NOTICE: Wholesale Clients: Commercial Banking and Global Banking

General enquiries

5 December 2016

In light of the recent strategy to broaden and deepen the Malaysian financial markets, by the Financial Markets Committee, in collaboration with Bank Negara Malaysia (BNM) on 2 December 2016, HSBC would like to inform you of the changes and potential impact in the way you transact with HSBC effective 5 December 2016.

Customers must read the guidance issued by the Financial Markets Committee and Bank Negara Malaysia to understand the implications for themselves. Details of the announcement can also be found in the statement and FAQs issued by BNM and is available on BNM’s website.

Please find the URL links below:
Statement: http://www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=4316&lang=en
FAQs: http://www.bnm.gov.my/documents/2016/faq_initiative_onshore_financial_market.pdf

Actions that will be implemented by HSBC in light of its understanding of the announcement are as follows:

All EXPORTERS:

Trade Foreign Currency Account (FCA)

  • Exporters active FCAs with the bank will be treated immediately as a Trade FCA. In the event that Exporters consider this account should be otherwise designated, Exporters should contact their Relationship Manager.

Investment Foreign Currency Account (FCA)

  • To align our clients with Bank Negara guidance to have a separate Trade FCA and Investment FCA we will proceed to open a new FCA for Exporters. The new FCA will be designated as an Investment FCA and it will be opened by the bank as soon as practically possible. The priority of opening of such accounts will be based on HSBC’s internal selection for Exporters having active FCAs. Exporters with an urgent requirement for such account should contact their Relationship Manager.

RESIDENT EXPORTERS:

New Local Currency Account

  • For Resident Exporters that have an active FCA,
  • To align our clients with Bank Negara guidance to open a new local currency account – Special Deposit Facility (SDF) we will proceed to open a new SDF account as soon as practically possible. The priority of opening of such accounts will be based on HSBC’s internal selection for Exporters having active FCAs. Exporters with an urgent requirement for such account should contact their Relationship Manager.
  • The SDF will earn you a higher rate of return at 3.25% p.a. on end of day balances. This facility will be offered until 31 December 2017 subject to further review by BNM. Customers are expected to communicate to the bank the quantum of foreign currency conversion (from exports proceeds of goods) they intend to be credited to their SDF account once the SDF account is operational.

If you do not wish to proceed with these additional Investment FCA and SDF account/s being opened by the bank kindly contact your Relationship Manager.

Please also take note that there may be instances where HSBC may be required to make additional queries on your transactions for clarity. We will reach out to you in due course if needed.

In the interim, we would request you to please take note of the following:

  • Kindly advise your point of contact (Relationship Manager / Client Services) of any incoming Foreign Currency transaction you are receiving.
  • Please request your buyers/remitters to clearly indicate in the payment instructions – the ‘Purpose of Payment’ and if the transaction is specific to payment for ‘Goods’ OR ‘Services’. This is of importance as it impacts the conversion of 75% of the value of the transaction (i.e. goods export proceeds) into Malaysian Ringgit.
  • In instances where the ‘Purpose of Payment’ is not present in the inward Telegraphic Transfer, the bank will hold the transaction and seek confirmation from the remitting bank.
  • For Outward payments – please note that Foreign Currency transfers between Resident to Resident will no longer be allowed. Such transactions will require approval from Bank Negara Malaysia. However, Residents may transfer Foreign Currency between their own accounts with other onshore banks.

Should you have further enquiries or need additional information please contact your respective client servicing contact for Trade, Cash Management and Treasury Sales, and/ or your Relationship Manager.

Alternatively, if you have any additional enquiries on the above, please feel free to contact Bank Negara Malaysia: 03-2698 6089, 03-2692 8736, 03-2691 6473, 03-2691 3164 or 03-2693 0772 (Monday to Friday from 9 a.m. to 5 p.m.; Saturday and Sunday from 9 a.m. to 1 p.m.) or email infofmc@bnm.gov.my.

Thank you.

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