Minimum Capital
RM500K
Unimpaired by losses, may be higher for digital assets.
Annual Fee
$1,500
Payable upon license grant and annually thereafter.
Typical Timeline
3-6 Months
Estimated duration from start to final approval.
Application Journey: Estimated Timeline
The application process for a money broking license is a detailed, phased journey. This bar chart provides an estimate of the duration for each key phase, which is crucial for strategic planning. The total timeline can be longer depending on the applicant's response to queries from the LFSA.
The Four Phases of Application
Phase 1: Initial Preparation
This phase involves foundational steps to ensure your company and its key personnel meet the fundamental requirements set by the regulator before a formal application is made.
Company Incorporation
Register a Labuan company as a prerequisite for the license application.
Appoint Directors & Officers
Appoint a minimum of two directors with at least three years of relevant experience.
Secure Local Office & Staff
Establish a physical operational office in Labuan and fulfill minimum local staffing requirements to meet economic substance rules.
Phase 2: Documentation & Strategy
With the corporate structure in place, the focus shifts to creating a comprehensive and detailed application package that articulates your business model and compliance strategy to the LFSA.
Develop Comprehensive Business Plan
Craft a detailed 3-year business plan including financial projections, marketing strategies, and target clients (institutional investors/HNWI).
Draft Compliance & IT Frameworks
Prepare essential policies on anti-money laundering (AML), countering financing of terrorism (CFT), and IT security.
Prepare Operational Procedures
Outline operational manuals, including procedures for client money segregation and withdrawal within three business days.
Phase 3: Submission & Review
This phase marks the formal submission of your application package to the LFSA, which will conduct a thorough review and may request additional information to ensure all requirements are met.
Submit Application & Pay Fees
Your Labuan Trust Company will compile and submit the complete application and pay the required processing fee.
LFSA Review & Interviews
The LFSA will assess the application and may conduct interviews with key personnel to determine their fitness and propriety.
Conditional Approval
Upon satisfaction, the LFSA issues a conditional approval outlining all remaining requirements to be fulfilled before a final license is granted.
Phase 4: Post-Approval & Issuance
The final phase involves meeting all conditional requirements and providing proof of compliance to the LFSA to receive your full, unconditional license and begin operations.
Fulfill Conditions
Inject the minimum paid-up capital into your company's bank account and provide proof to the LFSA.
Final Compliance Submission
Your Trust Company submits proof of all fulfilled conditions to the LFSA for final verification.
License Issuance
Upon final approval, you will receive your official Labuan Money Broking License and can commence business operations.
Key Components of Your Application
A successful application depends on a robust set of documents. This chart categorizes the key components required, highlighting their relative importance to the overall submission package. Each part is critical for demonstrating your venture's credibility and readiness.