KUALA LUMPUR: Bank Negara Malaysia (BNM) has imposed an administrative monetary penalty of RM29,000 on Merchantrade Asia Sdn Bhd for breaching provisions under the Money Services Business Act 2011, citing failures in sanctions screening procedures and delayed updates to its sanctions database.
BNM also fined JAGS Money Sdn Bhd RM6,000 for similar non-compliances, namely failure to promptly update the sanctions database and to screen new customers accordingly.
As reporting institutions, both companies are required to screen existing and potential customers against the Domestic List and the United Nations Security Council Resolutions (UNSCR) List to ensure regulatory compliance and prevent financial crimes.
BNM stated that Merchantrade’s oversight involved delays in updating the Domestic List and shortcomings in validating potential sanctions matches. In response, Merchantrade has since enhanced its compliance measures by subscribing to a commercial database service for real-time updates and conducting regular staff and agent training to strengthen internal controls.
The penalties reinforce BNM’s ongoing commitment to enforcing robust due diligence practices within Malaysia’s money services sector.–BERNAMA
