The Labuan Financial Services Authority (LFSA) is the regulatory body responsible for overseeing Labuan International Business and Financial Centre (Labuan IBFC) in Malaysia. It provides a licensing framework for forex brokers, investment firms, and money brokers in a lightly regulated offshore environment distinct from mainland Malaysia.
The Labuan Financial Services Authority (LFSA) offers an offshore licensing environment for forex brokers and investment banks. While suitable for global operations targeting non-residents, LFSA’s regime offers limited investor protection and is not suitable for Malaysian clients. Always verify the license and understand the jurisdictional limitations before trading.
Issues licenses for:
- Labuan Money Brokers (spot forex, interbank currency dealing)
- Labuan Investment Banks (including margin FX services)
- Supervises AML/CFT compliance for Labuan entities
- Maintains the Labuan Financial Services Register of licensed firms
- Visit the LFSA Public Register
- Navigate to “License Holders” and select category (e.g., Money Broker)
- Confirm firm’s license status, registration number, and permitted activities
Minimum capital requirement:
- USD 500,000 for money brokers
- USD 10 million for investment banks
- AML/CFT program and annual audit obligations
- May only deal with non-Malaysian residents (retail forex is not permitted for Malaysians)
Country
Malaysia
Established
1996
Contact
+6087 591 200
Complaint bodies
Labuan Financial Services Authority (LFSA), Malaysian Financial Intelligence Unit (for AML issues)
Hotline
+6087 591 200
Complaint email
Last updated on: April 07, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.