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