Latest news with #DevelopmentFinancialInstitutionsAct2002
Sinar Daily
31-07-2025
- Business
- Sinar Daily
BNM imposes penalties on BIMB, Bank Rakyat and BSN for non-compliance
BNM said BIMB paid RM1.70 million for the AMP imposed on May 29, 2025, for sanction screening breaches and RM1.745 million for the AMP imposed on June 30, 2025, for prolonged service disruptions. 31 Jul 2025 08:44am The central bank said it also has imposed an AMP of RM2.85 million on Bank Kerjasama Rakyat Malaysia Bhd (BKRM) for non-compliance with the Development Financial Institutions Act 2002 (DFIA) and RMiT PD. KUALA LUMPUR - Bank Negara Malaysia (BNM) has imposed an administrative monetary penalty (AMP) totalling RM3.445 million on Bank Islam Malaysia Bhd (BIMB) for non-compliance with the Islamic Financial Services Act 2013 (IFSA) and the relevant policy documents. The relevant policy documents include Risk Management in Technology Policy Document (RMiT PD) and Anti-Money Laundering Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document (AML/CFT and TFS for FIs PD), the central bank said in a statement yesterday. BNM said BIMB paid RM1.70 million for the AMP imposed on May 29, 2025, for sanction screening breaches and RM1.745 million for the AMP imposed on June 30, 2025, for prolonged service disruptions. Separately, the central bank said it has imposed an AMP of RM2.85 million on Bank Kerjasama Rakyat Malaysia Bhd (BKRM) for non-compliance with the Development Financial Institutions Act 2002 (DFIA) and RMiT PD. It said BKRM paid RM2.85 million for the AMP imposed on June 26, 2025. Apart from that, BNM also said it has imposed an AMP of RM995,000 on Bank Simpanan Nasional (BSN) for non-compliance with the DFIA and RMiT PD. BSN paid RM995,000 for the AMP imposed on June 25, 2025, said BNM. - BERNAMA More Like This
Malaysian Reserve
30-07-2025
- Business
- Malaysian Reserve
BNM fines Bank Islam, Bank Rakyat, BSN RM7.29m for regulatory breaches
BANK Negara Malaysia (BNM) has imposed a total of RM7.29 million in administrative monetary penalties on Bank Islam Malaysia Bhd (BIMB), Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat), and Bank Simpanan Nasional (BSN) for various regulatory breaches, including prolonged service disruptions and lapses in anti-money laundering compliance. In separate announcements, BNM said the fines were issued under the Islamic Financial Services Act 2013 (IFSA), Development Financial Institutions Act 2002 (DFIA), and the Risk Management in Technology Policy Document (RMiT PD). BIMB was fined RM1.75 million for failing to ensure high availability of its critical systems, in breach of the RMiT PD. Between 1 June 2023 and 31 December 2024, BNM said BIMB experienced 'multiple unplanned downtimes that caused prolonged disruptions to its banking services, such as e-banking channels, debit card system and online payment transactions.' BNM found the disruptions were due to 'lapses in executing the response and recovery process to restore the disrupted systems promptly.' Separately, BIMB was fined another RM1.7 million for non-compliance with anti-money laundering and counter-financing of terrorism (AML/CFT) policies. This included delayed sanctions screening and reporting of transactions involving specified entities. 'BNM takes the breach seriously, as transactions were facilitated for the specified entities during the period before the identification and confirmation of positive name matches against the Domestic List,' the central bank said. Bank Rakyat was fined RM2.85 million for failing to meet system availability requirements under the RMiT PD between 1 June 2023 and 31 December 2024. BNM cited 'multiple unplanned downtimes that caused prolonged disruptions to its banking services, such as e-banking channels, Automated Teller Machines (ATMs), including debit and credit card systems.' The bank's non-compliance stemmed from 'lapses in executing the response and recovery process to restore the disrupted systems promptly,' impacting essential banking services. BSN was fined RM995,000 for similar failures in maintaining the uptime of critical systems. Between 1 June 2023 and 31 October 2024, the bank experienced prolonged IT outages that affected customer access to key services. BNM stated that the fine considered factors including 'the severity of the non-compliance, including the impact of the service disruptions on customers and counterparties.' BNM stressed the importance of operational resilience across the banking sector. 'BNM expects all financial institutions to maintain a high level of technology resilience against operational disruptions to ensure the continuous availability of essential financial services. BNM will not hesitate to take appropriate supervisory and enforcement actions when financial institutions fall short of regulatory expectations.' All three banks have since taken remedial actions to strengthen their IT infrastructure and compliance processes. — TMR
BusinessToday
30-07-2025
- Business
- BusinessToday
