LABUAN: The Labuan Financial Services Authority (Labuan FSA) will continue to strengthen its regulatory regime and institutional foundations to face forthcoming economic challenges.
Bank Negara Malaysia Governor Datuk Muhammad Ibrahim said Labuan FSA had strengthened the Labuan International Business Financial Centre (IBFC), by emphasising on anti-money laundering and counter financing of terrorism (AML/CFT), in line with heightened global advocacy for improved transparency and stricter anti-money laundering regulations.
The efforts included the introduction of regulatory policies to strengthen financial capacity, enhance disclosure and transparency levels, and promote effective corporate governance, alongside sound market practices.
“A dedicated AML/CFT policy and supervisory unit has been formed to ensure greater vigilance in meeting global standards.
“The authority is also actively involved in the refinement of the National Risk Assessment for the AML/CFT ,” he said at the presentation and briefing on the Labuan FSA Annual Report 2016 yesterday.
Muhammad disclosed for the financial year ended Dec 31, 2016, Labuan FSA Group recorded a RM59.9 million increase in operating revenue compared to RM56.1 million in 2015. Total reserves also increased to RM67.5 million in 2016 from RM64.3 million previously.
He said investigations and enforcement practices were being continuously improved to safeguard market integrity.
“The efforts resulted in a 25.5 per cent decline in the total number of non-compliance cases in AML/CFT in 2016,” he added.
Muhammad said Labuan FSA remained committed towards supporting global initiatives to promote financial stability and strengthening the collective voice of the Asia Pacific region in international affairs.
“There are continuous engagements with other regulatory bodies to enhance global and regional collaboration through exchange of information and supervisory cooperation.
“In 2016, four new Memorandums of Understanding were signed, namely with the Isle of Man Financial Services Authority, Astana International Financial Centre (Kazakhstan), Bank Negara Malaysia and the Sabah Economic Development and Investment Authority,” he added.
Muhammad said the IBFC would be strategically repositioned to strengthen its spot as an international business and financial destination. — Bernama