BNM Fines Ambank RM875,000 And WSMC RM51,000 For Regulatory Non-Compliance

KUALA LUMPUR, Jan 28 (Bernama) -- Bank Negara Malaysia (BNM) has imposed a compound of RM875,000 on AmBank (M) Bhd on Nov 18, 2024, for failing to comply with the Direction to Financial Institutions of the Financial Services Act 2013 (FSA).

AmBank paid the compound on Dec 6, 2024, after BNM concluded its enforcement review.

In a statement today, BNM said the penalty was issued due to AmBank’s failure to obtain the central bank’s approval before facilitating two foreign currency asset investment transactions involving domestic ringgit borrowing by a resident individual.

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“This action violated section 214(6) of the FSA, which requires financial institutions to secure BNM’s written approval for such transactions,” it said.

The central bank said its enforcement action was based on an assessment of AmBank’s internal policies and procedures, which revealed gaps leading to non-compliance.

“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.

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“BNM reminds financial institutions and the public to adhere to foreign exchange policy rules when engaging in such transactions, including obtaining written approval from BNM, where applicable,” the central bank noted.

In a separate statement, BNM imposed an Administrative Monetary Penalty of RM51,000 on Worldwide Superstar Money Changer Sdn Bhd (WSMC) for failing to comply with customer due diligence (CDD) requirements under the Money Services Business Act 2011.

This penalty was imposed on Aug 28, 2024, after an on-site examination revealed multiple violations, including failure to conduct CDD on four customers by deliberately splitting the transactions into amounts below RM3,000 and inadequate CCTV camera coverage at the premises.

“Following the findings, WSMC took immediate corrective measures, which included improving its CDD processes, expanding CCTV coverage, and reprimanding individuals responsible for non-compliance. WSMC subsequently paid the RM51,000 penalty on Nov 26, 2024," BNM added.

-- BERNAMA