Bank Negara Malaysia (BNM) is doubling down on its efforts to crack down on illegal operators in the money services business (MSB) industry.

This follows the enactment of the Money Services Business (Amendment) Act 2024 (MSBA 2024) on 1 August 2024.

The amendments bolster BNM’s enforcement capabilities, including mandatory imprisonment of up to 10 years and a minimum fine of RM50,000 for illegal operators.

They also provide clearer guidelines on the offence of abetting illegal operators, a more precise definition of remittance business, and a broader scope of evidence for prosecuting illegal activities.

Additionally, the act enables authorities to confiscate the property of prosecuted illegal operators, aiming to deter repeat offences.

BNM will now address operational breaches by MSB licensees through administrative actions rather than criminal proceedings, ensuring that enforcement measures are proportionate to the severity of the offence.

Originally issued in 2011, the MSBA regulates money changers, remittance service operators, and currency wholesalers, playing a key role in enhancing industry standards and preventing misuse for criminal purposes.

The public can report illegal money service operators here.

Featured image credit: Edited from Freepik