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Framework
International Takaful Operator Licenses

International Takaful Operating licences are offered to financial institutions seeking to conduct the full range of takaful and retakaful activities in foreign currencies.
 
International Takaful Operator (ITO) shall be registered under the Takaful Act 1984.
 
Eligibility

  • Well-established and reputable licenced financial institution
  • Adopt international insurance practices set by the International Association of Insurance Supervisors or any other international standard-setting body, or adopts any other international best practices in the financial services related industry
  • Regulated and supervised by a competent home regulatory authority
  • Possess sound track record

 
The ITO may be established as an incorporated company or a branch.

To operate as an incorporated entity, the requirements are:
·         A minimum paid-up capital of RM10 million
·         An annual registration fee of RM5,000
 
To operate as a branch entity, the requirements are:
·         A minimum net working fund of RM10 million
·         An annual registration fee of RM5,000
 
Scope of Business
The International Takaful Operator* (ITO) may carry out composite takaful (general and family) and retakaful business in foreign currencies with residents and non-residents within the permitted scope of business as stipulated below:
 

Takaful Business Non-Resident Resident
General Takaful All product lines  Any large and specialised risks on co-takaful basis with participation share not exceeding 20% in any one risk.
E.g. aviation, marine, energy, oil and petrochemicals, etc.
Family Takaful All product lines  Investment linked products (e.g. fixed income, equity and hedge fund investments) that are subject to a minimum contribution of:
RM20,000 in any foreign currency for a single contribution certificate; or
RM15,000 in any foreign currency for an annual contribution certificate.
Retakaful All product lines  All product lines 

 
 
* The ITO is a resident for the purposes of foreign exchange administration rules.
* Residents are subject to the relevant foreign exchange administration rules for transaction(s) involving foreign currencies.