BNM Fines BSN RM995,000 For Weak Critical System Leading To Service Disruption
Bank Negara Malaysia has imposed an Administrative Monetary Penalty of RM995,000 on Bank Simpanan Nasional for non-compliance with critical technology resilience standards. The penalty, imposed on June 16, 2025, stems from prolonged disruptions to BSN's banking services that affected customers and counterparties. The central bank found BSN in breach of the Development Financial Institutions Act 2002, read in conjunction with Paragraph 10.32 of the Risk Management in Technology Policy Document (RMiT PD). This policy, which came into effect on June 1, 2023, mandates that financial institutions ensure their critical systems are designed for high availability. Specifically, it requires a cumulative unplanned downtime affecting user interfaces of not more than four hours on a rolling 12-month basis, and a maximum tolerable downtime of 120 minutes per incident. Between June 1, 2023, and October 31, 2024, BSN experienced multiple unplanned downtimes that exceeded these stipulated thresholds. The disruptions impacted essential banking services, including e-banking channels, Automated Teller Machines (ATMs), and both debit and credit card systems. BNM attributed BSN's non-compliance to lapses in executing its response and recovery processes to promptly restore the affected systems. BSN has since confirmed that it has undertaken necessary actions to enhance its recovery capabilities and strengthen its IT infrastructure. These measures are part of a multi-year technology infrastructure investment plan designed to prevent future non-compliance. The bank confirmed that it paid the imposed AMP of RM995,000 on June 25, 2025. Related
Barnama
05-06-2025
- Business
- Barnama
Businesses Engaged In Foreign Transactions Must Exercise Heightened Diligence Under AMLA
By KUALA LUMPUR, June 5 (Bernama) -- Malaysian business owners engaged in international transactions are advised to maintain comprehensive records and promptly report any suspicious activity to Bank Negara Malaysia (BNM) to ensure compliance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001(AMLA). Lawyer Guok Ngek Seong, who has nearly 25 years of experience in civil and criminal litigation, told Bernama that companies operating in high-risk sectors such as maritime, petroleum and logistics, which frequently conduct foreign exchange transactions, must exercise heightened diligence in documenting their operations. He was speaking on the matter in light of recent actions taken by BNM, which imposed administrative monetary penalties amounting to RM4.95 million on several financial institutions for breaches of statutory and regulatory obligations. The penalties involved non-compliance with provisions under the Development Financial Institutions Act 2002 as well as failures to adhere to requirements under the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document. These regulatory actions reflect the heightened scrutiny placed on financial and corporate entities, reinforcing the need for robust compliance measures, especially in sectors exposed to cross-border transactions. Guok stressed that proper record-keeping may constitute a key line of defence should a company come under investigation for alleged money laundering or involvement in unlawful activities. 'BNM has the authority to conduct annual checks on such entities to ensure compliance with AMLA regulations,' he said.
New Straits Times
28-05-2025
- Business
- New Straits Times
BNM imposes penalties on four financial institutions for regulatory breaches
KUALA LUMPUR: Bank Negara Malaysia (BNM) has imposed an administrative monetary penalty on four banks, namely Bank Pembangunan Malaysia Bhd (BPMB), HSBC Bank Malaysia Bhd, HSBC Amanah Malaysia Bhd and Maybank Islamic Bhd for various breaches of financial regulations. In a statement, the central bank said it has imposed an administrative monetary penalty amounting to RM493,500 on BPMB for non-compliance with provisions under the Development Financial Institutions Act 2002 as well as the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT & TFS) Policy Document. It has also imposed an administrative monetary penalty of RM3.26 million on HSBC Bank Malaysia Bhd for non-compliances related to customer due diligence and sanctions screening requirements, as well as on HSBC Amanah Malaysia Bhd for non-compliances. The penalty was issued for non-compliance with the Financial Services Act 2013, the Islamic Financial Services Act 2013, and requirements pertaining to the Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing, and Targeted Financial Sanctions for Financial Institutions. BNM also highlighted that it had, on March 3, 2025, imposed a penalty of RM1.2 million on Maybank Islamic Bhd for non-compliance with section 155(3)(b) of the Islamic Financial Services Act 2013. The penalty was issued for non-compliance with the Islamic Financial Services Act 2013 and Central Credit Reference Information System Policy Document, said the central bank.
