Bank Negara Malaysia (BNM) has taken enforcement action against two financial services companies for violations of anti-money laundering and counter-terrorism financing (AML/CTF) regulations.
The central bank fined Alipay Malaysia, now known as AIMY Merchant Services, RM340,000 for failing to update its sanctions database as required under the Financial Services Act 2013 and the AML/CTF and Targeted Financial Sanctions policy.
This lapse disrupted the screening of customer accounts and delayed the freezing of funds linked to a listed entity.
BNM said the penalty reflected the seriousness of the breach and Alipay’s lack of reasonable care in complying with sanctions screening rules.
The central bank noted that Alipay has since revised its internal procedures and paid the fine on 3 July 2025.
BNM also fined Syarikat S.M. Ziaudeen RM193,500 for failing to conduct customer and ongoing due diligence under the Money Services Business Act 2011.
An on-site examination revealed that the company had not carried out proper checks on 22 money-changing transactions exceeding RM3,000 each and had failed to conduct enhanced scrutiny of a high-risk customer flagged by its own system.
The company has since strengthened its procedures and training.
BNM said the penalty, paid on 28 August 2025, reflected the seriousness of the breaches as well as remedial measures undertaken.
The regulator added that both enforcement actions are consistent with its established approach to ensuring compliance with AML/CTF standards.
Featured image: Edited by Fintech News Malaysia, based on images by fabrikasimf and Dmitry Akreev via Freepik
