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Labuan: Double Tax Treaties

Other International Agreements

During 2003, attention was given to the international initiative against money laundering, with the introduction of the Anti-Money Laundering (Invocation of Part IV (No.2)) Order 2003. The provision related to the reporting obligations of institutions licensed or registered to carry on, among others, offshore banking, insurance and trust company business.

Section 125A inserted into the Malaysian Penal Code, making it an offence to harbour or attempt to harbour any person in Malaysia or any person residing in a foreign state at war or in hostility against the King.

The Mutual Assistance in Criminal Matters Act 2002 (MACMA), which came into effect on 1 May 2003, was introduced to provide for mutual assistance in criminal and related matters between Malaysia and other countries.

The new section of the Penal Code and MACMA provided LOFSA with additional avenues for cooperation with other supervisory and regulatory authorities, locally and internationally, to increase compliance and improve security for the offshore industry.

In March 2007, the Dubai Financial Services Authority (DFSA) entered into a mutual recognition agreement to facilitate cross border distribution of Islamic investment products with the Securities Commission of Malaysia (SC).

In April 2010, the Labuan FSA and the Financial Services Commission, Mauritius have signed a memorandum of understanding (MoU) that will provide the basis for the two authorities to work together, particularly in the fields of regulation, investigation and enforcement. The MoU establishes a formal framework for mutual assistance and the exchange of information between each regulator to facilitate the enforcement of, and compliance with, the laws of each jurisdiction. Such collaboration should help to protect investors and depositors and to promote the integrity of financial services markets in the two jurisdictions.

 

 

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