Foreign Exchange (FE) Rules

Bank Negara Malaysia ("BNM") Foreign Exchange Notices ("FE Notices") GENERAL GUIDE

FE Notices are a set of rules issued by BNM to maintain monetary and financial stability. The FE Notices set out transactions that are allowed by BNM which otherwise are prohibited under Section 214 read together with Schedule 14 of the Financial Services Act 2013 and Section 225 read together with Schedule 14 of the Islamic Financial Services Act 2013.

It should be noted that this is a general guide on the FE Notices relating to common transactions that individuals, sole proprietors, partnerships and small and medium business entities who are Residents or Non-Residents, may enter into or undertake and it is meant for information and educational purposes only. Please refer to the complete FE Notices available on BNM's website (https://www.bnm.gov.my/fep) for full details.

This general guide is not offered as advice on any particular matter, and should not be taken as such. Please note that the list below is not exhaustive and the reader should seek and receive specific professional advice from the reader's own advisors on the reader's particular facts and circumstances before acting or refraining from acting on the basis of any matter contained in this guide. The reader is responsible to ensure compliance with the applicable laws, rules and regulations including the FE Notices on the basis of the advice of the reader's own advisors.

(A) RULES APPLICABLE TO RESIDENTS

1. Foreign currency accounts	There are two (2) types of Foreign Currency Accounts (FCA) may be offered by licensed onshore banks ("LOB") in Malaysia namely Trade FCA and Investment FCA. In Citibank Berhad, FCAs opened for Resident Individuals, sole proprietors, General Partnership and selected entities ("collectively known as Consumer Banking") are designated as Investment FCA. Examples of permissible sources of funds for Investment FCA are as follow: Permissible sources: (1) Any Foreign Currency funds except— a.proceeds of Export of Goods; or b.settlement of domestic trade from another Resident within the global supply chain as permitted under Notice 4. (2) Transferred from Trade FCA up to the approved aggregated investment limit in Notice 3. (3) Any amount for same-party transfers from Investment FCA. Permissible uses: Funds from Investment FCA could be used for:- 1.Any amount for same-party transfers from Investment FCA. 2.All permissible purposes.
	(b) In the case of a Resident Individual, the FCA may be maintained individually or jointly* with another Resident Individual or a Non-Resident Individual. *For a joint FCA where any one account holder is a Resident Individual with Domestic Ringgit Borrowing, Part A of Notice 3 shall apply.
	(c) A Resident Individual is allowed to transfer funds from his FCA opened individually or jointly with another individual into - his own FCA; his joint FCA; or a FCA of his Immediate Family Member opened individually or jointly with any individual. The above is subject to all other rules set out in the FE Notices.
2. Investment in Foreign Currency Assets	(a) Resident Individual, Sole Proprietor or General Partnership A Resident Individual, sole proprietor or General Partnership without Domestic Ringgit Borrowing is allowed to invest in Foreign Currency Asset up to any amount. A Resident Individual, sole proprietor or General Partnership with Domestic Ringgit Borrowing is allowed to invest in Foreign Currency Asset up to (a) any amount using Foreign Currency funds sourced from— (i) outside Malaysia except proceeds of Export of Goods; or (ii) approved Borrowing in Foreign Currency, in accordance with Part A of Notice 2; (b) any amount where the investment is in real estate (for Resident Individual's own accommodation or Immediate Family Member's accommodation only) outside Malaysia for the purpose of education, employment or migration; or (c) RM1 million equivalent per calendar year using funds sourced from the aggregate of— (i) conversion of Ringgit into Foreign Currency; (ii) Trade FCA; and (iii) swapping of a Ringgit-denominated financial asset in Malaysia for a financial asset in Labuan Entity or outside Malaysia. (b) Resident Entities ("RE") A RE without Domestic Ringgit Borrowing is allowed to invest in Foreign Currency Asset up to any amount. A RE with Domestic Ringgit Borrowing is allowed to invest in Foreign Currency Asset up to: (a) any amount using Foreign Currency funds sourced from— (i) outside Malaysia except proceeds of Export of Goods; or (ii) approved Borrowing in Foreign Currency in accordance with Part B of Notice 2; (b) any amount using Foreign Currency funds sourced from a Borrowing in Foreign Currency from a LOB for Direct Investment Abroad; or (c) RM50 million equivalent per calendar year using funds sourced from the aggregate of— (i)conversion of Ringgit into Foreign Currency; (ii) Trade FCA; (iii) a Borrowing in Foreign Currency from a LOB for purposes other than Direct Investment Abroad; and (iv) swapping of a Ringgit-denominated financial asset in Malaysia for a financial asset in Labuan Entity or outside Malaysia. For this purpose, a RE is deemed to have Domestic Ringgit Borrowing when the RE or another RE with Parent-Subsidiary Relationship has a Domestic Ringgit Borrowing. Note: • To facilitate the operation of the FCA by a Resident, a LOB may offer two types of FCAs, which is explained in the Section 1 above. • The definition of "Export Of Goods" has been updated in the FE Notices.
