Definition
-bank located outside of the investor’s country of residence
of the depositors.
Offshore banking business in Labuan
·
Providing
credit facilities ,
·
Receiving
deposits,
·
Offshore
investment banking service,
·
Islamic
banking business,
·
Building
credit business,
·
Development
finance business,
·
Leasing
business
·
Other
activities as approved by the Minister of Finance.
Entry requirement
q
Must
be a bank or financial institution.
q
Possesses
a sound track record.
q
Accorded
a good credit rating by acceptable rating agencies.
q
Supervised
by a competent regulatory authority.
q
Conforms
to generally accepted standards of international banking practices
Offshore bank vs Domestic bank
|
|
Offshore bank
|
Domestic bank
|
|
Location
|
·
Located in Labuan
|
·
Situated within Malaysia
|
|
Regulations
|
·
Offshore Banking Act 1990
|
·
|
|
Deposit
|
·
USD 5,000
|
·
|
|
Currencies
|
· All currencies except Malaysian currencies
|
·
All currencies
|
|
Facilities
|
· Serve from their management office
|
· Serves ATM, Debit cards and internet banking
|
Advantages and disadvantages of
offshore banking
|
Advantages
|
Disadvantages
|
|
· operate with a lower cost base and can
provide
higher interest rates
|
· sometimes less
financially secure
|
|
· Interest is generally
paid by offshore banks
without tax being deducted
|
· associated in the past with the underground
economy and organized crime, through
money laundering
|
|
· provide access to
politically and economically
stable jurisdictions
|
· usually more accessible
to those on higher
incomes, because of the costs of establishing
and
maintaining offshore accounts
|
|
· linked to other
structures
|
|
(https://en.wikipedia.org/wiki/Offshore_bank)
List of Labuan bank
·
Public Bank (L) Ltd
·
Maybank International (L) Ltd
·
Standard Chartered Bank Offshore Labuan Bank
·
Rabobank
Nederland