An offshore Labuan bank account can be useful in various situations. Companies involved in large transactions across international borders benefit from this type of account. They must have such transactions on a large scale to apply for this account and benefit from it. Banking transactions involving this account can be carried out by email, phone, fax or other online methods. Internet banking has made it easy to operate such an account from anywhere in the world.
Banks in Labuan are regulated under special FSA rules. They are subject to scrutiny by Malaysian finance ministry. Offshore accounts in Labuan are popular among expatriates living in Malaysia as well as Malaysians who prefer international banking through this banking method. There are several reasons businesses prefer a Labuan offshore account. A local account can be frozen if the account holder makes certain mistakes. The offshore account is free from social and political uncertainty of the country. There is no restriction on capital flow.