UBB Investment Bank paid an RM10 million fine after regulators uncovered failures in suspicious transaction reporting and customer due diligence.
Bank Negara Malaysia (BNM) and the Labuan Financial Services Authority (LFSA) identified the breaches during a joint examination in August 2024.
Investigations found that the LFSA-licensed Labuan investment bank failed to promptly report 53 suspicious transactions conducted between 2023 and 2024.
This breached Malaysia’s anti-money laundering law.
A separate LFSA investigation found that the bank failed to properly identify and verify a customer during onboarding in 2023.
The lapse affected its ability to assess the customer’s potential involvement in illicit overseas activities.
BNM and LFSA initially offered compounds for the offences.
The bank did not settle them within the stipulated period, prompting the authorities to begin prosecution proceedings.
UBB Investment Bank later asked the Attorney General’s Chambers to reinstate the compounds.
With the Public Prosecutor’s consent, the regulators imposed a RM9 million compound for the reporting offences and RM1 million for the customer due diligence breach on 13 March 2026.
The bank settled both compounds on 11 June 2026.
BNM and LFSA warned that reporting institutions could face enforcement action and prosecution if they fail to meet anti-money laundering and other regulatory obligations.
Featured image: Edited by Fintech News Malaysia, based on image by Magnific
