Foreign Exchange Policy (FE Policy)

Introduction

The FE Policies are a set of rules that are administered by Bank Negara Malaysia (BNM) under the Financial Services Act 2013 and Islamic Financial Services 2013 to safeguard the value of the currency of Malaysia.

Applicability

The FE Policies apply to:

Residents who are dealings in foreign currencies
Non-Residents who are dealing with Malaysian Ringgit, in Malaysia

Definition of Resident:	Definition of Non-Resident:
A citizen of Malaysia, excluding a citizen who has obtained permanent resident status in a country or a territory outside Malaysia and is residing outside Malaysia; A non-citizen of Malaysia who has obtained permanent residency status in Malaysia and is ordinarily residing in Malaysia; A body corporate incorporated or established, or registered with or approved by any authority, in Malaysia; An unincorporated body registered with or approved by any authority in Malaysia; or The Government or any State Government.	Any person other than resident; An overseas branch, a subsidiary, regional office, sales office or representative office of a resident company; Embassies, Consulates, High Commissions, supranational or international organisations; or A Malaysian citizen who has obtained permanent resident status of a country or territory outside Malaysia and is residing outside Malaysia.

Definition of Resident:

Definition of Non-Resident:

A citizen of Malaysia, excluding a citizen who has obtained permanent resident status in a country or a territory outside Malaysia and is residing outside Malaysia;
A non-citizen of Malaysia who has obtained permanent residency status in Malaysia and is ordinarily residing in Malaysia;
A body corporate incorporated or established, or registered with or approved by any authority, in Malaysia;
An unincorporated body registered with or approved by any authority in Malaysia; or
The Government or any State Government.

Any person other than resident;
An overseas branch, a subsidiary, regional office, sales office or representative office of a resident company;
Embassies, Consulates, High Commissions, supranational or international organisations; or
A Malaysian citizen who has obtained permanent resident status of a country or territory outside Malaysia and is residing outside Malaysia.

Responsibility of the Customer to Comply with FE Policies

Please declare your residency status whenever you open an account with MBSB Bank Berhad
Ensure any payments and receipts to/from your account are permitted sources and uses of funds – Notice 4 - Payment and Receipt
Please declare (i) your domestic Ringgit borrowing status and (ii) investment status, before you invest in foreign currency assets – Notice 3 - Investment in Foreign Currency Asset
Ensure any transaction to/from your foreign currency account meets the permitted sources and uses of funds – Notice 4 - Payment and Receipt
Obtain BNM’s approval if your transaction does NOT meet the permitted sources and uses of funds and the allowable limits listed above.

You may submit your application online via BNM’s Foreign Exchange Policy website under the tab ‘Submission of Application and Report’.

Please refer to the section below for all the FE Notices and related documents to assist your banking transactions:

Notice	File
Preamble and Interpretation	Download
Definitions on Entities Created, Incorporated, etc in Labuan	Download
Notice 1 – Dealings in Currency, Gold and Other Precious Metals	Download
Notice 2 – Borrowing, Lending and Guarantee	Download
Notice 3 – Investment in Foreign Currency Asset	Download
Notice 4 – Payment and Receipt	Download
Notice 5 – Securities and Financial Instruments	Download
Notice 6 – Import and Export of Currency	Download
Notice 7 – Export of Goods	Download
Direction on Dealings with Specified Person and In Restricted Currency	Download
Frequently Asked Questions – Refinement in Foreign Exchange Policy for April 2020	Download
List of Documents or Information to Support the Application for Non-SME Residents to Receive Foreign Currency Payment from Resident Exporters	Download
Minimum Due Diligence for FX Transactions (issued by ABM and AIBIM)	Download