Labuan Money Broking License

Corporate Services Trust Labuan is the top and number 1 service providers for Labuan Money Brokers license application

Since 2017 Corporate Services Trust Labuan had successfully set up more than 30 such Labuan Money Brokers with Labuan Financial Services Authority

Some Key criteria for the license

1. Labuan Money Brokers is in the business of providing Contract For Differences (CFD)  in money and Foreign Exchange (FX)
2. In carrying on the money broking business, the licensee is expected to:
   (i) bring together the counterparties on mutually acceptable terms for the same financial products in money or foreign exchange market to facilitate the conclusion of a transaction;
   (ii) receive payment for its service in the form of brokerage or commission fees. The fees charged must be adequate and appropriate; and
   (iii) act as a mediator and strictly not permitted to act as a principal
3. Deposit and maintained paid up capital of MYR 500,000 (or USD 125,000)
4. Segregation of Client money from company operational bank account
5. 2 Directors to form a Board of Directors
6. Labuan Money Brokers can enjoy preferred tax rate of 3% if comply with economic substance requirement (ESR) to employ 2 full time employees in Labuan and spent annual operating expenses in Labuan of MYR 100,000 (or estimate USD 25,000). If the company do Not want to comply with ESR then they still can do business but can not enjoy the 3 % tax and will be taxed at a 24%.
7. The Labuan Money Broker can not provide services to Malaysia Resident and can Not accept Malaysia Ringgit
8. Annual license fee is USD 1,500
9. Leverage 100 : 1