The Money Services Business (Amendment) Act 2024 enforced by Bank Negara Malaysia (BNM) will take into force effective 1 August 2024.
The amendments to the MSBA is said to strengthen the Central Bank’s ability to take effective enforcement actions against illegal operators who could expose customers to risks and undermine the integrity of the money services business (MSB) industry. The amendments provide for include
a) mandatory imprisonment for a term not exceeding 10 years and a minimum fine of RM50,000 for illegal operators of MSB;
b) greater clarity on the offence of abetting illegal operators;
c) clearer definition of remittance business and the scope of evidence that can be used to charge an illegal operator;
d) authorities to forfeit the property of an illegal operator upon prosecution to deter repeat offenders; and
e) administrative instead of criminal actions to be taken by BNM against operational breaches by MSB licensees in line with more proportionate enforcement actions appropriate to the severity of the offence.
The MSBA was first issued in 2011. It governs the conduct and supervision of the MSB industry, which comprises money changers, remittance service operators, and currency wholesalers.
BNM saud the MSBA has played an instrumental role in elevating the industry’s professionalism and compliance standards, and preventing the abuse of MSB entities for criminal purposes.
