The Labuan Financial Services Authority (“Labuan FSA”) has, at the end of December 2017, released revised Guidelines on the Establishment and Operations of Labuan Leasing Business (“Revised Guidelines”), in place of the 2013 guidelines.
The Revised Guidelines have introduced a number of new requirements for Labuan leasing companies. In particular, the changes to the Operational Requirements in the Revised Guidelines would appear to be more restrictive for Labuan leasing companies, as Labuan leasing companies will have to comply with new requirements.
These new requirements include the following: (i) having sufficient capital commensurate with the business of the company; (ii) establishing adequate internal policies and controls; and (iii) maintaining adequate and proper records and books of accounts in Labuan.