3. Borrowing	(a) Borrowing in Foreign Currency by Resident Foreign Currency borrowing by Resident Individuals, sole proprietor or General Partnership from licensed onshore banks and Non-Residents, is subject to an aggregate limit of RM10 million equivalent*. A Resident Individual however is allowed to borrow in Foreign Currency in any amount from his Immediate Family Member. For Resident Entites ("RE") are free to obtain any amount of Foreign Currency borrowing – (i) from a LOB; (ii) from an Entity within the RE's Group or from the RE's Direct Shareholder (except for a Non-Resident outside the RE's Group, a Non-Resident financial institution ("NRFI") and a Non-Resident special purpose vehicle used to obtained borrowing outside the RE's Group which is subjected to RM100 million equivalent in aggregate) ; (iii) through issuance of Foreign Currency Corporate Bond or Sukuk to another Resident. The subscription of the Corporate Bond or Sukuk by another Resident must be subject to compliance with Notice 3. (b) Borrowing in Ringgit from Non-Residents A Resident Individual is allowed to borrow in Ringgit in any amount from his Non-Resident— (i) Immediate Family Member; or (ii) employer in Malaysia for use in Malaysia subject to terms and conditions of his employment contract. A Resident Individual, sole proprietor or General Partnership is allowed to borrow in Ringgit up to RM1 million in aggregate* for use in Malaysia from a Non Resident excluding a Non Resident Financial Institution. *calculated based on an aggregate of Borrowing in Ringgit (or Foreign Currency, as the case may be) by the Resident Individual and a sole proprietor and a General Partnership owned by the Resident Individual. Likewise, a Resident Individual, sole proprietor or General Partnership is allowed to refinance an outstanding approved Borrowing (including principal and accrued interest or profit) as described above, subject to compliance with the requirements mentioned in the respective paragraphs. A Resident Entity ("RE") is allowed to obtain (1) any amount of Ringgit borrowing to finance Activities in the Real Sector in Malaysia from a Non-Resident within the RE's Group including their Non-Resident Direct Shareholders excluding - (a) A NRFI; or (b) A Non-Resident Special Purpose Vehicle which is used to obtain Borrowing from any person outside the RE's Group. (2) up to RM1 million in aggregate for use in Malaysia from any other Non-Resident, other than a Non-Resident Financial Institution. This limit is calculated shall be based on the aggregate Borrowing in Ringgit by the RE and other REs with Parent-Subsidiary Relationship.
