Bank Negara Malaysia (BNM) has issued financial penalties against four entities for failing to meet anti-money laundering and counter-financing of terrorism regulations.

The sanctions amount to a combined total of RM1,074,625.

MBSB Bank Berhad received the largest penalty, with a fine of RM560,000 for failing to submit a suspicious transaction report on unusually large cash withdrawals that met its internal red flag criteria.

BNM said the lapse was due to inadequate staff awareness of STR requirements.

Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) was penalised RM460,000 for not promptly submitting STRs on suspicious activities involving several customers, which the central bank also attributed to insufficient staff awareness.

Two non-bank institutions were compounded for similar breaches.

Boardroom Corporate Services Sdn. Bhd. was fined RM46,000 for failing to promptly submit an STR and for not conducting enhanced due diligence on one high-risk customer and customers receiving nominee services.

Ilham Secretarial Services was imposed a compound of RM8,625 for failing to promptly submit a suspicious transaction report on irregular transactions involving one customer.

BNM said the institutions have taken steps to strengthen internal controls and improve compliance with AML and CFT requirements, adding that it will continue to take enforcement action against reporting institutions that fail to meet regulatory standards.

Featured image: Edited by Fintech News Malaysia, based on image by armmypicca via Freepik