Financial Services
Areas of Business:
Overview
Licensed Labuan money brokers act as mediators to bring together and match clients with their counterparties in money or foreign exchange markets. They facilitate transactions and receive payment for their services in the form of brokerage or commission fees. Riding the waves of financial digitalisation, many money brokers have modernised their offerings by providing digital platforms for trading of currencies.
Frequently Asked Questions
Money broking is defined as the business of arranging transactions between buyers and sellers in money with brokers acting as an intermediary in consideration of brokerage fees paid or to be paid, but does not include the buying or selling of foreign currencies by the broker as a principal in such markets.
Such companies may only transact business in foreign currency and not deal in Malaysian Ringgit except for the purpose of defraying administrative and statutory expenses. Labuan money brokers are prohibited from dealing with residents other than authorised dealers under the Exchange Control Act 1953.
The rate of tax imposed is 3% of audited net profits.
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