4. Payments and receipts	(a) In foreign currency between Residents Residents are allowed to pay or receive in Foreign Currency, to or from another Resident for – (i) any purpose between Immediate Family Members; (ii) education, employment or migration outside Malaysia; (iii) a transaction between the Resident and— (1) a LOB; (2) a licensed international takaful operator; or (3) an international currency business unit of a licensed takaful operator, in the conduct of the latter's business involving Foreign Currency. (iv) settlement of, amongst others, — (1) a Foreign Currency-denominated derivative (excluding an Exchange Rate Derivatives) transacted on a Specified Exchange under the Capital Markets and Services Act 2007 between a Resident and a Resident futures broker; (2) a commodity murabahah transaction between Residents undertaken through a Resident or Non-Resident commodity trading service provider (3) a miscellaneous expense (including but not limited to holiday expenses abroad, medical expenses abroad and advance or reimbursement for purchase of goods and services abroad on behalf of a Resident Individual residing in Malaysia with reasonable amount and infrequent in nature) incurred outside Malaysia between a Resident Individual residing in Malaysia and a Resident Individual residing outside Malaysia Note: All settlement of domestic trade in goods and services between Residents shall be made only in Ringgit. For exceptions applicable to settlement of domestic trade in goods and services between a Resident exporter and a Resident SME, refer to Part C of Notice 4. (b) In Foreign Currency between Resident and Non-Resident A Resident is allowed to make or receive payment to or from a Non-Resident in Foreign Currency for any purpose, excluding payment made or received for:- i. a Foreign Currency-denominated derivative or Islamic derivative offered by a Resident unless approved by BNM under Part B of Notice 5 or otherwise approved in writing by BNM; ii. a derivative or Islamic derivative which is referenced to Ringgit unless approved by BNM under Part B of Notice 5 or otherwise approved in writing by BNM; or iii. an Exchange Rate Derivative offered by a Non-Resident unless approved by BNM under Notice 1 or otherwise approved in writing by BNM. For the purpose of payment arising from the settlement of services, a Resident is allowed to receive such payment in Foreign Currency from a Non-Resident. (c) In Ringgit between Resident and Non-Resident in Malaysia A Non-Resident is allowed to make or receive payment in Ringgit, in Malaysia, to or from another Resident or Non-Resident, for, amongst others : any purpose between Immediate Family Members; income earned or expense incurred, in Malaysia; or settlement of amongst others — i. a trade in goods or services, excluding payment between Non-Residents for settlement of a trade in goods or services outside Malaysia; ii. a Ringgit Asset including any income and profit due from the Ringgit Asset; iii. a commodity murabahah transaction undertaken through a commodity trading service provider, excluding payment between Non-Residents for settlement of a commodity murabahah transaction undertaken through a Non-Resident commodity trading service provider.
5. Buying and selling of currency	(a) Buying or selling of Foreign Currency against Ringgit Residents are free to buy or sell Foreign Currency against Ringgit for his own account with a LOB (excluding International Islamic Banks) on spot basis. Transactions on Forward Basis are subject to the conditions set out in Part A of Notice 1. (b) Buying or selling of Foreign Currency against another Foreign Currency Residents are free to buy or sell Foreign Currency against another Foreign Currency on Spot Basis or Forward Basis with a LOB.
6. Import and Export of Currency	(a) Residents are free to import into and export from Malaysia any amount of Foreign Currency including traveller's cheques. (b) Resident travellers are allowed to carry Ringgit on his person or in his baggage or in his possession, only up an amount not exceeding in aggregate USD10,000 equivalent upon arrival or leaving Malaysia.
7. Financial Guarantee	A Resident guarantor is allowed to give a Financial Guarantee in any amount in Ringgit or Foreign Currency to secure any Borrowing obtained by a Resident in Ringgit or Foreign Currency as approved in Notice 2 or otherwise approved in writing by BNM. A non-bank Resident guarantor is allowed to give a Financial Guarantee in any amount in Ringgit or Foreign Currency to secure a Borrowing obtained by a Non Resident in Ringgit or Foreign Currency as approved in Notice 2 or otherwise approved in writing by BNM, excluding a Financial Guarantee given to secure a Borrowing— (a) obtained by a Non-Resident borrower which is a Special Purpose Vehicle or if the underlying Borrowing is being utilized by the Resident guarantor. This Financial Guarantee shall be deemed as a Borrowing (in Ringgit or Foreign Currency, as the case may be) by the Resident guarantor, and the Resident guarantor shall comply with Part A or B of Notice 2; or (b) where the Resident guarantor has entered into a formal or informal arrangement to make repayment of the Borrowing in Foreign Currency other than under a call-upon initiated by the lender in writing to the guarantor in the event of default. Such repayment shall be deemed as an investment in Foreign Currency Asset and the Resident guarantor shall comply with Part A or Part B of Notice 3. Note: A guarantor may not initiate a “call-upon” of a Financial Guarantee. In the event a Financial Guarantee is liquidated at the instruction of the guarantor, the guarantor must obtain prior approval from the BNM in accordance with Notice 3. An event of default prior to a call-upon of a Financial Guarantee by the lender shall be treated by the lender in accordance with the requirements under International Financial Reporting Standards (IFRS) 9 or any equivalent accounting standards adopted by the lender.

