Bank Negara Malaysia had on 18 May 2023, imposed an Administrative Monetary Penalty of RM600,000 on TNG Digital Sdn. Bhd. the company that manages the largest cashless service in Malaysia, touch n go e-wallet.
The Central Bank said the fine was for contravening the Financial Services Act 2013 which read together includes the Anti-Money Laundering and Counter Financing of Terrorism – Electronic Money and Non-Bank Affiliated Charge & Credit Card (Sector 4) policy document and the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions policy document.
According to a statement released by BNM, TNGD had reported to the Bank that it had, on separate occasions, onboarded two sanctioned individuals under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Declaration of Specified Entities and Reporting Requirements) (Amendments) Order 2014. The regulator identified them as breaches under section 48(1) of the FSA where in respect of the first sanctioned person where TNGD failed to conduct sanctions screening on the names of its customers; and in respect of the second sanctioned person where TNGD failed to ascertain and make further enquiries that its customer matched with the United Nations Security Council Resolutions List or the Minister of Home Affairs Domestic List.
As a financial service provider, TNG is bound by Bank Negara’s monetary policies just like physical financial institutions, this is why these companies will require experts in local monetary guidelines residing within the organisations to advise the management accordingly.
The AMP amount BNM said was determined by considering relevant aggravating and mitigating factors, including assessment of the remedial actions taken to address the non- compliances. TNGD paid RM600,000 for the AMP imposed by the Bank on 31 May 2023.
