Labuan Managed Trust Company

A Labuan managed trust company is a trust company licensed under the Labuan Financial Services and Securities Act 2010 (LFSSA) but is managed by a fully operational trust company in Labuan.

A managed trust company is not required to establish its own physical office in Labuan, but is required at least one trust officer approved by Labuan FSA of which may be the employee of the appointed Labuan trust company.

Application Requirements

• Submit a duly completed Form LTC - Application for Licence to Carry On Labuan Trust Company Business as required under section 71(1) of LFSSA;
• Appoint a Labuan trust company as its manager to manage its trust company business on its behalf and provide the detailed management agreement executed with the manager;
• Provide a business plan that includes the following;
  • Types of product and services to be offered;
  • Target market, specifying the clients, geographical spread and industry focus;
  • Management team;
  • Manpower planning/organisation chart; and
  • Three (3) years financial projection (properly drawn up income statement and balance sheet quoted in foreign currency).
• Provide full disclosure of shareholdings of the company and the ultimate beneficiaries including submission of corporate profile (e.g. name and type of legal entity, principal business/activity, Board of Directors) for corporate shareholder and detailed background (e.g. copy of passport or ID and comprehensive resume) for individual shareholder;
• Ensure that the directors and officers responsible for the management of the proposed Labuan managed trust company are fit and proper persons pursuant to section 4 of LFSSA and the Guidelines on Fit and Proper Person issued by Labuan FSA;
• Submit the certified copy of certificate of incorporation or constituent document of the applicant;
• Provide a letter of good standing or such other document of this nature from the relevant authority of the applicant's home country where applicable; and
• Managed Labuan trust company acting as trustee of a Labuan Islamic trust under Labuan Islamic Financial Services and Securities Act 2010 shall appoint a qualified person as a Shariah adviser, or consult a qualified person to advise the operations and ensure Shariah compliance.

Operational Requirements

• Appoint at least one trust officer approved by Labuan FSA of which may be the employee of the appointed manager (Labuan trust company);
• Have its own letterhead and stationeries and its office can be the office of the Labuan trust company who is managing the Labuan managed trust company;
• Ensure that all its books and records including records of its clients are kept and made available for inspection in Labuan IBFC;
• Keep all assets and other valuables that it has received in its capacity as trustee duly separated from its own assets and liabilities;
• Obtain the written consent from Labuan FSA prior to making any change to its shareholding and directorship;
• For a managed trust company that is a licensed foreign company, notify Labuan FSA for any change in its shareholding and directorship;
• Notify Labuan FSA on the change in its managed trust company manager within seven working days from the effective date of change specified;
• Ensure compliance with the Guidelines Anti-Money Laundering and Counter Financing of Terrorism; and
• Comply with guidelines, directive and reporting requirements issued by Labuan FSA.

Fees

All licensees are required to pay to Labuan FSA annual licence fee on or before 15 January of each year.

Governing Legislation

The Labuan managed trust companies are governed by the following Labuan laws:-

Labuan Financial Services and Securities Act 2010
Labuan Companies Act 1990
Labuan Business Activity Tax Act 1990

For a complete list of all Labuan laws, please click here.

Guidelines and Directive

Guidelines for the Establishment of Labuan Managed Trust Companies
Directive on Internal Audit Requirement for Labuan Trust Companies

For a complete list of all Guidelines related to Labuan Managed Trust Companies, please click here.