Bank Negara Malaysia has imposed an Administrative Monetary Penalty of RM520,000 on AEON Credit Service for failing to comply with requirements relating to targeted financial sanctions (TFS).
The central bank said the penalty was imposed after a supervisory examination found that AEON Credit had breached regulatory requirements on the screening and handling of customers linked to designated entities under Malaysia’s Domestic List.
As a reporting institution, AEON Credit is required to reject potential customers when there is a confirmed match against individuals or entities listed under the Domestic List and the United Nations Security Council Resolutions (UNSCR) List.
Financial institutions are also required to immediately freeze funds once a customer is confirmed to be a specified entity on the lists, as part of measures to prevent the financial system from being misused for terrorism financing activities.
BNM said its inspection found that a specified entity listed under the Domestic List had been onboarded as an AEON Credit customer despite a positive match during the screening process.
The company also delayed freezing the customer’s account after the customer’s identity was confirmed as a designated entity.
According to BNM, the breaches were attributed to weaknesses in staff oversight and gaps in AEON Credit’s standard operating procedures (SOPs).
“Compliance with targeted financial sanctions requirements is essential to protect financial institutions and the broader financial system from abuse for terrorism financing activities,” BNM said.
