Panduan Ringkas mengenai Dasar Pertukaran Asing

1. What is the Foreign Exchange Policy?

It is a set of rules administered by Bank Negara Malaysia (BNM) based on the provisions set forth under the Financial Services Act 2013 and the Islamic Financial Services Act 2013 to safeguard the balance of payments position or value of Ringgit.

It comprises of the following:

No.	Subject
1)	INTERPRETATION
2)	DECLARATION ON ENTITIES CREATED, INCORPORATED, etc. IN LABUAN
3)	Notice 1: DEALINGS IN CURRENCY, GOLD AND OTHER PRECIOUS METALS;
4)	Notice 2: BORROWING, LENDING AND GUARANTEE;
5)	Notice 3: INVESTMENT IN FOREIGN CURRENCY ASSET;
6)	Notice 4: PAYMENT AND RECEIPT;
7)	Notice 5: SECURITIES AND FINANCIAL INSTRUMENTS;
8)	Notice 6: IMPORT AND EXPORT OF CURRENCY;
9)	Notice 7: EXPORT OF GOODS; and
10)	DIRECTION ON DEALINGS WITH SPECIFIED PERSON AND IN RESTRICTED CURRENCY.

Minimum Due Diligence (MDD) Guide for Foreign Exchange Rules

The Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) have prepared the following MDD Guides to outline the industry standard practice to be adopted by a licensed onshore bank (LOB), and by extension its Appointed Overseas Office (AOO), when dealing with their clients in relation to the Foreign Exchange rules, either directly with the LOB or via the AOO:

No.	Subject
1)	MDD Guide for Notice 1;
2)	MDD Guide for Notice 2;
3)	MDD Guide for Notice 3;
4)	MDD Guide for Notice 4; and
5)	MDD Guide for Notice 7.

This MDD guide shall be read together with prevailing the Foreign Exchange Policy Notices issued by Bank Negara Malaysia.

The Foreign Exchange Policy and MDD Guides can be viewed at Bank Negara Malaysia’s website i.e. https://www.bnm.gov.my/fep.
It would be encouraged to occasionally visit the above mentioned website as Bank Negara Malaysia or ABM/AIBIM may revise/update the Foreign Exchange Policy or MDD Guide(s) respectively from time to time.

2. When is the Foreign Exchange Policy applicable?

Transaction between a Resident and a Non-Resident in Ringgit (RM);
Transaction between a Non-Resident and another Non-Resident in RM;
Transaction between a Resident and a Non-Resident in foreign currency (FCY); and
Transaction between a Resident and another Resident in FCY.

3. When is the Foreign Exchange Policy NOT applicable?

Transaction between a Resident and another Resident in Ringgit; and
Transaction between a Non-Resident and another Non-Resident in Foreign Currency.

4. How to Classify/Determine the Residency Status of an Individual/Non-individual According to the Foreign Exchange Policy

Term	Definition
Resident	a citizen of Malaysia;
	a non-citizen of Malaysia who has obtained permanent resident (PR) 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.

Term	Definition
Non-Resident	any person other than a resident;
	an overseas branch, a subsidiary, regional office, sales office or representative office of a resident company;
	Embassies, Consulates, High Commissions, supranational or international organizations;
	a Malaysian citizen who has obtained PR status* of a country or territory outside Malaysia and is residing outside Malaysia; or
	Malaysian Embassies, Consulates and High Commissions.

*For individuals with PR status, determination of their residency status shall be guided by the existing tax ruling in Malaysia which is 182 non-consecutive days in Malaysia as illustrated in the tables below:

Citizen of Malaysia

Obtained PR status of a country outside Malaysia?		Residing outside Malaysia 182 non-consecutive days or more in a calendar year?		Residency status
Yes	No	Yes	No	Residency status
√		√		Non-Resident
√			√	Resident
	√	√
	√		√

Not a citizen of Malaysia

Obtained PR status in Malaysia?		Residing in Malaysia 182 non-consecutive days or more in a calendar year?		Residency status
Yes	No	Yes	No	Residency status
√		√		Resident
√			√	Non-Resident
	√	√
	√		√

Note:
When there is a change in your residency status, please head to your nearest branch to update your personal information so that we are able to assist you with the changes accordingly.