(B) RULES APPLICABLE TO NON-RESIDENTS

1. Investment in Malaysia	(a) Non-Residents are free to invest in any form of Ringgit Assets either as direct or portfolio investments. (b) The investments can be funded through- the conversion of Foreign Currency to Ringgit with LOB (excluding International Islamic Banks) or through an Appointed Overseas Office of LOB; or Foreign Currency borrowings from LOBs; or Ringgit borrowing from LOB for Real Sector Activity in Malaysia, which includes activities relating to the construction or the purchase of residential and commercial properties in Malaysia except for the purchase of land which will not be used for construction. (c) Non-Residents are free to remit out divestment proceeds, profits, dividends or any income arising from investments in Malaysia. Repatriation, however must be made in Foreign Currency and the conversion of Ringgit into Foreign Currency is undertaken in accordance with Part B of Notice 1.
2. Borrowing	(a) Borrowing in Ringgit A Non-Resident Individual is allowed to borrow in Ringgit in any amount from— (i) an Immediate Family Member; (ii) a licensed insurer or a licensed takaful operator up to the attained cash surrender value of any life insurance policy or family takaful certificate purchased by the Non-Resident; or (iii) his employer in Malaysia for use in Malaysia A Non-Resident, excluding a Non Resident Financial Institution, is allowed to borrow in Ringgit in any amount from— (i) a Resident to finance Real Sector Activity in Malaysia; or (ii) a Resident with a stockbroking license under the CMSA, in the form of margin financing for products traded on Bursa Malaysia. A Non-Resident is allowed to borrow in Ringgit from a LOB— (i) in any amount of trade financing for settlement of trade in goods or services with a Resident; (ii) up to the amount of an overdraft facility (not exceeding two (2) business days and with no roll over option) to avoid settlement failure for purchase of shares or Ringgit instrument traded on Bursa Malaysia or through RENTAS due to inadvertent delay of payment by the Non-Resident. Such overdraft facility shall only be eligible to be utilised by— a) a Non-Resident custodian bank, stockbroking corporation, trust bank or international central securities depository acting on behalf of Non-Resident investor; or b) a Non-Resident investor purchasing shares or Ringgit instrument mentioned above for its own account; or (iii) up to RM10 million in aggregate via a repurchase agreement or sale buy back agreement. (b) Borrowing in Foreign Currency A Non-Resident is allowed to borrow in Foreign Currency – (i) in any amount from a LOB, a Resident Immediate Family Member or a Non-Resident in Malaysia; or (ii) up to the limit stated in Parts A and B of Notice 3 from another Resident.
3. Buying or selling of currency	(a) Buying or selling of Foreign Currency against Ringgit Non-Residents are free to buy or sell Foreign Currency against Ringgit for own account with LOBs (excluding International Islamic Banks) on spot basis. Transactions with AOO and transactions on Forward Basis are subject to the conditions set out in Part B of Notice 1 (b) Buying or selling of Foreign Currency against another Foreign Currency Non-Residents in Malaysia are free to buy or sell Foreign Currency against another Foreign Currency on Spot Basis or Forward Basis with a LOB.
4. Opening and maintaining of account	(a) Non-Residents are allowed to open and maintain : (i) FCAs with LOBs individually or jointly with another Resident Individual. (ii) an External Account, which is an account in Ringgit opened with any Financial Institution in Malaysia NOTE: FCAs opened by Non-Resident Individually with Citibank Berhad, are not required to be designated unlike for Residents (see Section 1 - Foreign Currency Accounts under Rules Applicable to Residents). (b) Funds in these accounts are free to be remitted abroad in Foreign Currency. The conversion of Ringgit into Foreign Currency however must be undertaken in accordance with Part B of Notice 1. (c) Any payment, receipt or transfer into or from an External Account is subjected to RM10,000 per transaction for any purpose, including cash deposit. For cheque, the limit applies on per cheque basis. The above limits shall not apply to - a Consulate; a High Commission; an Embassy; an individual participating in the Malaysia My Second Home Programme (MM2H); or an Individual who is working or studying in Malaysia including the Individual's spouse, child or parent who is staying in Malaysia. (d) There is no limit for cash withdrawal over-the-counter from an External Account or transfer between External Accounts of the same account holder.
