Anti-money Laundering Among Main Breaches Of Regulations In 2024, RM18.9 Mln Penalties Imposed -- BNM

KUALA LUMPUR, March 24 (Bernama) -- Anti-money laundering and countering financial terrorism were among the most enforcement actions taken by Bank Negara Malaysia (BNM) in 2024, with total monetary penalties imposed on institutions amounting to RM18.9 million.

BNM took a total of 326 supervisory and enforcement actions in 2024 against financial institutions, individuals, and entities for breaches of regulations, according to its Annual Report 2024 released today.

According to the report, other violations involved breaches of prudential and foreign exchange policies.

BNM also conducted onsite surveillance at 123 entities across 166 premises in the year to detect unauthorised financial activities.

“Our surveillance activities are also supported by law enforcement partners such as the Royal Malaysia Police (PDRM) and the National Anti-Financial Crime Centre (NFCC) in disrupting and dismantling illegal schemes and entities,” it said.

BNM also stated that as part of its efforts to combat illegal money services businesses (MSB), it issued 37 cease-and-desist orders against unlicensed MSB operators.

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“We also forfeited RM28.4 million worth of assets from illegal activities and secured convictions against 11 illegal MSB operators in 2024 for breaches of the Money Services Business Act 2011 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, with a total fine of RM891,000,” BNM said.

BNM added that it secured RM125.5 million in restitutions for 1.5 million customers from financial institutions that failed to meet regulatory standards.

“We also fook supervisory actions against insurance and takaful brokers and financial advisers that failed to meet regulatory expectations, including acceptable standards of professionalism,” it said.

Moving forward, BNM stated that to align its regulatory and supervisory priorities with its financial stability mandate, it will continue to enhance its regulatory and supervisory approaches to ensure a financial system resilient to future shocks and emerging risks.

-- BERNAMA