In 2013, Bank Negara Malaysia (‘BNM’) had issued Notices (“2013 Notices”) on Foreign Exchange Policy Rules (“FEP Rules”) to continue to support and enhance the competitiveness of the economy, through the creation of a more supportive and facilitative environment for trade, business and investment activities. 

FEP Notices were issued pursuant to the Financial Services Act 2013 (FSA 2013) and Islamic Financial Services Act 2013 (IFSA 2013).

EXIM Bank is governed under the Development Financial Institution Act 2002 (DFIA 2002) and is not defined as a Licensed Onshore Bank (“LOB”), as per BNM’s website. However, given the Bank’s unique business proposition, which involves dealing with residents, non-residents and the exchange of currencies, both in ringgit or foreign currencies, which is similar in nature with other LOBs, the regulatory expectations on EXIM Bank is not only to ensure compliance with FEP Rules in its day-to-day operations, but also to ensure that all customers are appropriately advised on the relevant FEP requirements.

Given the Bank’s unique business proposition involving dealing with residents and non-residents and the exchange of currency, both in ringgit or foreign currencies, which is of similar nature with other LOBs, the regulatory expectations on EXIM Bank is not only to ensure compliance with FEP Rules in its day-to-day operations, but also to ensure that all customers are appropriately advised on the relevant FEP requirements.