Habib Jewels Sdn. Bhd. was fined RM96,250 by BNM for failing to report suspicious transactions as required by AMLA, despite internal red flags. The incident highlights the importance of prompt reporting to mitigate financial crimes and underscores the need for strict compliance within the industry.
10 May 2024 – Bank Negara Malaysia (BNM) has imposed a compound of RM96,250 on Habib Jewels Sdn. Bhd. for its failure to promptly submit suspicious transaction reports (STR) in accordance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). The non-compliance, detected during an on-site examination, spanned over a year, during which Habib neglected to report seven series of suspicious transactions despite internal red flags.
Under the AMLA, reporting institutions are obligated to promptly report any suspicious transactions to BNM, serving to mitigate the risk of money laundering, terrorism financing, and other serious crimes. Despite this being Habib’s first offense, BNM considered the severity of the non-compliance and lack of reasonable care, though Habib’s subsequent remedial actions were noted. Habib has since reinforced its STR reporting mechanism and compliance procedures.
