Overview of Foreign Exchange (FE) Policy
- FE Rules by Balance of Payment components
- Balancing between the benefits and costs of capital flows
- FE Rules by Legal Notices
- Laws applicable to the FEA Rules
- FE rules of neighboring countries
Directions to Financial Institutions
- General operational requirements
- Requirements for submission of report on breaches and non-compliances
Understanding the Structure and Rules of FE Policy
- 4Ws Approach
- Activity / Discussion
Key terminologies in FE Policy
- Resident & non-resident, Labuan entities, group of entities, parent-subsidiary relationships etc
Hedging of currency and dealings in gold and precious metal (Notice 1)
- Key pointers
- Related definitions
- Dealings in currency by Resident: buying & selling of foreign currency against the Ringgit
- Own account transaction
- Dynamic hedging framework for institutional investors
- Transaction on behalf of related entities or clients
- Dealings in currency by non-resident: buying & selling of foreign currency against the Ringgit
- Own account transaction
- Dynamic hedging framework for institutional investors
- Transactions on behalf of related entities or clients
- Appointed overseas office framework
- Buying and selling of foreign currency against another foreign currency by residents and non-residents
- Dealings in gold and other precious metals
- Foreign Currency Trading
- Case Scenarios
Obtaining and Extending of Borrowing and Guarantee (Notice 2)
- Key pointers
- Related definitions
- Borrowing by resident individual, sole proprietor, partnership and entity in :
- Ringgit from non-resident
- Foreign currency from resident and non-resident
- Borrowings by non-residents in Ringgit and foreign currency
- Exchange of debts
- Financial & non-financial guarantee
- Case Scenarios
Investment in Foreign Currency Assets (Notice 3)
- Key pointers
- Classifications of investment transactions
- Investment in foreign currency asset by
- resident individual, sole proprietor and partnership
- resident entity
- resident intermediaries
- Case Scenarios
Payments, Receipts and Account Operations (Notice 4)
- Key pointers
- Related definitions
- Payment and receipts for approved transactions
- Payment involving Specified Persons and Restricted Currency
- Payment/receipts in Ringgit between:
- a non-resident and resident
- non-residents
- Opening and maintaining of Ringgit account by non-resident
- Management of Ringgit Assets by NR Financial Institution or NR Intermediary
- Payment/receipts in Foreign Currency between:
- residents
- resident & non-resident
- Opening and maintaining of foreign currency accounts
- Case Scenarios
Issuance of Securities and Financial Instruments (Notice 5)
- Issuance of Security and Islamic Security by resident & non-resident
- Issuance of financial instruments and Islamic financial instruments by licensed financial institutions and Bursa Malaysia
- Subscription or transfer of security or financial instrument
- Case Scenarios
Import and export of Currency (Notice 6)
Export of goods and retention of its proceeds (Notice 7)
- Key pointers
- Related definitions
- Scope of exports of goods
- Repatriation required of proceeds of export of goods
- Payment of proceeds of export of goods in Ringgit
- Case Scenarios