It is a statutory body responsible for the development, regulation, and administration of the Labuan International Business and Financial Centre (Labuan IBFC).
Labuan FSA is the central Authority for the jurisdiction and is mandated to ensure that business and financial activities conducted as part of Labuan IBFC are carried out efficiently and comply with domestic laws and international standards.
Core Objects
Labuan FSA has three core objectives underpinning its functions and regulatory framework:
• Promote and develop Labuan as an international business and financial services hub
• Establish national objectives, policies, and priorities for the orderly development and administration of an international business and financial services sector in Labuan
• Monitor, supervise, and enforce Authority for all international business and financial transactions conducted in the jurisdiction
Regulatory Function and Licensing Authority
The Labuan FSA is the licensing authority for all entities operating within the Labuan IBFC.Labuan FSA is responsible for licensing and ensuring the licensee's compliance.Compliance means compliance with:
• Labuan laws and regulations in relation to business and financial activities; and
• International best practice that the jurisdiction has adopted.
Labuan FSA operates a regulatory, policy, rule, and guideline regime to provide a coherent set of regulatory policies by which Labuan FSA regulates the carrying on of financial and business activities in the centre.
The Key Functions and Responsibilities of the Guardian of Labuan IBFC
Labuan FSA assumes responsibilities to facilitate the use of Labuan IBFC for all stakeholders, to build and maintain Labuan IBFC as an effective and credible jurisdiction:
1.Administration & Enforcement - To administer, enforce, and give full effect to the provisions of Labuan IBFC laws;
2.Exercise Power - To exercise all duties or functions under the applicable laws and regulations;
3.Good Name Protection - To protect and maintain Labuan IBFC as an effective and credible international business and financial centre;
4.Research & Development - To encourage, conduct, or commission research and reports on financial services and activities regulated by Labuan FSA to facilitate evidence-based policy making and development;
5.Facilities - To recommend improvements in infrastructure and other facilities to make Labuan an attractive jurisdiction for international business and financial services;
6.Industry Development - To work with financial institutions and industry groups to drive growth in the sector, innovation, and development of financial services;
7.Advisory - To advise and make proposals to the government on the development of and administration of international business and financial services undertaken in Labuan;
8.Any other administrative coordination or measures necessary to support the performance of the Authority and or performance of different functions delegated by the minister.
Policy Development and Establishing an Efficient Regime
Labuan FSA has a critical responsibility as a regulator, but also serves as a strategic body that develops policy and an appropriate regulatory framework to support the sustainable development of Labuan IBFC.
A policy framework that:
• Promotes market conduct, market integrity, and financial stability;
• Fosters innovation, but with regulation;
• Attracts international investors and businesses to Labuan IBFC; and
• Requires the highest standard of corporate governance and operational transparency supported and endorsed by regulated markets.
International Standards Alignment
A key responsibility of Labuan FSA is to align regulatory practices and policies to international standards, acknowledging that Labuan IBFC is required to be maintained with globally accepted standards i.e., to provide:
• Investor confidence;
• Ensures that Labuan's competitive advantage as an international business and financial centre is maintained and enhanced; and
• Enables faster, simplified, and harmonized cross-border business and financial services activities through the domestic Labuan regulatory framework.
