1. The Controller hereby gives permission to a financial institution to -
1.1 Open External Accounts, subject to the conditions in paragraphs 5 and 6 for -
1.1.1 A non-resident.
1.1.2 Resident fund managers, nominee companies, trust companies or legal firms to maintain funds belonging to non-residents.
1.1.3 A non-resident husband jointly with his resident wife.
1.1.4 Residents jointly with a non-resident.
1.1.5 A non-resident guardian jointly with a resident minor.
1.1.6 A non-resident who operates the account in trust for a resident who is not a minor.
1.1.7 A resident who operates the account in trust for a non-resident who is not a minor.
1.2 Designate any account as "External Account" in accordance with the terms of this ECM Notice.
2. The general guidelines for designation of accounts are provided in the Appendix.
3. Notwithstanding the above and the guidelines in the Appendix, the Controller may direct that a particular account be designated as "External" or "Resident".
4. The prior permission of the Controller is required for a financial institution to open External Accounts for any person or purpose not permitted in paragraph 1.1.
5. The permission given to open External Accounts in paragraph 1.1 is subject to the following conditions -
5.1 A resident fund manager, nominee company, trust company or legal firm is required to segregate the funds belonging to residents from those belonging to non-residents and inform the financial institution accordingly.
5.2 A Malaysian citizen who has obtained permanent resident status of a territory outside Malaysia and is residing outside Malaysia, is required to inform the financial institution at which he maintains a Ringgit account accordingly.
6. A financial institution is required to comply with all the following -
6.1 Ascertain that its External Account holders do not maintain Resident Accounts with any financial institution unless the account holder is a resident or permitted otherwise by the Controller and advise the account holders accordingly.
6.2 Open External Accounts only for the persons and for purposes permitted in paragraph 1.1 and clearly indicate such accounts as "External Accounts".
6.3 Refer to the Controller for a ruling if it is unable to determine the residential status of a customer by giving details such as his length of stay in Malaysia, proof of permanent resident status in Malaysia and other relevant information.
6.4 Mark all cheque leaves issued to an External Account holder, the words "External Account" and the territory of permanent residence of the External Account holder, e.g.
External Account - Singapore
External Account - Hong Kong
Cheques leaves issued to a resident External Account holder should be marked -
External Account - Client Account
6.5 Re-designate, upon receipt of appropriate documentary evidence, the account of a citizen of Malaysia who has obtained permanent resident status of a territory outside Malaysia and is not residing in Malaysia as "External Account".
6.6 Re-designate the account of a non-citizen of Malaysia who has obtained permanent resident status of Malaysia and is residing in Malaysia as a resident account.
7. Matters relating to credit facilities to External Account holders are governed by ECM6.
8. Matters relating to External Accounts opened by Offshore Companies, Foreign Offshore Companies, Licensed Offshore Banks and Licensed Offshore Insurance Entities are governed by ECM 15.
Holders of the account/nature of account Classification
a) A citizen of Malaysia Resident
b) Account operated by citizen of Malaysia who Externalhas obtained permanent resident status of a territory outside Malaysia and is residing outside Malaysia.
c) A person who has obtained permanent Residentresident status of Malaysia and is residing inMalaysia.
d) A person, whether body corporate or Residentunincorporate and whether head office orbranch, incorporated or registered with, or approved by any authority in Malaysia.
e) Account operated by a representative Residentoffice in Malaysia.
f) A non-resident, including those with entry Externalor work permits in Malaysia.
g) Account of a non-resident operated by a Externalresident under mandate such as a Power of Attorney.
h) Account operated by a non-resident in trust Externalfor a resident who is not a minor, or account operated by a resident in trust for a non-residentwho is not a minor.
I) Account opened and operated by a resident Externalfund manager, trust company, nominee company,legal firm, where the beneficiary of the funds is a non-resident.
j) A joint account of a married couple where one *Follow the status of party is non-resident. husband.
k) A joint account where at least one of the Externalparties is a non-resident
l) A joint account of a non-resident guardian Externaland a resident minor or account of a residentminor operated in trust by a non-resident guardian.
m) A joint account of a resident guardian and Residenta non-resident minor operated in trust by aresident guardian.