Bank Negara Malaysia (BNM) has imposed penalties totaling up to RM 2.5 million on several financial institutions for non-compliance with reporting and regulatory requirements

On 11 July 2024, BNM issued Administrative Monetary Penalties (AMPs) to four financial institutions for failing to comply with sections 143(3)(b) and 143(4) of the Financial Services Act 2013 (FSA) and/or sections 155(3)(b) and 155(4) of the Islamic Financial Services Act 2013 (IFSA).

These violations relate to the submission of financial and statistical data under BNM’s policy documents, including:

• STATsmart Reporting – Financial, Compliance and Industry-Specific Data (STATsmart PD)
• External Sector Statistics (ESS) System – Submission of International Transactions and External Position Information (ESS PD)
• Central Credit Reference Information System (CCRIS) – Requirements on Submission, Usage, and Protection of Credit Information (CCRIS PD)

Financial institutions must provide timely, accurate, and complete data to support BNM’s monetary and financial stability efforts.

However, the institutions penalised had submitted late, incomplete, or incorrect information on financial transactions, external assets and liabilities, balance of payments, and borrower credit data.

Common issues included IT system failures, incorrect interpretation of statistical rules, and weak internal procedures.

These institutions have since taken corrective measures, including improving IT systems, enhancing validation processes, and providing staff training.

The erroneous data submissions were fully corrected and did not affect BNM’s published aggregate data. When determining the penalty amounts, BNM considered each institution’s past compliance history and corrective actions taken.

The financial institutions, namely Maybank, RHB Bank, Maybank Islamic Bank, and Investment Bank paid the respective penalty amounts imposed by BNM, as listed in Table 1.

In a separate case, on 18 November 2024, BNM imposed a RM875,000 compound on AmBank (M) Berhad (AmBank) for failing to comply with a Direction to Financial Institution under section 214(6) of the FSA.

AmBank facilitated two foreign currency investment transactions by a resident individual with domestic ringgit borrowing without obtaining prior approval from BNM, violating the Foreign Exchange Policy (FEP) Direction to Financial Institutions.

BNM requires financial institutions to have strong internal controls to ensure compliance with foreign exchange policies, including obtaining necessary approvals before carrying out transactions.

The non-compliance at AmBank was due to gaps in its internal policies and procedures. The bank has since strengthened its practices, trained staff, and improved internal information flow to ensure compliance with domestic regulations.

AmBank paid the RM875,000 compound on 6 December 2024.

BNM stated that the enforcement action aligns with its standard regulatory approach and reminded all financial institutions and the public to comply with FEP rules and obtain approvals where required.

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