General Overview. Labuan positioned itself as an offshore financial center in the beginning of 90ies of the XX century and became a centre of Islamic and conventional finance. A wide range of offshore financial services is provided from the jurisdiction. Financial services are well regulated in the jurisdiction by local financial authorities.

Banking Sector. An offshore company or a foreign corporate entity may conduct offshore banking business from Labuan. Such a company must obtain a banking license by submitting all the necessary information to the local authorities. It must also demonstrate that it has a guaranteed minimal required capital and all the audited accounts of such an offshore bank must be submitted on the annual basis. An offshore bank is authorized to provide a wide range of offshore banking services to international clients.

Fund Management. A license must be obtained by an offshore fund manager, in order to conduct investment business, and a specified minimal capita must be paid up.

Trust Management. Labuan has strong privacy laws, and a trust company must obtain authorization for providing trustee services. It must adhere to all the outlined regulations and have a specified minimal capital. Such a trustee company provides a wide range of offshore trust services, including trustee’s or agent’s activities, management, accounting services and others.

Insurance Sector. Different types of insurance and reinsurance business may be conducted from the jurisdiction, including offshore captive insurance activities. Offshore insurance companies may provide a wide range of insurance services, generally excluding insurance of local entities. Different types of insurance licenses may be obtained, depending on every company’s intended business model.