Bank Negara Malaysia (BNM) has fined three money-changing firms a total of RM40,400 for customer due diligence and sanctions screening failures.
BNM announced the penalties on 30 September after supervisory examinations uncovered the breaches. All three firms have paid their fines and taken remedial measures.
Wawasan Ilham (M) Sdn. Bhd. received a RM22,000 penalty for failing to conduct customer due diligence on a customer for a money-changing transaction.
BNM attributed the lapse to inadequate oversight and a weak compliance culture. The firm has since strengthened management oversight and trained staff.
SMJ Teratai Sdn. Bhd. was fined RM6,900 for customer due diligence failures involving money-changing transactions.
Its staff had failed to exercise reasonable care in implementing requirements to identify and verify an authorised company representative.
The firm has retrained staff, updated operating procedures and strengthened governance and internal controls.
Ruhanmas Forex Sdn. Bhd. received a RM11,500 penalty for failing to maintain a sanctions screening mechanism and screen customers against Malaysia’s Domestic List and the United Nations Security Council sanctions list.
BNM attributed the breaches to a lack of understanding of regulatory requirements.
Ruhanmas has since integrated a commercial sanctions database service into its currency exchange system.
BNM considered the severity of the breaches, compliance records and remedial actions when setting the penalties.
Wawasan Ilham’s record included repeated misconduct involving similar breaches.
The penalties were imposed under the Money Services Business Act 2011. BNM warned that non-compliance could lead to supervisory or enforcement action.
Featured image: Edited by Fintech News Malaysia, based on image by 3Dsss via Magnific
