28 July 2020
On 30 April 2020, Bank Negara Malaysia (“BNM”) released seven new foreign exchange notices, which came into force on that day (“Foreign Exchange Notices”). The Foreign Exchange Notices replace existing notices and represent a move to refine Malaysia’s foreign exchange policies, providing greater flexibility for businesses to improve efficiency and enhance foreign exchange risk management.
The Foreign Exchange Notices are listed below:
- Preamble and Interpretation;
- Notice 1: Dealings in Currency, Gold and Other Precious Metals;
- Notice 2: Borrowing, Lending and Guarantee;
- Notice 3: Investment in Foreign Currency Asset;
- Notice 4: Payment and Receipt;
- Notice 5: Security and Financial Instrument;
- Notice 6: Import and Export of Currency; and
- Notice 7: Export of Goods.
The Foreign Exchange Notices set out approvals of BNM for transactions which are otherwise prohibited under section 214(2) read together with Schedule 14 of the Financial Services Act 2013 and section 225(2) read together with Schedule 14 of the Islamic Financial Services Act 2013, requirements, restrictions and conditions of the approvals of BNM, and directions of BNM.