Notification to Clients on Foreign Exchange Administration (“FEA”) Rules

The FEA Rules are a set of rules to support the overall macroeconomic objective of safeguarding balance of payment and safeguarding the value of ringgit Malaysia. The FEA Rules are administered under the Financial Services Act 2013 and Islamic Financial Services Act 2013.

The FEA Rules applies to both Residents, [1] dealing in foreign currencies and Non-Residents, [2] dealing in Malaysian Ringgit, in Malaysia. In this respect, should there be a change in your residency status, i.e. nationality, permanent resident status (whether in or outside Malaysia) and/or domicile, from a Resident to a Non-Resident or vice versa, it is your responsibility as the customer to inform Kenanga Investment Bank Berhad and its subsidiaries (“Kenanga Group”) of this change in order for the account to be re-designated accordingly.

Besides, in the course of Kenanga Group’s periodic review of customer’s accounts, should we identify any changes in your residency status, we reserve the rights to review all the terms and conditions provided to you for your facility, if required.

You are also required to declare your domestic ringgit borrowing status (in RM or equivalent in aggregate per calendar year) prior to investing in foreign currency assets in the relevant forms. In the event, your transaction amount exceeds and is not within the applicable investment limit prescribed in the FEA Rules, BNM’s prior approval must be obtained.

As an illustration, for investment in foreign currency assets onshore and investment abroad on own account, a Resident individual/entity with domestic ringgit borrowing is allowed to convert Ringgit into foreign currency up to RM1.0 million/RM50.0 million in aggregate per calendar year, respectively, subject to the applicable requirements.

In case, your has ringgit conversion to foreign currency has exceeded the investment limit of RM1.0 million/RM50.0 million, respectively, then BNM’s prior approval must be obtained before effecting any transaction through Kenanga Group.

FEA Notices that you must pay attention to are:
Notice 1 : Dealings in Currency, Gold and other Precious Metals;
Notice 2 : Borrowing and Guarantee;
Notice 3 : Investment in Foreign Currency Assets;
Notice 4 : Payments;
Notice 5 : Security, Islamic Security, Financial Instruments or Islamic Financial Instruments;
Notice 6 : Import and Export of Currency;
Notice 7 : Export of Goods

Please refer to Bank Negara Malaysia’s website at summary of the FEA Rules applicable to Residents and Non-Residents as well as the FEA Notices, Supplementary Notices and related FAQs.

Please note that the FEA Rules and related documents may be revised from time to time and you are advised to read and understand the FEA Rules and related documents and ensure all activities performed for the accounts maintained with Kenanga Group complies with the FEA Rules at all times.

The content shared within this page is intended for informational and educational purposes only. Kenanga Group does not guarantee the accuracy, reliability or completeness of such information, nor does Kenanga Group accept any responsibility or liability whatsoever in respect of any loss or damage that you may incur by the use or reliance on such content published or posted in this page.

[1] Malaysian citizen, Malaysian citizen with a PR status of another country but resides in Malaysia, Non-Malaysian citizen with PR status in Malaysia and resides in Malaysia; or body corporate, unincorporate, head office or branch, incorporated or registered with, or approved by any authority in Malaysia

[2] Non-Malaysian citizen, Malaysian citizen with PR status abroad and resides abroad, overseas branch, subsidiary, regional office, sales office, representative office of a Resident company, embassies, consulates, high commissions, supernational, or international organization.