Malaysia Financial Law - Exchange Control Rules

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FINANCIAL LAW - Exchange Control Rules

Related Topics : Banking Law . Offshore Banking Law . Broker Disputes . Commodities Law . Investment Terms . Raising Capital . Securities Law . Buying On Hire Purchase . Exchange Control Rules . Danaharta Act

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H . Malaysian Working Abroad

Note : Yes - Allowed No - Not Allowed At All	MALAYSIANS WORKING ABROAD
Note : Yes - Allowed No - Not Allowed At All	Yes	Needs approval
1. Foreign currency accounts to be opened with (a) any commercial bank in Malaysia
up to USD100,000	X
above USD100,000		X
(b) any Labuan offshore bank
up to USD100,000	X
above USD100,000		X
(c) any overseas bank
up to USD50,000	X
above USD50,000		X
2. Remittances to the resident's foreign currency accounts
(a) In the currency of the account within the limits allowed for such accounts (as per item G 1 above)	X
(b) By the resident's employer	X

I . Malaysian Studying Abroad

Note : Yes - Allowed No - Not Allowed At All	MALAYSIANS STUDYING ABROAD
Note : Yes - Allowed No - Not Allowed At All	Yes	Needs approval
1. Foreign currency accounts opened with:
any commercial bank in Malaysia;	X
any Labuan offshore bank; and	X
any overseas bank	X
up to the amount required for one year's tuition, fees, accommodation and general living expenses.	X
2. Remittances to the resident's foreign currency accounts
(a) In the currency of the account up to the amount required for one year's tuition, fees, accommodation and general living expenses	X
(b) By the resident's parent/guardian/relative/employer	X
3. Remittances to institutes of higher learning in foreign currency for fees and accommodation	X

PENALTY

The penalty for offenses committed under the Exchange Control Act, 1953

Upon conviction:
o FINE - Up to RM10,000;
o JAIL TERM - Not exceeding 3 years; or
o BOTH

Further Clarification

Computation of the 12 months holding period for External Account holder before Ringgit may be converted into foreign currency

The 12 months would start from 1 September 1998, for non-residents who already have Ringgit funds in Malaysia, that is they had deposited funds or had purchased Ringgit assets before 1 September 1998.
During this one year period, the non-resident is allowed to change the type or form of Ringgit asset he chooses to invest in.
If the non-resident converts foreign currency into Ringgit and makes a Ringgit deposit or purchases Ringgit assets after 1 September 1998, then the 12 month period would start from the date the Ringgit deposit is made or the Ringgit asset is purchased. During this one year period, the non-resident is allowed to change the type or form of Ringgit asset he chooses to invest in.

Submission of application forms

All applications for exchange control approval should be addressed to:

Director
Exchange Control Department
Bank Negara Malaysia
Jalan Dato' Onn
50480 Kuala Lumpur
MALAYSIA

Telephone nos: (6) 03 2988044 extensions 7353, 7506, 7739, 7508
Direct lines: (6) 03 2910772, 2910894, 2984154, 2987305, 2987304
Facsimile nos: (6) 03 2937732, 2912990, 2933791, 2936919

Information compiled & extracts
from Bank Negara Malaysia

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Last Updated : ©1999-2000
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