Latest news with #BankIslam
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
3 banks fined more than RM7mil for regulatory breaches
Bank Negara Malaysia said the penalties were determined after considering the severity of the breaches, past compliance records, and effectiveness of remedial actions. PETALING JAYA : Bank Negara Malaysia has imposed more than RM7 million in administrative monetary penalties on three banks for non-compliance with regulatory requirements, particularly relating to system downtime and sanctions screening failures. Bank Islam received two separate penalties totalling RM3,445,000, Bank Rakyat was fined RM2,850,000, and Bank Simpanan Nasional was handed a RM995,000 penalty, said BNM in separate statements today. The central bank said the penalties stem from breaches of the Development Financial Institutions Act 2002, the Islamic Financial Services Act 2013, as well as requirements under its policies on risk management in technology, anti-money laundering, financial sanctions, and countering financing of terrorism. Bank Islam's first penalty, amounting to RM1,745,000, was for prolonged service disruptions between June 2023 and December 2024. BNM said the bank was found to have delayed system recovery, which affected its digital banking services. It has since begun upgrading its IT systems and recovery plans to prevent future incidents. The second penalty against Bank Islam, amounting to RM1,700,000, was for failures in sanctions screening compliance under regulations on anti-money laundering and countering financing of terrorism. These failures included delays in screening non-customer beneficial owners and the bank's entire customer database, resulting in late identification of matches with specified entities. Bank Islam also failed to report its findings in a timely manner. BNM said the bank's lapses were attributed to weak internal processes, inadequate training, and ineffective oversight. It said Bank Islam has since enhanced its sanctions screening systems and procedures. Bank Rakyat was fined RM2,850,000 for failing to meet BNM's requirements for system availability, resulting in multiple service disruptions between June 2023 and December 2024. These outages affected critical banking services such as e-banking, ATMs, and card systems. The disruptions exceeded allowable downtime thresholds due to inadequate response and recovery measures. BNM said Bank Rakyat has since strengthened its IT infrastructure and recovery capabilities. It said financial institutions must ensure that their critical systems are designed for a cumulative unplanned downtime that affects user interface of not more than four hours on a rolling 12-month basis, and a maximum downtime of 120 minutes per incident. BSN was fined RM995,000 for similar failures in meeting downtime requirements. It experienced multiple unplanned outages between June 2023 and October 2024 that disrupted services, including ATMs, e-banking, and card transactions. BNM said the disruptions breached the allowed downtime thresholds because of weak recovery protocols, though BSN has since upgraded its technology infrastructure It said all financial institutions must maintain strong technology resilience to ensure uninterrupted access to essential financial services, adding that non-compliance will result in enforcement action regardless of past performance. The central bank also said the penalties were determined after considering the severity of the breaches, past compliance records, and effectiveness of remedial actions. All three institutions have paid their fines.
