Bank Negara Malaysia and the Labuan Financial Services Authority have imposed a total RM10 million compound on UBB Investment Bank Limited (UBBIB) for breaches involving anti-money laundering reporting and customer due diligence requirements.
The examination identified material non-compliances, including the bank’s failure to promptly submit suspicious transaction reports (STRs) and shortcomings in its customer due diligence processes.
According to BNM and LFSA, investigations found that UBBIB had failed to promptly submit STRs relating to 53 suspicious transactions conducted between 2023 and 2024.
Separately, an LFSA investigation found that UBBIB had failed in 2023 to properly identify and verify a customer’s identity during the onboarding process.
The regulator said the breach constituted an offence under Section 98(2) of the Labuan Financial Services and Securities Act 2010.
The failure affected UBBIB’s ability to properly assess and detect whether the customer could potentially be involved in illicit activities overseas.
Following the breaches, BNM and LFSA initially imposed compounds on UBBIB.
However, the compounds were not settled within the stipulated period, resulting in prosecution being instituted against the investment bank for offences under both AMLA and the LFSSA.
Following the commencement of prosecution, UBBIB submitted written representations to the Attorney General’s Chambers seeking reinstatement of the compounds that had previously been offered.
With the written consent of the Public Prosecutor, BNM and LFSA subsequently imposed a RM9 million compound for offences under AMLA and a further RM1 million compound for the offence under the LFSSA on March 13, 2026.
UBBIB paid the combined RM10 million compound on June 11, 2026.
