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Obtaining a Payment Institution license in Malaysia

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Obtaining a PI-license in Malaysia in 2020

Benefits of obtaining a license in this jurisdiction:

  • A promising developing country;
  • The interest of the government in attracting innovation projects;
  • Favorable business environment;
  • The opportunity of obtaining a license within a relatively short period.
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Following the adoption of the FSA and the IFSA, which came into force in Malaysia in 2013, all individuals who intend to establish a payment system must, in accordance with Section 11 of the FSA and Section 11 of the IFSA, obtain a license for payment services in Malaysia. This license is issued by Bank Negara Malaysia (BNM).

Further, in the article, we will talk about the features of obtaining a payment institution license in Malaysia, determine the main requirements and other key points.

The process of obtaining a PI license in Malaysia

There is a prescribed application form which must be filled out by a person applying for a payment system license in Malaysia. Also, there is a certain list of documents that must be submitted to BNM along with the application.

At the beginning of the company licensing process, it is necessary to understand that there is no specific deadlines for considering the application by the central bank. The reason here lies in the difference in the quality of the information provided by the applicants. Therefore, you can never be sure how much time exactly it will take to consider an application for a PI license in Malaysia.

The only thing that can be noted is the relation between the quality of the submitted information and the working speed of the regulator. That is, the more complete the package of documents originally submitted with the application, the faster the verification process. At the same time, we must not forget that the central bank will probably ask questions and request additional documents.

Applying to the BNM for a PI license

The company applying for obtaining a payment service provider license in Malaysia must submit an application in written form to the BNM, and along with a cover letter attach the package of documents required for ordering a PI license, which, among other things, include:

  • AOA and Memorandum of Association;
  • A detailed business plan, including the reasonable description of a payment system proposed for licensing;
  • Analysis of the payment system and its value propositions;
  • A detailed description of the payment system, including a description of the payments flow;
  • Description of corporate structure and global strategy;
  • A description of the details of the internal control system, and compliance procedures with the FSA or IFSA, as well as the regulations and guidelines and other documents issued by BNM, including AML/CFT laws;
  • Information and supporting documents:
  1. names, addresses and ID cards of directors;
  2. biographical data of senior management;
  3. evidence that senior management has the appropriate qualifications and experience needed to manage a licensed business.
  • Address of registered office.

Also, the company applying for obtaining a PI license in Malaysia, must provide the information and supporting documents regarding:

  1. Rules and procedures establishing the rights and liabilities of the applicant and clients of payment institution, including the conditions and procedure for resolving disputes;
  2. Measures to ensure the safety and operational reliability of the system, including a plan to ensure its survivability, as well as a system recovery strategy and location of an alternative system site;
  3. Description of security procedures and its implementation.

You can find a complete list of the necessary documentation in the Requirements for the application for obtaining a Malaysian PI license.

Read also:

Those, who intend to order a payment system license in Malaysia must submit a document confirming certification by a qualified Sharia adviser for compliance of the payment system with Sharia standards.

The minimum required capital is 100,000 MYR (about 23,000 EUR).


This article is published for informational purposes. It is not legal advice, and should not be construed as recommendations or a call for specific action. If you need to understand how to properly resolve the issue of licensing a payment system in Malaysia, then it would be advisable to contact qualified lawyers.

Please, note that IQD Consulting experts provide legal advice on obtaining a license for payment system in Malaysia, are ready to help you determine the next steps on the way of licensing your business, and also offer:

  • Legal assistance in drawing up an application for a Malaysian PI license;
  • Assistance in a business plan preparation for a Malaysian company;
  • Assistance in collecting a package of documents;
  • Legal support at all stages of obtaining a PI license in Malaysia;
  • Support in opening a corporate bank account.

To find out detailed information about our company’s services, or to order legal advice on obtaining a license for electronic payment services in Malaysia, fill out the feedback form, or call us directly at the contacts listed below.

  • The information outlined in the article is actual at the time of its publication.
  • Please refer to our specialists for checking possible solutions for your business.
  • Still have any questions?

    Fill out the form or contact us as you find convenient. Our experts will help you resolve the issue.

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