LABUAN – The Labuan Financial Services Authority (Labuan FSA) will undertake three key policy initiatives in 2017 to position the Labuan International Business and Financial Centre (Labuan IBFC) as a vibrant and progressive business destination.
Bank Negara Malaysia Governor, Datuk Muhammad Ibrahim, said firstly, the legal framework was being reviewed to better reflect regulatory and supervisory policy intentions as well as to ensure the legal requirements remained relevant and current.
“This reflects the ongoing commitment of the centre to be a leading jurisdiction in advocating strong prudential, transparency, anti-money laundering and counter terrorism financing standards,” he said in his keynote address at the Labuan Industry Annual Dinner 2016 organised by the Association of Labuan Trust Companies Malaysia here Thursday.
The new legal settings, he said, would allow international players to enjoy jurisdictional neutrality, while operating in a sound and stable environment.
Secondly, Labuan FSA would deploy more efficient systems for regulatory reporting, leveraging on technology, he said.
Thirdly, Muhammad said, the Labuan IBFC would implement inter-governmental agreement that would facilitate compliance by financial institutions to the Foreign Account Tax Compliance Act and exchange information with the US.
“This and other similar agreements will further strengthen the framework for international cooperation and confidence in Labuan IBFC globally,” he said.
Muhammad said there was a need to think of how Labuan IBFC could develop a distinct value proposition that distinguished itself from other competitors as well as from the onshore market.
“The centre has already embarked on this journey by repositioning itself from an offshore centre to a mid-shore centre over the past few years.
“We now need to further refine the mid-shore concept by moving away from broad-based financial services already widely offered and available onshore, to focus on niche areas with high growth potential,” he said.