Bank Negara Malaysia (BNM) has imposed financial penalties totalling RM1.07 million on four entities for breaches of anti-money laundering and counter-financing of terrorism (AML/CFT) regulations.
The central bank said the enforcement actions were taken following failures by the institutions to comply with requirements under the submission of suspicious transaction reports (STRs), which are a key component of Malaysia’s financial crime prevention framework.
MBSB Bank Berhad received the heaviest penalty, amounting to RM560,000. BNM said the bank failed to submit an STR relating to unusually large cash withdrawals that had triggered its internal red flag indicators. The lapse was attributed to insufficient staff awareness and understanding of STR reporting obligations.
Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) was fined RM460,000 for failing to promptly file STRs involving suspicious activities linked to several customers. Similar to MBSB, BNM said the breach stemmed from inadequate staff awareness of AML/CFT reporting requirements.
In addition to the two banks, two non-bank institutions were also compounded for comparable compliance failures.
Boardroom Corporate Services Sdn Bhd was fined RM46,000 for not submitting an STR in a timely manner and for failing to conduct enhanced due diligence on a high-risk customer, as well as customers receiving nominee services.
Ilham Secretarial Services was imposed a compound of RM8,625 for failing to promptly submit an STR relating to irregular transactions involving a customer.
BNM said all four institutions have since taken corrective measures to strengthen their internal controls, enhance staff training and improve overall compliance with AML/CFT requirements.
The central bank reiterated that it will continue to take firm enforcement action against reporting institutions that fail to meet regulatory standards, underscoring its ongoing commitment to safeguarding the integrity of Malaysia’s financial system.