5. Import and Export of Currency	(a) Non-Residents are free to import into and export from Malaysia any amount of Foreign Currency including traveller's cheques. (b) Non-Resident travelers are allowed to carry ringgit on his person or in his baggage or in his possession, only up to an amount not exceeding in aggregate USD10,000 equivalent upon arrival or leaving Malaysia.
6. Payment and receipts	(a) In Ringgit between Non-Residents and Resident or Non-Resident in Malaysia 1) A Non-Resident is allowed to make or receive payment in Ringgit, in Malaysia to or from another Resident or Non-Resident for, amongst others: any purpose between Immediate Family Members; income earned or expense incurred in Malaysia; settlement of— (i) a trade in goods or services, excluding payment between Non-Residents for settlement of a trade in goods or services outside Malaysia; (ii) a Ringgit Asset including any income and profit due from the Ringgit Asset; (iii) a commodity murabahah transaction between Non-Residents undertaken through a Resident commodity trading service provider, excluding payment between Non-Residents for settlement of a commodity murabahah transaction undertaken through a Non-Resident commodity trading service provider. 2) A Non-Resident is allowed to make or receive payment in Ringgit, in Malaysia to or from another Resident or Non-Resident for, amongst others: (i) a court judgement where the transaction under litigation is undertaken in compliance with the FE Notices; or (ii) a reinsurance for domestic insurance business or a retakaful for domestic takaful business between a Resident and a person licensed to carry out Labuan insurance business under the Labuan Financial Services and Securities Act 2010 (LFSSA) or Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA). (b) In Foreign Currency between Non-Resident and Resident A Non-Resident is allowed to make or receive payment to or from a Resident in foreign currency for any purpose, excluding payment made or received for:- i) a Foreign Currency-denominated derivative or Islamic derivative offered by a Resident^; ii) a derivative or Islamic derivative which is referenced to Ringgit^; or iii) an Exchange Rate Derivative offered by a Non-Resident^ ^unless approved by BNM under applicable Notices or otherwise approved in writing by BNM (c) In Foreign Currency between Non-Residents A Non-Resident is allowed to make or receive payment in Foreign Currency, in Malaysia, to or from another Non-Resident for any purpose.

(C) DEFINITIONS USED ABOVE ARE AS FOLLOWS

Borrowing	(a) any utilised or unutilised credit facility or financing facility; (b) any utilised or unutilised trade financing facility, including but not limited to, trade guarantee or guarantee for payment of goods; (c) redeemable preference share or Islamic redeemable preference share; or (d) Corporate Bond or Sukuk. Notwithstanding the above, the following are excluded from the definition of Borrowing— (i) a trade credit term extended by a supplier for any goods or services; (ii) a credit limit that a LOB apportions for its client to undertake a Forward Basis transaction, excluding a transaction that involves— (a) exchanging or swapping of Ringgit or Foreign Currency debt for another Foreign Currency debt; or (b) exchanging of Foreign Currency debt for a Ringgit debt; (iii) a Financial Guarantee or Non-Financial Guarantee (iv) an operational leasing facility; (v) a factoring facility without recourse; (vi) a credit card or charge card facility obtained by an Individual from a Resident and used for payment for retail goods or services only; or (vii) a credit facility or financing facility obtained by a Resident Individual from a Resident to purchase one (1) residential property and one (1) vehicle. Note: For clarity purposes, the transactions in paragraphs (ii)(a) and (ii)(b) shall be considered as Borrowing.
Direct Investment Abroad/DIA	(a) an investment in Foreign Currency Asset Offshore by a Resident resulting in at least 10% equity ownership or control of a Non-Resident Entity outside Malaysia or a Labuan Entity; (b) an inter-company lending by a Resident Entity to a Non-Resident Entity outside Malaysia within the Resident Entity's Group where the Non-Resident Entity is outside Malaysia or Labuan Entity; (c) a capital expenditure by a Resident investor in an unincorporated Entity outside Malaysia or a project outside Malaysia by an agreement with no establishment created, where the Resident investor— - (i) contributes capital of at least 10% of the cost of the project; (ii) is entitled to at least 10% of profits from the unincorporated Entity or project; or (iii) have management control of the unincorporated Entity or project.
