Whilst there is no law requiring a Labuan company to open its account in Labuan or the rest of Malaysia, these two places are the most natural places. However, we have successfully opened bank accounts for Labuan companies in other offshore and onshore centres.
Further, there is no law requiring Labuan company to open its bank account in an offshore centre. As a matter of fact and practice, we prefer to recommend opening in an offshore centre like Kuala Lumpur. This will enable the Labuan company to have access to “high street” banking services, with superior internet banking and lower bank charges.
10-15 years ago it was relatively easy to open bank account for a Labuan co. But with significant increase in compliance and transparency, this is no longer possible. Our roles is to identify for you which banks will be the most suitable, given your nature of business and circumstances. With more than 18 years of experience in this we can recommend you the most suitable banks if we understand your nature of business and circumstances in detail.
Some important issues to consider.
- Duly completed and signed Bank account opening form.
- Duly signed and verified bank Specimen cards.
- Passport copies of director, signatory and beneficial owner verified by banker
- Proof of residential address; normally in the form of bank or credit card statement and utility bills.
- Bank reference; usually reference from an international bank is preferred although not a must for some banks. The bank reference should state at least number of years of banking relation, type of account and whether the conduct of account is satisfactory.
- CV or resume; what the bank wants to see here is what the customer has been and is doing now.
- Detailed nature of business, i.e. The bank needs to understand the client’s business. Most banks will require business cash flow projection.
- Company / business profile; Most of these companies are new so there is no profile. Profile of a related company or company which is owned by the beneficial owner will do.
- Source of fund; i.e. What is the economic origin of the money that will pass through the account. For example consultancy fees, trading commission, etc.
- List of counter parties; i.e. If your client claimed to be in pharmaceutical business he should be able to list out a few of his suppliers and customers. It is not likely that people in who claim to be in this business do not know his counter parties.
- Reason/s why account is needed; whatever is the reason so long as legitimate.
- Face to face meeting; Not strictly necessary but from our opinion this is very important. This is just a one-time trip that is worth taking. Meet the bank and its officers and this would help so much in future dealing with the bank.
We have assisted hundreds of clients in opening offshore bank accounts in various centres and are ably equipped to advise on the confidentiality, due diligent, documentation requirement and cost aspects of opening and maintaining offshore bank accounts. The fact that we are qualified intermediaries with a few banks also ensure that our clients’ application enjoy high rate of success.