Foreign Exchange Policy Notice 3 & 4

A lawyer firm approaches branch for account opening on behalf of their client. Their client is ABC Private Limited (Singapore). What is the NRA code to be tagged for this account?

• N

• Y

• B

XYZ Private Limited, approaches branch for account opening. Customer provides the required information and the attending officer noticed that this company has obtained the approval from Ministry of International Trade & Industry (MITI) to set up a representative office in Malaysia.

What is the NRA code to be tagged for this account?

• B

• N

• Y

Customer X - Father (Malaysian)

Customer Y - Mother (US person)

Minor Z - Son (US person)

Three of them approach branch for account opening - joint account.

What is the NRA code to be tagged for this account?

• N

• Y

• B

Customer A - Husband (China), participates under MM2H programme [MM2H Visit Pass (Social)]

Customer B - Wife (China) - does not participate under MM2H programme

Both of them approach branch to open a joint account.

What is the NRA code to be tagged for this account?

• B

• N

• Y

Customer C, Non-resident approaches branch to open account for salary purpose and advices he is in the midst of applying for work permit.

Can branch open the account without work permit?

• Yes, NRA: Y

• Yes, NRA: B

• No, branch can only open account once customer obtain the work permit

Mr George, a non-resident individual who wants to perform a remittance transaction of RM20k for the purpose of gift payment to his brother-in-law, a resident individual. Can we proceed with the transaction?

*Mr George has maintained both RM account and FCA account with bank.

• Yes. Proceed to debit his RM account as instructed

• Yes. Proceed to perform the transaction by way of debiting his FCA account equivalent to RM20k

• No. Non-Resident individual is not allowed to make payment in Ringgit or Foreign currency to his brother-in-law, a resident individual (Non Immediate Family members)

• I & II

Mr Peter, a non-resident would like to make a fund transfer of RM2million from his external account to his son's external account. What should the attending staff advice the customer?

• No. Non-Resident is not allowed to deal in Ringgit with another Non-Resident.

• Yes. The transfer of funds between non-resident who are immediate family members (spouse, parents, children and siblings) is allowed.

• Yes. However approval from BNM is obtained

• None of the above

Mdm Jennifer, non resident would like to convert RM300k from her RM account to her investment AUD FCA account and thereafter to make a transfer of AUD50,000 to her daughter, Agnes, who is a non-resident working in Australia. Purpose of this payment is for her investment in real estate in Australia.

Can branch proceed with the transaction? Why?

• Yes. Branch can do a conversion of RM to AUD and thereafter to remit the AUD 50,000 to Agnes who is a non-resident. A non-resident is free to deal in foreign currency with another non-resident

• Yes. Bank can do a conversion of RM to AUD and thereafter to remit the AUD 50,000 to Agnes who is a daughter of Mdm Jennifer. A non-resident individual is allowed to make payment in foreign currency to her non-resident immediate family member.

• A & B

• None of the above

My resident company has export earnings and also with foreign currency (FC) obligations. Can my company use the foreign currency funds to pay another Malaysian company for settlement of domestic trade?

• No. All settlement of domestic trade in goods and services between Residents shall be made only in Ringgit.

• Yes. Approval from BNM is required.

• Yes. Unless the resident company operating in the global supply chain shall provide any supporting document requested. e.g. list of resident vendors to the licensed onshore bank facilitating the FC payment based on the licensed onshore bank's due diligence process.

• B & C only

ABC Sdn Bhd, a resident exporter would like to convert RM1 million into its SGD Trade Foreign Currency Account with available balances of SGD200,000. Thereafter, to make a payment of SGD500,000 to another resident entity.

Can branch proceed with the transaction?

• No. Branch cannot proceed with the transaction of SGD500,000 due to resident exporter can only source the foreign currency payment available trade FC funds or proceeds from FC trade financing facility.

• Yes. Branch can only proceed with the available balance in its trade FC funds of SGD200,000.

• Either A or B

• None of the above