Bank Negara Malaysia issued a revised Policy Document on Electronic Money on 31 January 2025 (“Revised Policy Document”) which came into effect immediately. The Revised Policy Document supersedes the Policy Document on Electronic Money issued on 22 December 2022 (“Superseded Policy Document”).
 
The main changes under the Revised Policy Document are the deletion of all provisions relating to “limited purpose EMI” that is the e-money having the characteristics set out in sub-paragraphs (a), (b), (c) or (d) of paragraph 1 of Appendix 2 of the Superseded Policy Document (“limited purpose EMI”).
 
Under the Superseded Policy Document, limited purpose EMI were subject to the minimum capital funds requirement set out in paragraph 15 of the Superseded Policy Document and paragraph 2 of Appendix 2 of the Superseded Policy Document. With the deletion of all provisions relating to limited purpose EMI from the Revised Policy Document, limited purpose EMI are excluded from the requirements set out in the Revised Policy Document.
 
Limited purpose EMI are now subject to the provisions in the Financial Services (Limited Purpose Electronic Money) Order 2024 [P.U.(A) 463/2024] (“P.U.(A) 463/2024”) or the Islamic Financial Services (Limited Purpose Electronic Money) Order 2024 [P.U.(A) 461/2024] (“P.U.(A) 461/2024”), as applicable.
 
In addition to the Revised Policy Document, Bank Negara Malaysia has also issued a revised set of Frequently Asked Questions that can be accessed here.
 
Alert by Lee Ai Hsian (Partner) of the Banking and Finance Practice of Skrine.