On Dec. 9, LBN FSA proposed revised guide re compliance functions.
LBN FSA issued draft revised guidelines on compliance functions for financial institutions (FIs), aiming to strengthen compliance culture in Labuan FIs, as well as strengthen internal controls and ensure independence of compliance functions.
Enhances scope to cover Labuan International Business and Financial Center sectors.
Overview of Revisions
Applicable to licensed entities including banks, insurers, fund managers, trust companies and securities licensees; institutions must establish independent compliance function with adequate resources; added compliance officers requirements.
Namely, officers must have a minimum of two years of relevant industry experience.
Clear separation required between compliance and internal audit functions, and regular compliance reporting to the company board and senior management will be required.
Compliance manual with clear policies and procedures required; regular compliance reviews and risk assessments to be conducted; annual training programs for compliance staff mandatory; detailed compliance reports to be submitted to LBN FSA.
Board and Management Duties
Board must approve compliance policies and ensure function remains independent.
Senior management to implement controls and provide adequate resources; regular assessment of effectiveness, immediate reporting of material non-compliance required.
Comment Period
Consultation open until Jan. 20, 2025; guidelines tentatively take effect Jan. 1, 2026.
Regulators
LBN FSA
Entity Types
B/D; Bank; Fiduciary; IA; Ins; Inv Co
Reference
CP, 12/9/2024
Functions
Audit; Compliance; Financial; Legal; Operations; Registration/Licensing; Reporting; Risk; Training
