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Malaysia central bank states Forex is illegal

  • #381
  • Sep 9, 2014 11:41am Sep 9, 2014 11:41am
Thank you for the considerate reply again.

( I have finish reading the entire thread )

Ok first of all I do agree with you 'they' can do anything as they please because we live in bolehland.

Secondly I wasn't trying to be cocky, to flaunt wealth to anyone by transfering large amount of money back to malaysia. But like you said I can just declare "withdrawal of deposits from foreign financial institutions" . But what if they further question on what financial institution? what is the nature of the financial institution do and so on and so forth. How am I going to answer? That is how I derived from instead of lying why dont just declare it truthfully because its legal. Please continue advice me on this matter.

Thirdly Where is the standard to measure when is an individual will raised a red flagged? To a hedge fund managing billion dollar a million is nothing. Likewise for commoner like us sending 10 or 20 dollar a day , or few thousands a month is nth. To a people handling 10s of million dollar bank in 100k dollar is nth. Different people have different status have different money value to each of them. So again you worked and trade for the bank in the past, you know what value and amount that will raise red flagged.

You did mention in one of your post that the limits are below RM 10k. so its RM10k a month? RM10k a week? or RM10k per day? Please advice !

Thank you for sharing your experience with us.
Read the entire market, money is made on the main trend not the fluctuation
  • #382
  • Sep 9, 2014 12:51pm Sep 9, 2014 12:51pm
Quoting Kofmaster
Thank you for the considerate reply again. ( I have finish reading the entire thread ) Ok first of all I do agree with you 'they' can do anything as they please because we live in bolehland.
To keep the discussion on this thread focused, I must ask that you keep your political opinions private as much as possible and stick to the facts. Exchange control laws are similar in most modern economies even in so-called "free" countries like the United States. Even in the US, significant flows have to be declared. And the SOP for redflagging is also similar if not even worse in the US, especially after 9-11. I happen to agree with and support the exchange control laws of my country which serves to protect the ringgit from speculators and from being a medium for money launderers. If you cannot respect the laws of the country whose currency you choose to measure your wealth, then please at least keep your "bolehland" remarks to yourself.

Sorry to be blunt, but we're not in kindergarten.

Quoting Kofmaster
Secondly I wasn't trying to be cocky, to flaunt wealth to anyone by transfering large amount of money back to malaysia. But like you said I can just declare "withdrawal of deposits from foreign financial institutions" . But what if they further question on what financial institution? what is the nature of the financial institution do and so on and so forth. How am I going to answer? That is how I derived from instead of lying why dont just declare it truthfully because its legal.
"They" are not going to ask you anything. They just give you a standard BNM form to fill in. If there's a field for "Name of Financial Institution", just fill in the name of your broker leh. I wouldn't know because my inward funds have always been below the reporting threshold and if I wanted to withdraw more, I just use my foreign debit card. No big deal.

If you're really concerned, open bank accounts in the country where your brokers are located and have your brokers wire your money there. Thereafter, you can wire it back home from that overseas bank account. Even better.

Quoting Kofmaster
Thirdly Where is the standard to measure when is an individual will raised a red flagged?
If you were never classified by your Bank internally as a high net worth individual before this, and then all of a sudden you come into a lot of money, that's a red flag example right there. Please Google "Know your customer".

Quoting Kofmaster
To a hedge fund managing billion dollar a million is nothing. Likewise for commoner like us sending 10 or 20 dollar a day , or few thousands a month is nth. To a people handling 10s of million dollar bank in 100k dollar is nth. Different people have different status have different money value to each of them.
I don't think hedge funds funnel money thru conventional banking systems, mate. They have offshore tax havens to store their money. (If you're smart, you would also incorporate in an offshore haven and keep your money there instead of repatriating the funds home. )

Quoting Kofmaster
So again you worked and trade for the bank in the past, you know what value and amount that will raise red flagged. You did mention in one of your post that the limits are below RM 10k. so its RM10k a month? RM10k a week? or RM10k per day? Please advice ! Thank you for sharing your experience with us.
It's per transaction AFAIK.

There used to be one single threshold... now it seems different banks have slight differences. Agent banks of Bank Negara (i.e. the banks that execute trades on behalf of BNM, such as HSBC, RHB, Maybank etc) would probably have lower thresholds i.e. more strict. You're gonna have to do your own research for that information.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #383
  • Sep 10, 2014 2:07am Sep 10, 2014 2:07am
Skenobi,



Are you a preferred customer of the bank or do you have any discount rate with them? I'm curious as the service fee for 20+ transaction will be a lot.

Quote
If you're really concerned, open bank accounts in the country where your brokers are located and have your brokers wire your money there. Thereafter, you can wire it back home from that overseas bank account. Even better.

Say that I have a bank account in SG (broker in SG), transferring money from SG to MY will not raise any red flag as both account belongs to me. Is that the reason why transferring from bank to bank is better?

Thank you very much.

