Bank Negara Malaysia (BNM) has fined The Pacific Insurance Berhad RM336,000 after its CEO position remained vacant for 16 months.
The insurer did not have an approved CEO between 21 November 2024 and 23 March 2026, breaching a requirement under the Financial Services Act 2013 to maintain a CEO at all times.
BNM attributed the breach to inadequate succession planning, which delayed the identification and submission of a suitable candidate for approval.
Pacific Insurance appointed a representative during the vacancy, while its board continued to oversee operations.
These measures prevented any material disruption to its day-to-day business.
The insurer appointed a new CEO on 24 March 2026 after securing BNM’s approval.
BNM imposed the penalty on 28 May 2026 after considering the severity of the breach, the insurer’s compliance record, its existing controls and the steps taken to prevent a recurrence.
Pacific Insurance paid the RM336,000 penalty on 9 June 2026.
Separately, BNM fined money services business licensee Wang S. Enterprise Sdn Bhd RM16,000 for failing to submit statistical information within the required timeframe.
The company has paid the penalty and submitted its outstanding reports.
Featured image: Edited by Fintech News Malaysia, based on image by Burdun via Magnific