5. What are the common transactions regulated under the Foreign Exchange Policy?

A. BORROWING

What type of borrowing transactions can I perform with The Bank under the Foreign Exchange Policy?

B. INVESTMENT

What type of investment transactions can I perform with The Bank under the Foreign Exchange Policy?

C. PAYMENT

What type of payment transactions can I perform with The Bank under the FEP?

D. PROCEEDS of EXPORT of GOODS

Treatment of Proceeds of Export of Goods under the Foreign Exchange Policy

1. What is my obligation as a Resident Exporter when receiving Proceeds of Export of Goods?
2. What is my obligation as a Non-Resident when making payment for goods purchased in Ringgit to a Resident Exporter?

6. Type of Accounts and Permitted Sources & Uses of Funds:

7. What documents and/or information that is required to be provided in order to complete a transaction under the Foreign Exchange Policy?

The following table provides a guide on the type of documentary evidence that can be provided to the Bank in order to support the underlying purpose of the transaction performed under the Foreign Exchange Policy purview:

No.	Nature of Transaction	Type of Information/Document Required
1	Between immediate family	Marriage certificate, birth certificate, identity cards, passports
2	Education overseas	For sponsoring entity Letter of award/scholarship/sponsorship, letter of offer by overseas school/college/university for sponsored student, invoice for tuition/accommodation/other fees For individual Letter of offer by overseas school/college/university for student, valid student card/pass/ID, invoice for tuition/accommodation/ other fees, letter indicating estimated fees and/or living expenses for an academic year
3	Employment overseas	Letter of offer from employer, letter from employer confirming employee identity and status of employment, work permit, payslip
4	Loan	Letter of offer, loan agreement, written declaration from the lender or borrower
5	Loan repayment	Letter of offer, loan agreement, loan repayment schedule, promissory note
6	Goods and services	Invoice, bill of lading, purchase order, delivery order, supply contract, service/tenancy/rental agreement, payment advice
7	Export offsetting/writing-off arrangement	Import invoices, Contract Agreement, Dividend declaration
8	Delay in repatriation of proceeds from export of goods	Export invoices, Bill of Lading, Purchase order, Delivery order, Supply contract, payment advice, Customs K2 Form, correspondence with Non-resident entity on the reason for delay
9	Ringgit asset, including any income and profit due	Sale and purchase agreement, receipt for purchase or sale, tenancy/rental agreement, dividend payment notice
10	Miscellaneous Expense	Holiday expenses abroad Flight ticket, invoice on accommodation/travel related arrangement Medical expenses abroad Medical bill from overseas hospital/medical centre Advance or reimbursement for purchase of goods and services abroad Invoices/receipt on purchase of goods and services
11	Any transaction not permitted under the FEP	The relevant supporting documents and Bank Negara Malaysia’s approval letter

Note: The nature of transaction and type of documents listed above are non-exhaustive

8. Dealings with Specified Person and in Restricted Currency

Direction on Dealings with Specified Person and in Restricted Currency

No person (Resident and Non-Resident) in Malaysia shall undertake or engage in any dealing or transaction with a Specified Person or in a Restricted Currency.
Such dealings include any forms of dealing not limited to account opening and inward/outward remittances payment transaction.

Term	Definition
Specified Person	State of Israel or its governmental organization, authority or agency, or a natural person who is a citizen or permanent resident of the State of Israel
Restricted Currency	Israel currency note or coin that is legal tender in the State of Israel

9. When is Bank Negara Malaysia’s prior approval required?

Bank Negara Malaysia (BNM)’s prior approval is required to be obtained if the transaction:

does not meet the permissible purpose or uses/sources of funds;
will exceed/has exceeded the permissible limit; or
involves any dealing or transaction with the State of Israel or its governmental organization, authority or agency, or a natural person who is a citizen or permanent resident of the State of Israel or its currency

Any application for approval is to be submitted via BNM’s Foreign Exchange Policy submission system at https://fep.bnm.gov.my/fep-pub/login.

10. What is the channel for enquiries related to Foreign Exchange Policy Notices at Bank Negara Malaysia?

Any enquiries related to the Foreign Exchange Policy (FEP) may be directed to Bank Negara Malaysia by completing and submitting an online Enquiry Form via their FEP Public Portal i.e.

https://fep.bnm.gov.my/fep-pub/online-enquiry-form