Foreign Exchange Administration Rules: Applications in Banking Operations and Transactions - Compliance

Overview
Objectives & Outline
Methodology
Participant Profile
Trainer

Overview

PROGRAMME DETAILS
DATE
23 - 25 March 2020
TIME
9:00 AM – 5:00 PM
VENUE
Asian Banking School
The Foreign Exchange Administration (FEA) Rules are part of the many legislations enforced by Bank Negara Malaysia (BNM). Established in 2013, staff of banking institutions in Malaysia are expected to understand and be aware of the applicability and impact of non-compliance to the FEA Rules.

This intermediate programme covers the prudential measures of BNM in maintaining monetary and financial stability in Malaysia. It is designed to enable participants to recognise key rulings of the FEA Rules that are relevant to the bank’s products and operations.
LEARNING LEVEL
Intermediate
PROGRAMME FEE
AICB MEMBER
MYR
3,000*
/ PAX
NON-MEMBER
MYR
3,500*
/ PAX
*Subject to 6% Service Tax
register now
Objectives & Outline
LEARNING OBJECTIVES
By the end of the programme, participants will be able to:

Recognise the legal framework and significant rules in the Foreign Exchange Administration Notices
Relate the FEA Rules to their banking operations and practices
Identify the main responsibilities of banks and key due diligence measures in ensuring compliance with FEA Rules

PROGRAMME OUTLINE
Introduction and Overview of Foreign Exchange Administration Rules

Legal Provisions Relating to Foreign Exchange Administration Rules
Laws applicable to the FEA Rules
Overview of S214 FSA and its legal implications to licensed banks
Principles and objectives of FEA Rules

Reserve and Liquidity Management & FEA Rules Policy Framework

Directions to Financial Institutions
General operational requirements
Specific operational requirements
BNM’s expectations for financial institutions (FIs)

Reading and Understanding FEA Notices
4Ws – simple and practical guide to FEA Rules
Applicability, structure and contents of FEA Notices
Activity / discussion

Non-Compliance of FEA Rules / Notices
Compounds and penalties since 2014
Samples of cases

Definition of terminologies in FEA rules in relation to Section 213

FEA Notices and Rules
Notice 1 – Dealings in currency, gold and precious metals
Related definitions
Dealings in gold and precious metals
Rules on buying and selling of currency by residents and non-residents
Appointed overseas office
Directions to financial institutions
Case Scenarios

Notice 2 – Borrowings and guarantees
Related definitions
Rules on borrowings by resident in Ringgit and in foreign currency
Rules on borrowings by non-residents in Ringgit and in foreign currency Exchanging of debts
Rules on financial and non-financial guarantees: issuance, obtaining and payment
Rights of first refusal
Ensuring compliance to Notice 2Case scenarios
Case scenarios

• Notice 3 – Investment in Foreign Currency Assets (FCA)
Related definitions
Rules for investment in foreign currency assets
Investment in FCA: sources and uses of funds
Ensuring compliance to Notice 3
Case scenarios
• Notice 4 – Payment
Opening and maintaining external and foreign currency accounts
Payments and receipts in Ringgit
Payment and receipts in foreign currency
External account: directions to FIs and permitted sources and uses of funds
Ensuring compliance to Notice 4
Directions to FIs
Case Scenarios

• Notice 5 – Securities, Islamic Securities, Financial Instruments or Islamic Financial Instruments
Related definitions
Rules on issuance and transfer of securities, Islamic securities, financial instruments or Islamic financial Instruments
Buying and selling of financial instruments and Islamic financial instruments on Bursa Malaysia
Interest rate swap

• Notice 6 - Import and export of currency
• Notice 7 – Export of goods
Related definitions
Illustrations on revised definitions of export of goods
Rules on export of goods, payment of export of goods by non-resident in Ringgit and retention of export proceeds of goods in trade FCA
Trade FCA: Sources and uses of funds
Supplementary directions to FIs
Transfer of received proceeds of export of goods between banks
Ensuring compliance to Notice 7
Case scenarios

Other Matters
Special status companies – flexibilities of FEA Rules
Dealings with specified persons and in restricted currencies
Foreign currency trading
Methodology

Interactive group discussions, case studies and sharing of practical experience
Participant Profile

All middle to senior-level bank executives
Trainer

SHAHRUL ADZUAN AHMAD
Consultant, Asian Banking School
Shahrul Adzuan Ahmad has 27 years of working experience in the banking sector, with 24 of those years in training and development at several banking institutions. He started his career in banking in 1990 as a Branch Officer when he joined Maybank Finance Berhad.

He then went on to join EON Finance Bhd in 1993 as a Training Officer, which then marked the start of his training and development career. In 2004, he became a trainer at EON Bank Bhd where he conducted technical and non-technical programmes. His last position prior to joining the Asian Banking School was with United Overseas Bank (Malaysia) Berhad where he was involved in numerous bank-wide training initiatives and programmes, with Foreign Exchange Administration (FEA) Rules being one of the key training programmes he conducted. Other training programmes delivered during his years with the banks include Exchange Control Notices of Malaysia (ECM), AML / CFT related programmes, credit-related programmes, Leadership Development and soft-skills programmes. He also developed new training programmes and reviewed training content for improvement and enhancement, as well as coordinated and administered the internal AML / CFT e-learning programmes.
Shahrul holds a Diploma in Banking Studies from Institut Teknologi Mara (now known as Universiti Teknologi Mara) and a Bachelor's Degree (Sc.) in Human Resource Development from Universiti Teknologi Malaysia. He is also a Certified Training Professional (CTP) and DiSC – Certified Behavioural Consultant (CBC).

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