framework, is the preferred international business and financial centre in the Asia Pacific region.

It offers global investors and businesses the benefits of being in a well-regulated jurisdiction, while providing for fiscal neutrality and certainty, in addition to being an ideal location for substance creation.

Labuan IBFC boasts a wide range of business structures and investment solutions catered to cross-border transactions and international business dealings. It offers services and solutions in niches such as asset leasing, risk management, commodity trading, wealth management, international business companies and Islamic financial services to global businesses looking at penetrating Asia and Asian entities aiming to go global.

Labuan IBFC operates within clear and comprehensive legal provisions, guidelines and practice notes, enforced by a single regulator, Labuan Financial Services Authority.

To keep up with everything about Labuan IBFC, follow Twitter or Facebook @LabuanIBFC. Alternatively, visit www.labuanibfc.com

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