Bank Negara Malaysia (BNM) has moved to tighten rules on account closures linked to money laundering cases, requiring banks to issue written explanations and clear appeal procedures to affected customers, Bernama reported.
Deputy Finance Minister Lim Hui Ying said the new directive ensures financial institutions provide written notices to customers whose accounts are closed under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
These notices must state the reason for closure without disclosing sensitive details that could compromise investigations.
They must also include information on how to file an appeal, the available channels, timelines, and steps to follow.
The move aims to strengthen coordination between banks, regulators, and enforcement agencies, providing a clearer and fairer process for account holders affected by AMLA-related actions.
It also seeks to balance the need to combat illicit financial activity with the protection of consumer rights.
Lim added that BNM is collaborating with financial institutions to introduce an industry reference protocol by July 2024 to standardise how banks report, manage, and handle appeals involving suspected mule accounts.
The protocol integrates processes between the Royal Malaysian Police and financial institutions to ensure consistent case reviews before actions such as delisting or account reinstatement are taken.
She noted that BNM continues to monitor how the financial sector handles consumer complaints to ensure fairness and accountability.
All AMLA-related cases, including those involving foreign entities, will be managed transparently and in accordance with Malaysian law.
Lim reaffirmed that maintaining the integrity of the country’s financial system remains a top government priority.
She also assured that enforcement actions will be based strictly on existing legal frameworks and not external influence.
Her comments came during a parliamentary session in response to questions from lawmakers on how the government plans to improve coordination and ensure fair treatment for individuals and companies affected by AMLA-related enforcement actions.
