At the Hubbis Indonesia Wealth Management Forum in June 2025, Ja’afar Rihan, Head of Islamic Business Development at the Labuan Financial Services Authority (Labuan FSA), introduced delegates to the evolving role of the Islamic Digital Asset Centre (IDAC) and Labuan IBFC’s growing relevance in ASEAN and global wealth management. His presentation outlined how Labuan is marrying structural credibility with digital innovation to serve the growing class of Muslim and ethically conscious investors across Asia.
Labuan IBFC: Jurisdictional Strength Meets Strategic Innovation
Founded in 1990, Labuan IBFC was established as an International financial centre strategically positioned between the major economies of China and India. Rihan noted that Labuan’s value proposition lies in more than its geography. “It’s not just about being in the heart of Asia — it’s about being earthquake-free, politically stable, and legally robust,” he explained.
Labuan IBFC offers a full suite of wealth management services across conventional, digital, and Islamic forms, all underpinned by a strong regulatory and legal framework rooted in common law. Labuan’s legislative architecture includes acts covering financial services, Islamic finance, trusts, foundations, partnerships, and business activity tax, enabling a comprehensive environment for cross-border wealth solutions.
Labuan IBFC maintains a robust Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework within its wealth management sector. This framework enforces Know-Your-Customer (KYC) protocols and mandatory reporting of suspicious activities. All reporting institutions are required to perform detailed KYC checks to confirm client identities and evaluate associated risk levels. Additionally, Labuan IBFC promotes a risk-based approach to AML/CFT, requiring institutions to identify and evaluate the risks associated with their clients and transactions.
A Comprehensive Regulatory Landscape for Wealth Planning
Rihan detailed Labuan’s well-developed guidelines covering the establishment of fund managers, mutual funds, trusts, private trust companies, and foundations — including their Islamic variants. “Our regulatory ecosystem is not just comprehensive, it’s adaptive,” he said.
The numbers reflect rising confidence in Labuan IBFC as a wealth management hub. Between 2022 and 2024, the number of fund managers rose from 42 to 49, trusts from 150 to 283, and foundations from 212 to 237 — indicating strong momentum in both conventional and Islamic wealth vehicles.
Customised Legacy Structures for High-Net-Worth Families
Labuan IBFC positions itself as a one-stop platform for high-net-worth families seeking flexible and Shariah-compliant structures for legacy and estate planning. Vehicles such as Labuan foundations, trusts, private trust companies (PTCs), and protected cell companies (PCCs) can all be tailored to suit dynastic succession, asset protection, and philanthropic goals.
Rihan highlighted Labuan IBFC’s distinction as the first jurisdiction in Asia to facilitate the creation of an international Waqf foundation. “Each structure is customisable — there is no one-size-fits-all in Labuan,” he noted, underscoring the jurisdiction’s ability to adapt to specific family governance and succession planning needs.
Bringing Islamic Wealth Management into the Digital Age
Islamic wealth management in Labuan IBFC encompasses the creation, preservation, and distribution of wealth in line with Shariah principles. With the launch of IDAC in 2022, Labuan IBFC has taken a significant step toward digitalising this process.
“IDAC is not just a platform — it’s a digital ecosystem aligned with Maqasid al-Shari’ah,” said Rihan. Powered by Shariah-compliant blockchain technology and governed by the Labuan Islamic Financial Services and Securities Act 2010, IDAC’s framework covers three pillars: the Islamic Digital Capital Market, Islamic Digital Financial Market, and Islamic Digital Social Finance.
RAMZ: A Shariah-Compliant Securities Token for the Digital Era
At the core of Labuan IBFC’s digital offering is RAMZ — a Shariah-compliant securities token whose name is derived from the Arabic word for ‘token.’ RAMZ can represent sukuk, shares, or other real-world assets (RWAs), enabling fractional ownership and wider access to investment opportunities that were previously limited to institutions.
“Tokenisation is about democratising wealth. You can buy a RAMZ token for as little as one dollar,” Rihan noted. RAMZ offerings are backed by high-quality assets, including IILM sukuk (AAA-rated Islamic bonds), electric vehicle battery IP (Brighsun), digitised Chinese ceramics, gold reserves (DIGau), and investment-grade gemstones (KSGEMS).
Rihan revealed that RAMZ has already reached a cumulative market value of approximately more than USD 1 billion across 18 listings on two digital exchanges — a remarkable increase from its inaugural USD 50 million listing in October 2023.
Fiscal Incentives to Drive Adoption
To further encourage digital Islamic finance, Labuan IBFC has introduced 0% tax exemptions for qualifying Islamic digital players from 2024 to 2028. This includes banks, (re)takaful, exchanges, fund managers and credit token companies, involved in Shariah-compliant digital activities.
A Gateway for ASEAN and Beyond
With over 260 million Muslims in ASEAN alone — Indonesia being a key demographic — Labuan IBFC sees IDAC as a gateway to unlock inclusive and ethical investment opportunities in the region. “This is not just about wealth management — it’s about economic inclusivity, sustainability, and innovation,” Rihan asserted.
He concluded with a vision that blends purpose with platform: “Labuan IBFC is building the future of wealth, not just with statutes but with values. The Islamic digital wealth wallet we are launching marks the beginning of an era where digital meets dynastic — and innovation meets intention.”
