zoom plus normal zoom minus

Foreign Exchange (FE) Policy

Background

BNM had recently launched a new section in their website on everything-you-want-to-know concerning the Foreign Exchange (FE) Policy that is structured according to:

residency (resident, non-resident); and followed by,
purpose (investing, borrowing, hedging, etc.).

Click here to access to BNM’s website on the following subject:

FE Notices
Frequently Asked Questions
Online application forms (to obtain BNM's approval for non-permitted transactions)

Any transaction involving the following should be in compliance with the FE Policy i.e. dealing in:

Ringgit between resident and non-resident or between non-residents
Foreign Currency between residents or between resident and non-resident

Under Section 214(9) of the Financial Services Act 2013 and Section 225(9) of the Islamic Financial Services Act 2013, any person who contravenes or fails to comply with any requirement, restriction or condition imposed under a written approval granted by BNM commits an offence and shall, on conviction be liable to:

Imprisonment for a term not exceeding ten (10) years; and/or
A fine not exceeding fifty (50) million ringgit.

Minimum Due Diligence for Foreign Exchange Rules

Financial Institutions (FIs) are also required by Bank Negara Malaysia to establish internal controls and procedures to ensure compliance with the FE Policy. A copy of the Minimum Due Diligence (MDD) Guide for Foreign Exchange Rules is as per attachment below.

FIs may exercise the due diligence process above the minimum standard in accordance to foreign exchange risk exposure on a case to case basis.

Click here for MDD Guide for Foreign Exchange Notices.

Foreign Exchange (FE) Policy

Deposits

Financing

Banking Services