Malay Mail
2 days ago
- Business
- Malay Mail
Three banks, RM9m penalty: Bank Negara fines BIMB, Bank Rakyat and BSN for tech and AML violations
KUALA LUMPUR, July 30 — Bank Negara Malaysia (BNM) has imposed administrative monetary penalties totalling RM9 million on Bank Islam Malaysia Bhd (BIMB), Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat), and Bank Simpanan Nasional (BSN) for breaches of financial regulations. BNM stated today that it fined BIMB RM5.145 million for non-compliance with the Islamic Financial Services Act 2013 and related policy documents, including the Risk Management in Technology Policy Document (RMiT PD) and the Anti-Money Laundering, Countering Financing of Terrorism, and Targeted Financial Sanctions for Financial Institutions Policy Document. BIMB paid RM1.70 million for an administrative monetary penalty imposed on May 29, 2025 related to sanction screening failures, and RM1.745 million for a separate penalty imposed on June 30, 2025 over prolonged service disruptions. Separately, Bank Rakyat was fined RM2.85 million for non-compliance with the Development Financial Institutions Act 2002 (DFIA) and the RMiT PD. The bank paid the full amount on June 26, 2025. BSN was also fined RM995,000 for breaching the DFIA and RMiT PD, with payment made on June 25, 2025. — Bernama
The Star
2 days ago
- Business
- The Star
Ninth tranche of Bank Islam sukuk issued
The issuance marks the ninth tranche under the bank's RM10bil sukuk murabahah programme. KUALA LUMPUR: Bank Islam Malaysia Bhd has issued RM1bil senior sukuk murabahah under its RM10bil sukuk murabahah programme on July 25. The issuance marks the ninth tranche under the bank's RM10bil sukuk murabahah programme. In a statement, Bank Islam said the sukuk had received an overwhelming response from investors with a high bid-to-cover ratio of three times. The senior sukuk murabahah is rated AA3/stable by RAM Ratings Services Bhd and carries a competitive profit rate of 3.85% per annum for a seven-year tenure, it said. 'The proceeds will be used to finance Bank Islam's banking activities, working capital requirements and other corporate purposes. The utilisation of the funds will be in accordance with syariah principles,' it added. — Bernama
Barnama
3 days ago
- Business
- Barnama
Bank Islam Issues Ninth Tranche Of RM1 Bln Senior Sukuk Murabahah
In a statement today, Bank Islam said the sukuk has received an overwhelming response from investors with a high bid-to-cover ratio of three times. The issuance marks the ninth tranche under the bank's RM10 billion Sukuk Murabahah Programme. KUALA LUMPUR, July 29 (Bernama) -- Bank Islam Malaysia Bhd has issued RM1.0 billion Senior Sukuk Murabahah under its RM10.0 billion Sukuk Murabahah Programme on July 25. The Senior Sukuk Murabahah is rated AA3/stable by RAM Ratings Services Bhd and carries a competitive profit rate of 3.85 per cent per annum for a seven-year tenure, it said. 'The proceeds will be used to finance Bank Islam's banking activities, working capital requirements and other corporate purposes. The utilisation of the funds will be in accordance with Shariah principles,' it added. Bank Islam is the principal adviser, lead arranger, lead manager, and Shariah adviser for the Sukuk Murabahah Programme.
Barnama
4 days ago
- Business
- Barnama
Bank Islam Reinforces Commitment With Mangrove And Turtle Conservation Initiative At Pantai Chendor
KUANTAN, July 28 (Bernama) -- Bank Islam Malaysia Berhad (Bank Islam) reinforced its long-term sustainability commitment with a mangrove and turtle conservation initiative held at Pantai Chendor on Saturday, in conjunction with International Mangrove Ecosystem Conservation Day. In a statement, the bank said the initiative was organised in collaboration with the Malaysian Nature Society (MNS) Pahang, with support from the Advanced Technology Training Centre (Adtec), Kemaman, and students from Maahad Tahfiz Negeri Pahang. The initiative saw 150 volunteers comprising Bank Islam staff, students, drug intervention programme participants and members of the local community, planting 3,000 mangrove saplings and releasing 100 turtle hatchlings into the sea in a bid to conserve endangered marine species. Bank Islam Group chief operating and sustainability officer, Mohamed Iran Moriff Mohd Shariff, said the initiative builds on five other environmental conservation projects the bank has undertaken since 2019. 'Today's activity is not merely symbolic. It is a meaningful step towards environmental preservation for the sake of future generations,' he said. Bank Islam reaffirmed its commitment to environmental responsibility by encouraging the involvement of local communities in addressing environmental issues such as climate change, which continues to affect their quality of life. MNS vice-president Noor Jehan Abu Bakar said this third collaboration with Bank Islam reflects a shared vision between the corporate sector and civil society in protecting the environment. 'MNS believes long-term partnerships like this can make a meaningful impact in conserving coastal ecosystems and ensuring the survival of marine species increasingly threatened by human activity and climate change,' she said. The initiative also aims to empower communities by supporting the local economy through the purchase of mangrove saplings and turtle eggs from fishermen.