Kenny
  • #384
  • Sep 10, 2014 7:58am Sep 10, 2014 7:58am
Quoting ken.b
Skenobi, Are you a preferred customer of the bank or do you have any discount rate with them? I'm curious as the service fee for 20+ transaction will be a lot.
If you made enough money to have to break it into 20+ transactions, the transfer fees would be the LEAST of your problems, don't you think so?

If I were you, I would be more worried if my edge will still work to allow me to continue to make as much money as before as the market changes shape, instead of worrying about the transfer fees.

To use the Malaysian vernacular: "Make money first, and then you can talk cock"

To answer your first question, No. I am not a preferred customer, nor do I even want to be. Preferred customer status is probably required by people who care so much about status/showing off or people who require more timely service for various other reasons. As you can guess from my prior posts, I'm not one of those people.

Quoting ken.b
Say that I have a bank account in SG (broker in SG), transferring money from SG to MY will not raise any red flag as both account belongs to me. Is that the reason why transferring from bank to bank is better?
To clarify: When I said "even better" in my last post, I meant "even better" from the perspective of not worrying what to write when filling in BNM forms. For me personally, I don't see why it should make any difference. But if it makes you comfortable, by all means open a bank account overseas.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #385
  • Sep 15, 2014 10:03pm Sep 15, 2014 10:03pm
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Sorry to barge in your lively discussion guys. But there is a guy in facebook claiming Retail Fx is completely legal now and quotes a BNM source as confirmation. What do you guys think?

This is his FB posting;
Quote
Hi, I'm Bryan

I'm doing Foreign Exchange Market in Malaysia
Our partner is IronFX and We are the Affiliate Company for IronFX
We are the first Legal FX Company in Malaysia.
Is Forex Legal in Malaysia? Yes, Since 4 years ago BNM(Bank Negara Malaysia) has announced
Foreign Electronic Brokers Allowed to Offer Electronic Broking Platforms in the Malaysian Foreign Exchange Market, Friday 25 June 2010 http://www.bnm.gov.my/index.php?ch=e...ss_all&ac=2076
I have seen the enemy, and it is me.
  • #386
  • Sep 15, 2014 10:35pm Sep 15, 2014 10:35pm
Quoting Jey
Sorry to barge in your lively discussion guys. But there is a guy in facebook claiming Retail Fx is completely legal now and quotes a BNM source as confirmation. What do you guys think? This is his FB posting; {quote}
I have answered this before on this thread, in fact.

To quote, " that foreign electronic brokers would be allowed to offer electronic broking platforms for wholesale interbank trading in the Malaysian foreign exchange market with effect from 1 July 2010."

The BNM statement refers to "WHOLESALE INTERBANK TRADING" (i.e. bank traders trading for licensed Banks that are locally incorporated in Malaysia) NOT "retail trading".

Retail forex trading IS legal in Malaysia BUT NOT FOR THE REASONS STATED BY THAT IRONFX IB.

PLEASE DO NOT BE FOOLED BY SUCH MISLEADING MARKETING.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #387
  • Sep 15, 2014 10:59pm Sep 15, 2014 10:59pm
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Your right skenobi. That is downright misleading marketing.
I have seen the enemy, and it is me.
  • #388
  • Sep 15, 2014 11:32pm Sep 15, 2014 11:32pm
Quoting skenobi
{quote} I have answered this before on this thread, in fact. To quote, " that foreign electronic brokers would be allowed to offer electronic broking platforms for wholesale interbank trading in the Malaysian foreign exchange market with effect from 1 July 2010." The BNM statement refers to "WHOLESALE INTERBANK TRADING" (i.e. bank traders trading for licensed Banks that are locally incorporated in Malaysia) NOT "retail trading". Retail forex trading IS legal in Malaysia BUT NOT FOR THE REASONS STATED BY THAT IRONFX IB. PLEASE DO NOT BE FOOLED BY...



No one Can Banned the forex, Because of the World Globalization in 1990's ,Almost of the countries sign in the Treat,if any one of the country misguide or prohibited the Speculative markets especially Forex ,it will more & more Aggressive to spread out the whole country through the loop holes !
  • #389
  • Sep 16, 2014 12:15am Sep 16, 2014 12:15am
Can not trade in Malaysia?
Go to my country or maybe Singpore...

(this ain't no marketing pitch whatsoever)
i worshipped... Momentum
  • #390
  • Sep 21, 2014 7:19pm Sep 21, 2014 7:19pm
Currency 'fund' that cost me £50,000

Another story about stupid forex noobs.

Lesson: Trade for yourself. DON'T ask people to trade for you. DON'T trade for other people. If you're too lazy, then ALL financial markets (not just forex) are not suitable for you. Please stick to lumping money in mutual funds as nature intended for you.

