1. The provisions of the other ECM Notices shall apply to an Approved Operational Headquarters(hereinafter referred to as OHQ), unless otherwise provided in this ECM Notice.
2. The Controller hereby gives permission to an OHQ, subject to the conditions in paragraph 5, to do one or more of the following -
2.1 Open one foreign currency account or one multi-currency account with anyof the Designated Banks to retain export proceeds in foreign currency,subject to an aggregate overnight balance equivalent to USD5 million.
2.2 Open one or more foreign currency accounts with any Designated Bank,Licensed Offshore Bank or overseas bank for crediting foreign currencyreceivables, other than export proceeds, with no limit on the overnightbalances.
2.3 Obtain foreign currency credit facilities of any amount from a licensed bank,licensed merchant bank and any non-resident, provided the OHQ does noton-lend to, or raise the funds on behalf of, any resident.
2.4 Obtain domestic credit facilities in Ringgit not exceeding RM10 million,provided the Ringgit funds are used within Malaysia.
2.5 Extend credit facilities in Ringgit to staff, pursuant to the terms andconditions of their service.
2.6 Extend credit facilities in foreign currency to its related companies outsideMalaysia or to invest abroad in any form, provided -
2.6.1 The OHQ's aggregate domestic credit facilities in Ringgit does not exceed RM10 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 ofRM10 million;
3.5 Extend credit facilities to non-residents or make payments forinvestments abroad 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 aLicensed Offshore Bank or an overseas bank;
4.2 Credit net export proceeds, when the OHQ has obtained the permission ofthe Controller to offset payables to non-residents against receivableswhich are export proceeds; 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 currencyaccount does 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 ofthe month being reported for each of the foreign currency accountsmaintained with overseas banks.
6. An authorised dealer is required to -
6.1 Ensure that the conditions on operations of foreign currency accounts arecomplied with; and
6.2 Ensure that completed Forms P and Forms R are submitted to the Controllerfor payments and receipts exceeding the equivalent of RM50,000 eachvis-a-vis non-residents made through the foreign currency accounts of theOHQ, or when the OHQ transfers funds to its foreign currency accountsmaintained with Licensed Offshore Banks or overseas banks.
7. An OHQ shall refer to the manual on the Cash Balance of Payments Reporting System: 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 residents to non-residents.
Form R : A statistical form for the purpose of reporting details on the receipt of 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 Controller for export from Malaysia the value of which, as declared in the relevant export declaration form, 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, under
permitted 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 through an overseas account maintained by a resident.
Statement IA : A statement recording all payables and receivables vis-a-vis a
non-resident company with which a resident company is maintaining an inter-company
account.