Malaysia’s central bank said on Wednesday that it has imposed a fine of RM520,000 (US$125,665) on AEON Credit Service (M) Bhd (AEONCR) for breaches involving targeted financial sanctions requirements.
AEON Credit, the Malaysian subsidiary of Japan’s Aeon Co (8267), has since implemented remedial measures and conducted refresher training for relevant staff to strengthen compliance processes, according to Bank Negara Malaysia (BNM).
BNM said the breaches occurred after AEON Credit allowed a sanctioned entity to open an account with the company. The central bank did not disclose the identity of the sanctioned party.
In addition, AEON Credit was found to have delayed freezing the account even after confirmation that the customer was listed under domestic sanctions, the regulator added.
“These breaches were attributed to lack of staff oversight and a gap in AEON Credit’s standard operating procedure,” Bank Negara Malaysia said in its statement.
BNM also confirmed that AEON Credit has since paid the compound, which was settled on April 16.
The central bank reiterated that financial institutions are required to maintain robust internal controls and compliance frameworks to ensure full adherence to sanctions obligations, particularly in relation to customer due diligence and timely account restrictions.
The case highlights the importance of strengthening operational safeguards within financial institutions to prevent lapses in sanctions screening and enforcement.
