Bank Negara Malaysia issues Policy Document on Transfers of Business

28 July 2025

On 10 April 2025, Bank Negara Malaysia ("BNM") issued the revised Policy Document on Transfers of Business, which came into effect immediately and supersedes its previous iteration dated 5 August 2016.

The policy document applies to licensed financial institutions (that is, banks, investment banks, Islamic banks, insurers, takaful operators) as well as transferees (including non-licensed persons) involved in business transfer schemes under section 100 of the Financial Services Act 2013 and section 112 of the Islamic Financial Services Act 2013. It aims to facilitate business expediency while ensuring that business transfer schemes do not adversely affect the safety and soundness of licensed persons. The policy document outlines (a) the types of transfers that require prior written approval from BNM, and (b) the documents or information to be submitted alongside the application for approval when such approval is required.

The policy document allows any person to enter into an agreement or arrangement for a scheme to transfer the whole or part of the business of a licensed person, provided the transfer does not involve (a) a business segment or unit, (b) impaired loans or financing, (c) loans, financing or other assets that are linked to projects of strategic importance to the nation, including by way of collateralisation, (d) financial consumer services or products proposed to be transferred to a non-licensed person, (e) securitisation transactions where the underlying loans or financing are not serviced by a licensed person, and (f) assets and liabilities where the book value is at least RM1 billion.