KUALA LUMPUR, Malaysia, Oct. 29, 2019 /PRNewswire/ -- Labuan International Business and Financial Centre Incorporated (Labuan IBFC Inc), the market development agency for Labuan International Business and Financial Centre (Labuan IBFC), and China Construction Bank Corporation Labuan Branch (CCBL), a branch of China Construction Bank Corporation, have inked a Memorandum of Understanding (MoU) to allow CCBL to promote the benefits of Labuan IBFC to Chinese and Chinese related companies, in addition to supporting the advancement of FinTech development in the jurisdiction.
"We are extremely pleased to be partnering with CCBL, part of the second largest bank in the world, providing a key enabler towards further strengthening our footprint in China and in countries which form the Belt and Road Initiative," said Farah Jaafar-Crossby, CEO of Labuan IBFC Inc. during the official launch of CCBL in Labuan.
The event was graced by the Director General of Labuan Financial Services Authority Danial Mah Abdullah and Mr Ji Zhihong, Executive Vice President of China Construction Bank.
"Over its 29 years as a midshore jurisdiction, Labuan International Business and Financial Center (LIBFC) has become well recognised by investors for its business-friendly environment that is conducive for business growth," said Mr Ji Zhihong.
CCBL is one of the 55 banks in Labuan IBFC, playing a vital role in Labuan IBFC's business ecosystem. The bank also recently obtained approval from Labuan Financial Services Authority (Labuan FSA) to conduct digital banking activities, the first bank in Malaysia to be accorded this allowance.
"Labuan IBFC's readily available structures and solutions and progressive regulatory stance makes the midshore jurisdiction an Asian domicile of choice for digital and fintech players. In fact, more than 25 digital and fintech related licensing approvals were given in 2019 including a new digital asset exchange," said Jaafar-Crossby. "With CCBL as our partner, we look forward to making more inroads into China on the fintech/digital front as well."
This MOU is seen as a key deliverable, from an earlier Regulatory linked MOU between Labuan Financial Services Authority (Labuan FSA) and China Banking and Insurance Regulatory Commission (CBIRC) aimed to foster greater cooperation between Regulators, as well as intermediaries. This Regulatory MOU also provides for supervisory oversight of cross border branches and subsidiaries of China and Labuan-based banks and insurance entities.
Labuan FSA is one handful jurisdictions with which CBRIC has signed such an agreement with, an accolade and recognition for Labuan FSA and Labuan IBFC, providing for a more seamless and facilitative cross recognition for licensed entities in both jurisdictions.
As Malaysia's foreign wholesale financial intermediation centre, Labuan IBFC is a known jurisdiction to Chinese entities that have grown to appreciate as a special zone that facilitates international cross-border trades, investments, risk management and financing as well as asset and wealth management. Currently Labuan IBFC is home to close to 300 companies (out of which 35 are licensed entities) directly originating from China.
In order to facilitate more efficient transactions, cost-effective real-time settlement of renminbi-denominated transactions with financial institutions and entities in Labuan IBFC is possible, as is the incorporation of Labuan international business companies with Chinese based name and articles of associations in Mandarin.
For more information on Labuan IBFC, please refer to www.labuanibfc.com.
ABOUT LABUAN IBFC
ASIA PACIFIC'S MIDSHORE INTERNATIONAL BUSINESS AND FINANCIAL CENTRE
Labuan International Business and Financial Centre (Labuan IBFC), Malaysia, through its internationally recognised yet business-friendly legal framework, is the preferred international business and financial centre in the Asia Pacific region.
It offers global investors and businesses the benefits of being in a well-regulated jurisdiction, while providing for fiscal neutrality and certainty, in addition to being an ideal location for substance creation.
Labuan IBFC boasts a wide range of business structures and investment solutions catered to cross-border transactions and international business dealings. It offers services and solutions in niches such as asset leasing, risk management, commodity trading, wealth management, international business companies and Islamic financial services to global businesses looking at penetrating Asia and Asian entities aiming to go global.
Labuan IBFC operates within clear and comprehensive legal provisions, guidelines and practice notes, enforced by a single regulator, Labuan Financial Services Authority.
To keep up with everything about Labuan IBFC, follow Twitter or Facebook @LabuanIBFC. Alternatively, visit www.labuanibfc.com
ABOUT CCB Labuan
China Construction Bank Corporation Labuan Branch ("CCBL") is a Tier-1 branch of China Construction Bank Corporation ("CCB") registered in the Labuan IBFC, Malaysia. CCBL has been granted a Labuan banking business licence by the Labuan FSA on June 20, 2019 pursuant to section 92 of the Labuan Financial Services and Securities Act 2010 and commenced operations on September 3, 2019. Labuan FSA has further approved CCBL to be the first digital bank and appointed CCBL as the designated RMB clearing bank in Labuan IBFC.
CCBL provides comprehensive wholesale, retail and digital banking services, mainly serving the "Belt and Road" and "Western Land & Sea New Channel" initiatives including large-scale bilateral trade, investment and infrastructure projects. CCBL's customers will be able to enjoy comprehensive financial services such as financial advisory, global credit financing, global cash management, global financial market, aircraft and real estate leasing, investment banking, trade financing and foreign exchange management. In addition, CCBL will also provide financial technology solutions for smart government, smart industry park, smart university campus, smart hospital, smart transportation and smart business.
CCB headquartered in Beijing, is a leading joint stock large-scale commercial bank in China. Its predecessor, China Construction Bank, was established in October 1954. It was listed on Hong Kong Stock Exchange in October 2005 and the Shanghai Stock Exchange in September 2007 . At the end of 2018, the Bank's market capitalisation reached US$207,179 million, ranking fifth among all listed banks in the world. The Group ranks second among global banks in terms of Tier 1 capital.
Photo - https://photos.prnasia.com/prnh/20191029/2625115-1?lang=0
