Brunei announces new laws for international financial centre

BANDAR SERI BEGAWAN, August 24: - Brunei announced Thursday details of its new International Financial Centre, putting high priority on anti-money laundering legislation and the development of a niche market in Islamic financing.

"The legislation for the Brunei International Financial Centre has taken a little over three years to prepare," a senior Finance Ministry official said. "The time has now come when we are ready to commence our operations."

Brunei expects the centre to prove attractive to foreign institutions because of its strong legal framework and the relatively low cost of doing business.

New legislation covers international banking, business companies, trusts and limited partnerships as well as registered agents and trustees licensing, the Finance Ministry said in a statement.

Other new laws on insurance licensing and regulation as well as securities and mutual funds are to be enacted in the next few months. .

"The laws strongly resist money laundering and criminal activity. They allow us to exchange information with other countries so that we may combat crime together," the official said. "We have a strong and respected judiciary to see that the laws are enforced."

The Ministry pledged a "continuous monitoring process" to ensure that policies and laws remained in tune with changes in international finance.

Brunei also hopes to fulfill the needs of "an obvious niche market in the rapidly growing world of Islamic financing," the statement said.

"Many major conventional banks now have Islamic divisions. Syndicated bank loans that combine the resources of Islamic and conventional banks are being arranged with increasing frequency," the statement said, adding that there was also strong demand for Islamic insurance instruments. "This in itself challenges Brunei to meet the market."

"The hallmarks of a top-ranking International Financial Centre are first-class legislation and effective supervision," the official said, noting that top London counsel were involved in drafting the new laws with the Finance Ministry and the Attorney General's Chambers.

"International consultants were also engaged to ensure that the legislation is not only first class but also commercially attractive."

For more information, please contact:

Mr. Robert Miller, Head of Supervision 
Mr. Haji Ali Apong, Assistant Director 
Mr. Mohd Roselan Mohd Daud, Senior Administrative Officer 
Miss Nuralia Haji Abdul Rahim, Deputy Registrar

Phone: 673-2-224680 / 236136 / 236139 
Fax: 673-2-236141 / 235392 
E-mail: offshore@finance.gov.bn

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