FAQs
The Foreign Account Tax Compliance Act (FATCA) is a United States federal law that aims to combat tax evasion by U.S. persons holding assets and accounts offshore.
Under FATCA, foreign financial institutions (FFIs) are required to report information about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest. FFIs must report this information to the U.S. Internal Revenue Service (IRS) or their local tax authority, which then shares the information with the IRS.
Additionally, FATCA requires U.S. taxpayers to report certain foreign financial assets and offshore accounts on their annual tax returns. Failure to comply with FATCA reporting requirements can result in significant penalties.
Overall, FATCA aims to increase transparency and discourage tax evasion by providing the IRS with information about offshore financial accounts held by U.S. taxpayers. It has led to significant changes in the way international financial institutions handle and report accounts held by U.S. taxpayers.
Step 1: Login to the dashboard
Step 2: Access the Menu screen “Currency Exchange”. Alternatively, you could also tap on My Account for similar function.
Step 3: Tap on the ($) icon (circled in red) and you’ll be taken to the foreign funds screen.
Step 4: On the foreign funds screen, choose to convert your cash from Ringgit Malaysia into either USD or HKD. You’ll be able to see the indicative rate that will be used at time of conversion.
Step 5: After you’ve decided how much you want to convert, key in your trading pin and click CONFIRM. In real-time, you’ll see the updated cash amount in the selected currency on the My Account tab.
If I convert my Ringgit Malaysia into USD or HKD, will it increase my Foreign Exchange Administration (FEA) Investment Limit Utilized amount?
Yes. For example, if you convert RM4,000 into USD, your FEA Investment Limit Utilized amount is RM4,000. Therefore, the remaining FEA balance is RM 996,000.00. Likewise, when you convert Ringgit Malaysia into HKD.
No. All cash deposits and withdrawal request must be performed in Ringgit Malaysia.
It’s updated multiple times a day. The last update will be when the foreign market opens for trading.
No.
Why is my “HOLDING STOCKS” page (online portfolio) of unrealized profit or unrealized loss different from the previous day?
Our daily reference exchange rate is based on the previous day’s rate quoted as received from the external licensed FX dealer. We will apply a reference exchange rate as an estimate or for valuation purposes only. For settlement, the quoted rates will be applied.
Why is my “REALIZED PROFIT/LOSS” page and “TRADE HISTORY” page for foreign share not posted real time during trading hours?
We will only finalize each foreign buy/sell contract at the end of the foreign market’s trading session.
What happens with my settlement of foreign outstanding purchases and settlement of foreign sales proceed when they are due?
Settlement processing will be based on the foreign market’s settlement rules, subject to a Malaysian trading day.
T+ 2 settlement for Hong Kong market.
For example, if you made a purchase on Monday (HK trading day), your settlement of the purchase will be on Wednesday (HK trading day). Your trust money will be deducted on Wednesday (HK trading day).
If a sale was made on Monday (HK trading day), your settlement of the sales will be on HK Wednesday trading day. Sales proceed will be credited to your trading account on Wednesday (HK trading day).
T+1 settlement for US market.
For example, if you made a purchase on Monday (US trading day), your settlement of the purchase will be on Tuesday (US trading day). Your trust money will be deducted on Tuesday (US trading day).
If a sale was made on Monday (US trading day), your settlement of the sales will be on US Tuesday trading day. Sales proceed will be credited to your trading account on Tuesday (US trading day).
The above scenario was made based on the assumption that there are no public holidays at respective market. If the due date of the settlement falls on weekend or public holiday, the settlement process will be adjusted accordingly to fulfil the foreign market settlement rules.
