Bank Negara Malaysia has imposed Administrative Monetary Penalties (AMPs) on several financial institutions, including TNG Digital Sdn. Bhd., Mandiri International Sdn. Bhd., and MPI Generali Insurans Berhad, for various breaches of financial regulations. The AMPs ranged from RM134,400 to RM600,000, and these actions underscore BNM’s dedication to upholding financial sector integrity.
1 September 2023 – Bank Negara Malaysia (BNM) continues its commitment to upholding financial regulations, as it recently imposed Administrative Monetary Penalties (AMPs) on several financial institutions for non-compliance with various regulations.
TNG Digital Sdn. Bhd. (TNGD) faced an AMP of RM600,000 on May 18, 2023, for violating the Financial Services Act 2013 (FSA) in conjunction with two policy documents: the Anti-Money Laundering and Counter Financing of Terrorism – Electronic Money and Non-Bank Affiliated Charge & Credit Card (Sector 4) policy document, and the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions policy document. TNGD had onboarded two sanctioned individuals, breaching the FSA by failing to conduct sanctions screening and ascertain customer matches with the United Nations Security Council Resolutions List or the Minister of Home Affairs Domestic List. The AMP was determined by assessing aggravating and mitigating factors, including remedial actions. TNGD promptly paid the RM600,000 AMP on May 31, 2023.
Mandiri International Sdn. Bhd. (MISB), on the other hand, faced an RM134,400 AMP on April 12, 2022, for contravening the Money Services Business Act 2011 (MSBA) along with the Anti-Money Laundering and Counter Financing of Terrorism – Money Services Business (Sector 3) policy document. During an examination, MISB was found to have failed in identifying and verifying the beneficial owners for remittance transactions. The AMP considered various factors, including MISB’s compliance history and remedial actions, and MISB duly paid the RM134,400 on April 7, 2023.
Lastly, MPI Generali Insurans Berhad (MPGB) was subjected to an RM260,000 AMP on December 29, 2022, due to non-compliance with the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Countering Financing of Terrorism, and Targeted Financial Sanctions for Financial Institutions policy document. MPGB reported onboarding a sanctioned person due to a delay in real-time screening against the Domestic and United Nations Securities Council Resolution List, breaching FSA regulations. The AMP considered various factors, including MPGB’s controls, and MPGB addressed the supervisory concerns satisfactorily, paying the RM260,000 AMP on January 6, 2023.
These actions highlight BNM’s unwavering commitment to maintaining financial sector integrity and ensuring compliance with financial regulations by financial institutions operating within Malaysia.