The Financial Services (Requirements and Submission of Documents or Information) (Registered Business) (Amendment) Order 2021 PU (A) 351/2021 (the amendment order), which came into effect on 1 October 2021, amends Schedule 1(1) to the Financial Services (Requirements and Submission of Documents or Information) (Registered Business) Order 2013.
Pursuant to the amendment order, an applicant that is not a financial institution regulated by Bank Negara Malaysia is required to have a minimum capital funds of:
- 300,000 ringgit if the actual or projected amount of the average monthly transaction value is less than 10 million ringgit; and
- 1 million ringgit if the actual or projected amount of the average monthly transaction value is more than 10 million ringgit.
The "average monthly transaction value" refers to the calculation of:
- the actual amount, which is calculated based on a 12-month moving average; and
- the projected amount, which is calculated based on an estimation of the average monthly amount for a period of 12 months in the future.
The amendment order affects institutions that intend to apply to be registered to provide merchant acquiring services under the Financial Services Act 2013.
For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.