Approved by Labuan FSA as a Payment System Operator.
Kaadxpay Financial Solutions Pty. Ltd. is approved by the Labuan Financial Services Authority (LFSA) to carry on business as a Payment System Operator (PSO) under Section 171 of the Labuan Financial Services and Securities Act 2010.
AUTHORISATION STATUS
Labuan FSA · Payment System Operator
On 22 July 2026, Labuan FSA granted Kaadxpay Financial Solutions Pty. Ltd. approval to operate as a Payment System Operator under Section 171 of the Labuan Financial Services and Securities Act 2010 (LFSSA). On 6 October 2026, Labuan FSA confirmed that it has no objection to Kaadxpay commencing its payment system business.
- Authority
- Labuan Financial Services Authority (LFSA)
- Licence type
- Payment System Operator (PSO)
- Status
- Approved Payment System Operator
- Statute
- Section 171, Labuan Financial Services and Securities Act 2010
- Approved to operate
- 22 July 2026
- Cleared to commence
- 6 October 2026 (Labuan FSA no objection to commencement)
- Scope
- Cross-border payment services (collections, payouts, settlement)
REGULATORY FRAMEWORK
Built on globally-recognized standards.
Financial Services Act 2010
Malaysia's primary financial services framework. Governs payment services, capital adequacy, governance, and consumer protection.
Labuan FSSA 2010
Labuan-specific framework providing regulatory clarity for cross-border financial services with international standards.
FATF 40 Recommendations
Our AML/CFT program is built on FATF 40 — the global standard followed by 200+ jurisdictions.
FATF Travel Rule (R.16)
Cross-border transactions above threshold include sender/recipient data per FATF Recommendation 16.
COMPLIANCE PROGRAM
Five pillars of regulatory operation.
KYC/KYB
Tiered customer due diligence with enhanced due diligence (EDD) for high-risk customers and corridors.
AML monitoring
Real-time sanctions, PEP, and adverse media screening. Behavioral transaction monitoring with ML + rules engine.
Suspicious + cash reporting
STR and CTR generated and submitted to LFSA per regulatory thresholds and timelines.
Independent audit
Annual financial audit and AML compliance audit by independent third parties. Findings remediated and tracked.
Governance + board oversight
MLRO, Compliance Officer, and Risk Officer report to the Board. Regulatory matters escalate immediately.
FUTURE LICENCES
Licensing plans for Phase 2 and Phase 3.
During Phase 2 we intend to apply for a Singapore MAS Payment Institution licence and a Hong Kong MSO licence. Phase 3 takes us into Europe and North America, applying for the payment or e-money licence each target jurisdiction requires. The sequence does not change: secure the licence first, launch the service second.
FAQ
About our regulatory status & compliance
The questions we get most often from merchants and regulators.
Kaadxpay Financial Solutions Pty. Ltd. is approved by the Labuan Financial Services Authority (LFSA) to carry on business as a Payment System Operator (PSO) under Section 171 of the Labuan Financial Services and Securities Act 2010. LFSA granted the approval to operate on 22 July 2026 and, on 6 October 2026, confirmed that it has no objection to Kaadxpay commencing its payment system business.
Write to compliance@kaadxpay.com and our compliance team will provide a copy of the Labuan FSA approval letters. The details of our authorisation are set out on the Regulatory status disclosure page of this site.
Labuan FSA carries a FATF Tier-1 (Compliant) rating, the same tier as MAS (Singapore) and HKMA (Hong Kong). Advantages: cross-border-licensed entities pay 3% corporate income tax (or USD 5,000 flat / year, electable annually). Disadvantage: lower brand recognition than MAS. We chose Labuan because it offers the best compliance-depth + tax + corridor-recognition combination available within ASEAN.
Customer funds will be held in segregated client trust accounts at Labuan FSA-approved custodian banks, fully separate from Kaadxpay operating capital. Reconciliation will run twice daily (account balance vs ledger + bank statement). Quarterly audits by Labuan FSA and annual statutory audit. Any customer will be able to request a Proof of Funds attestation post-KYC. These customer-protection arrangements are part of the LFSA-required operating framework.
We have built a complete FATF-standard Customer Due Diligence (CDD) framework: legal entity structure, UBO (Ultimate Beneficial Owner), source-of-funds documentation, sanctions screening (OFAC + UN + EU + local). High-risk industries / jurisdictions are routed through Enhanced Due Diligence (EDD). Real-time AML transaction monitoring is engineered and ready. These frameworks form part of the operating framework Labuan FSA requires.
Want to verify our regulatory status?
Contact us for a copy of the Labuan FSA approval letters or our compliance programme documentation.