1. The provisions of the other ECM Notices shall apply to an Approved OperationalHeadquarters(hereinafter referred to as OHQ), unless otherwise provided in this ECMNotice.
2. The Controller hereby gives permission to an OHQ, subject to the conditionsin paragraph 5, to do one or more of the following -
2.1 Open one foreign currency account or one multi-currency account with anyofthe Designated Banks to retain export proceeds in foreign currency,subject to anaggregate overnight balance equivalent to USD5 million.
2.2 Open one or more foreign currency accounts with any Designated Bank,LicensedOffshore Bank or overseas bank for crediting foreign currencyreceivables, other thanexport proceeds, with no limit on the overnightbalances.
2.3 Obtain foreign currency credit facilities of any amount from a licensed bank,licensedmerchant bank and any non-resident, provided the OHQ does noton-lend to, or raisethe funds on behalf of, any resident.
2.4 Obtain domestic credit facilities in Ringgit not exceeding RM10 million,providedthe Ringgit funds are used within Malaysia.
2.5 Extend credit facilities in Ringgit to staff, pursuant to the terms andconditionsof their service.
2.6 Extend credit facilities in foreign currency to its related companies outsideMalaysiaor to invest abroad in any form, provided -
2.6.1 The OHQ's aggregate domestic credit facilities in Ringgit does not exceedRM10 million; and
2.6.2 The payments to non-residents are made in foreign currency.
3. The prior permission of the Controller is required for an OHQ to -
3.1 Exceed the limit permitted in paragraph 2.1;
3.2 Open joint accounts in foreign currency or Ringgit with any resident or non-resident;
3.3 Make payments in foreign currency to any resident;
3.4 Obtain domestic credit facilities in Ringgit exceeding the aggregate ofRM10million;
3.5 Extend credit facilities to non-residents or make payments forinvestmentsabroad in Ringgit; or
3.6 Extend credit facilities to, or raise funds in any currency on behalf of,anyresident otherwise than as permitted in paragraph 2.5.
4. An OHQ is not permitted to -
4.1 Credit export proceeds directly into any foreign currency account with aLicensedOffshore Bank or an overseas bank;
4.2 Credit net export proceeds, when the OHQ has obtained the permission oftheController to offset payables to non-residents against receivableswhich are exportproceeds; or
4.3 Obtain credit facilities of any amount in Ringgit from non-residents.
5. An OHQ is required to -
5.1 Ensure that the retention of export proceeds in its foreign currencyaccountdoes not exceed the permitted limit in paragraph 2.1; and
5.2 Submit a Statement OA to the Controller within 14 days after the end ofthemonth being reported for each of the foreign currency accountsmaintained with overseasbanks.
6. An authorised dealer is required to -
6.1 Ensure that the conditions on operations of foreign currency accounts arecompliedwith; and
6.2 Ensure that completed Forms P and Forms R are submitted to the Controllerforpayments and receipts exceeding the equivalent of RM50,000 eachvis-a-vis non-residentsmade through the foreign currency accounts of theOHQ, or when the OHQ transfers fundsto its foreign currency accountsmaintained with Licensed Offshore Banks or overseasbanks.
7. An OHQ shall refer to the manual on the Cash Balance of Payments ReportingSystem: Instructions to Residents with Overseas Accounts to complete Statement OA.
Form P : A statistical form for the purpose of reporting details on the payments,which individually exceeds RM50,000 or its equivalent in foreign currency, from residentsto non-residents.
Form R : A statistical form for the purpose of reporting details on the receiptof funds, which individually exceeds RM50,000 or its equivalent in foreign currency,by residents from non-residents.
Form KPW X : An exchange control form required to be submitted to the Controllerfor export from Malaysia the value of which, as declared in the relevant export declarationform, exceeds RM100,000 f.o.b. per shipment.
Form KPW XA : An exchange control form to be completed -
a) to provide information for exports with partial payment or without payment, underpermitted circumstances; and
b) to apply for specific permission for exports which do not fulfill certain conditions.
Statement OA : A statement providing details of the transactions which flow throughan overseas account maintained by a resident.
Statement IA : A statement recording all payables and receivables vis-a-vis anon-resident company with which a resident company is maintaining an inter-companyaccount.