Reduced Capital Requirement
RM50M
Temporarily reduced minimum unimpaired capital until Dec 31, 2026.
Security Deposit
RM2.5M
A reduced non-interest bearing deposit, refundable after three years.
Fast Track Application
15 Days
Expedited processing time upon acceptance of complete documentation.
Application Journey: Estimated Timeline
The application process is a multi-stage journey involving preparation, submission, and regulatory review. This chart illustrates the estimated duration for each key phase, helping you plan your resources effectively. The total timeline can vary based on the complexity of the application and the speed of responses.
The Four Phases of Application
Phase 1: Preparation & Strategy
This initial phase is crucial for laying a solid foundation for your application. It involves strategic planning, engaging local expertise, and gathering all necessary corporate and personal documentation.
Define Strategy & Eligibility
Confirm that your business model aligns with the Labuan Digital Banking Framework.
Engage Labuan Trust Company
Appoint a licensed Labuan Trust Company to assist with incorporation and application submission.
Appoint Key Personnel & KYC
Appoint directors and a Principal Officer. Collect all necessary Know-Your-Customer (KYC) documents.
Phase 2: Documentation & Frameworks
With the structure in place, the focus shifts to creating the detailed documentation that forms the core of your submission to the Labuan Financial Services Authority (LFSA).
Develop Business Plan
Create a comprehensive 3-year business plan, including financial projections.
Draft Governance Frameworks
Prepare essential policies covering IT Governance, Cybersecurity, e-KYC processes, and AML/CFT.
Prepare Exit Plan
Develop a credible exit strategy to ensure an orderly wind-down if necessary.
Phase 3: Submission & Review
This phase marks the formal engagement with the regulator. Your compiled application package is submitted, and the LFSA begins its thorough review process.
Compile & Submit Application
Your Labuan Trust Company compiles Form LBB and all supporting documents for submission.
Pay Fees & Submit
Pay the non-refundable processing fee (and fast-track fee if applicable) via the LEPAY system.
LFSA Review & Queries
The LFSA assesses the application and may raise queries for clarification.
Phase 4: Approval & Operationalization
The final phase involves meeting the conditions set by the LFSA to move from in-principle approval to a full license, allowing your digital bank to commence operations.
Conditional Approval
Receive an in-principle approval from LFSA outlining conditions to be met.
Fulfill Conditions
Inject paid-up capital, place the security deposit, and set up the physical office in Labuan.
Final License Issuance
Submit proof of compliance to LFSA to receive the full, unconditional digital banking license.
Core Application Components
A successful application hinges on a set of comprehensive documents. The chart below breaks down the key components required, categorizing them for clarity. Each element is vital for demonstrating your venture's viability, governance, and compliance readiness to the LFSA.