Direct Shareholder	A shareholder with at least 10% effective shareholding in a Resident Entity.
Domestic Ringgit Borrowing	(a) any Borrowing in Ringgit obtained by a Resident from another Resident; or (b) any obligation considered or deemed as Domestic Ringgit Borrowing under any of the FE Notices. Note: For purposes of determining the Domestic Ringgit Borrowing status of a Resident Entity— (a) the Resident Entity is deemed to have a Domestic Ringgit Borrowing when another Resident Entity with Parent Subsidiary Relationship has a Domestic Ringgit Borrowing; and (b) the following shall not be considered as Domestic Ringgit Borrowing— (i) a Borrowing obtained from another Resident Entity with Parent-Subsidiary Relationship; (ii) a Borrowing obtained from its Direct Shareholder; or (iii) any facility including credit facility or financing facility which is used for Sundry Expenses or Employees' Expenses only. - "Sundry Expenses" refers to small and infrequent expenses for office supplies (e.g. stationaries), ancillary services (e.g. software and online subscription) and other minor expenses to facilitate daily business operation. - "Employees' Expenses" refers to business-related expenses which may include, but not limited to, travel (e.g. lodging and transportation), entertainment, health, insurance, takaful and other employees' expenses, excluding investment. - "Borrowing" refers to the definition of "Borrowing" above.
Entity	(a) any corporation, statutory body, local authority, society, cooperative, limited liability partnership and any other body, organisation, association or group of persons, whether corporate or unincorporate, in or outside Malaysia; or (b) the Federal Government, any State Government or any other government.
External Account	An account in Ringgit opened with any Financial Institution in Malaysia— (a) by a Non-Resident— (i) individually; (ii) jointly with another Non-Resident; or (iii) jointly with a Resident, excluding— (A) for a joint venture in Malaysia; (B) a husband and wife; or (b) by a person who operates the account in trust for or on behalf of a Non-Resident. The designation of the account shall be determined based on the residency of the beneficiary.
Financial Guarantee	Any guarantee, indemnity or undertaking to secure the repayment of a Borrowing.
Foreign Currency	includes— a) currency notes or coins which are legal tender in any country, territory or place outside Malaysia; b) any right to receive foreign currency— i. in respect of any credit or balance at a licensed bank or any other similar institution in or outside Malaysia; or ii. from any person in or outside Malaysia; or c) any document or device of a kind intended to enable the person to whom the document or device is issued to obtain foreign currency from another person on the credit of the person issuing it, and in particular, any traveller's cheque or other draft or letter of credit so intended.
Foreign Currency Asset Offshore (previously referred to as "Investment Abroad")	(a) a financial asset in Malaysia swapped for a financial asset in a Labuan Entity or outside Malaysia; (b) Foreign Currency Borrowing given to a Non-Resident; (c) working capital arising from the set up of any business arrangement outside Malaysia (including a joint venture project where no Entity is created or established); (d) deposit in a Foreign Currency Account (FCA) maintained with a Labuan Entity or outside Malaysia excluding reasonable amount of deposit for education, employment or migration outside Malaysia; or (e) Foreign Currency-denominated – (i) (asset (tangible or intangible) offered by a Non-Resident or any person whose residency cannot be determined. (ii) asset (tangible or intangible) in or maintained with a Labuan Entity, or outside Malaysia; (iii) Financial Instrument or Islamic Financial Instrument (excluding Exchange Rate Derivatives) without Firm Commitment offered on a Specified Exchange under the CMSA outside Malaysia undertaken by a Resident through a Resident futures broker; or (iv) Financial Instrument or Islamic Financial Instrument (excluding Exchange Rate Derivatives) without Firm Commitment issued or offered by a Non-Resident
Foreign Currency Asset Onshore	(a) Foreign Currency-denominated securities or Islamic securities offered in Malaysia by a Resident as approved in writing by BNM; (b) Foreign Currency-denominated Financial Instrument or Islamic Financial Instrument offered in Malaysia by a Resident as approved in writing by BNM excluding a derivative transaction entered with Firm Commitment; (c) deposit in Investment FCA with a LOB or an approved Financial Institution as specified in Notice 3; or (d) any instrument offered by a LOB with Foreign Currency delivery at maturity (such as dual-currency investment).
