Bank Negara Malaysia (“BNM”) issued new Foreign Exchange Notices (“FE Notices”) on 30 April 2020 and they take effect from the same date.
Refinements of the previous Foreign Exchange Policy are aimed at improving business efficiency and providing flexibility to individuals and corporates to better manage their foreign exchange risk exposures. It remains the responsibility of customers to ensure that they comply with FE Notices, and as such we are pleased to provide the following reminder to help with your understanding of the said rules.
ARE YOU A RESIDENT OR NON-RESIDENT?
The applicable rules within the FE Notices differ between Residents and Non-Residents. BNM’s definitions of Residents and Non-Residents are set out below and we included a few examples to assist with your understanding:
a citizen of Malaysia, excluding a citizen who has obtained permanent resident status in a country or a territory outside Malaysia and is residing outside Malaysia;
E.g.: A Malaysian blue MyKad holder who is staying in Malaysia is considered a Resident.
a non-citizen of Malaysia who has obtained permanent resident status in Malaysia and is ordinarily residing in Malaysia;
E.g.: A British citizen who is a permanent resident of Malaysia and is staying in Malaysia is considered a Resident.
any person other than a resident
a Malaysian citizen who has obtained permanent resident status of a country or territory outside Malaysia and is residing outside Malaysia
E.g.: A Malaysian blue MyKad holder who is a permanent resident of Singapore and is staying in Singapore is considered a Non-Resident.
a body corporate incorporated or established, or registered with or approved by any authority, in Malaysia;
E.g.: A private limited company registered with the Companies Commission of Malaysia (i.e. a Sdn. Bhd.).
an unincorporated body registered with or approved by any authority in Malaysia; or
E.g.: A co-operative society, a club or an association.
the Government of Malaysia or any State Government of Malaysia’s States
any person other than a resident
E.g.: A company incorporated in Hong Kong is considered as a Non-Resident.
an overseas branch, a subsidiary, regional office, sales office or representative office of a resident company
Embassies, Consulates, High Commissions, supranational or international organizations
For the avoidance of doubt, this includes Malaysian Embassies, Consulates and High Commissions
WHAT DO WE NEED FROM YOU?
Please take note of the following:
(a) declare your residency status when you open an account with us and keep us updated when there are changes;
(b) ensure all activities performed for accounts maintained with us comply with the prevailing FE Notices at all times; and
(c) provide us with documentary evidence as part of our due diligence process to ensure compliance with FE Notices.
You are therefore advised to read and understand the FE Notices (accessible here).
Where approval or registration is required for any proposed transaction, you may submit your application on BNM’s website (accessible here). We may request for a copy of the relevant approval or registration from you before performing the transactions.
Please be reminded that you must not utilize the Bank’s financial products or services for prohibited/illegal transaction, such as (but not limited to) illegal foreign exchange trading and illegal investment schemes. You may refer to BNM’s website at https://www.bnm.gov.my/financial-consumer-alert for further information.
For enquiries, connect with us online or drop by your nearest Hong Leong Bank Branch.