Citibank says its Labuan operations an integral part of its business

PETALING JAYA: Citigroup Inc will surrender one of its Labuan banking licences as there is no requirement for the American banking group to maintain two licences in order to operate in the federal territory off the coast of Sabah.

In clarifying its notice that Citibank Malaysia (L) Ltd had intentions to surrender its Labuan banking licence, the group explained that its offshore financial services in Malaysia would now be operated under the recently opened Citibank NA, Labuan Branch.

“Citi’s Labuan operations continue to be an important segment of Citibank’s operations in the region. All client relationships of Citibank Malaysia (L) Ltd are now maintained by Citibank NA, Labuan Branch,” the group said in a statement.

Citi issued a notice on Tuesday announcing Citibank Malaysia (L) Ltd’s intention to surrender its banking licence issued by the Labuan Financial Services Authority. The surrender would take effect next month, that is, 21 days from Nov 29, which is the date of publication of the notice.

“As Citibank NA – Citibank Malaysia (L) Ld’s parent company – has established a Citibank NA, Labuan Branch, with a Labuan banking licence, Citi has decided to surrender Citibank Malaysia (L) Ltd’s Labuan banking licence as there is no requirement for Citi to have two Labuan banking licences,” the group explained.

Citi has been in Malaysia since 1959. The group has more than 6,000 employees in 11 branches and three Citi Service Centres. Besides the offshore operations in Labuan, the group has centralised operations based in Kuala Lumpur, Penang and Johor Baru.