Forward Basis	Buying or selling of any currency after two (2) business days (regardless of whether settlement is to be made on gross or net basis) through – a) a derivative as defined under section 2(1) of the Financial Services Act 2013; b) an Islamic derivative as defined under section 2(1) of the Islamic Financial Services Act 2013; or c) any other arrangement.
General Partnership	has the same meaning with the term "partnership" as defined in section 3(1) of the Partnership Act 1961 [Act 135].
Group	An Entity's – (a) ultimate or direct Holding/Parent Entity; (b) head office; (c) branch; (d) subsidiary company where the Entity owns more than 50% of ordinary shares in the subsidiary Entity; (e) associate Entity where the Entity owns between 10% and 50% of ordinary shares in the associate Entity; or (f) sister company where the Resident Entity and its sister company have a common shareholder with minimum of 10% of ordinary shares in both the Entity and its sister company.
Immediate Family Member	A legal spouse, parent, legitimate child (including legally adopted) or legitimate sibling of an Individual.
Individual	A natural person.
Labuan Entity	An Entity which is created, incorporated, licensed or registered under any of the following legislation:: (a) Labuan Companies Act 1990 [Act 441]; (b) Labuan Trusts Act 1996 [Act 554]; (c) Labuan Financial Services and Securities Act 2010 [Act 704]; (d) Labuan Islamic Financial Services and Securities Act 2010 [Act 705]. (e) Labuan Foundations Act 2010 [Act 706]; (f) Labuan Limited Partnerships and Limited Liability Partnerships Act 2010 [Act 707].
Licensed onshore bank or LOB	A licensed bank and a licensed investment bank under the Financial Services Act 2013 and a licensed Islamic bank under the Islamic Financial Services Act 2013.
Non-Resident	(a) any person other than a Resident; (b) an overseas branch, a subsidiary, regional office, sales office or representative office of a Resident company; (c) Embassies, Consulates, High Commissions, supranational or international organizations; (d) a Malaysian citizen who has obtained permanent resident status of a country or territory outside Malaysia and is residing outside Malaysia. For the avoidance of doubt, this includes Malaysian Embassies, Consulates and High Commissions.
Parent-Subsidiary Relationship	a relationship between a Resident Entity and its direct or indirect— (a) Resident Holding/Parent Entity; or (b) Resident subsidiary. For the avoidance of doubt, this includes a relationship between a Resident subsidiary of a Non-Resident Holding/Parent Entity with the Resident subsidiary's ultimate Resident Holding/Parent Entity.
Real Sector Activity	an activity relating to— (a) construction or purchase of a residential or commercial property, excluding purchase of land which will not be utilised for construction or production of goods or services; or (b) production or consumption of goods or services, excluding— – (i) activity in financial services sector, whether Islamic or otherwise; (ii) purchase of securities or Islamic securities; or (iii) purchase of Financial Instrument or Islamic Financial Instrument.
Resident	(i) a citizen of Malaysia, excluding a citizen who has obtained permanent resident status in a country or a territory outside Malaysia and is residing outside Malaysia; (ii) a non-citizen of Malaysia who has obtained permanent resident status in Malaysia and is ordinarily residing in Malaysia; (iii) a body corporate incorporated or established, or registered with or approved by any authority, in Malaysia; (iv) an unincorporated body registered with or approved by any authority in Malaysia; or (v) the Government or any State Government. For joint accounts where the relationship is a husband and wife relationship only and one of the joint account holders is a Resident while the other is a Non-Resident, this joint account will be a Resident account. Otherwise, the joint account will be treated as a Non-Resident account where one of the joint account holders is a Non-Resident.
Ringgit Asset	(a) Ringgit-denominated security or Islamic security issued in Malaysia by a Resident; (b) Ringgit-denominated security or Islamic security issued by a Non-Resident as approved by BNM; (c) Ringgit-denominated Financial Instrument or Islamic Financial Instrument as approved by BNM; (d) Ringgit deposits with a Financial Institution in Malaysia; including deposit-like instrument with only Ringgit delivery at the inception and maturity; or (e) Any property in Malaysia.