KUALA LUMPUR – Bank Negara Malaysia (BNM) has imposed penalties on several financial institutions, including AmBank (M) Bhd, Malayan Banking Berhad, RHB Bank Berhad, Maybank Islamic Berhad, and AmInvestment Bank Berhad, for various non-compliance offences under the Financial Services Act 2013 (FSA) and related regulations.
AmBank was fined RM875,000 on November 18, 2024, for failing to secure BNM’s written approval before facilitating two foreign currency asset investment transactions involving domestic ringgit borrowing by a resident individual. This action violated Section 214(6) of the FSA.
The bank paid the penalty on December 6, 2024, following BNM’s enforcement review. “AmBank has taken appropriate measures to strengthen its internal practices and procedures pertaining to foreign exchange policy. This includes providing staff training and improving internal information flow to ensure compliance with applicable domestic laws and regulations,” BNM said in a statement today.
Separately, BNM imposed Administrative Monetary Penalties (AMP) on four financial institutions on July 11, 2024, for non-compliance with data submission requirements under the FSA and Islamic Financial Services Act 2013 (IFSA). The penalties, totalling RM1.66 million, were issued to Malayan Banking Berhad (RM750,000), RHB Bank Berhad (RM750,000), Maybank Islamic Berhad (RM150,000), and AmInvestment Bank Berhad (RM10,000).
The violations involved late, incomplete, or inaccurate submissions of critical data related to financial payments, external assets and liabilities, cash balance of payments, and borrower credit information. These issues were attributed to internal IT system flaws, misapplication of statistical requirements, and inadequate operational procedures.
BNM stated that the penalties were determined after considering past compliance records and the remedial steps taken by the institutions. The banks have since enhanced their systems, strengthened validation processes, and provided additional training to staff to prevent recurrence. Erroneous submissions were rectified without affecting BNM’s aggregate data publications.
In another case, BNM imposed a RM51,000 fine on Worldwide Superstar Money Changer Sdn Bhd (WSMC) on August 28, 2024, for failing to comply with customer due diligence (CDD) requirements under the Money Services Business Act 2011. WSMC’s violations included splitting transactions below RM3,000 to avoid reporting requirements and inadequate CCTV coverage at its premises.
“WSMC took immediate corrective measures, including improving its CDD processes, expanding CCTV coverage, and reprimanding individuals responsible for non-compliance,” BNM noted. The penalty was paid on November 26, 2024.
BNM reiterated its commitment to ensuring financial institutions adhere to regulatory requirements, stressing the importance of compliance to maintain monetary and financial stability. – January 28, 2025