The Labuan International Business and Financial Centre (Labuan IBFC) is “officially embracing” fintech and aims to be the Asian domicile of choice for the industry, according to CEO Farah Jaafar-Crossby.
The financial centre aims to achieve this via its “ready suite of structures and solutions”.
Labuan IBFC has taken an open approach in relation to fintech, which it refers to as innovative financial services (IFS), and existing entities licensed in the jurisdiction that wish to incorporate IFS into their business operations are only required to apply to Labuan Financial Services Authority (FSA) noting their change of business plan.
New businesses are required to apply to operate as a Labuan-licensed entity under the Labuan Financial Services & Securities Act 2010 or the Labuan Islamic Financial Services & Securities Act 2010.
Four IFS-related Labuan entities have been approved by the Labuan FSA, and more applications have been received.
Jaafar-Crossby said Labuan has always been “agile in responding to the market and industry needs”.
She continued: “Fintech, or as we call it IFS, is clearly a thriving industry and its adoption rate has been increasingly high among our players so far. Hence, we think it is time for us to officially embrace this movement.”
“We hope to see a positive take-up rate on the applications to set up IFS-related businesses in Labuan IBFC as we have been receiving many enquiries.”
“In fact, what is unique is that we have adopted a unique approach to IFC as there isn’t a special licence needed to operate an IFS-related business in Labuan IBFC.”
“This approach is only possible as Labuan FSA is a one-stop regulator and is able to process each application on its merit individually.”
Labuan IBFC has published an IFS frequently asked questions for interested parties.
