17 February 2010

Ground Breaking New Labuan Financial Laws Passed

New laws which will dramatically improve Labuan’s already competitive edge in international financial markets came into effect on 11 February 2010. A total of four new Acts, together with radical amendments to a further four existing laws will completely change the way in which the Island carries on its financial services business. With the enactment of the new laws, Labuan Offshore Financial Services Authority (LOFSA) will be named as Labuan Financial Services Authority (“Labuan FSA”).

Dato’ Azizan Abdul Rahman, Director-General, Labuan FSA said “These far-reaching changes cover all financial activities in Labuan IBFC – from banking, insurance, leasing and company incorporation right through to the creation of Islamic financial products and services. Apart from that, the changes have taken into consideration all aspects so that we are ahead of accepted international standards and practices.

The new Laws allow for the creation of Labuan foundations, limited liability partnerships, protected cell companies (insurance and mutual funds), shipping operations, Labuan special trusts and financial planning activities. These complement the existing range of products and services readily available and to provide investors with a wider choice of financial products to maximise investment opportunities.

Labuan has always been seen as an effective and user friendly jurisdiction”, said David Kinloch, CEO of Labuan IBFC Inc., the sales and marketing unit for the Island, “but these new provisions will make it possible for us to attract and welcome many new categories of clients.

With the new Legislation now firmly in place, Labuan IBFC is well positioned to develop further as a vibrant and active International Business and Financial Centre.

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