In a keynote address at the Strategic Board Dialogue on Governance, Trust and Resilience Across Borders, Labuan Financial Services Authority Director-General Affendi Rashdi emphasized that international financial centres should be judged by effective governance, resilience and responsible innovation rather than institutional size. For Labuan International Business and Financial Centre, this means applying internationally credible standards in a manner proportionate to each institution’s business model, structure and risk profile. The authority’s supervisory approach focuses on clear board and senior management accountability, effective control functions, reliable reporting and escalation, and oversight of cross-border, operational, technology and compliance risks. Existing safeguards include the Four-Eyes policy, direct escalation by key control functions to relevant group oversight functions and clear expectations for staff holding multiple roles. Affendi also stressed that digital innovation, including tokenization, virtual assets, stablecoins and unhosted wallets, must remain within a defined regulatory perimeter supported by appropriate licensing, risk management, anti-money laundering and counterterrorist financing controls, cybersecurity safeguards and market conduct standards.
2026-09-08Labuan Financial Services Authority
Labuan Financial Services Authority emphasizes proportionate governance and regulated innovation for international financial centres
Labuan Financial Services Authority Director-General Affendi Rashdi emphasized proportionate, outcome-focused governance for financial institutions operating across borders. He said innovation should remain within a defined regulatory perimeter backed by board oversight, effective controls, cybersecurity and anti-money laundering safeguards.