A recent public notice that was put out by Bank Negara Malaysia (BNM) revealed that they had imposed an Administrative Monetary Penalty (AMP) of RM600,000 on TNG Digital Sdn. Bhd. (TNGD) for contravening the Financial Services Act 2013 (FSA) on 18 May 2023.
TNGD is classified as a Reporting Institution and is required to report to BNM any transactions that breach the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT).
TNGD had reported to the Bank that it had, on separate occasions, onboarded individuals that contravene the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Declaration of Specified Entities and Reporting Requirements) (Amendments) Order 2014.
According to BNM, AML/CFT controls when effectively implemented will help promote integrity and stability in financial markets. Malaysia’s AML/CFT regime covering areas such as financial intelligence, investigation and enforcement of laws under all under the purview of BNM as well as supervision of reporting institutions.
Reporting institutions required to take preventive measures
Reporting institutions can be from both the financial and non-financial sectors. They are required by law to ensure measures are taken to prevent their businesses from being used for money laundering or terrorism financing activities.
Reporting institutions operating in Malaysia are as listed under the following categories.
Source: BNM
The AMP amount totalling RM600,000 was determined by considering relevant aggravating and mitigating factors, including assessment of the remedial actions taken to address the non- compliances. TNGD had paid RM600,000 for the AMP imposed by the Bank on 31 May 2023.
However, it is not the only institution to be imposed penalties by BNM in recent months.
Fines ranging from RM132,000 to RM2,700,000
Besides TNGD, others hit with penalties recently include MPI Generali Insurans Berhad (RM260,000), Mandiri International Sdn. Bhd. (RM134,400), MCIS Insurance Berhad (RM132,000), Koperasi Co-opbank Pertama Malaysia Berhad (RM828,000), Wawasan Ilham (M) Sdn. Bhd. (RM152,200), Takaful Ikhlas Family Berhad (RM612,000), J.P. Morgan Chase Bank Berhad (RM2,700,000) and CIMB Bank Berhand and CIMB Islamic Bank Berhad (RM1,700,000).
Besides these financial services providers, e-commerce company i-Serve Online Mall Sdn Bhd was also imposed compounds totalling RM50 million on seven of its online entities. The main breach was for accepting deposits without a license.
Source: BNM Public Notices
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