When your "money making machine" breaks down, please don't go complaining to the government and spoil it for the rest of us. Don't be a crybaby nancyboy.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #391
  • Sep 27, 2014 1:10pm Sep 27, 2014 1:10pm
damn. atleast i know where i would be living ! Bank Negara Malaysia should come out of stone age
  • #392
  • Oct 27, 2014 9:08am Oct 27, 2014 9:08am
New regulatory Financial Service Act 2013
http://www.bnm.gov.my/index.php?ch=e...lation&lang=en
http://www.bnm.gov.my/documents/act/en_fsa.pdf

FEA Rules
Read page 3, section 2.4
http://www.bnm.gov.my/microsites/fxa..._Residents.pdf

FAQ
Read page 10, item 1 - 3
http://www.bnm.gov.my/microsites/fxa..._Residents.pdf
  • #393
  • Oct 27, 2014 9:51am Oct 27, 2014 9:51am
Quoting victoryong
New regulatory Financial Service Act 2013 http://www.bnm.gov.my/index.php?ch=e...lation&lang=en http://www.bnm.gov.my/documents/act/en_fsa.pdf FEA Rules Read page 3, section 2.4 http://www.bnm.gov.my/microsites/fxa..._Residents.pdf FAQ Read page 10, item 1 - 3 http://www.bnm.gov.my/microsites/fxa..._Residents.pdf
Hopefully you have read those links and not just simply posting for the sake of posting.

For the benefit of the subscribers of this thread, may we know if you really understood what's said in those links you posted, and what final conclusions you have arrived at?

Or if you have any concerns you want addressed?
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #394
  • Oct 27, 2014 10:34am Oct 27, 2014 10:34am
I just read and unfortunately, BNM declared FX Trading as illegal. FX trading is only legal if we trade using onshore bank.

How are we, making full time income as fx trader do the accounting?
What are my source of income? I cannot declare fx trading.

Hmm, what can we do pals?
  • #395
  • Oct 27, 2014 7:16pm Oct 27, 2014 7:16pm
Quoting vitorbarbosa
I just read and unfortunately, BNM declared FX Trading as illegal. FX trading is only legal if we trade using onshore bank.
You're absolutely RIGHT..... if you're talking about trading foreign CURRENCY cash (which is what authorised onshore Banks do).

RETAIL FX trading in Malaysia (which is 1. trading on NOTIONAL amounts but not REAL and 2. trading on LEVERAGE with your OWN MONEY offshore using PROPER RULES) is totally different.

It appears you don't understand the difference. I recommend you read this thread from start to finish, read the WRONG opinions and then read the CORRECT opinion (usually written by me).

It's only 20 pages.

Quoting vitorbarbosa
How are we, making full time income as fx trader do the accounting? What are my source of income? I cannot declare fx trading. Hmm, what can we do pals?
Focus on making money first, sir.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #396
  • Oct 27, 2014 9:06pm Oct 27, 2014 9:06pm
Quoting skenobi
{quote} You're absolutely RIGHT..... if you're talking about trading foreign CURRENCY cash (which is what authorised onshore Banks do). RETAIL FX trading in Malaysia (which is 1. trading on NOTIONAL amounts but not REAL and 2. trading on LEVERAGE with your OWN MONEY offshore using PROPER RULES) is totally different. It appears you don't understand the difference. I recommend you read this thread from start to finish, read the WRONG opinions and then read the CORRECT opinion (usually written by me). It's only 20 pages. {quote} Focus on making...
It's really a blessing to have you here to clarify things for fellow Malaysian traders. Thanks alot bud.

Chao
Knowing is not enough; we must apply. Willing is not enough; we must do.
  • #397
  • Oct 27, 2014 9:06pm Oct 27, 2014 9:06pm
Thank you Skenobi. Appreciate your explanation.
  • #398
  • Oct 29, 2014 1:58pm Oct 29, 2014 1:58pm
A little contribution.

https://www.facebook.com/bnm.officia...51062724919872
  • #399
  • Edited 8:40pm Oct 29, 2014 6:01pm | Edited 8:40pm
Quoting superblack
A little contribution. https://www.facebook.com/bnm.officia...51062724919872
Thanks for your contribution.

For the sake of discussion, may we know what is your understanding from your "contribution"?

(By the way, please refer to my last reply to you in this very thread regarding the issue referred to in your "contribution.")

However, if you still feel trading retail FX (on margin with offshore brokers while in Malaysia) is illegal, I wholeheartedly invite you to trade elsewhere to help put your mind at ease.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #400
  • Oct 30, 2014 5:54am Oct 30, 2014 5:54am
Quoting skenobi
{quote} Thanks for your contribution. For the sake of discussion, may we know what is your understanding from your "contribution"? (By the way, please refer to my last reply to you in this very thread regarding the issue referred to in your "contribution.") However, if you still feel trading retail FX (on margin with offshore brokers while in Malaysia) is illegal, I wholeheartedly invite you to trade elsewhere to help put your mind at ease.
Based on the article from the site, I understood that it is illegal to trade Forex. But it didn't state as to whether it is the form of cash, instruments, etc. They did not specify that. To be honest, I am not 100% convinced. Maybe you are right, what BNM meant about Forex trading is in the cash form, but I just wanted to be on the safe side. As for now, I am going for other markets, and at least not remitting large Forex withdrawals to Malaysia.
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