5-1. About Corporate Account Opening


In Malaysia, in the unlikely event that a bank goes bankrupt, in principle, up to MYR 250,000 is guaranteed for 1 company (individual) per 1 bank. In addition, even if branches are counted as 1 bank, if there are a lot of funds, it is recommended to open multiple banks and manage the fund in a distributed way.

The scope of application covers assets such as ordinary accounts, checking accounts, fixed deposit accounts, and Islamic deposit accounts. On the other hand, unit trusts and gold-related investment products are not applicable.

Payoffs are also applied to foreign currency accounts, and up to an amount equivalent to MYR 250,000 is guaranteed according to the exchange rate at that time.

Foreign currency deposits are usually deposited in a correspondent bank account opened by the bank. The correspondent account is subject to extraterritorial rights and the laws of the financial institution.

Therefore, Malaysia (including Labuan) banks have legal jurisdiction over Malaysia and Singapore banks have legal jurisdiction over Singapore.

The minimum deposit varies depending on the financial institution. Malaysian banks have a minimum deposit of around USD 10,000, and Singapore banks have a minimum deposit of around USD 30,000.

The minimum deposit amount is an account maintenance cost set by a financial institution. Depending on the financial institution, if it falls below the minimum deposit amount, a management fee may be collected or the account may be closed.

Is possible. However, since there is an extra exchange fee, we recommend that you transfer directly to the USD account if possible. For onshore accounts, there is no minimum deposit required for MYR accounts, but there is a minimum deposit for foreign currency accounts.

Therefore, as soon as payment can be confirmed in your MYR account, kindly transfer the fund to the foreign currency account as soon as possible.

When opening an account, it is common practice to have an bank statement issued by a financial institution (bank, securities company, etc.) already opened. Utility bills are also allowed.

* If written in local language, English translation is generally required.

Bank Reference is a reference letter issued by a bank.

Issued to other financial institutions to prove that the customer is maintaining the account without problems.

It is usually issued by requesting the person in charge at the branch (relationship manager).

The Source of Fund is a document used by a bank to confirm the origin of funds. Usually, "Salary", "Personal Asset", "Investment Income", etc. are generally entered.

W-8BEN is a non-resident certificate submitted to the IRS (US Tax Authority). By submitting these documents, interest on bank deposits and gains on transfers of stocks, bonds, funds, etc. will be tax-free and expected to reduce withholding on dividends.

W-8BEN is usually required to resubmit once every 3 years.

UBO is an abbreviation for "Ultimate Beneficial Owner", which is a true beneficiary. Nominee cannot be a signer in a company established using a third-party name.

Therefore, as a general rule, it is desirable that the true beneficiary be the signer (to prevent the loss of funds).

TIN is an abbreviation for "TAX Identity Number". In order to facilitate automatic exchange agreements based on common reporting standards (CRS), financial institutions in each country require all account openers to submit.

A Controlling Person is usually a shareholder who holds more than 25% of the shares.


5-2. About Outgoing transfer and Incoming transfer


ABA number is a bank number held by a US bank. When sending fund to the United States, enter "ABA NO. ○○○○○○○○○" after the branch name of the recipient's financial institution.

IBAN code is a common standard established by the European Banking Association and the International Organisation for Standardisation (ISO) for the purpose of reducing foreign remittance errors and speeding up processing.

Currently, it is mandatory to include "IBAN" and "BIC" codes in the payee account number for Euro (EUR) - denominated remittances within Europe. Although not required for foreign remittances to Europe, some European financial institutions may charge an additional fee if the code is not included. Kindly input without leaving a space in the payee's account number field.

* Since the IBAN includes the recipient's account number, it is sufficient to fill in instead of the account number.

Financial institutions (banks) in each country have their own affiliated banks and make payments using the foreign currency accounts of the affiliated banks. In this way, the bank that financial institutions use for foreign currency settlement is called "Correspondent Bank" (the account is called correspondent account).

Financial institutions that deal with foreign exchange have signed correspondent contracts with banks around the world, and have them carry out exchange services for international settlement such as remittance, deposit, and bill collection. This makes it possible to transfer funds only by document (communication) without transferring fund.

If the SWIFT code of the recipient bank is specified, the sender's bank (or correspondent bank of the sender's bank) will search for the correspondent's account and transfer the fund.

However, in the above case, funds are collected through multiple correspondent banks, and in rare cases, it may cause troubles such as funds being lost on the way. It is common to specify a correspondent account from time to time.

Exchange fees are expressed as the difference (spread) between TTS and TTB.

TTS is an abbreviation for "Telegraphic Transfer Selling rate", the rate at which banks sell foreign currency to customers (the rate at which customers buy), TTB is "Telegraphic Transfer Buying rate", which is the rate at which a bank buys foreign currency from customers (the rate at which customers sell). The midprice between TTS and TTB is the TTM (Telegraphic Transfer Middle rate), which is the reference rate for foreign exchange. The difference from this TTM rate is the bank's profit as a foreign exchange fee.

TTS and TTB are presented daily for all currencies that can be exchanged. Currency fees with a high circulation volume are cheaper, and currencies with a low circulation volume are expensive.

