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Important Notice:

Foreign Exchange Notices - Notice 3 (FEN - Notice 3)

15 January 2021

 

Dear Valued Cardholders,

 

Pursuant to the FEN – Notice 3 issued by Bank Negara Malaysia (BNM);

 

A.    Individual, Sole Proprietorship and General Partnership without Domestic Ringgit Borrowing

 

Resident Individual, sole proprietorship and General Partnership without Domestic Ringgit Borrowing is allowed to invest in Foreign Currency Asset up to any amount.

 

B.    Individual, Sole Proprietorship and General Partnership with Domestic Ringgit Borrowing

 

A resident individual, sole proprietorship or General Partnership with Domestic Ringgit Borrowing is allowed to invest in Foreign Currency Asset up to:

  • RM1 million equivalent in aggregate (based on the investment made by you as an individual as well as the sole proprietorship and general partnership under you) per calendar year using funds sourced from conversion of Ringgit into Foreign Currency.

 

You are advised to read and understand the FEN – Notice 3 and ensure all activities performed using your credit card for accounts maintained with CIMB Bank Berhad / CIMB Islamic Bank Berhad comply with the FEN – Notices 3 at all times.

 

For full and latest Foreign Exchange Notices, please refer to Bank Negara Malaysia’s website at https://www.bnm.gov.my/fep

 

Responsibility of the Customer to Comply with FE Notices

  • Please declare (i) your Domestic Ringgit borrowing status and (ii) investment status, before you invest in foreign currency;
  • Obtain BNM’s approval if your transaction does NOT meet the permitted sources and uses of funds and the allowable limits listed above;
  • You may submit your application online via BNM’s Foreign Exchange Policy website at https://www.bnm.gov.my/submission-of-application-and-report

 

Definition:

 

Borrowing;

Any utilised or unutilised credit facility or financing facility, redeemable preference share, Islamic redeemable preference share, Corporate Bond or Sukuk, excluding;

  • a credit facility or financing facility obtained by a Resident Individual from a Resident to purchase one (1) residential property and one (1) vehicle; or
  • a credit card and charge card facility obtained by a Resident Individual from a Resident.

 

Domestic Ringgit Borrowing;

  • any Borrowing in Ringgit obtained by a Resident from another Resident; or
  • any obligation considered or deemed as Domestic Ringgit Borrowing under any of the FE Notices.

 

Investment in Foreign Currency Asset (FCY Asset);

Includes FCY Asset Onshore and Offshore. For full definition, please refer to the link given above.

 

Some common types of FCY Asset investment stated below for reference.

  • deposit in FCY account outside Malaysia (other than for education, employment or migration outside Malaysia);
  • deposit in Investment FCY onshore with CIMB Malaysia;
  • investing in foreign currency denominated securities onshore with CIMB Malaysia;

 

Thank you.

 

The Management

CIMB Bank Berhad [197201001799 (13491-P)]

CIMB Islamic Bank Berhad [200401032872 (671380-H)]