Labuan Trust & Labuan Islamic Trust

Labuan Trust

  • Created generally for an individual or a settlor to give specific property to a third party to be held for the benefit of others, including charities.
  • A charitable trust’s purposes includes any of the following:
  1. The relief or eradication of poverty;
  2. The advancement of education;
  3. The promotion of art, science and religion;
  4. The protection of the environment;
  5. The advancement of human rights and fundamental freedom; or
  6. Any other purposes which are beneficial to the community.
  • The Labuan Trust Act 1996 (LTA) allows the creation of the following types of trust:
  1. Purpose trusts;
  2. Charitable trusts;
  3. Spendthrift or protective trusts;
  4. Labuan special trusts.
  • Can exist for fixed period or in perpetuity

Labuan Islamic Trust

  • A Labuan Islamic trust can be established under Section 105 of the LIFSSA 2010 and all the provisions of the Labuan Trusts Act 1996 (LTA) shall apply to a Labuan Islamic trust unless specifically provided.
  • The object, purpose and activity of the Labuan Islamic trust must be in compliance with Shariah principles. The creation of a Shariah-compliant trust is to provide an alternative for a settlor to exercise his rights in creating a trust in accordance with Shariah principles.
  • The trustee of a Labuan Islamic trust is required to appoint or consult a Shariah adviser to advise on matters relating to the operations of the Labuan Islamic trust to ensure its compliance with Shariah principles.
  • The vesting of property into a Labuan Islamic trust may be facilitated through hibah or hadiah as guided by the Shariah Resolution issued by Labuan FSA.

Licensing  Requirements

Operational Requirements