There is no exchange fee if you transfer fund from a USD account in USD correspondent account.

The fee collected by the bank for international remittance without exchange as described above is called "lifting charge".

A check is issued along with the checking account, and the account holders fill in the address and amount by themself and hands it to the recipient or mails it to the recipient.

When there is no funds in the account at the time of settlement, it becomes a non-delivery (Bounced Check) and a fee (interest for borrowing) is incurred. This is a convenient way to transfer account funds to rent payments or transactions.

* If your check is stolen, kindly keep it carefully as there is a risk that it will be misused if it is signed by the signer.

Bank Draft is a check issued by a bank that guarantees payment. The remittance check is issued by specifying the address, currency and amount of the check, and the client mails it to the other party.

The remittance fee varies depending on the bank that sent the fund. Other fees include "Exchange (currency) fees". These are the bank's profits.

The receiving bank may collect a commission fee, and the correspondent bank may collect a correspondent fee, which will reduce the amount received by the recipient.

By paying the fee as the source of payment (OUR), the recipient (BEN) can receive the remittance amount as it is by paying the fee in advance.

However, in the case of remittance source (OUR), even if the fee actually paid is less than the advance payment amount, you will not respond to the refund (in contrast, if the actual fee is higher, additional payment will be required).

Remittance source burden (OUR) is convenient when transferring the specified amount to the other party's account, but if you want to transfer fund to your own account, send it as a remittance destination burden (OUR) and send it slightly more in consideration of the fee, the cost may be cheaper.

Some financial institutions may collect a "receipt fee" upon receipt of remittance. The amount depends on the bank.

Some correspondent banks charge a correspondent (relay) fee for remittance procedures. If the transferred fund goes through the correspondent bank that collects the fee, the amount of money will be reduced accordingly.

Even if there is no receipt fee, if you transfer the minimum deposit amount as it is, the deposit amount will decrease by the amount of the correspondent fee, which may result in an account maintenance fee. In order to avoid this case, it is recommended that you send fund with some margin.

Indicate content that suits your purpose, such as "Initial Deposit" for initial deposits to bank accounts, "Business Service" for business transactions, and "Internal Transfer" for funds transfer within the same company. Depending on bank, you may be able to select from a list.

* Kindly select "Company Secretary Fee", "Professional Service", etc. for payment of company secretary fee to Bona Trust Corporation.

If you send or receive a certain amount of funds from/to a third party in a business transaction, or if the name of the funds transfer is insufficient, you may receive a confirmation call as a money laundering measure.

As a general rule, there is no confirmation phone call when sending or receiving fund to another account of the same company.

Due to business customs, international remittance procedures are entirely responsible for the payment from the bank side that sent the fund.

If you are unable to confirm the payment in payee account even 1 week after the transfer, you may have some trouble, so kindly ask the bank from which you sent the payment. If you specify correspondent bank, there are 2 possible causes below:-

(1) Differences in remittance destinations, funds stopped at one of the correspondent banks

Take the reorganisation procedure at the remittance bank side, return the funds to the remittance source account, and retransmit the fund again (prescribed fee will be charged for reorganisation).

(2) Although the funds have arrived at the financial institution of the recipient, the designation below "Further Credit to" is incorrect and the funds are not credited to the recipient's account

Present the copy of the remittance request form to the other financial institution, tell the fact of the remittance, and instruct them to add fund to the recipient's account.

* In order to make international remittances, it is necessary to pre-register your bank account. We recommend that you first send a small amount of fund to the registration site and make sure that you can deposit it safely. Once it succeeds, you will be able to transfer large amounts of fund with confidence since the next route will send the same route.

* Kindly be sure to print out the receipt number when sending fund instructions from internet banking. This is important evidence in case of trouble.


5-3. About Account Management


First of all, kindly make sure that it has not arrived at your bank's registered address. If you have not received it, kindly contact the bank, sign the required documents and request a reissue.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

Depending on the financial institution, if you have not logged in for a long time (usually 1 year), you may be locked for security. You will need to call customer support to have it unlocked.

* Kindly log in regularly for the purpose of checking the balance at least once in several months.

To unlock the password lock, it is necessary to have call unlock after confirming your identity by phone. Kindly be careful not to enter the password incorrectly.

Kindly contact the bank for information on battery replacement for security devices (tokens). You can get a replacement or mail a new device.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

If you have a person in charge (relationship manager), you can arrange for bank statements to be issued by contacting the person in charge.

Usually, it is quickest to bring your passport and company stamp, drop in at the nearest branch and ask for a reissue, usually it will be issued on the spot.

If you notify the financial institution of unauthorised use, the funds will be refunded in principle.

Depending on the financial institution, you will be contacted by a bank and a new PIN will be sent. You can use it by initialising with the PIN received at ATM and changing the PIN.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

When the expiration date approaches, a new card will be sent to the registered address.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

Annual Review Form is a document that allows the bank to keep up-to-date with its clients. Kindly fill in the required items, sign and mail the original to the bank.

FATCA / CRS Form (name varies depend on bank) is a document that allows the bank to know the country of the client's tax residence. Kindly fill in the required items, sign and mail the original to the bank.